WiLAN Reports Third Quarter 2013 Financial Results

WiLAN Reports Third Quarter 2013 Financial Results 
OTTAWA, CANADA -- (Marketwired) -- 11/06/13 -- Wi-LAN Inc. ("WiLAN"
or the "Company") (TSX:WIN)(NASDAQ: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. 


 
                                    Three months ended   Nine months ended 
                                   ----------------------------------------
                                    September September September September
                                    30, 2013  30, 2012  30, 2013  30, 2012 
                                   ----------------------------------------
                                                                           
Patent licensing                      $ 1,726   $ 1,018   $ 3,935   $ 3,174
Litigation                             14,382     7,096    41,164    16,793
Amortization of patents                 7,464     6,413    20,292    18,264
Stock-based compensation                  341       224       762       684
                                   ----------------------------------------
                                     $ 23,913  $ 14,751  $ 66,153  $ 38,915
                                   ----------------------------------------

 
For the three months ended September 30, 2013, litigation expenses at
$14.4 million were within guidance. In comparison, litigation
expenses were $7.1 million in the same period last year. The increase
in litigation for the three and nine months ended September 30, 2013
is attributable to an increase in the level of litigation activities
in comparison to the same periods last year, including preparation
for three claims construction hearings, and preparation for multiple
trials scheduled to take place in 2013, of which one took place in
July 2013 and one took place in October 2013. As a result of the
signing of multiple license agreements in the third and fourth
quarters and the subsequent dismissal of a large number of
litigations, it can be expected that our litigation expenses will be
reduced in the fourth quarter of 2013 and beyond commensurate with
the overall level of litigation activity. 
In the third quarter ended September 30, 2013, MG&A expenses amounted
to $3.4 million as compared to $3.3 million in the third quarter
ended September 30, 2012. The increase in spending year over year is
primarily attributable to increased staffing levels. 


 
                                    Three months ended   Nine months ended 
                                   ----------------------------------------
                                    September September September September
                                    30, 2013  30, 2012  30, 2013  30, 2012 
                                   ----------------------------------------
                                                                           
Marketing, general and                                                     
 administration costs                 $ 2,824   $ 2,546   $ 7,968   $ 7,357
Asset write-off related to                                                 
 restructuring                              -         -         -       209
Depreciation                              123       104       365       376
Stock-based compensation                  469       637     1,879     1,850
                                   ----------------------------------------
                                      $ 3,416   $ 3,287  $ 10,212   $ 9,792
                                   ----------------------------------------

 
In the third quarter ended September 30, 2013, R&D expenses were $2.2
million as compared to $1.9 million for the three months ended
September 30, 2012. The increase in spending for the three months
ended September 30, 2013 is primarily attributable to an increase in
patent management costs, principally patent prosecution and
maintenance costs, as a result of the increased size and breadth of
our patent portfolio, partially offset by a decrease in salary costs
related to the research function resulting from the restructuring
completed during the three months ended June 30, 2012. 


 
                                    Three months ended   Nine months ended 
                                   ----------------------------------------
                                    September September September September
                                    30, 2013  30, 2012  30, 2013  30, 2012 
                                   ----------------------------------------
                                                                           
Research                                $ 397     $ 425   $ 1,365   $ 2,585
Patent management                       1,544     1,181     4,405     3,298
Depreciation                               75       104       224       320
Stock-based compensation                  169       163       472       421
                                   ----------------------------------------
                                      $ 2,185   $ 1,873   $ 6,466   $ 6,624
                                   ----------------------------------------

