Key highlights:
1. Cash is draining fast. From $122M to $76M in one quarter. WTF!!!
2, Revenue declined sequentially from Q2. HOW IS THIS EVEN POSSIBLE?
3. Backlog grew only $8M, while expenses grew, margins suffer and they drained $46M of cash in the quarter. THIS IS NOT GOOD FOR A STOCK TRADING AT A PREMIUM TO PUBLIC ITS COMPANIES
4. As I warned previously, the debt covenants had minimum EBITDA requirements. It looks like lenders asked for $20million in payments to rectify the situation. But, that explains less than half the missing cash. WHERE DID THE CASH GO!?
5. At this cash level and this horrendous burn rate, there is only 3 quarters of cash left. HOLY SH!T
6. EBITDA was negative again. Every analyst was wrong again. Doug is going to be pissed at these results. ONLY VG WAS SPOT ON AGAIN.
No NCIB is possible at these levels when the debt holders are demanding repayment. They now run the company.
No buyer for WiLan that generated 200k of revenue licensing chaff.
Cue the downgrades and 52 week lows and the next 45 days of rampant selling.