News Release Details

Wi-LAN Achieves 384% Revenue Increase


Six Months Ended April 30 Includes Significant Increase in Revenues Over Previous Six Months

Calgary, Alberta
June 15, 2000

Wi-LAN Inc. (TSE:WIN), a leading innovator of wireless data/Internet communications, today announced substantial growth in the company's revenue for the quarter ending April 30, 2000. 

Wi-LAN achieved a record increase in consolidated revenue of 384%, to $15.5 million for the period ended April 30, 2000 compared with $3.2 million for the previous six months. The increase is due to the addition of Digital Transmission Systems (DTS) and Telcor Communications Inc. (Telcor), increased Wi-LAN product sales, and the initial fees of $1 million from the company's licensing agreement with Philips Semiconductors. Wi-LAN's operating loss increased by $1.8 million to $4.3 million for the six months ended April 30, 2000, compared to the previous six months, approximately $4 million of which was from parent company operations.

"Wi-LAN is very pleased with its financial results for the first six months of 2000," said Dr. Hatim Zaghloul, chairman and CEO. "We continue to pursue strategic sales, marketing and manufacturing opportunities that are both meaningful to our bottom-line and that add value to our shareholders. As well, we have begun the process of increasing interest in our company, our products and our technologies as we continue our transformation from a research-based company into a sales and marketing organization."

Financial Highlights:
Wi-LAN's first six-month results for 2000 saw an increase in sales of the parent company's wireless products to $4.7 million from $3.1 million in the previous six months, a 52% increase.

On January 7, 2000, Wi-LAN completed the acquisition of a controlling interest in DTS and on March 31, 2000 DTS acquired all of Telcor. Accordingly, Wi-LAN's results for the six months ended April 30, 2000 include four months of DTS' operations and one month of Telcor's operations.

Wi-LAN also received $1 million from Philips Semiconductors in the first six months as initial fees from the company's licensing agreement for its patented Wideband Orthogonal Frequency Division Multiplexing (W-OFDM) technology. This licensing agreement includes both a fee-based license as well as royalties based on the volume of application specific integrated circuits (ASIC) shipped. On June 14, 2000, Wi-LAN announced that a prototype for ASIC chips has been developed, with delivery of the initial chips anticipated by July 2000.

On February 17, Wi-LAN announced that it had entered into an agreement with an underwriting syndicate led by CIBC World Markets Inc. to issue a private placement of 600,000 special warrants at a price of $52.25 per special warrant for gross proceeds of $31,350,000. The underwriters were also granted an option to purchase 30,000 common shares for a 12-month period following the closing date. The net proceeds of the offering are being used to enhance working capital for larger projects, to finance increased marketing and research and development exploiting Wi-LAN's W-OFDM technology leadership, and to improve negotiating power for licensing and/or partnership agreements. The financing closed on March 3, 2000, and all outstanding warrants were exercised by May 15, 2000.

Wi-LAN's operating expenses have grown as the company continues its transformation into a sales and marketing organization. Sales and marketing expenses increased by $2.4 million to $3.3 million, and product and customer services expenses increased by $1.6 million to $2 million in the six months ended April 30, 2000, compared with the six months ended October 31, 1999. These increases reflect consolidating expenses from DTS and Telcor, as well as Wi-LAN's continued effort to accelerate new product development and product sales and marketing. The company spent $2.9 million on research and development initiatives during the first six months of 2000, an increase of $1.3 million over the six months ended October 31, 1999. These expenditures relate primarily to product development at the parent company level. General and administrative expense increased by $1.7 million to $2.5 million for the six months ended April 30, 2000, compared to the previous six months, primarily as a result of consolidation of DTS and Telcor expenses, as well as new management personnel. 

The company reduced its net loss by 11% from $(2.8) million for the six months ended October 31, 1999 to $(2.5) million ($0.12 per share) for the six months ended April 30, 2000. The net loss was reduced as a result of a dilution gain realized on DTS' acquisition of Telcor. The dilution gain arose as a result of the company's interest in DTS having been acquired for approximately US$1.00 per share, while DTS issued shares for the purchase of Telcor at US$7.38 per share. This gain also gave rise to recognizing non-controlled interest in DTS' net assets in the amount of $0.2 million.

