Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

November 13, 2008 11:50 ET

Wi-LAN Announces That Fiscal 2008 Performance Will Exceed Previous Financial Guidance

Pro forma earnings expected to beat the mid-point of previous guidance by 26%

OTTAWA, CANADA--(Marketwire - Nov. 13, 2008) - Wi-LAN Inc. ("Wi-LAN" or the "Company") (TSX:WIN), a leading technology innovation and licensing company, today announced that the Company expects to report revenues and pro forma earnings for its fiscal year 2008 ended October 31, 2008 that exceed previous financial guidance. All financial amounts are expressed in Canadian dollars.

Revenues for fiscal 2008 are expected to be approximately $26.6 million, up from previous guidance of $24.5 million to $25.5 million. Pro-forma earnings(i) are expected to exceed $11 million, up from previous guidance of $8 million to $9.5 million.

The Company also expects to report that it completed its fiscal 2008 with a total of $101.4 million in cash, cash equivalents and short-term investments which represents an increase of $9.9 million over the $91.5 million that the Company had on hand as of October 31, 2007. The Company's cash equivalents include T-bills, term deposits and GICs while its short-term investment consists of a banker's acceptance issued by a large Canadian financial institution.

Wi-LAN completed a strong fourth quarter of fiscal 2008 in which the company signed license agreements with 25 companies. During fiscal 2008, Wi-LAN signed license agreements with 79 new companies, a greater than five-fold improvement over the 15 new companies licensed in fiscal 2007. Of the companies licensed in fiscal 2008, 39 licensed V-chip-related technologies, 35 licensed wireless-related technologies and five licensed DSL-related technologies.

Wi-LAN initiated a share purchase program on October 15, 2008, which is ongoing, pursuant to which Wi-LAN expects to purchase up to 5% of its outstanding common shares. During the month of October, the Company repurchased 215,000 shares for cancellation.

"The operational performance of our business continues to exceed our expectations, with the result that we have raised our revenue and earnings guidance twice since the end of our third quarter," said Jim Skippen, President & CEO. "The signing of 79 licenses in the fiscal year, a remarkable achievement by any industry standard, is a testament to the strength of our innovative inventions, our dedicated team and our licensing methodology. The vast majority of the licenses signed in the year were long-term running royalty agreements, which will contribute to the growth of our recurring revenue base in the future. The growth of our recurring revenues, our commitment to tightly control expenses and the momentum of our licensing program, all point to a positive future for Wi-LAN. We are currently pursuing a number of initiatives that could lead to exciting developments for our business in the coming weeks and months."

Skippen added, "Despite having commenced a share buyback program, fully paying down a mortgage on our Toronto building, and making patent purchases in excess of $1 million, our cash position has nevertheless increased by almost $10 million from the beginning of the fiscal year to over $101 million at the end of the fiscal year. Our strong cash position gives us the flexibility to fully pursue our business objectives, while also repurchasing our shares. We plan to continue our buyback program since we believe that are shares are significantly undervalued at this time."

Wi-LAN expects to provide financial guidance for fiscal 2009 at the time of its release of financial results for 2008, which is expected on January 13, 2009.

About Wi-LAN

Wi-LAN, founded in 1992, is a leading technology innovation and licensing company. Our portfolio of patented inventions applies to a wide range of consumer electronics and communications products. Some of the fundamental technologies covered by Wi-LAN's patents include: CDMA, DOCSIS, DSL, GSM/EDGE, V-chip, Wi-Fi and WiMAX. Wi-LAN has a large and growing portfolio of more than 300 issued or pending patents. Wi-LAN has licensed its intellectual property to over 150 companies. For more information: www.wi-lan.com.

Note

(i) Wi-LAN follows Canadian generally accepted accounting principles ("GAAP") in preparing its interim and annual financial statements. To assist readers in further understanding its operating performance, Wi-LAN is reporting "pro forma earnings" which is a non-GAAP financial term. Wi-LAN's pro forma earnings represent earnings before stock-based compensation, depreciation and amortization and provision for income taxes.

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 that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the wireless and wireline telecommunications industries and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: licensing of the Company's patents can take an extremely long time and may be subject to variable cycles; the Company is currently reliant on licensees paying royalties under existing licensing agreements and additional licensing of its patent portfolio to generate future revenues and increased cash flows; the Company may be required to establish the enforceability of its patents in court in order to obtain material licensing revenues; changes in patent laws or in the interpretation or application of patent laws could materially adversely affect the Company; a court may determine that certain of the Company's patents are not infringed by certain standards or products or may disagree with management with respect to whether one or more of the Company's patents apply to certain standards or products, which could adversely affect the Company; the Company will need to acquire or develop new patents to continue and grow its business; the Company has made and may make acquisitions of technologies or businesses which could materially adversely affect the Company; the Company may require investment to translate its intellectual property position into sustainable profit in the market; the generation of future V-chip revenues and the likelihood of the Company signing additional V-chip licenses could be negatively impacted by changes in government regulation; the Company is dependent on its key officers and employees; and the price of the Company's common shares is volatile and subject to market fluctuation.
These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release 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 statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in Wi-LAN's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States.

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

Contact Information

  • Tyler Burns
    Director, Investor Relations & Communications
    O: 613-688-4330
    C: 613-697-0367
    tburns@wi-lan.com