News Release Details

Wi-LAN Announces 2005 Second Quarter Consolidated Results

05/19/2005

CALGARY, Canada - May 19, 2005 - Wi-LAN Inc. (TSX:WIN), a global provider of market-leading broadband wireless communications products and technologies and charter member of the WiMAX Forum(1), today announced financial results for the three months and six months ended April 30, 2005. All financial amounts are expressed in thousands of Canadian dollars, except per share amounts or unless otherwise noted.

Income Statement

In the three months ended April 30, 2005 the Company achieved consolidated revenue of $7,579, an increase of $1,091 or 16.8% compared with $6,488 for the three months ended April 30, 2004, and an increase of $2,074 or 37.7% compared with $5,505 for the preceding three months ended January 31, 2005. Gross margin for the second quarter was $2,940 or 38.8% of revenue, compared with $2,921 or 45.0% of revenue in the 2004 second quarter, and $2,440 or 44.3% of revenue in the preceding three months ended January 31, 2005. Net loss for the second quarter was $(2,968) or $(0.07) per share, compared with net loss of $(1,509) or $(0.04) per share in the 2004 second quarter, and a net loss of $(2,448) or $(0.06) per share in the preceding three months ended January 31, 2005.

In the six months ended April 30, 2005 the Company achieved consolidated revenue of $13,084, compared with $13,044 for the six months ended April 30, 2004. Gross margin for the first two quarters was $5,380 or 41.1% of revenue, compared with $6,531 or 50.1% of revenue in the first two quarters of 2004. Net loss for the first six months of fiscal 2005 was $(5,416) or $(0.13) per share, compared with net loss of $(2,020) or $(0.05) per share in the first six months of fiscal 2004.

Cash Flow from Operations

Cash used in operations before changes in non-cash working capital for the three months ended April 30, 2005 was $(2,318), compared with $(921) for the 2004 second quarter, and $(1,459) in the preceding three months ended January 31, 2005. Cash used in operations, including changes in non-cash working capital, for the 2005 second quarter was $(4,252), compared with $(794) for the 2004 second quarter, and $(4,829) in the preceding three months ended January 31, 2005.

Cash used in operations before changes in non-cash working capital for the six months ended April 30, 2005 was $(3,777), compared with $(748) for the first six months of fiscal 2004. Cash used in operations, including changes in non-cash working capital, for the six months ended April 30, 2005 was $(9,081), compared with $(1,359) for the first two quarters of fiscal 2004.

Balance Sheet

Consolidated cash on April 30, 2005 was $9,466, compared with $8,791 on January 31, 2005 and $13,768 on October 31, 2004. Working capital on April 30, 2005 was $18,365 compared with $15,705 on January 31, 2005 and $17,332 on October 31, 2004. Long-term debt on April 30, 2005 was $nil compared with $7,757 on January 31, 2005 and $7,842 on October 31, 2004. Wi-LAN’s April 30, 2005 consolidated cash and working capital is expected to be adequate to sustain the Company’s growth in existing operations.

SECOND QUARTER FINANCIAL HIGHLIGHTS

Consolidated revenue ($000’s)

In the three months ended April 30, 2005 the Company achieved consolidated revenue of $7,579, compared with $6,488 for the three months ended April 30, 2004, and $5,505 for the preceding three months ended January 31, 2005. Wi-LAN has undertaken a comprehensive review of its sales, marketing, operations and product development practices, including processes, product features, pricing, and personnel and is continuing to take the actions required to meet today’s challenges. Recent actions taken include:

  • In October 2004 Wi-LAN hired two new vice presidents to lead its sales and marketing departments.
  • On February 2005, Bill Dunbar took over as CEO and took immediate action to improve Wi-LAN’s ability to execute by driving a tighter focus on projects with the best potential to maximize value; by building open communication with customers, employees and other stakeholders; and by empowering employees to perform to the best of their abilities and making them accountable for their accomplishments.
  • The sales force is continuing to be restructured and upgraded, and strength has recently been added in Europe, Latin America and the United States.
  • The Company is establishing a regional return and repair center in the Asia Pacific region and is considering similar centers in other regions.
  • The Company is providing webinars and regional marketing presentations explaining Wi-LAN's product strategy.
  • In April, Wi-LAN reorganized its customer service employees into a Customer Service and Product Support Group that is intended to allow all customer-facing functions, including pre-sales support, application engineering, post sales support, troubleshooting, problem resolution and returns activities to work together as a team. Having all the resources together in one group allows fast and simple communication within the team, and one point of contact for fixing problems when they occur.

