Company’s fourth quarter revenues increase 90 percent over same quarter last year
OTTAWA, Canada – January 13, 2009 – Wi-LAN Inc. (TSX: WIN) (“Wi-LAN” or the “Company”), a leading technology innovation and licensing company, today announced financial results for the fourth quarter and fiscal year ended October 31, 2008. All financial amounts are expressed in Canadian dollars.
Fourth Quarter 2008 Highlights:
- Q4 revenues of $13.7 million as compared to $7.2 million in Q4 2007.
- Q4 pro forma earnings of $9.1 million or 10 cents per share as compared to pro forma earnings of $4.9 million or 5 cents per share in Q4 2007.
- GAAP net earnings of $277 thousand or $nil per share as compared to $1.2 million or 1 cent per share in Q4 2007.
- Signed agreements with 25 companies including 12 wireless, 9 V-chip and 4 DSL licenses.
- Leading wireless handset vendor, Research In Motion Limited, licenses wireless technologies.
Fiscal 2008 Highlights:
- Cash revenues of $26.6 million as compared to $19.2 million in fiscal 2007, representing a sequential increase of $7.4 million or 39 percent.
- Pro forma earnings of $11.0 million or 12 cents per share as compared to pro forma earnings of $53.2 million or 66 cents per share in fiscal 2007.
- GAAP net loss of $9.2 million or 10 cents per share.
- Cash, cash equivalents and short-term investments of $101.4 million represent an increase of $9.9 million over fiscal 2007 ended October 31, 2007.
- Signed agreements with 79 companies including 35 wireless, 39 V-chip and 5 DSL licenses.
- Initiated a patent infringement lawsuit in the Eastern District of Texas involving wireless handset vendors including Motorola Inc. and LG Electronics.
Fourth quarter revenues were $13.7 million as compared to $7.2 million in the fourth quarter of 2007. Pro forma earnings amounted to $9.1 million or $0.10 per diluted share. Operating expenses were $5.4 million. Total expenses were $10.1 million, which included $0.5 million of stock-based compensation expense and $4.2 million of depreciation and amortization expense, both non-cash charges. Interest income amounted to $0.7 million during the quarter. Income tax expense amounted to $4.0 million for the quarter. Net earnings amounted to a profit of $277 thousand or $nil per diluted share.
In fiscal 2008, Wi-LAN generated revenues of $26.6 million. Pro forma earnings amounted to $11.0 million or $0.12 per diluted share. Operating expenses amounted to $18.8 million. Total expenses were $37.3 million, which included $2.0 million of stock-based compensation expense and $16.5 million of depreciation and amortization expense, both non-cash charges. Interest income amounted to $3.2 million for the year. Income taxes expense amounted to $1.7 million for the year. Net earnings amounted to a loss of $9.2 million or $0.10 per diluted share.
Wi-LAN initiated a share purchase program on October 15, 2008, which is ongoing, pursuant to which Wi-LAN expects to purchase up to 5 percent of its outstanding common shares. During the month ended October 31, 2008, the Company repurchased 215,000 shares for cancellation at an average price of $1.24.
In the fourth quarter of fiscal 2008, cash, cash equivalents and short-term investments increased by $8.9 million to $101.4 million. For the fiscal year ending October 31, 2008, Wi‑LAN’s cash position increased by a total of $9.9 million. The Company’s cash equivalents include T-bills, term deposits and GICs while its short-term investment consists of a banker’s acceptance issued by a large Canadian financial institution.
“Wi-LAN delivered solid operational and financial accomplishments in fiscal 2008,” said Jim Skippen, Chairman & CEO. “In fiscal 2008, Wi‑LAN negotiated license agreements with 79 companies, which is a five-fold increase over 2007. Fiscal 2008 cash revenues, which were almost 40 percent higher than 2007, signal the growing strength of our licensing program. Our cash earnings, at over 40 percent of revenues, demonstrate the potential of our business to generate very favourable margins. Ending the year with a net cash position exceeding $101 million, gives us the ability to aggressively pursue our strategic plan.”
Mr. Skippen added, “Our fiscal 2009 financial guidance, which contemplates top line improvements and solid bottom line performance, reflects the cautious optimism that we have for our business despite the current uncertain economic conditions. In fiscal 2009, we will continue to make the investments we believe are necessary and desirable to position the company for future success. One such exciting investment is our research and development effort, which will focus on solving technology challenges facing next-generation femtocell and whitespace networks. All in all, we believe that 2009 will be another strong year for Wi-LAN, with the potential for a number of exciting developments.”
2009 Financial Guidance
Revenues for the fiscal year ended October 31, 2009 are expected to be within the range of $30.0 million to $34.0 million. Operating expenses, excluding stock based compensation, are expected to be in the range of $23.0 million to $26.0 million. Pro forma earnings are expected to be within the range of $9.5 million to $13.0 million.
Conference Call Information – January 13, 2009 – Wi-LAN will conduct a conference call to discuss its financial results today at 10:00 AM Eastern Standard Time. Wi-LAN CEO, Jim Skippen and CFO, Shaun McEwan, will be on the call.
The call will be available at http://www.investorcalendar.com/IC/CEPage.asp?ID=139019 and accessible by telephone until 11:59 PM on January 20, 2009
- Replay Number (Toll Free): 1.877.660.6853
- Replay Number (International): 201.612.7415
- Replay passcodes (both required for playback)
Account #: 286
Conference ID #: 307513
Wi-LAN, founded in 1992, is a leading technology innovation and licensing company. Our portfolio of patented inventions applies to a wide range of consumer electronics and communications products. Some of the fundamental technologies covered by Wi-LAN’s patents include: CDMA, DOCSIS, DSL, GSM/EDGE, V‑chip, Wi-Fi and WiMAX. Wi-LAN has a large and growing portfolio of more than 300 issued or pending patents. Wi-LAN has licensed its intellectual property to over 160 companies. For more information: www.wi-lan.com.