 
In the quarter ended September 30, 2013, the Com
pany incurred a
realized foreign exchange loss of $0.4 million. Our realized foreign
exchange loss is attributable to un-hedged transactions denominated
in currencies other than our functional currency, U.S. dollars.
During the quarter the Canadian dollar strengthened relative to the
U.S. dollar. The realized foreign exchange loss is attributable to
the change in exchange rates in effect when foreign denominated
transactions are initially recorded and the corresponding settlement. 
In the quarter ended September 30, 2013, the Company recorded an
unrealized foreign exchange gain, a non-cash item, of approximately
$1.2 million. During the quarter the Canadian dollar strengthened
relative to the U.S. dollar. The unrealized foreign exchange gain
recognized in the three months ended September 30, 2013 resulted from
the translation of monetary accounts denominated in Canadian dollars
to U.S. dollars at September 30, 2013. 
Third Quarter 2013 Earnings Review 
In the third quarter ended September 30, 2013, adjusted earnings,
amounting to a loss of $0.3 million or nil per share, were within
guidance. In comparison, adjusted earnings were $9.3 million, or 8
cents per share, in the same period last year. The decrease in
adjusted earnings as compared to last year is primarily attributable
to the increase in litigation expenses. 
The Company generated a GAAP loss of $6.5 million, or 5 cents per
share on a basic level, in the three month period ended September 30,
2013, as compared to GAAP earnings of $2.2 million, or 2 cents per
share on a basic level, in the same period last year. In the three
month period ended September 30, 2013, the Company recorded an income
tax recovery of $1.3 million as compared to an income tax expense of
$0.6 million recorded in the same period last year. 
Third Quarter 2013 Balance Sheet and Cash Flow Review 
At September 30, 2013, the Company's cash, comprised of cash and cash
equivalents and short-term investments, totaled $142.3 million,
representing a decrease of $34.6 million from the cash position at
December 31, 2012. The decrease is primarily attributable to $11.0
million cash utilized in operations, the payment of dividends
totaling $13.9 million, the repurchase of common shares totaling $5.8
million and the purchase of patents and other intangibles totaling
$3.7 million. The Company's cash equivalents and short-term
investments include T-bills, term deposits and GICs. 
During the three months ended September 30, 2013, the Company
acquired certain patents for future consideration. The patent finance
obligation payment is based on the expected payment schedule and the
appropriate discount rate for the term of the obligation. The total
of the patent finance obligation is $22.1 million. 
Fourth Quarter 2013 Financial Guidance 
For the fourth quarter 2013 ending December 31, 2013, the Company
expects revenue to be at least $28.4 million. This revenue guidance
does not include the potential impact of any new agreements that may
be signed during the balance of the fourth quarter of 2013 or the
potential impact of any royalties identified in audits conducted by
the Company. Operating expenses for the fourth quarter are expected
to be in the range of $13.5 million to $16.5 million of which $6.3
million to $8.0 million is expected to be litigation expense. For the
fourth quarter of 2013, and assuming no additional agreements are
signed, adjusted earnings are expected to be in the range of $12.5
million to $15.0 million. 
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.
The reader is cautioned that using this information for any other
purpose may be inappropriate. 
The Company's revenues result primarily 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. 
The above targets for the three month period ending December 31, 2013
reflect our current business indicators and expectations and are
subject to fluctuations in foreign currency exchange rates. Due to
their nature, certain income and expense items, such as significant
license agreements with companies involved in current enforcement
actions, brokerage opportunities, new significant litigation or
defense actions that could arise during the quarter, losses on asset
impairments or realized foreign exchange losses cannot be accurately
forecast. Accordingly, we exclude forecasts of such items from our
guidance. Actual revenues reported may exceed the revenue guidance
provided due to the receipt of royalty reports, signing of new
license agreements and completion of licensee audits, all after the
guidance is provided. 
Due to the nature of payment terms in certain license agreements
signed during the third and fourth quarter of 2013, a portion of
fourth quarter revenue is not expected to recur at the same level in
the future. 
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. 
Amendments to the Company's By Laws 
WiLAN also announced that its Board of Directors has approved certain
amendments to the Company's By Laws (collectively, the "Amendments"),
including certain housekeeping matters, changing references to
"Alberta" and the "Business Corporations Act of Alberta" in the
Company's current By Law No. 1 to "Canada" and the CBCA.  The
Amendments also increase quorum for Board meetings generally from two
directors to a majority of the Board. 
The Amendments introduce an advance notice requirement in connection
with shareholders intending to nominate Board members other than
pursuant to (i) a requisition of a meeting made pursuant to the
provisions of the Canada Business Corporations Act (the "CBCA"); or
(ii) a shareholder proposal made pursuant to the provisions of the
CBCA.  For an annual shareholders' meeting, notice must be given to
the Company not less than 30 nor more than 65 days prior to the date
of the meeting (provided that, if the meeting is to be held less than
50 days after the date on which the first public announcement of the
meeting's date was made, then notice must be given to the Company not
later than the close of business on the 10th day following such
public announcement).  For a special shareholders' meeting which is
not also an annual meeting, notice to the Company
 must be made not
later than the close of business on the 15th day. 
Prior to the adoption of the Amendments, quorum for the conduct of
business at a shareholder meeting, generally, was established if
there were two persons present at the opening of the meeting entitled
to vote either as shareholders or as proxy holders and holding or
representing more than 10% of the outstanding shares entitled to vote
at that meeting.  The Amendments require that such persons must now
hold or represent not less than 25% of the outstanding shares
entitled to vote at that meeting. 
The Amendments also provide that, for any shareholders' meeting where
one of the purposes for the meeting is the election of directors, if
nominations for directors made by shareholders could result in the
persons who were directors immediately prior to that meeting ceasing
to represent a majority of the Board of Directors following that
meeting (other than pursuant to a change of control of the Company),
then a quorum of shareholders would be at least two persons present
in person and entitled to vote at the meeting who, together, hold or
represent by proxy at least a majority of the issued and outstanding
shares of the Company entitled to be voted at such meeting. 
In the absence of an enhanced quorum for the transaction of business
at any meeting where the enhanced quorum is required, those present
and entitled to vote shall constitute a quorum for the purpose of (i)
conducting all business other than for the election of directors, and
(ii) the adjourning of such meeting.  The meeting may be adjourned no
more than twice for an aggregate of no more than 65 days.  If an
enhanced quorum is not present at the opening of the second adjourned
meeting, if any, those shareholders present and entitled to vote at
that adjourned meeting will constitute quorum for the transaction of
business, including the election of directors, at the adjourned
meeting. 
The Amendments are effective immediately and will be placed before
shareholders for ratification at the annual and special meeting of
shareholders of the Company currently scheduled for April 23, 2014
(the "2014 Meeting").  A copy of the Amendments will be filed under
the Company's profile at www.sedar.com. 
The Amendments are in effect until they are confirmed, confirmed as
amended or rejected by shareholders at the 2014 Meeting and, if the
Amendments are confirmed at the 2014 Meeting, they will continue in
effect in the form in which they were so confirmed. 
Conference Call Information - November 6, 2013 - 10:00 AM ET 
WiLAN will conduct a conference call to discuss its financial results
today at 10:00 AM Eastern Time (ET). WiLAN CEO, Jim Skippen and CFO,
Shaun McEwan will be on the call. 
Calling Information 
A live audio webcast will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=171706 