Revenue from the Company’s broadband wireless products for the three months ended April 30, 2005 was $6,404 or 84.5% of total revenue, compared with $5,363 reported for the three months ended April 30, 2004, and $4,614 reported for the prior three months ended January 31, 2005. The second quarter broadband wireless revenue consisted of:

  • $840 or 11.1% of total revenue from the Company’s Libra product series, Wi-LAN’s pre-WiMAX products based on Wi-LAN’s patented Wide-band Orthogonal Frequency Division Multiplexing (W-OFDM) technology. This amount compares to the $1,742 of Libra product series revenue reported for the three months ended April 30, 2004 and $1,555 reported for the prior three months ended January 31, 2005. In the second quarter the Company continued to experience a slow-down in its Libra series sales in anticipation of the Libra MX product series, which began shipping in April 2005, and in anticipation of WiMAX compliant equipment expected in early 2006.
  • $5,564 or 73.4% of total revenue from Wi-LAN’s other broadband wireless products, compared with $3,621 reported for the three months ended April 30, 2004, and $3,059 reported for the prior three months ended January 31, 2005. Orders for these products were particularly strong in the first quarter and the Company has ramped up production at its contract manufacturers. There remained significant orders on hand for future delivery as of April 30, 2005.

Wi-LAN’s sales and marketing strategy for its broadband wireless products involves focusing its efforts on geographic markets where the Company has a competitive advantage and strong sales channels, and focusing product development on products that can best serve the applications required in the identified target markets. The geographic and product focus is driven by market intelligence, derived primarily from current and potential customers. Wi-LAN expects broadband wireless product sales to grow on several fronts during the remainder of fiscal 2005:

  • Sales of Wi-LAN’s new WiMAX platform, the Libra MX product series, are expected to gain Wi-LAN a foothold in the emerging WiMAX-standard equipment market. Wi-LAN began shipping this equipment in April 2005, and Wi-LAN’s Continuity ProgramTM guarantees its customers a seamless and economic transformation to WiMAX compliant networks when WiMAX Forum Certified(1) equipment becomes available. Wi-LAN expects to submit Libra MAX equipment for WiMAX certification during the first wave of WiMAX conformance testing in the fourth quarter of calendar year 2005, for general availability in early 2006.
  • Sales of Wi-LAN’s Ultima3, VIP and antenna product lines are expected to continue to grow as existing customers expand their networks and new customers capitalize on the extensive feature sets and favorable economics of these products.
  • Entry into the Intelligent Transportation Systems (ITS) market with Wi-LAN’s new Libra MobilisTM, the first commercially available two-way broadband wireless product designed for a high-speed mobile environment, is taking place. The market for ITS mobile broadband wireless equipment is in its infancy, so limited trial sales of Libra Mobilis are expected in 2005.

Revenue from the Company’s antenna products for the three months ended April 30, 2005 was $1,170 or 15.4% of total revenue, compared with $1,125 recorded for the three months ended April 30, 2004, and $891 reported for the prior three months ended January 31, 2005. The TIL-TEK Antennas division has recently hired a new director of sales to boost its sales effort and is continuing to actively seek new market opportunities to increase its sales. Also, the division has recently signed an OEM agreement that is expected to increase antenna sales in the future.

License, technology and engineering services revenue for the three months ended April 30, 2005 was $5 or 0.1% of total revenue, compared with $nil reported for the three months ended April 30, 2004, and $nil reported for the prior three months ended January 31, 2005. This revenue was generated from the Company’s patent licensing agreement with Redline Communications.

