Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

August 11, 2008 10:40 ET

Wi-LAN Revises 2008 Financial Guidance

OTTAWA, CANADA--(Marketwire - Aug. 11, 2008) - Wi-LAN Inc. ("Wi-LAN" or the "Company") (TSX:WIN), a leading technology innovation and licensing company, today announced it is revising its 2008 financial guidance as a result of recent license signings.

During the fiscal third quarter, the Company signed license agreements for wireless-related technologies with 12 companies, up from 10 in the previous quarter, including new licensee, AOpen Inc. and previously announced licensees, ASUSTek Computer Inc. and Xirrus Inc. With Research In Motion Limited, which was announced earlier today, the total number of wireless licensees signed to date is 34. In addition, during the fiscal third quarter, the Company signed license agreements for its V-chip patents with 12 companies, up from seven in the previous quarter, including new licensee China Hualu Group Co., Ltd. The total number of V-chip licensees signed to date is 94.

Revenues for the fiscal year are expected to be within the range of $24.5 million to $25.5 million, up from previous guidance of $15 million to $20 million. Operating expenses, excluding stock based compensation, are expected to be in the range of $19 million to $20 million, up from previous guidance of $16 million to $19 million. Pro-forma earnings(1) are expected to be within the range of $8.0 million to $9.5 million, up from previous guidance of $2 million to $5 million.

The above statements are forward-looking and actual results may differ materially. Readers should review the "Forward-looking Information" section at the end of this news release which provides information on various risks and uncertainties that face the Company. Annual financial guidance for fiscal 2008 is provided to assist investors and other interested parties in understanding Wi-LAN's performance. The reader is cautioned that using this information for any other purpose may be inappropriate.

The Company's revenues result from the licensing of intellectual property which, by its very nature, is directly affected by the timing of the closure of license agreements, the nature and extent of specific licenses including actual rates, product sales by licensees which can be subject to seasonality as well as overall market demands and the timeliness of the receipt of licensee royalty reports. In addition, certain revenues may be of a one-time nature. Thus, quarter-to-quarter fluctuations in revenue are normal and should be expected. Management believes that the strength of its business should be measured by annual revenues and growth in estimated revenue backlog.

Guidance for the fiscal year ended October 31, 2008 reflects our current business indicators and expectations. Due to their nature, certain income and expense items, such as significant settlements from companies involved in current enforcement actions, new significant litigation or defense actions that could arise during the course of the year, losses on asset impairments or realized foreign exchange losses cannot be accurately forecast. Accordingly, we exclude forecasts of such items from our guidance. Additionally, the Company's revenues result from the licensing of intellectual property which, by its very nature, is directly affected by the timing of the closure of license agreements, the nature and extent of the license including actual rates, the product sales by licensees which can be subject to seasonality and overall market demands as well as the timeliness of the receipt of licensee royalty reports. Wi-LAN's imperative is to negotiate the best possible license as measured over the long-term and accordingly, the timing of actual license signings may vary from that forecasted. Actual results may vary materially from the guidance provided as a consequence of the above noted factors.

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 120 companies. For more information: www.wi-lan.com.

Note

(1) 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 represents earnings/(loss) from continuing operations before stock-based compensation, depreciation & 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 almost exclusively reliant on additional licensing of its patent portfolio to generate future revenues and 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 viability of the Company's V-chip technology may be subject to continued government support; 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

  • Wi-LAN
    Tyler Burns
    Director, Investor Relations and Communications
    613-688-4330
    613-697-0367 (Cell.)
    tburns@wi-lan.com