 
--  To access the call from Canada and U.S., dial 1.877.407.0782 (Toll Free)
--  To access the call from other locations, dial 1.201.689.8567
    (International) 

 
Replay Information 
The call will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=171706 and
accessible by telephone until 11:59 PM ET on February 6, 2014. 
Replay Number (Toll Free): 1.877.660.6853 
Replay Number (International): 1.201.612.7415 
Conference ID #: 100439 
About WiLAN 
WiLAN, founded in 1992, is a leading technology innovation and
licensing company. WiLAN has licensed its intellectual property to
over 275 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
television receivers. WiLAN has a large and growing portfolio of more
than 3,000 issued or pending patents. For more information:
www.wilan.com. 
Note 
((i)) WiLAN follows GAAP in preparing its interim and annual
financial statements. Adjusted Earnings are earnings from continuing
operations before stock-based compensation expense, depreciation and
amortization expense, interest expense, unrealized foreign exchange
gains or losses, provision for income taxes and certain other
non-cash, one-time, or non-recurring charges. 
Forward-looking Information 
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 "forecast to decline", "leading
to", "to be", "expected to be", "potential impact", "may be", "are
expected", "any royalties identified", "may differ", "can be", "may
exceed", "to negotiate", "may vary", "will be", "currently scheduled
for", "they will", "will continue", "in which" 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. 


 
Wi-LAN Inc.                                                                
Condensed Consolidated Statements of Operations                            
(Unaudited)                                                                
(in thousands of United States dollars, except share and per share amounts)
                                                                           
                           Three monthsThree months Nine months Nine months
                               ended       ended       ended       ended   
                             September   September   September   September 
                             30, 2013    30, 2012    30, 2013    30, 2012  
                           ------------------------------------------------
                                                                    
       
Revenue                                                                    
  Royalties                    $ 20,724    $ 21,293    $ 59,034    $ 66,777
Operating expenses                                                         
  Cost of revenue                23,913      14,751      66,153      38,915
  Research and development        2,185       1,873       6,466       6,624
  Marketing, general and                                                   
   administration                 3,416       3,287      10,212       9,792
  Realized foreign exchange                                                
   (gain) loss                      362        (72)         550        (92)
  Unrealized foreign                                                       
   exchange (gain) loss         (1,187)     (1,189)         924     (5,460)
  Restructuring charges               -           -           -         418
                           ------------------------------------------------
  Total operating expenses       28,689      18,650      84,305      50,197
                           ------------------------------------------------
Earnings (loss) from                                                       
 operations                     (7,965)       2,643    (25,271)      16,580
  Investment income                 170         161         553       1,065
  Interest expense                    -           -           -     (1,126)
  Debenture financing, net            -           -           -    (31,138)
                           ------------------------------------------------
Earnings (loss) before                                                     
 income taxes                   (7,795)       2,804    (24,718)    (14,619)
                                                                           