Wi-LAN’s sales and marketing strategy for its license, technology and engineering services involves partnering to sell its broadband wireless technology and expertise to semiconductor companies and broadband wireless equipment suppliers. Progress regarding license, technology and engineering services revenue for the three months ended April 30, 2005 was as follows:

  • Wi-LAN’s joint development of the WiMAX SoC, with Fujitsu Microelectronics America (Fujitsu) culminated with the launch of the SoC on April 21, 2005 at the Broadband Wireless World show in Las Vegas, Nevada. The SoC will be incorporated into Wi-LAN’s WiMAX compliant Libra MAX equipment once WiMAX conformance testing is available later in 2005, and Wi-LAN will collect royalties on Fujitsu’s sales of the WiMAX SoC as Fujitsu begins selling this product.
  • Wi-LAN’s patent infringement lawsuit against Cisco Systems and OCR Concepts Canada for sales of Cisco’s 802.11a/g based Linksys and Aironet products in Canada is progressing. Cisco has responded to Wi-LAN’s statement of claim with its statement of defense. The case is currently in pre-trial motions; the trial itself has not begun. A case management judge has been appointed.
  • Wi-LAN is continuing discussions with Philips Semiconductor regarding the licensing agreement that Wi-LAN signed with Philips in 1999. The agreement relates to Philips’ second-generation Wi-Fi (802.11a/g and 802.11g) chipsets, which became available in production quantities in Q4 2004. Wi-LAN and Philips have differing interpretations of the nature of the agreement and are working towards resolving their differences.
  • Wi-LAN is putting strategies in place to maximize the value received from its IP systems knowledge and technical expertise by packaging intellectual property, knowledge and strong design capabilities into core "products". Wi-LAN is offering the following best-of-breed WiMAX Original Equipment Manufacturer (OEM) solutions:
    • Fujitsu SoC;
    • PHY (physical layer) baseband solution;
    • MAC (media access control layer) software; and
    • reference boards and reference design

Gross Margin ($000 and % of revenue)

Gross margin for the three months ended April 30, 2005 was $2,940 or 38.8% of revenue, compared with gross margin of $2,921 or 45.0% of revenue for the 2004 second quarter, and gross margin of $2,440 or 44.3% of revenue for the prior three months ended January 31, 2005. Excluding non-cash inventory valuation allowances, gross margin for the three months ended April 30, 2005 was $3,386 or 44.7% of revenue, compared with gross margin of $2,921 or 45.0% of revenue for the 2004 second quarter, and gross margin of $2,440 or 44.3% of revenue for the prior three months ended January 31, 2005. The inventory valuation adjustments resulted from application of the Company’s accounting policy that provides for an inventory valuation allowance based on a continual review of the composition, quantity, and expected future usage or sales of inventory. In the three months ended April 30, 2005, the inventory was written down based on the review, and in the two comparative quarters no write-downs were taken. Excluding inventory valuation adjustments, gross margin improvement was below internal targets due to strong sales of lower-margin legacy products. Wi-LAN is continuing to take measures to cost-reduce its products to maintain margins, including offshore manufacturing of high-volume products, product re-design, and introducing new higher-margin products. Gross margin is summarized in the following table:

Operating expenses ($000’s)

Operating expenses for the three months ended April 30, 2005 were $6,152, compared with $4,731 for the 2004 second quarter, and $5,084 for the prior quarter ended January 31, 2005. Operating expenses, excluding $575 of one-time items related to severance and the payout of the Corporation’s mortgage on its head-office building, were $5,577 in the quarter.

Sales and marketing (S&M) expense for the quarter ended April 30, 2005 was $1,440, compared with $1,666 for the 2004 second quarter, and $1,210 for the prior quarter ended January 31, 2005. Wi-LAN continued to strengthen its marketing effort in the second quarter, but spending on marketing was more focused on activities and events that would be most effective in generating new sales leads. Wi-LAN’s sales staff have a large variable component to their compensation, so the quarterly increase in sales caused an increase in sales and marketing expense.

Research and development (R&D) expense for the quarter ended April 30, 2005 was $2,457, compared with $1,676 for the 2004 second quarter, and $1,794 for the prior quarter ended January 31, 2005. Excluding $409 of one-time termination-related expenses, R&D in the quarter was $2,048. R&D expense in the comparative quarters did not include any significant severance costs. During the quarter Wi-LAN focused its development expenditures on its Libra MX system, the WiMAX compliant SoC developed in collaboration with Fujitsu, and the WiMAX MAC software. Wi-LAN is in the process of negotiating with potential partners regarding funding of further development of the Libra Mobilis product, designed for the Intelligent Transportation Systems market. Wi-LAN will continue to monitor its R&D expenses to support both short-term and long-term goals.

