News Release Details

Wi-LAN Comments on Third Quarter Results Due to Recent Market Activity


(Calgary, Alberta - September 26, 2001) - Wi-LAN Inc. (TSE:WIN), an innovator of high-speed wireless data/Internet communications, announced that due to recent market activity, the company’s management is commenting on its third quarter results. 

Recent articles in the press have reported that "if [Wi-LAN] can't raise enough cash, there is substantial doubt as to the company's ability to continue as a going concern." This statement was extracted, with some editorializing, from the going concern disclosure included in the company’s notes to the July 31, 2001 financial statements, and similar disclosure has been included in the notes in prior financial statements of the company. This statement is essentially a standard disclaimer that was quoted out of context, as a statement of management, and hence was misleading.

As stated in the third quarter press release of September 24, Wi-LAN expects to maintain a minimum cash balance of $3 million over the next 12 months. We expect to do this without recourse to external financing sources by continuing to grow sales, reduce expenditures, and sell non-core assets. We continue to support our wireless revenue guidance of $8 to $10 million for the three months ended October 31, 2001; we have restructured to reduce our monthly expenses by approximately $2 million per month; we have taken the decision to sell a portion of the DTS Asurent operation; and we will take any other actions appropriate to ensure our success. 

Also, recent press coverage has focused on financial amounts that are consolidated with our majority-owned subsidiary, DTS and include many one-time adjustments. The consolidated numbers are negatively impacted by DTS, but Wi-LAN’s relationship with DTS is that of a shareholder only. 
Wi-LAN does not financially support DTS and has no legal obligation to do so. Wi-LAN’s cash position, excluding DTS, was $8.7 million at July 31, 2001. Wi-LAN’S working capital position, excluding DTS, was $20.7 million at July 31, 2001. Other key financial numbers reported in the September 24 press release, excluding DTS and one-time items are as follows:

Wi-LAN Inc. (excluding DTS and one-time items)
All figures in Canadian dollars

2001 2000
3rd Quarter
July 31:  
Revenues   C$7,574,000 C$3,528,000 
Operating income   (9,023,000) (6,113,000)


The impact of the corporate restructuring, which is expected to reduce monthly expenses by $2 million per month, is not reflected in the financial statements of July 31, 2001 because the actions were taken very near or after the end of the reporting period.

9 months:

Revenues   19,443,000 9,239,000 
Operating income   (24,354,000) (10,713,000)

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