News Release Details

Wi-LAN ANNOUNCES PRELIMINARY UNAUDITED 2003 REVENUE AND CASH FLOW AND 2004 FINANCIAL GUIDANCE

11/12/2003


2003 Annual Consolidated Results Will be Released January 14, 2004

CALGARY, Canada - November 12, 2003 -- Wi-LAN Inc. (TSX:WIN), a global provider of broadband wireless communications products and technologies, today announced preliminary unaudited revenue and cash flow for the three months and twelve months ended October 31, 2003. The company also provided financial guidance for the three months ended January 31, 2004 and the twelve months ended October 31, 2004. All financial amounts are expressed in Canadian dollars unless otherwise noted.

Financial Highlights

  • Quarterly Revenue: Preliminary unaudited revenue for the three months ended October 31, 2003 increased by $1.7 million or 27% to $7.9 million, compared to $6.2 million for the three months ended October 31, 2002. This represents revenue growth of $0.4 million or 5% over the prior quarter revenue of $7.5 million. Revenue growth was largely attributable to the first shipments in October of Wi-LAN’s new W-OFDM based 5.8 GHz LIBRA 5800 product series and recognition of previously deferred revenue from the Wi-Comm Communications joint venture.
  • Annual Revenue: Preliminary unaudited fiscal year 2003 revenue increased by $3.5 million or 15% to $26.8 million, compared to $23.3 million for the twelve months ended October 31, 2002. Annual revenue was well within the range of the Company’s fiscal year 2003 revenue guidance of $25 to $30 million.
  • Segmented Revenue: Preliminary unaudited fiscal year 2003 revenue from the company’s broadband fixed wireless access products increased by $3.7 million or 17% to $22.2 million, compared to $18.5 million for the twelve months ended October 31, 2002. Preliminary unaudited fiscal year 2003 revenue from the company’s TIL-TEK antenna business decreased by $0.2 million or 4% to $4.6 million, compared to $4.8 million for the twelve months ended October 31, 2002.
  • Revenue Guidance: Wi-LAN expects revenue for the twelve months ended October 31, 2004 to be in the range of $32 million to $37 million, which represents a growth rate of 19% to 38% over the $26.8 million preliminary unaudited fiscal 2003 revenue. Achieving or exceeding the upper end of this range depends largely on the timing of new product introductions and licensing revenue. Revenue for the three months ended January 31, 2004 is expected to be seasonally lower than the prior quarter ended October 31, 2003 but not less than $6 million, compared to $5.5 million for the three months ended January 31, 2003.
  • Cash Flow: Wi-LAN’s preliminary unaudited cash balance as of October 31, 2003 increased by $23.1 million to $27.6 million, compared to $4.5 million on July 31, 2003. Preliminary unaudited cash flow from financing in the quarter was $22.7 million and preliminary unaudited cash flow from investments was $0.1 million. Preliminary unaudited cash flow from operations, including changes in working capital, was $0.3 million, compared to $1.8 million in the third quarter, meeting Wi-LAN’s guidance to show positive cash flow from operations for a second consecutive quarter. Cash flow from operations in the quarter included $0.3 million of funding from Technology Partnerships Canada (TPC), which is reported as a credit to operating expense, compared to $1.4 million of TPC funding in the prior quarter. Cash flow from operations excluding TPC funding was marginally above breakeven, compared to $0.4 million in the prior quarter.
  • Cash Flow Guidance: Wi-LAN expects cash flow from operations for the three months ended January 31, 2004 to be slightly negative, but not less than minus $1 million, as a result of expected seasonally lower revenue and certain non-recurring operating costs as initial development costs are incurred for recently initiated projects. One such project is the development of semiconductor intellectual property (SIP) cores announced on October 1, 2003, which is now well underway. Cash flow from operations is expected to return to positive territory for the balance of fiscal 2004. More detailed guidance with regard to cash flow and profitability will be provided when the Company releases its fiscal 2003 audited consolidated results on January 14, 2004.
    "For the second consecutive quarter Wi-LAN has shown positive cash flow from operations. We are continuing to show financial leadership in the broadband wireless sector, in addition to our tradition of technology leadership. Our fourth quarter sales showed significant progress over the prior quarter and over the same quarter in fiscal 2002 in spite of the strength of the Canadian dollar versus the US dollar, which results in lower reported revenue since approximately 90% of our sales are denominated in US dollars. In addition, with the receipt of $22.7 million from equity financings in the quarter, our balance sheet is in excellent condition," said Dr. Sayed-Amr El-Hamamsy, President and Chief Operating Officer, Wi-LAN Inc. "As usual, we expect Q1 to be seasonally lower than the prior quarter, but still much improved over Q1 of 2003. With our new W-OFDM based 5.8 GHz products in production, several new products under development, and the expectation of W-OFDM licensing revenues from our agreement with Philips Semiconductor, we expect 2004 to be another record-breaking year for Wi-LAN."

Quarterly Consolidated Results and Conference Call

Wi-LAN will announce consolidated financial results for the three and twelve months ended October 31, 2003 on January 14, 2004, after the market close, and a conference call will follow at 9 a.m. on January 15, 2004. Details of the conference call will be announced in early January.

About Wi-LAN Inc.

Wi-LAN is a global provider of broadband wireless communications products and technologies, offering businesses, including telecom service providers, and government enterprises effective, economic and secure wireless solutions for provision of high-speed communications. Wi-LAN specializes in high-speed Internet access, data network extension, and wireless data and telephony backhaul, utilizing its high quality products and industry-leading technologies. Wi-LAN believes its W-OFDM patents are necessary for the implementation of devices using the IEEE standards 802.16 WirelessMAN*, 802.11a or 802.11g, the ETSI BRAN HiperLAN/2* Standard or the current draft of the proposed ETSI BRAN HiperMAN* Standard. Wi-LAN licenses its W-OFDM technology and has executed non-exclusive W-OFDM license agreements with semiconductor companies. Wi-LAN is the Chair Company of the OFDM Forum (www.ofdm-forum.com) and an active member of the WiMAX Forum (www.wimaxforum.org). Wi-LAN's common shares trade on The Toronto Stock Exchange under the symbol "WIN." Detailed information on Wi-LAN can be found at www.wi-lan.com.

Forward Looking Information

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless data communications industry. These risks and uncertainties include, but are not restricted to, continued increased demand for the Company's products, the Company's ability to maintain its technological leadership in the field of high-speed data communications, the Company's ability to attract and maintain key employees, the enforceability of the Company's patents, and the availability of key components.
These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
* All trademarks and brands mentioned in this release are the property of their respective owners.

For more information please contact:

Wi-LAN Inc.
Corporate Communications and Investor Relations
Ken Wetherell
Ph: (403) 207-6329
E-mail: kwetherell@wi-lan.com

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