Wi-LAN intends to maintain key R&D expenditures in order to complete the development of products for potentially large opportunities for WiMAX products. The WiMAX market is expected to reach the fully commercial stage once products emerge from WiMAX Forum conformance testing in early 2006, and to grow to a substantial size thereafter as portable and mobile applications are addressed in 2007 and 2008. Wi-LAN expects to have WiMAX compliant products in early 2006.

In prior fiscal years the Company accounted for its obligation to issue warrants under the Technology Partnerships Canada (TPC) program as a charge (amortization of TPC warrants) to R&D expense and an accrual to shareholders’ equity. In accordance with revised Canadian standards for accounting for the settlement of financial obligations with the future issuance of equity instruments, effective November 1, 2004 the Company accounts for its obligation to TPC as a financial liability. R&D expense is reduced by received and accrued cash receipts from TPC, and increased by the non-cash amortization of future warrants owed to TPC, as detailed in the following table:

Operations expense for the quarter ended April 30, 2005 was $594, compared with $457 for the 2004 second quarter, and $483 for the prior quarter ended January 31, 2005. The increase in the quarter related largely to upgrades and modifications of broadband wireless access products.

General and administration (G&A) expense for the quarter ended April 30, 2005 was $971, compared with $679 for the 2004 second quarter, and $788 for the prior quarter ended January 31, 2005. G&A expenses vary from quarter to quarter due to variations in finance, legal, business development, investor relations and corporate communications activities. The increase of $183 compared with the preceding quarter included $91 associated with severance costs and executive search efforts.

Interest on long-term debt was $178 for the quarter ended April 30, 2005, compared with $26 in the three months ended April 30, 2004, and $108 for the prior quarter ended January 31, 2005. This expense was due to the mortgage on the Company’s head office building, which the Company purchased in March 2004 and sold in April, 2005. Interest expense in the quarter, excluding $75 of one-time expenses associated with the payout of the Company’s mortgage on its head-office building, was $103. Wi-LAN intends to remain as a tenant of the building, leasing approximately one-third of the facility. Proceeds from the sale of the building, in the amount of $12.2 million, have been used to pay off the $7.8 million mortgage on the building and improve the Company’s cash balance by approximately $4 million, after transaction costs and closing adjustments of approximately $0.4 million. This purchase, sale and lease-back transaction is expected to save the company future expenses of approximately $0.3 million per year and cash from operations of approximately $0.6 million per year, when compared to the original lease arrangement.

Net Loss ($000’s)

Net loss for the second quarter was $(2,968) or $(0.07) per share, compared with net loss of $(1,509) or $(0.04) per share in the 2004 second quarter, and a net loss of $(2,448) or $(0.06) per share in the preceding three months ended January 31, 2005. The changes in the net loss in the three months ended April 30, 2005 resulted primarily from the changes in gross margin and operating expenses described previously. Excluding these, non-operating expenses reduced the net loss for the three months ended April 30, 2005 by $244 compared to $324 in the three months ended April 30, 2004, and $196 over the three months ended January 31, 2005. Non-operating items in the quarter included interest and bank charges, interest income earned on cash balances, other income (largely rental revenue), foreign exchange gains and losses ( gains and losses on foreign exchange transactions and the translation of revenue and expense from US dollars to Canadian dollars), and income tax (large corporations tax). Gains on disposal of $134 in the quarter related to the disposal of its portfolio of minority interests in three companies.

Cash Management ($000’s)

Consolidated cash on April 30, 2005 was $9,466, compared with $8,791 on January 31, 2005, and $13,768 on October 31, 2004. The three-month increase of consolidated cash of $675 consisted of $(4,252) used in operations ($(2,318) excluding changes in non-cash working capital balances), $(7,765) used in financing, and $12,692 from investments.

Cash from operations in the three months ended April 30, 2005, including changes in non-cash working capital balances, of $(4,252) was due to the cash net loss from continuing operations, which decreased cash from operations by $(2,318), and changes in non-cash operating working capital balances that reduced cash from operations by $(1,934) in the three months ended April 30, 2005.

The following items caused the changes in non-cash working capital balances of $(1,934):

  • Increased accounts receivable reduced cash inflows by $(2,509). This was caused mainly by larger product orders with longer credit terms, and a related reduction in the allowance for doubtful accounts.
  • Increased prepaid expenses and deposits increased cash outflows by $(861). This was caused by a deposit required by the Company’s new landlord, pursuant to the sale of the head office building, and increased deposits required by the Company’s primary contract manufacturer due to sharply increased production requirements related to certain large product orders.
  • Increases in inventories and deferred revenues accounted for a reduction in cash of $(158).
  • The prior items were partly offset by an increase in accounts payable and accrued liabilities, which reduced cash outflows by $1,594. This increase was primarily caused by increased production driven by large sales orders, accrued severance costs, accrued expenses associated with the head office building sale that closed on April 29, and a joint marketing fund set up with regard to certain large sales orders.

