SEEKING ALPHA, Nov 6, 2013

MT Newswires reported this as a just miss. They failed to cite what missed but the release I saw was on the Credential Financial site, one of the largest Canadian trading sites. Since the main market for the stock is the TSX, the stock tanked just after that. It is reporting like that that has plagued the stock.

Since almost all expenses of any size the company incurs is a one off, the company is harder for analysts to wrap their head around. Companies provide a GAAP report of their business as required by the regulators. Most also release a non-GAAP report which pulls out one off items, like litigation expenses, Wilan's biggest reported expense. In Wilan's case, most legal expenses, attached to cases they win or settle, would be recovered. Each separate case is a separate entity and should be judged on its own merits. However, disclosure of settlement details usually runs counter to the interests of the parties involved.

The forward guidance illustrates the problem analysts are having. With significant litigation costs largely behind them and new licenses and settlements feeding the balance sheet going forward, they exceeded analyst expectation for next quarter by almost 20%.

They have $142M in cash etc. and no debt. License income in the pipeline will exceed the market cap over the next 3- 4 year. Taking out the cash from the market cap and the time is cut in half. Analysts are saying they need a new business model because they lost two court cases. The strategy and tactics of this management has grown the company from basically nothing to having the cash, no debt and a cash machine bringing in over $100M per year. This revenue is almost solely IP fees and recovered legal costs, high margins.

They will likely change their business model, from public to private. They are way too valuable to be discounted like the current share price reflects. If I had the cash I would buy the company. Seriously at this share price I would have my money back in 4 years and $142M in the bank, plus all the dividend income.

And, there is upside to the company. Apple still has to deal with the remaining patent claims. Navigating one claim, on an expiring patent is one thing, but getting past the rest is highly unlikely. Even one settlement on one claim will likely lead to Apple joining Samsung, Sony, HTC and others as a client.

Analysts should be pumping this stock as a raging buy. Instead they are questioning management? And what is their point of reference, stock price. But, the stock price is where it is due to analyst failure, not management failure. Reminds me of Bart Simpson's declaration.

“I didn't do it, nobody saw me do it, there's no way you can prove anything!”

It's a classic blame the victim scenario.

http://seekingalpha.com/currents/post/1389262

*from dant on the yahoo board