RE:Wilan 4 Yr Average Gross Margin Means Sell Wilan subsidiaryshareholders1 wrote: ...After the Apple settlement.
I used 2018 and 2017 FS (in $US) and converted at 1.25. I have done this quickly, so anyone that has their own long term spreadsheet with accurate numbers, please feel free to correct mine.
2017 to 2020 Ave Annual Gross Margin = $42,443 Cdn
This is before below the line, Opex.
Average Annual Opex (incl non-cash) = $65,498. A good/ reasonable % of this would be attributable to Wilan.
The BoD needs an overhaul.
Wilan must be sold to a more efficient patent licensing operator. Based on my rough #'s, Wilan does not seem to be efficient at all.
I looked at Wilan specifically... their SG&A costs were on average $2M per year if you look at the last four years. Last year, it was $3.4M. Direct cost of revenue was on average 63%. Using an average $42M of revenue, then cash costs would be on average around $29M.
This means on average, Wilan brought $13M of cash, or $52M over four years. If you would consider a 4 year average, then $13M of yearly cash inflow is what you need to consider when talking about selling the company.
It really depends on what the market would pay for Wilan. I don't think you want to get rid of a $13M yearly cash income unless you get a certain number.