WiLAN Provides Financial Update
OTTAWA, CANADA -- (Marketwired) -- 10/24/13 -- Wi-LAN Inc. ("WiLAN"
or the "Company") (TSX:WIN) (NASDAQ:WILN) today provided a financial
The Company is disappointed with the decision in its Texas litigation
case against Apple yesterday, but would like to take this opportunity
to remind shareholders of the Company's strong financial position and
results to date. The patent that was at issue in that case expires in
just over three months and is only one patent in our portfolio of
more than 3,000. Since refocusing the Company on intellectual
property licensing in mid-2006, the Company has signed more than 270
license agreements worth between $725 million and $750 million.
For the third quarter of 2013 ended September 30, 2013, revenues will
be $20.7 million which is in line with previously provided guidance.
Revenues for the fourth quarter are expected to be between $26.0
million and $28.0 million. Revenues for the full 2013 fiscal year,
ending on December 31, 2013, are expected to be in the range of $85.0
million to $87.0 million. Revenues for the fourth quarter and the
full year include contributions from license agreements signed in the
fourth quarter, several of which have revenue components that are not
expected to recur in future periodsand management's estimate of
running royalties yet to be reported.
Since the Company refocused in mid-2006, through to the end of the
third quarter this year, WiLAN has recorded more than $400 million in
The Company is pleased to report that its estimated backlog position,
which consists of the value of signed license agreements
characterized as having fixed periodic payments plus management's
estimate of revenues to be reported and collected upon under signed
running royalty license agreements, is now between $325 million and
$350 million. The Company expects the majority of these revenues to
be collected over the next four fiscal years with some license
agreements extending for more than seven years.
The Company's estimated revenue backlog represents its estimates of
revenues yet to be recorded from signed license agreements. These
estimates consider the market forecasts for the technologies covered
within the Company's patent portfolio, publicly available and, in
cases, privately provided forecasts for existing licensees'
product sales, and the relevant license rates in effect in these
signed agreements. The timing of license agreement closings, breadth
and depth of product portfolios licensed and other external market
forces may cause the Company's estimated revenue backlog to vary from
one reporting period to the next.
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 and overall market demands as
well as the timeliness of the receipt of licensee royalty reports. In
addition, certain revenues may be of a one-time nature.
WiLAN'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.
The above statements are forward-looking and actual results may
differ materially. The "Forward-looking Information" section at the
end of this press release provides information on various risks and
uncertainties that the Company faces. Additional information
identifying risks and uncertainties relating to the Company's
business are discussed in greater detail in the "Risk Factors"
section of WiLAN's annual information form for the 2012 fiscal year
dated March 7, 2013 (copies of which may be obtained at www.sedar.com
or www.sec.gov). Financial guidance is provided to assist investors
and other interested parties in understanding WiLAN's performance.
Readers are cautioned that using this information for any other
purpose may be inappropriate.
WiLAN, founded in 1992, is a leading technology innovation and
licensing company. WiLAN has licensed its intellectual property to
over 270 companies worldwide. Inventions in our portfolio have been
licensed by companies that manufacture or sell a wide range of
communication and consumer electronics products including 3G and 4G
handsets, Wi-Fi-enabled laptops, Wi-Fi and broadband routers, xDSL
infrastructure equipment, cellular base stations and digital TV
receivers. WiLAN has a large and growing portfolio of more than 3,000
issued or pending patents. For more information: www.wilan.com.
This news release contains forward-looking statements and
forward-looking information within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and other United States and
Canadian securities laws. The phrases "are expected to be", "are not
expected to recur", "estimate of running royalties yet to be
reported", "estimate of revenues to be reported and collected",
"expects", "estimated revenue backlog", "yet to be recorded", "may
cause the Company's estimated revenue backlog to vary", "may vary",
"may differ" and similar terms and phrases are intended to identify
these forward-looking statements. Forward-looking statements and
forward-looking information are based on estimates and assumptions
made by WiLAN in light of its experience and its perception of
historical trends, current conditions and expected future
developments, as well as other factors that WiLAN believes are
appropriate in the circumstances. Many factors could cause WiLAN's
actual performance or achievements to differ materially from those
expressed or implied by the forward-looking statements or
forward-looking information. Such factors include, without
limitation, the risks described in WiLAN's March 7, 2013 annual
information form for the year ended December 31, 2012 (the "AIF").
Copies of the AIF may be obtained at www.sedar.com or www.sec.gov.
WiLAN recommends that readers review and consider all of these risk
factors and notes that readers should not place undue reliance on any
of WiLAN's forward-looking statements. WiLAN has no intention and
undertakes no obligation to update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
All trademarks and brands mentioned in this release are the property
of their respective owners.
Director, Investor Relations
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