Wi-LAN second quarter results
Wi-LAN Inc WIN
Shares issued 18,483,829 Jun 25 close $6.15
Fri 25 Jun 99 News Release
Ms. Wanda Posehn reports
In the first six months of 1999 ended April 30, the company had revenue of
$2,835,000, compared with $2,967,000 in 1998. Product sales for the second
quarter of 1999 were $1,777,000, compared with $1,054,000 for the first
quarter. The operating loss and net loss for the first six months were
$1,663,000 or nine cents per share, compared with an operating loss of
$1,498,000 and a net loss of $2,646,000 in 1998. The higher net loss in
1998 was primarily due to the company's equity share of the net losses of
Wireless Inc. in 1998. The operating loss for the second quarter of 1999
was $420,000, a significant improvement compared with the loss of
$1,243,000 in the first quarter.
The quarter was highlighted with Wi-LAN retaining Scotia Capital Markets as
financial adviser in order to evaluate alternatives to maximize shareholder
value, a contract for $36-million (U.S.) over three years with
Swedish-based Telia GlobalCast internetworking, AB, and the signing of an
memorandum of understanding with RSL Com Canada for an initial order of
$250,000 worth of Wi-LAN Hopper Plus Ethernet bridges, and a commitment by
RSL COM Canada for additional purchases of 1,000 units over the next 18
months.
In March, 1999, Wi-LAN's board of directors adopted a shareholder rights
plan. The rights plan addresses the corporation's concerns that existing
Canadian legislation does not allow sufficient time, if a takeover bid is
made, for the board of directors or the shareholders to properly consider a
takeover bid, or to seek alternatives to such a bid. The rights plan is
similar to plans adopted recently by other Canadian companies. The rights
plan was recently confirmed by shareholders at Wi-LAN's annual general
meeting on April 19.
In February, 1999, Wi-LAN Inc. and Telia GlobalCast Internetworking AB, a
provider of wireless data communication services in Sweden, reached a
contract agreement to supply Wi-LAN wireless local loop products to a
national high-speed wireless network in Sweden and several other European
countries. Under terms of the three-year, $36-million (U.S.) contract,
Telia GlobalCast Internetworking AB will use Wi-LAN's Hopper Plus wireless
bridges and W-OFDM products to offer high-speed wireless Internet access
and intranet services to small- and medium-sized businesses and small
office/home office workers throughout Sweden in 1999. Similar local
wireless access rollouts will follow in Norway, Finland, Denmark and Baltic
countries.
On March 23, 1999, Wi-LAN received a new purchase order from Telia
GlobalCast internetworking AB of Sweden, for the supply of additional
Wi-LAN Hopper Plus equipment. Totalling $474,050 (U.S.), this purchase
brings the total amount ordered above $974,000 (U.S.) in the first three
months of the agreement.
RSL COM Canada Inc., a wholly-owned subsidiary of RSL Communications Ltd.,
a global provider of telecommunications network services and Wi-LAN Inc.
signed a memorandum of understanding in February. The MOU represents an
initial order by RSL COM Canada of $250,000 worth of Wi-LAN Hopper Plus
Ethernet bridges, and a commitment by RSL COM Canada for additional
purchases of 1,000 units over the next 18 months. RSL COM Canada will use
Wi-LAN's wireless local loop (WLL) technology to extend high-speed Internet
and intranet services to small- and medium-sized businesses, schools,
libraries and municipalities. While initial deployment will take place in
British Columbia and Alberta, expansion to other regions of Canada will
occur in tandem with the growth of RSL COM Canada's business. |
