News Release Details

Wi-LAN Announces Fiscal 2006 Financial Results


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


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:
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 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

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.
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For more information please contact:  

Steve Bower, CFO, Wi-LAN Inc.
1 (613) 697-7159   
 Amir Nayeri, Genoa Management
1 (866) 430-6247













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