Cash from financing and cash from investing in the three months ended April 30, 2005 of $(7,765) and $12,692 respectively ($4,927 combined) was primarily due to the sale and leaseback of the Company’s head office building, which closed on April 29, 2005. The impact of the building sale and leaseback transaction on the quarterly cash balance was as follows:

Long term debt
Restricted cash
Net proceeds on sale of property
Cash impact of building sale and leaseback
$ (7,757)
775
11,787
$ 4,805

Other financing and investing items of $122 in the second quarter include proceeds from disposal of long term investments of $295 and share capital issued for cash on exercise of stock options of $12, partly offset by property and capital equipment costs of $(144), trademarks, patents and licenses costs of $(21), and capital lease payments of $(20).

Quarterly Financial Summary

Second Quarter Operations Highlights

Launch and Demonstration of Wi-MAX System-on-Chip

On April 21, 2005, Fujitsu Microelectronics America, Inc. (FMA) introduced its WiMAX System-on-Chip (SoC) and Wi-LAN demonstrated the Fujitsu SoC using its Libra MX network system, at the seventh annual Broadband Wireless World in Las Vegas, Nevada. Wi-LAN’s Libra MX system is the industry’s first WiMAX platform that meets the performance and throughput requirements of demanding point-to-point and point-to-multipoint broadband applications. Wi-LAN’s next-generation broadband wireless access systems are being built around the new, highly integrated WiMAX-compliant system-on-chip developed by Fujitsu Microelectronics America and Wi-LAN. Fujitsu and Wi-LAN have been working closely on WiMAX technology since late 2002. Wi-LAN has combined its system expertise and OFDM technology with FMA’s chip design capabilities in a development program that created the new SoC from Fujitsu. The highly integrated, high-performance solution incorporates embedded processors and mixed signal technology in a device that will enable systems developers like Wi-LAN to provide cost-effective WiMAX Forum Certified (1) equipment.

Wi-LAN’s Libra MX networks are guaranteed to be interoperable with future WiMAX-compliant solutions, protecting customer investments in Libra MX and minimizing future network and revenue disruption. Wi-LAN’s Continuity Program guarantees that any Libra MX subscriber unit will operate side by side, in the same network, the same cell and even the same sector with future WiMAX Forum Certified subscriber units, offering Wi-LAN customers a solid migration path to WiMAX Forum Certified systems, which are expected to be available in early 2006.

Sale of Head Office Building

On April 20, 2005 Wi-LAN announced it had entered into an agreement to sell its head office building in Calgary. Wi-LAN remains as a tenant of the building, leasing approximately one-third of the state-of-the-art facility. Wi-LAN purchased the building in March 2004 with the intent of selling it and leasing back only the portion of the building that it occupies. Proceeds from the sale of the building, in the amount of $12.2 million, were used to pay off the $7.8 million mortgage on the building and improve the Company’s cash balance by approximately $4 million, after transaction costs and closing adjustments of approximately $0.4 million. This purchase, sale and lease-back transaction is expected to save the company future expenses of approximately $0.3 million per year and cash from operations of approximately $0.6 million per year, when compared to the original lease arrangement. The sale closed on April 29, 2005. Citium Holdings Inc. has acquired the property with its financial partner, KingStreet Capital Partners (www.kingstreetpartners.com).

