Question-and-Answer Session
Operator
Certainly. (Operator Instructions). Our first question does come from Derrick Wood with Pacific Growth Equities.
Derrick Wood - Pacific Growth Equities
Hey guys, nice quarter.
Joe Cowan
Thanks you, Derrick.
Derrick Wood - Pacific Growth Equities
What's the timing on when you expect this deal to close?
John Calonico
We expect to close the transaction with Discovery Mining in the third quarter, Derrick. There are some closing conditions associated with the transaction, as are typical, but we expect that the deal will close in the third quarter at this point.
Derrick Wood - Pacific Growth Equities
Okay. And I was just trying to get a sense for what the EPS impact is on the delusion from the deal?
John Calonico
Yes. So, as I mentioned in this script, one of the issues we face with this transaction because they've been so successful with Discovery Mining and bringing in customers, is the fact that we're going to have a fairly significant write down of deferred revenues associated with this transaction and relative to the company's overall revenues -- Discovery Mining's overall revenues. And the result of that is that we're going to end up taking a reduction of about $3.5 million to $4.5 million over the next year to year and a half. In Q3 I expect that the results of incorporating Discovery Mining and after excluding the amounts associated with the deferred write down, that will have an impact of about $0.02 a share.
Derrick Wood - Pacific Growth Equities
And then how long would you expect it to become accretive?
John Calonico
Well, given the deferred revenue write down it looks like we will be looking at a delusion in Q4 of again $0.02 to potentially even $0.03. And then it starts to become -- it starts to progress up as we add additional revenues and then will become accretive in the second or third quarter of next year.
Derrick Wood - Pacific Growth Equities
And so you're not going to give a non-GAAP revenue number that would add back the deferred revenue write down?
John Calonico
What I'll do for you guys is to give you the deferred -- the revenue we would have recognized going forward, okay. And we expect that number in Q3 to be about $1 million, right, the deferred right down.
Derrick Wood - Pacific Growth Equities
And in terms of the comments around the Scrittura Capital Markets business, can you give us some color as to what percentage of revenue that currently is?
- To read the full transcript on Seeking Alpha, click here »
