News Release Details

Wi-LAN Announces Fiscal 2006 Financial Results

01/11/2007

Company Reports Earnings of $14 Million in Fiscal 2006

OTTAWA, Canada – January 11, 2007 – Wi-LAN Inc. (TSX: WIN) (“Wi-LAN” or “the Company”) today announced financial results for the fiscal year ended October 31, 2006.  All financial amounts are expressed in thousands of Canadian dollars, except per share amounts or unless otherwise noted. 

Financial Highlights

Operations
 

During 2006, Wi-LAN transformed itself into a pure-play wireless and wireline IP licensing company by divesting its products and engineering services businesses.

Revenues from Wi-LAN’s licensing activities reached $2,108 for the fiscal year ending October 31, 2006. There were no license revenues generated in the prior two years. The Company generated $9,561 of earnings from its continuing licensing business before taxes in fiscal 2006, following two years of losses.

The 2006 results reflected $5,721 of operating expenses for the Company’s staff, external legal costs, facilities, administration and other expenses plus $676 of depreciation and amortization expenses relating mainly to its patent portfolio. Pre-tax 2006 earnings also included several non-recurring gains: a $9,635 net settlement with Cisco Systems Inc. (“Cisco”) that included the sale of patents and paid-up royalties on certain patents; a $2,919 gain on its settlement with Industry Canada; and the $1,145 gain on the sale of its Calgary head office. The Company also reported a $16,726 non-cash future income tax recovery based mainly on the income from license agreement signed with Nokia in December 2006 following the fiscal year end.

Losses from the discontinued products and engineering services businesses amounted to $(12,178), $9,427 less than the prior year due to lower R&D, sales and marketing and other expenses. The Company exited these businesses in the fiscal second quarter ending April 30, 2006.

Financial Position
 

 

Wi-LAN’s cash position improved by $12,990 in 2006 mainly due to the $14,738 of net cash raised by the issuance and sales of common shares in June and August 2006.

Subsequent Events
Two significant subsequent events were achieved in December 2006, after the end of the fiscal year.

Wi-LAN licensed its patent portfolio to Nokia for total consideration of $49,200, including approximately $15,200 of cash and ADSL patents valued at $34,000; and
The Company completed a bought deal financing to issue 6,666,700 common shares for net cash proceeds of approximately $28,250 (gross proceeds of $30,000).
Management Comments
“This has been a watershed year for Wi-LAN, including our dramatic turnaround to profitability in 2006,” said Jim Skippen, President & CEO. “We started with a very strong wireless patent portfolio and put in place a dedicated and experienced management team. Our patent deal with Nokia, announced on December 4, 2006, is highly significant. Not only did it produce high-margin revenue, it provided instant validation that the things we’ve been saying about our patents were right. It also gave us access to some of the world’s most important patents in ADSL - the technology that provides access for an estimated two thirds of the world’s Internet users.”

“Our financial position has not been this strong in many years,” said Steve Bower, CFO. “Taking into account the $28 million net cash raised in December, we are now in an excellent position to fund growth in our operations, carry the costs of litigation, and continue to grow our valuable patent portfolio.”

Conference Call Information – January 11, 2007 - 10:00 eastern time
Wi-LAN will conduct a conference call to discuss its fiscal year results today at 10:00A.M. eastern time (8:00 A.M. mountain time).
Participants calling from Canada or the Unites States should call toll-free: 1 (866) 585-6398
Callers from other international locations may access the call at:  1 (416) 849-9626
For those who prefer to join by webcast, the URL is:

http://www.vcall.com/IC/CEPage.asp?ID=112809
Participants are requested to call in 10 minutes before the start of the call.  The call will be webcast from Wi-LAN’s website at www.wilan.com and 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 P.M. Eastern time on January 18, 2007 by calling 1 (866) 245-6755 or 1 (416) 915-1035. The replay pin number is: 44 86 63. The Conference Call will also be available by webcast at the same URL noted above.

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 ADSL. Wi-LAN has already licensed its intellectual property to a number of major companies, including Cisco, Fujitsu and Nokia.

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 and wireline communications industry and the global economy. These risks and uncertainties include, but are not restricted to: the almost exclusive reliance of the Company on licensing its patent portfolio to generate revenues and cash flows; that the Company may be required to establish the enforceability of its patents in court to obtain material licensing revenues; that the Company will need to acquire or develop new patents to continue to grow its business; that the Company requires investment to translate its intellectual property position into sustainable profit in the market; that the Company is dependent on the performance of its key officers and employees; that changes in patent legislation or in the interpretation or application of patent litigation could materially adversely affect the Company; and that the Company has and may make acquisitions of products, technologies or businesses which 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:  

Steve Bower, CFO, Wi-LAN Inc.
1 (613) 697-7159   
e-mail: sbower@wi-lan.com
Website: www.wilan.com  
 
 Amir Nayeri, Genoa Management
1 (866) 430-6247
e-mail: info@genoa.ca
Website: www.genoa.ca
 

 

 

 

 

 

 

 

 

 

 

 

 

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

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Wi-LAN Inc. and its affiliates (“WIN”) have no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only.

By clicking “Accept” you acknowledge and agree that neither WIN nor third party provider Virtua Research, Inc. (“Virtua) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against WIN and Virtua and further acknowledge and agree that in no event shall WIN or Virtua, or their respective officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to the Legal Notice, this disclaimer or the External Site

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.

Decline Agree

Copyright © . All rights reserved. Q4 Web Systems