Takeaways from conference call not in press release1) Brett remains interim CEO of ETC until a replacement is found.
2) Trigger for announcement is that the board wants to move Quarterhill to a pure play ITS company. Wilan does not fit with that.
3) Divesting Wilan will remove the corporate holding company overhead and associated ratings penalty.
4) No immediate change to ITS investment decision of $400 million over 5 years which is actually $250 million since ETC $150 million purchase. Can’t tell how quickly money will be deployed until Quarterhill works through the pipeline.
5) CIBC commented that the immediate departure of Paul Hill seemed abrupt and announcement does not seem orderly. Was the sudden announcement related to ETC/IRD missing financial targets?
RESPONSE: Missed financial targets are absolutely
not the reason for the timing of the announcement. Paul's release is not about his performance. Paul supports transition and continues to be a shareholder. The reason for Paul’s release will be revealed in the next fiscal quarter.
6) Why do we think the outcome of the Wilan strategic review will be different this time?
RESPONSE: Last time Wilan strategic review was conducted was when Wilan was an IP pure play. Quarterhill is now a holding company so the Wilan view is different. There’s a lot of capital in play with private firms looking for investment opportunities that can generate cash flows like Wilan. If you can put Wilan in a vehicle that does not have to report quarterly, that’s a good thing.
7) Has Quarterhill been approached regarding a Wilan sale?
RESONSE: No. But with the announcement, that may change.