Upcoming AWS Coverage on United States Cellular Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 5, 2017 / Active Wall St. blog coverage looks at the headline from Wi-LAN Inc. (NASDAQ: WILN) as the Company announced on May 04, 2017, that it has entered into a definitive agreement to purchase all of the issued and outstanding shares of VIZIYA. VIZIYA is a leading software and services provider that helps Companies optimizes their asset performance. Based in Hamilton, Ontario, VIZIYA offers industry leading bolt-on software products to enhance ERP-based asset maintenance systems. Register with us now for your free membership and blog access at:
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One of Wi-LAN's competitors within the Wireless Communications space, United States Cellular Corp. (NYSE: USM), reported its Q1 operating results on May 05, 2017. AWS will be initiating a research report on United States Cellular in the coming days.
Today, AWS is promoting its blog coverage on WILN; touching on USM. Get all of our free blog coverage and more by clicking on the link below:
http://www.activewallst.com/register/
Breaking down the Announcement
This acquisition of VIZIYA is under Wi-LAN's previous announcement made on April 17, 2017, to execute a new growth strategy. The strategy included targeting Companies with a broad range of product and services that capture, analyze, and interpret data and have strong financial performance, excellent management teams, strong intellectual property underpinnings, and significant opportunities to create and deliver long-term value with a regular revenue stream.
VIZIYA, according to Wi-LAN meets all the criterions and expects to drive greatest shareholder returns over time. VIZIYA has witnessed substantial growth and profitability and this transaction will enable Wi-LAN to access the resources that will help it to build and expand its business. VIZIYA's asset management software helps multiple Fortune 1000 customers optimize their asset performance and uptime, allowing the Company to achieve their production targets, control costs, and manage safety and compliance. These asset management systems are important part of the Industrial Internet of Things (IIOT) ecosystem, and represent a significant growth opportunity for VIZIYA.
The introduction of the IIOT enables organizations to build intelligent connected equipment that monitors itself and constantly captures data to measure damage, wear and tear, and other operational indicators. It enhances data collection on a real-time basis and enables operational systems to move beyond preventative maintenance towards predictive maintenance through the use of analytics.
Financial Details
Wi-LAN cost of the acquisition will be approximate $40.5 million (CAD) with nearly 60% paid on closing and the balance subject to certain earn-out provisions if the business meets specific financial targets. Certain aspects of the transaction remain subject to the approval of the Toronto Stock Exchange. VIZIYA products help multiple Companies maintain their assets and have a portfolio of over 55,000 users at 850 sites across six continents. The Company achieved revenue of $16.6 million (CAD) and normalized EBITDA of $4.3 million for the year ended July 31, 2016.
Wi-LAN will fund the cash portion of the acquisition with cash and cash equivalents on hand, which at March 31, 2017, was $113.6 million. The cash and cash equivalents at March 31, 2017, do not account the Company's $63.5 million (CAD) cash-purchase of International Road Dynamics on April 17, 2017. The transaction is expected to close on, or about June 01, 2017.
Wi-LAN Growth Prospects
Wi-LAN announced on April 17, 2017, a Board of Directors-approved plan to transform the business into a growth-oriented portfolio by acquiring Companies that will operate alongside the Company's intellectual property licensing business. As a part of the transformation, Wi-LAN would change its name to Quarterhill, Inc., on or about June 01, 2017. The Company plans to leverage its capital to increase shareholder value through this acquisition of VIZIYA.
Prior to this acquisition, the Company acquired International Road Dynamics under its IIOT growth strategy on April 17, 2017, for approximately $47.4 million. IRD is a portfolio IIOT Company specializing in Intelligent Transportation Systems and holds a portfolio of integrated hardware and software solutions to better detect, analyze and measure a variety of transportation challenges.
Q1 Results
Wi-LAN reported its Q1 FY17 results for the three-month period ending March 31, 2017. The Company generated net cash flows from operations of $8.4 million for Q1 FY17. For Wi-LAN, cash and cash equivalents, along with short-term investments increased to $113.6 million in the same period. The Company paid out $1.1 million in dividends for the three-month period. The Company signed 4 license agreements during Q1 FY17 and received a favorable Court of Appeals ruling against Ericsson enabling trial processes to start.
Stock Performance
At the close of trading session on Thursday, May 04, 2017, Wi-Lan's stock tumbled 17.77%, closing Thursday's session at $1.62 on volume of 425.87 thousand shares. Additionally, the stock has soared 9.46% in the last six months. The Company's shares are trading at a PE ratio of 18.00 and have a dividend yield of 2.47%. At Thursday's closing price, the stock's net capitalization stands at $192.09 million.
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SOURCE: Active Wall Street