WiLAN Reports Third Quarter 2013 Financial Results
OTTAWA, Canada – November 6, 2013 – Wi-LAN Inc. (“WiLAN” or the “Company”) (TSX:WIN) (NASD:WILN) today announced financial results for the third quarter of fiscal year 2013 ended September 30, 2013. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Third Quarter 2013 Highlights
· Revenues of $20.7 million, meeting guidance.
· Returned $7.8 million to shareholders in dividend and share buyback payments.
· Signed license agreement with Alcatel-Lucent.
· Subsequent to quarter end, signed license agreements with BlackBerry, HP, HTC, Novatel Wireless and Sierra Wireless.
· Held cash and cash equivalents and short-term investments of $142.3 million at September 30, 2013.
“Our third quarter financial results met guidance,” said Jim Skippen, President & CEO. “During the quarter WiLAN returned over $7.8 million to shareholders in dividend and share buyback payments.”
Added Skippen, “Agreements signed in the third and fourth quarter with Alcatel-Lucent, BlackBerry, HP, HTC, Novatel and Sierra Wireless will contribute to the strong financial performance expected in the fourth quarter. With the recent resolution of multiple litigations, operating expenses in the fourth quarter are expected to decline significantly, leading to increased adjusted earnings being forecasted for the quarter.”
“Believing that the value of our Company is not accurately reflected in recent share price levels, WiLAN’s Board of Directors has initiated a process to explore and evaluate a broad range of strategic alternatives for the Company to enhance shareholder value, a process that was announced on October 30, 2013.” commented Skippen.
Eligible Dividend
The Board of Directors has declared an eligible dividend of CDN $0.04 per common share to be paid on January 6, 2014 to shareholders of record on December 13, 2013.
Third Quarter 2013 Revenue Review
In the three month period ended September 30, 2013, WiLAN generated revenues of $20.7 million, as compared to $21.3 million in the three month period ended September 30, 2012. For the three month period ended September 30, 2013, and September 30, 2012, the top 10 licensees accounted for 86% of revenues.
Third Quarter 2013 Operating Expense Review
In the three month period ended September 30, 2013, cost of revenue totaled $23.9 million as compared to $14.8 million in the three month period ended September 30, 2012. The increase in expenses is primarily attributable to an increase in litigation expense. |
