A bit of a riddle. Here is pro-forma 2018 revenue:
- Pareteum ($4M+$6M+$8M+$10M) = $28M (estimating $10M for Q4).
- Artilium produced 16.25M euro in revenue for their fiscal year ending in June 2018 (up from 10M euro the previous fiscal year, with the increase mostly due to the acquisition of IDM). Given the growth and the exchange rate, calendar year 2018 revenues are likely to be $18M-19M.
- iPass 2018 revenues (which are actually declining due to their corporate legacy business) is roughly $40M (see below).
That is, pro-forma 2018 revenue for the companies combined is likely to be in the order of $85M. The acquisition presentation from November 2018 on the iPass acquisition has it at $92M.
So with $85M as the 2018 base case, what will 2019 revenues be?
On average, 15% of backlog is converted into revenues in the first year of contract. For the sake of being conservative, lets make that 10%, that's still over $60M suggesting revenues this year could easily reach $145M.
Keep in mind that the official number is lower as the iPass acquisition closed in the third week of February.
This is also in the same ballpark the 2019 estimate management gave ($144M) for 2019 revenues in their presentation when they announced their intention to acquire iPass.
So we roughly arrive at $145M for this year (on a pro-forma basis, officially it's a little lower due to iPass joining in the third week of Februari).
Now there is something curious:
- Taglich Brothers project curiously low revenues of $113M
- From what we remember from Northland, they're in the same ballpark as Taglich Brothers.
How come they're so much lower, anyone any suggestions?