June 14, 2006
-- Wi-LAN Inc. (TSX:WIN) ("Wi-LAN" or "the Company") today announced second quarter fiscal 2006 financial results for the three and six months ended April 30, 2006. All financial amounts are expressed in thousands of Canadian dollars, except per share amounts or unless otherwise noted.
Following an extensive review of strategic alternatives, Wi-LAN decided to focus resources on commercializing its portfolio of essential wireless technology patents. To achieve this, the Company's Board of Directors approved a plan in January 2006 to exit the products businesses, and in March 2006 to divest its engineering services business.. Upon orderly completion of the divestitures in April and May 2006, the remaining operations of Wi-LAN comprises a small staff, initially less than 10 persons, to implement the Company's patent licensing strategy using the portfolio of patents owned by the Company.
With the sale of Wi-LAN's products businesses and the discontinuance of its engineering services business during the fiscal second quarter of 2006, ending April 30th, the Company's statement of operations reflects its G&A expenses, the results of significant transactions, interest income and expense, and the net results of the discontinued businesses. The previously reported revenues and gross margins are netted in the discontinued operations line in the statement of operations, and there have been no patent licensing revenues generated to date (see comments below on the Cisco settlement).
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