Acquisition costs payable by DTS on the purchase of Telcor amounting to $30.2 million are included in current liabilities at April 30, 2000. However, on June 8, 2000, the company announced it had purchased approximately $8.2 million of this amount in exchange for common shares, and granted an option to purchase up to an additional $5.9 million of this obligation for common shares, by October 30, 2000. Under certain circumstances, DTS may settle the balance of the obligation by issuing its common shares.

Financial Outlook:
Recent analyst reports have indicated an expected range of product revenues from the parent company of between $18 million and $21 million for the 2000 fiscal year. Wi-LAN's management believes that product revenues in this range are achievable, while the primary focus continues to be multi-year revenue growth. It is management's belief that it is most important to achieve rapid growth of the business rather than positive earnings at this stage of Wi-LAN's development. To this end, Wi-LAN intends to spend aggressively on sales and marketing to complete large multi-year contracts in the wireless wide area networking market and to close significant licensing contracts with original equipment manufacturers, and on research and development, to develop new products. 

Operational Highlights:
In addition to the financial success achieved by Wi-LAN during the second quarter of 2000, the company also achieved several operational milestones: 

Wi-LAN's subsidiary, DTS, merged with Telcor, a private telecom equipment supplier based in Duluth, Georgia. Providing DTS with a substantial sales and marketing distribution channel, the company now has access to wireless carrier customers such as Ameritech, US West Wireless, Houston Cellular, Bell Atlantic, GTE Mobilnet, AirTouch Cellular and Lucent. As part of the merger, which closed on March 31, 2000, DTS paid Telcor shareholders US$5 million in cash and shares, with a commitment for a further US$20 million to be settled by October 30, 2000.

During the second quarter, Wi-LAN also submitted an Intellectual Property statement offering to license both its W-OFDM and MC-DSSS patented technologies (US patent number 5,282,222 & 5,555,268, respectively) with the European Telecommunications Standards Institute (ETSI). The statement asserts that Wi-LAN believes its patents may be considered essential to some emerging ETSI standards. MC-DSSS is used in cellular telephone standards, and W-OFDM is used in wireless LAN systems.

Wi-LAN announced a new long-term supply agreement (two years) with Telia GlobalCast Internetworking AB (Telia), a Swedish wireless Internet access provider. This US$16 million agreement would see Wi-LAN expand its broadband wireless Internet access into Europe. As well, Wi-LAN signed a second agreement with Wireless Matrix AB, a Swedish distributor of wireless data communications products, in which Wireless Matrix agreed to purchase a minimum of US$12 million worth of Wi-LAN product in 12 months.

As well, the company, in conjunction with world leaders such as Ericsson, Nokia, Philips Semiconductors, Samsung Electro-Mechanics, Sony and CalTrans, launched the OFDM Forum. This forum was designed to foster the harmonization of OFDM standards, promote the global harmonization of spectrum allocation, and implement a single compatible global OFDM standard for delivering cost-effective devices on all wireless networks and in related industries. Since the launch, and in the second quarter, Alcatel also joined the forum as a Principal Member.

At Microsoft's Windows Hardware Engineering Conference (WinHEC) in New Orleans, Wi-LAN and Philips Semiconductors conducted a series of wireless transmission demonstrations using Wi-LAN's patented W-OFDM technology. These demonstrations revealed improved system performance, speed and reliability over previous demonstrations, highlighting the evolution of the technology and how it can be fully integrated into set top boxes or other appliances for use in customer applications and products in the future.

With our Interactive Analyst Center (IAC), historical financial data, both quarterly and annual, is available in an easy to access spreadsheet format. View and export our financial statements, non-GAAP reconciliations as well as share information.


Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Wi-LAN Inc. and its affiliates (“WIN”) have no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only.

By clicking “Accept” you acknowledge and agree that neither WIN nor third party provider Virtua Research, Inc. (“Virtua) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against WIN and Virtua and further acknowledge and agree that in no event shall WIN or Virtua, or their respective officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to the Legal Notice, this disclaimer or the External Site

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if WIN and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, WIN may also disclose certain non-GAAP and pro forma non-GAAP results of operations, including certain ratios, operational and miscellaneous data, as well as net income, diluted earnings per share, operating expenses, and operating income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. Management believes that this non-GAAP and pro forma non-GAAP information provides investors with additional information to assess WIN operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing WIN's operating performance to prior periods. Management uses this non-GAAP and pro forma non-GAAP information, along with GAAP information, in evaluating its historical operating performance. WIN and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data.

The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Decline Agree

Copyright © . All rights reserved. Q4 Web Systems