News Release Details

Wi-LAN Year End Results Show Significant Improvement and Potential


Results Improve as Leadership in High-Speed Wireless Data Communications Gains Momentum

Calgary, Alberta
February 11, 2000

Wi-LAN Inc. reported a net loss for the 12 months ended October 31, 1999 of $4.5 million ($0.24 per share), a 24% improvement from a $5.9 million loss in fiscal 1998. Wi-LAN's product gross margin was $2.7 million, up 29% compared to $2.1 million in 1998.  Annual product sales were $5.9 million in 1999, up 9.3% compared to $5.4 million in 1998. Wi-LAN recorded $1.2 million of deferred license revenue on its October 31, 1999 balance sheet. This amount, which constitutes part of initial fees from a licensing agreement, will be included in revenue in the 2000 fiscal year.

"Wi-LAN's major achievements in 1999 include the introduction of the I.WiLL(TM) 300-24 Access Point, our first major licensing agreement, and the successful launch and deployment of a Wi-LAN network by Telia GlobalCast Internetworking," says Chairman and CEO, Dr. Hatim Zaghloul. "Although license revenue was deferred, our 1999 results show significant improvement over 1998. I am confident that financial results in 2000 will increasingly confirm the revenue growth and earnings potential of the Company's leading-edge products and technology."

Wi-LAN's improved sales reflect increased North American sales of the Hopper Plus product line. The improved gross margin was due to higher sales and reduced product costs. The Company's net loss improved due largely to the improved gross margin and reduced sales and marketing expenses, partly offset by increased research and development (R&D) spending.

R&D spending increased to $2.6 million in 1999, compared to $2.2 million in 1998, due to increased effort on developing Wi-LAN's patented W-OFDM technology for a broader range of applications.  Sales and marketing expenses were reduced to $1.6 million, from $2.2 million in 1998. Beginning in the first quarter, the Company focused its sales and marketing effort on key customers in the wireless wide area network market segment. Revenue from key customers approached $2 million in 1999, a tenfold increase over 1998.

1999 Highlights:
Under the terms of Wi-LAN's contract for the sale of wireless products to Telia Globalcast Internetworking (Telia), originally announced in February 1999 and recently re-profiled, Telia will use the products in a national high-speed wireless network in Sweden and similar networks in several other countries in Northern Europe. Telia is using Wi-LAN's Hopper Plus wireless Ethernet bridges to offer high-speed wireless internet access and intranet services to small and medium-sized businesses and small office / home office workers in key centers in Sweden. Further rollouts, including the high-speed W-OFDM product line, will follow within Sweden and other select markets in 2000 and 2001.

In June 1999, Wi-LAN introduced the I.WiLL 300-24 Access Point, capable of unprecedented wireless speeds of 30 megabits per second. This product is designed to meet the industrial-strength demands of large network operators, such as telephone companies or major Internet service providers. The I.WiLL Access Point is the first high-speed wireless networking product to make use of Wi-LAN's patented wide-band orthogonal frequency division multiplexing (W-OFDM) technology.

In September 1999, Wi-LAN signed a licensing agreement with one of the world's largest semiconductor suppliers. Wi-LAN has shared its W-OFDM technology and expertise in exchange for initial licensing fees and future royalty payments based on the volume of integrated circuits shipped. The agreement will allow Wi-LAN to produce W-OFDM products that are smaller and more cost-effective. Wi-LAN will be recognizing all licensing revenue in accordance with accounting principles generally accepted in Canada and the United States, including recent SEC guidance on revenue recognition.

In October 1999, Wi-LAN filed an intellectual property (IP) statement with the International Telecommunications Union (ITU), offering to make Wi-LAN's Multicode Direct Sequence Spread Spectrum (MC-DSSS) patented technology available for licensing.  The IP statement targets the ITU's International Mobile Telecommunications (IMT-2000) standard, which is the foundation for third generation (3G) mobile radio networks, including cellular phones.

On October 28, 1999 Wi-LAN's common shares were listed and posted for trading on the Toronto Stock Exchange.

Subsequent Events:
In December 1999, Wi-LAN formed a strategic partnership with, a Silicon Valley startup specializing in broadband service-enabling solutions. The partnership includes an exclusive multi-year reselling agreement allowing Wi-LAN to include Amplify's iSurf(TM) family of Internet Protocol service management solutions, capable of measuring bandwidth used by specified customers, controlling that bandwidth and accounting for its use, as an integral part of its wireless infrastructure equipment offerings for public and private wireless data networks.

Also in December 1999, Wi-LAN co-hosted over 100 representatives from 60 companies worldwide to discuss the formation of an international market development organization for OFDM. Discussion at the meeting centered on requirements for mass-market success, including specific technical and marketing issues, and further progress is anticipated in 2000.

In January 2000, Wi-LAN acquired a controlling interest of Digital Transmission Systems, Inc. (DTS) (OTC BB: DTSX), an Atlanta based telecommunications network access equipment manufacturer. Wi-LAN gained a seasoned and dynamic management team, increased access to the U.S. marketplace, a visionary engineering team, and access to key DTS telecommunications clients. DTS's primary customers are domestic wireless service providers, and domestic and international resellers who sell to and service end users with telecom equipment. Key customers include Nextel, ALLTEL, AirTouch, GTE Wireless and Somera Communications.

Also in January 2000, Wi-LAN signed a Memorandum of Understanding with California-based wireless network installer Communications Services International, Inc. This partnership will offer comprehensive support for design, sales, installation, and maintenance of operational wireless telecommunications networks for North American customers who require turnkey solutions.

On January 26, 2000, Wi-LAN performed the first demonstration of mobile application of W-OFDM technology. Wi-LAN's standard I.WiLL 300-24 Access Points were used for the demonstration. The Test-bed Center for Interoperability, an R&D Center operated by the California State Department of Transportation (Caltrans) hosted the demonstration, held on Highway 101 in Santa Barbara. Video streaming and file transfers were exchanged between two I.WiLL 300-24 Access Points that operate at a data rate of 30 Mbps. One access point was located in a traffic cabinet on Highway 101, transmitting to another access point in a vehicle traveling at speeds up to 70 miles per hour. This demonstration continues Wi-LAN's legacy of breakthroughs in high-speed wireless access.

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.


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