News Release Details

Wi-LAN Announces 2007 First Quarter Financial Results

03/15/2007

Record revenues of $49 million and earnings of $0.45 per share

OTTAWA, CANADA--( March 15, 2007) - Wi-LAN Inc. (TSX:WIN) ("Wi-LAN" or the "Company") announced today its financial results for the 2007 Fiscal First Quarter, the period that ends on January 31, 2007. All financial amounts are expressed in thousands of Canadian dollars, except per share amounts or unless otherwise noted.

Highlights

During the fiscal first quarter of 2007, Wi-LAN achieved record revenues and earnings. Revenues in the first quarter 2007 were $49,265, compared with $nil in first quarter 2006. Basic net earnings per share were $0.45 in Q1/07 compared with $0.08 in Q1/06.

In the first quarter of 2007, the Company completed two significant transactions:

- on December 4, 2006, Wi-LAN licensed its patent portfolio to Nokia Corporation ("Nokia") for total consideration of $49,265; and

- the Company completed a bought deal financing for net cash proceeds of $28,292 (gross proceeds of $30,000) on December 29, 2006.

Subsequent to the first quarter, Wi-LAN completed a bought deal financing for net cash proceeds of approximately $37,750 (gross proceeds of $40,000) on March 13, 2007.


Since October 31, 2006, the Company's fiscal year end, cash and cash equivalents increased by $41,076 due to the $28,292 of net proceeds from the sale of common shares in December 2006 and the approximately $13,600 of cash received in January 2007 from Nokia pursuant to the license agreement. Subsequent to the first quarter, an additional approximately $37,750 of cash was received on March 13, 2007 from the sale of common shares.

The $16,726 future tax asset reported at October 31, 2006 was charged to earnings in the first quarter of 2007 as a result of the pre-tax earnings generated by the revenues from Nokia. The year end valuation allowance of $19,975 has not been adjusted.

The carrying value of patents grew to $43,047 at January 31, 2007 due to the acquisition of digital subscriber line ("DSL") patents from Nokia. The Company has already initiated steps to license those patents as part of its overall licensing program.

Management's Comments

"In the first quarter, we focused on continuing to execute our strategy to harvest the value of our patent portfolio and to grow our business through patent acquisitions. This resulted in the most successful quarter in the Company's 14-year history," said Jim Skippen, President and CEO.

"We licensed our wireless patent portfolio in a $49 million deal with Nokia, acquiring valuable DSL patents in the process, and we completed a $30 million round of financing. Not only did the Nokia deal provide high-margin revenue, it further endorsed the credibility and value of Wi-LAN's patents. Since Nokia, a number of other companies have come forward and accelerated the pace of our licensing discussions."

"The additional $40 million raised this week further strengthens our financial position, and gives us greater flexibility to actively pursue patent acquisitions and enter into litigation if that becomes necessary to achieve our licensing objectives," he added.

Operating Expense "Guidance"

It has been Wi-LAN's practice not to provide guidance on the range of expected future revenues and earnings, given the relatively early stage of its development in licensing as well as the difficulty in predicting the timing and value of patent acquisition opportunities and possible future litigation, both of which could require significant investment. In order to assist investors and other interested parties in their understanding of Wi-LAN's performance, management believes that operating expenses for the fiscal year 2007 will likely be in the range of $8.5 -10.5 million, based on current plans and expectations.

Conference Call Information -- March 15, 2007 - 10:00AM EST

Wi-LAN will conduct a conference call to discuss its fiscal year results today at 10:00 AM Eastern Time.

Participants calling from Canada or the US should call toll free: (866) 585-6398

Callers from other international locations should call: (416) 849-9626

Participants are requested to call in 10 minutes before the start of the call.

For those who prefer to join by webcast, visit www.wilan.com. The call will be archived there.

Wi-LAN representatives will be:

Jim Skippen, President & CEO and Steve Bower, CFO

A replay of the call will be available until 11:59 PM EST on 3/23/2007:

Replay Number (Toll Free): 866-245-6755

Replay Number (International): 416-915-1035

Passcode: 721476

About Wi-LAN Inc.

Wi-LAN, which was founded in 1992, licenses intellectual property that drives a full range of products providing access in wireless and wireline telecommunications markets. Some of the fundamental technologies covered by Wi-LAN's patents include: CDMA, Wi-Fi, WiMAX and DSL. Wi-LAN has already licensed its intellectual property to a number of major companies, including Cisco, Fujitsu and Nokia.

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 and wireline communications industry and the global economy. These risks and uncertainties include, but are not restricted to: the Company is almost exclusively reliant on additional licensing of its patent portfolio to generate future revenues and cash flows; acquisitions of additional products, technologies or businesses could materially adversely affect the Company; the Company is dependent on the performance of its key officers and employees and the need to attract and retain personnel; the Company may be required to establish the enforceability of the Company's patents in court to obtain material licensing revenues; the Company needs to acquire or develop new patents to continue to grow its business; the Company will need to invest to translate its intellectual property position into sustainable profit in the market; and changes in patent legislation or in the interpretation or application of patent litigation that could materially adversely affect the Company. These risks and uncertainties may cause actual results to differ from information contained herein, when estimates and assumptions have been used to measure and report results. There can be no assurance that such forward-looking statements will prove to be accurate. Actual result 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.
Steve Bower, CFO
O: 1-613-688-4898
C: 1-613-697-7159
sbower@wi-lan.com

or

Wi-LAN Inc.
Lynne Bermel, Director Corporate Communications
O: 1-613-688-4900 ext. 2019
lbermel@wi-lan.com
www.wilan.com 

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.

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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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