Executive Changes

On February 24, 2005, Wi-LAN announced that Mr. William (Bill) Dunbar, C.M., had been appointed President and Chief Executive Officer. Mr. Dunbar, Chairman of the Compensation Committee of Wi-LAN’s Board, replaced Dr. Sayed-Amr (Sisso) El-Hamamsy as President and CEO. William Dunbar has forty years of experience in the Canadian and International telecommunications industry. Mr. Dunbar has previously held the office of President and CEO of Northwestel Inc. and WIC Connexus Inc. Under his guidance, Northwestel purchased the telecommunications operations for the eastern Northwest Territories from Bell Canada in 1992. WIC ConneXus was the Local Multipoint Distribution System (LMDS) license holder for 33 city markets in Canada including Toronto, Vancouver and Edmonton. Mr. Dunbar led this startup company through its early stages arranging investors, vendor selection, vendor financing, and supply agreement to enable the company to enter the Competitive Local Exchange market in its licensed cities. This plan did not proceed due to a change in control of the parent company. In addition, Mr. Dunbar was the Chief Operating Officer of Vesper S.A., a Bell Canada International investment and a major Brazilian telecommunications company, during its critical startup phase, implementing telecommunications systems in 29 cities over 16 states, and growing the company from startup to over 2,000 employees. In 1995 Mr. Dunbar became a member of the Order of Canada.

On March 3, 2005, Wi-LAN announced that Dr. Sayed-Amr (Sisso) El-Hamamsy, had been appointed Senior Vice President, Corporate, Wi-LAN Inc. Dr. El-Hamamsy has since resigned from that position and is no longer an officer or employee of Wi-LAN.

On March 14, 2005, Wi-LAN announced that Dr. Hatim Zaghloul had resigned his position as Chairman and Director. Dr. Zaghloul, a co-founder of Wi-LAN, has since agreed to stand for election as a director at the shareholders meeting on May 19, 2005.

Also on March 14, 2005, Wi-LAN announced that Bill Hews had been appointed Chairman of the Board, Wi-LAN Inc. Mr. Hews has been a board member since April 2000 and Chair of the Corporate Governance Committee, and was President of Wi-LAN from September 1999 to September 2001. He is President of Fideliter Inc., a private investment company, and he serves on various corporate boards. Prior to September 1999 he was a Vice President at Nortel Networks Corporation where he gained more than 20 years of operations experience in the telecom equipment market. Mr. Hews is a graduate Industrial Engineer from the University of Toronto and holds an MBA from the University of Western Ontario.

On March 23, 2005, Wi-LAN announced that Keith Bittner was appointed Chief Financial Officer. Mr. Bittner joined Wi-LAN in September 1999 as Controller, and was promoted to Vice President, Finance in 2002 and later to Acting CFO. He is a Certified Management Accountant with over 25 years of experience in financial operations, with strength in financial reporting, financial systems and cash management.

Conference Call Information

Wi-LAN will hold a conference call on May 20, 2005 at 11:00 a.m. EST (9:00 a.m. Calgary time) to discuss the second quarter financial results. The call-in number will be (416) 405-9328 or 1-800-387-6216 (toll free North America). Participants are advised to call in 10 minutes early. The call will be webcast from Wi-LAN’s website at www.wilan.com and will be archived there.

A replay of the call will be available until 11:59 p.m. EST on May 27, 2005 by calling (416) 695-5800 or 1-800-408-3053 (toll free North America). The access code for the replay is 3153252.

Wi-LAN participants will be:

Mr. Bill Dunbar - President and Chief Executive Officer
Mr. Keith Bittner - Chief Financial Officer
Mr. Ken Wetherell - Vice President, Corporate Communications & Investor Relations
Other members of the Wi-LAN executive team will also be available to answer questions.

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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, wireless Voice-over-IP, and wireless data and telephony backhaul, utilizing its high quality products and industry-leading technologies. Wi-LAN’s broadband wireless solutions feature an all-inclusive 2-year parts and labor warranty and are supported by 24/7 customer service.

Wi-LAN believes its portfolio of patents, including its core W-OFDM patents and 17 patents and patent applications acquired from Ensemble Communications in May 2004, are necessary for the implementation of devices using the IEEE 802.16 WirelessMAN Standard (1) and the ETSI BRAN HiperMAN(1) standard (the WiMAX Forum(1) standards). As well, Wi-LAN’s W-OFDM patents are believed to be required for the implementation of devices using the IEEE standards 802.11a and 802.11g (the 2nd generation Wi-Fi Alliance(1) standards), and the ETSI BRAN HiperLAN/2(1) standard. Wi-LAN licenses its patented technology and has executed non-exclusive W-OFDM license agreements with semiconductor and broadband wireless equipment companies.

Wi-LAN is the chair company of the OFDM Forum and a charter 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.wilan.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 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.

(1) All trademarks and brands mentioned in this release are the property of their respective owners.

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.

Disclaimer

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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.

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