RE:Apple settlementthat's not exacty true joey. please don't become another veeegeee.
Canaccord While the conclusion of this agreement had been considered a significant potential catalyst for QTRH, the terms and consideration payable to QTRH were not disclosed and remain confidential. Pending more detail on the license agreement’s terms and conditions, we are not making changes to our model or valuation at this time, though
we believe Q1 results are likely to be dramatically impacted (positively) by the agreement. Recall that our unchanged sum-of-the-parts (SotP) analysis underpinning our $2.75 target price assumes $72M in value for the Apple case ($0.63/share). This is discounted from the latest US $109M damages number to reflect likely legal fees, risks, and time-value to ultimate collection.
Cormark Post Q4, QTRH has secured a license agreement with
Apple in Q1 which should drive material cash flow for the business. When combined with the planned divestment of WiLAN in 2022, we think the deal has increased the value QTRH will drive from the WiLAN business this year and provides additional nondilutive capital to fund further ITS consolidation.
Raymond James The last court decision award was US$109 mln. In the most recent appeal, the court confirmed infringement and expanded number of units in play, but sent the case back for damages calculation. In our analysis, we assumed
$41 mln for the settlement ($0.35/share). At a minimum, we believe this will help smoothen the WiLAN sale process as it is one less unknown in WiLAN valuation process.