WiLAN’s business model can generate high margins. Even with investment in litigation, which is sometimes necessary, WiLAN’s operations can generate significant cash flow. Once a license agreement is signed, the costs associated with collecting revenue from that agreement are minimal. In addition, business expenses are predominantly associated with identifying and securing future revenue streams.

Since focusing its business on generating annual revenue from licensing intellectual property in 2006, WiLAN has increased revenue from under $2 million to more than $88 million in 2012. That works out to a compound annual growth rate of greater than 90%.

WiLAN’s strategy is to continue to grow revenues. Growth is expected to come from our existing licensing programs, new licensing programs and from licensing partnerships managed by WiLAN’s Gladios IP subsidiary.

With significant cash balance, no significant long-term debt and hundreds of millions of dollars in potential future revenues in backlog, WiLAN enjoys a very strong financial position.

Since declaring its first dividend in June 2009, WiLAN has tripled its annual eligible dividend to CDN $0.16 per share. Our Board of Directors will consider future increases to the dividend as revenue and profits increase.