News Release Details




2004 First Quarter Consolidated Results Will be Released February 25, 2004

CALGARY, Canada - February 9, 2004 -- 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 ended January 31, 2004. The company also confirmed its prior financial guidance for 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 January 31, 2004 increased by $1.09 million or 20.0% to $6.55 million, compared to $5.46 million for the three months ended January 31, 2002. This amount exceeds Wi-LAN’s revenue guidance of $6.50 million for the quarter. Revenue growth was largely attributable to the first quarter of sales of Wi-LAN’s new W-OFDM based 5.8 GHz LIBRA 5800 product series and recognition of deferred revenue for product development funding from Wi-Comm Communications, a key Certified Gold Channel Partner and distributor of Wi-LAN products in China. Revenue for the quarter showed a sequential decrease of $1.38 million compared to the prior quarter revenue of $7.93 million. The sequential decrease was expected and was caused primarily by the worldwide seasonal and religious holidays in December and January.
  • Revenue Sources: Preliminary unaudited revenue for the quarter from the company’s broadband wireless access products and services increased by $0.75 million or 16.0% to $5.43 million, compared to $4.69 million for the three months ended January 31, 2003. License, technology and engineering services revenue was $0.29 million, compared to nil for the first quarter of fiscal year 2003. Preliminary unaudited quarterly revenue from the company’s TIL-TEK antenna business increased by $0.06 million or 7.8% to $0.83 million, compared to $0.77 million for the three months ended January 31, 2003.
  • Revenue Guidance: Wi-LAN continues to expect 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 $26.81 million fiscal 2003 revenue. The 20% growth that Wi-LAN achieved in the first quarter puts the Company on track to achieving its annual guidance. Achieving or exceeding the upper end of this range depends largely on the timing of new product introductions and licensing revenue.
  • Cash Flow: Wi-LAN’s preliminary unaudited cash balance as of January 31, 2004 decreased by $0.60 million to $26.95 million, compared to $27.55 million on October 31, 2003. Preliminary unaudited cash flow from operations for the first quarter, including changes in working capital, was $(0.57) million, compared to $0.75 million in the fourth quarter of 2003, meeting Wi-LAN’s guidance to show cash flow of no less than $(0.7) million in the quarter. Cash flow from operations in the quarter showed a sequential decline as a result of seasonally lower revenue and because of the timing of certain non-recurring operating costs that were incurred in the quarter for strategically important product development projects. The projects included the next-generation access point and customer premise equipment for W-LAN’s W-OFDM based LIBRA product line, and the development of semiconductor intellectual property (SIP) cores, all of which will form the basis of Wi-LAN’s future WiMAX compliant product series.
  • Cash Flow and Earnings Guidance: Wi-LAN continues to expect cash flow from operations to be positive for the balance of fiscal 2004 and to be in excess of $2 million for the fiscal year. The Company continues to expect net income for fiscal 2004 to exceed $0.5 million.

"Wi-LAN had a strong first quarter, growing year-over-year sales by 20%. The remainder of 2004 promises to be very exciting with expected continued growth in sales and significant new product introductions," said Dr. Sayed-Amr El-Hamamsy, President and Chief Executive Officer, Wi-LAN Inc. "We have begun internal initiatives to turn the company into a sales and marketing force. Our philosophy is to focus relentlessly on our customer’s needs and ensure their success. The CONTINUITY PROGRAMTM announced recently is an example of how Wi-LAN understands our customers’ business models and how to protect their investment as the industry shifts from proprietary systems to WiMAX compliant systems. In the upcoming months we will be rolling out quality and customer service initiatives to reinforce our commitment to our customers. Wi-LAN’s technical and product leadership will also be enhanced as we drive towards the completion of the potentially game-changing Transit Mobility project with Wellink of Korea and the series of projects which will result in our first-to-market WiMAX compliant system. These include the pre-WiMAX carrier class access point and customer premise equipment that we are developing with WiComm of China, the semiconductor cores that we are designing with our semiconductor intellectual property partner, and of course our work with Fujitsu in developing the WiMAX system-on-chip. Wi-LAN intends to accomplish all of this while maintaining its guidance of profitability and positive cash flow for the year."

Quarterly Consolidated Results and Conference Call

Wi-LAN will announce consolidated financial results for the three months ended January 31, 2004 on February 25, 2004 after the market close, and a conference call will follow at 5 p.m. Details of the conference call will be announced on February 18. In the future Wi-LAN expects to discontinue its practice of announcing preliminary quarterly results because the Company has adopted the practice of reporting quarterly consolidated results within four weeks of the quarter end.

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 high-speed communications solutions. 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 802.16 WirelessMAN Standard * and the ETSI BRAN HiperMAN* standard (the WiMAX* standards), the IEEE standards 802.11a and 802.11g (the 2nd generation Wi-Fi* standards), and the ETSI BRAN HiperLAN/2* 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 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 wireless communications, the Company's ability to attract and retain 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

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