The lack of progress in licensing was another Q1/13 disappoint. Apparently they got a puny EUR 15m from licensing in Q1/13, while they prognosticated in the Goldman material EUR 400 for FY'15.
Licensing could be the game changer to make this restructuring still work. Let's not forget Nokia and Ericsson make more than EUR 500 million a year from licensing, and ALU's patent portfolio does not seem that far behind. An additional EUR 300m++ a year from licensing would make a real difference in the cash flow statement.
Hope Mr. Combes got his first prognostication right, and we will indeed see a "material change in that number as we move into the next three quarters" ... :
Gareth Jenkins - UBS
First, I just wanted what level of IP licensing you saw in the quarter and how that is shaping up for the year in terms of your activations of growth in that business and monetizing IP.
Michel Combes - Chief Executive Officer
So, if you look at licensing revenue, we had [put out] your license revenue in the first quarter was rather neater. It was a new less than €15 million. Now, as we said before, we changed our focus. We are on reexamining how we are going to get to address driving increasing license revenues and we would expect that we would see a material change in that number as we move into the next three quarters.