News Release Details

wi-lan achieves true cash flow positive milestone



Quarterly Consolidated Results to be Released August 27

Wi-LAN Inc. (TSE:WIN), a global provider of broadband wireless communications products and technologies, today announced it has met its target to be cash flow positive from operations in the three months ended July 31, 2003, as it released its unaudited revenue and cash balance. The company also reiterated its annual
revenue and quarterly cash flow guidance. All financial amounts are expressed in Canadian dollars unless otherwise noted.

Financial Highlights

  • Revenue for the three months ended July 31, 2003 was $7.3 million, compared to $5.9 million for the prior three months ended April 30, 2003, and $6.0 million for the three months ended July 31, 2002. This represents a growth of 24% over the previous quarter and 22% over the same quarter last year.
  • Third quarter revenue from the company's core broadband fixed wireless access products was $6.0 million, compared to $4.8 million for the prior three months ended April 30, 2003, and $4.9 million for the third quarter in 2002. Revenue from the company's TIL-TEK antenna business was $1.3 million, compared to $1.1 million for the prior three months ended April 30, 2003, and $1.1 million for the third quarter in 2002.
  • Year-to-date revenue is $18.7 million, compared to $17.0 million for the first nine months of 2002 representing a growth of 10% over last year. Year-to-date revenue is on target with the Company's fiscal year 2003 revenue guidance of $25 to $30 million.
  • Wi-LAN's cash balance as of July 31, 2003 was $4.4 million, compared to $2.6 million as of April 30, 2003. Cash flow generated by operations was $0.4 million (excluding 1.4 million from Technology Partnerships Canada), a significant improvement from the $(0.8) used in the second quarter, meeting Wi-LAN's
    guidance to be cash flow positive from operations. The balance of the cash generated in the quarter was due to the TPC payment of $1.4 million announced on June 30, 2003.
  • Wi-LAN expects product gross margins to be sustainable near the 50% level established in the second quarter of 2003 as its broadband wireless product mix continues to be dominated by its new, cost-reduced, second and third generation products and as Wi-LAN continues to be able to maintain a price premium relative to its competitors in all markets.
  • Wi-LAN continues to manage operating expenses very closely, maintain existing product gross margins, grow its sales and introduce new market-driven high-margin products. These actions are expected to generate continued sales growth in line with the Company's fiscal year 2003 revenue guidance, resulting in
    sustainable positive cash flow from continuing operations moving forward.

"Wi-LAN has accomplished its goal of being cash flow positive from operations in the third quarter. This is truly a milestone for our company and demonstrates Wi-LAN's leadership in our industry. Our third quarter sales showed great progress over the prior quarter of 2003 and over the same quarter in fiscal 2002.
Additionally with the receipt of the TPC funds our balance sheet is looking much healthier," said Dr. Hatim Zaghloul, Chairman and Chief Executive Officer, Wi-LAN Inc. "We expect our new cost-reduced feature-rich broadband fixed wireless access products will continue to result in improved sales and maintained product gross margins, and our efforts in the first nine months of the year will result in further improvements in our results for Q4, driving sustainable positive cash flow from operations going forward."

Sales prospects for the remainder of fiscal 2003 remain positive and Wi-LAN's fiscal year 2003 revenue guidance of $25 to $30 million is achievable.

Quarterly Consolidated Results and Conference Call

Wi-LAN will announce consolidated financial results for the three and nine months ended July 31, 2003 on August 27, 2003, after the market close, and a conference call will follow at 9 a.m. on August 28, 2003. Details of the conference call will be announced with the consolidated results.

About Wi-LAN Inc.

Wi-LAN is a global provider of broadband wireless communications products and technologies, specializing in solutions for secure wireless provision of high-speed data and telephony over distance for enterprises and telecom service providers. Wi-LAN's broadband wireless access products are known worldwide for their high quality and industry-leading technology. Wi-LAN believes its W-OFDM patents are necessary for the implementation of devices using the IEEE standards 802.16a, 802.11a or 802.11g, the ETSI BRAN HiperLAN/2 standard or the current draft of the ETSI BRAN HiperMAN proposed 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 ( and an active member of the WiMAX Forum ( Wi-LAN's common shares trade on The Toronto Stock Exchange under the symbol "WIN." Detailed information on Wi-LAN can be found at

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.


Wi-LAN Inc.
Gail Zbryski
Executive Assistant to the President & COO
(403) 204-5125

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