Provision for (recovery of)                                                
 income tax expense                                                        
  Current                         1,293       1,138       3,887       3,060
  Deferred                      (2,629)       (493)     (8,080)     (5,278)
                           ------------------------------------------------
                                (1,336)         645     (4,193)     (2,218)
                           ------------------------------------------------
Net and comprehensive                                                      
 earnings (loss)              $ (6,459)     $ 2,159  $ (20,525)  $ (12,401)
                           ------------------------------------------------
                           ------------------------------------------------
                                                                           
Earnings (loss) per share                                                  
  Basic                        $ (0.05)      $ 0.02    $ (0.17)    $ (0.10)
  Diluted                      $ (0.05)      $ 0.02    $ (0.17)    $ (0.10)
                                                                           
Weighted average number of                                                 
 common shares                                                             
  Basic                     120,701,944 121,225,793 121,154,330 121,459,574
  Diluted                   120,701,944 122,086,343 121,154,330 121,459,574
                           ------------------------------------------------
                                                                           
                                                                           
Wi-LAN Inc.                                                                
Condensed Consolidated Balance Sheets                                      
(Unaudited)                                                                
(in thousands of United States dollars)                                    
                                                                           
                                                     September December 31,
As at                                                30, 2013      2012    
                                                   ------------------------
Current assets                                                             
  Cash and cash equivalents                           $ 140,763   $ 175,246
  Short-term investments                                  1,504       1,617
  Accounts receivable                                    12,238       1,139
  Prepaid expenses and deposits                           1,230         314
                                                   ------------------------
                                                        155,735     178,316
                                                                           
Loan receivable                                           1,029         911
Furniture and equipment, net                              2,213       1,272
Patents and other intangibles, net                      147,177     116,846
Deferred tax asset                                       28,897      20,817
Goodwill                                                 12,623      12,623
                                                   ------------------------
                                                      $ 347,674   $ 330,785
                                                   ------------------------
                                                   ------------------------
                                                                           
Current liabilities                                                        
  Accounts payable and accrued liabilities             $ 32,085    $ 22,406
  Current portion of patent and licensing rights                           
   finance obligation                                    18,089       2,547
                                                   ------------------------
                                                         50,174      24,953
                                                                           
Patent and licensing rights finance obligation           34,092       2,670
Success fee obligation                                    8,011      10,900
                                                   ------------------------
                                                         92,277      38,523
                                                   ------------------------
                                                                           
Commitments and contingencies                                              
                                                                           
Shareholders' equity                                                       
  Capital stock                                         426,438     431,067
  Additional paid-in capital                             13,555      11,074
  Accumulated other comprehensive income                 16,225      16,225
  Deficit                                             (200,821)   (166,104)
                                                   ------------------------
                                                        255,397     292,262
                                                   ------------------------
                                                      $ 347,674   $ 330,785
                                                   ------------------------
                                                   ------------------------
                                                                           
                                                                           
Wi-LAN Inc.                                                                
Condensed Consolidated Statements of Cash Flow                             
(Unaudited)                                                                
(in thousands of United States dollars)                                    
                                                                           
                           Three monthsThree months Nine months Nine months
                               ended       ended       ended       ended   
                             September   September   September   September 
                             30, 2013    30, 2012    30, 2013    30, 2012  
                           ------------------------------------------------
Cash generated from (used                                                  
 in)                                                                       
Operations                                                                 
Net loss                      $ (6,459)     $ 2,159  $ (20,525)  $ (12,401)
  Non-cash items                                                           
    Stock-based                                                            
     compensation                   979       1,024       3,118       2,955
    Depreciation and                                                       
     amortization                 7,662     
  6,621      20,881      18,959
    Foreign exchange loss           351     (1,000)       (902)         130
    Deferred financing                                                     
     costs                            -           -           -       1,746
    Accretion of debt                                                      
     discount                         -           -           -      25,175
    Disposal of assets               78           -          78         209
    Disposal of patents               -           -          46           -
    Deferred income tax                                                    
     recovery                   (2,629)       (493)     (8,080)     (5,278)
    Accrued investment                                                     
     income                        (40)           -       (118)           -
                           ------------------------------------------------
                                   (58)       8,311     (5,502)      31,495
  Change in non-cash                                                       
   working capital balances                                                
    Accounts receivable         (6,357)     (1,547)    (11,099)       (503)
    Prepaid expenses and                                                   
     deposits                      (98)         485       (465)       (730)
    Payments associated                                                    
     with success fee                                                      
     obligation                   (989)     (1,609)     (3,161)    (11,354)
    Due to related party              -           -           -     (7,102)
    Accounts payable and                                                   
     accrued liabilities            839       2,585       9,254       4,986
                           ------------------------------------------------
Cash (used in) generated                                                   
 from operations                (6,663)       8,225    (10,973)      16,792
                           ------------------------------------------------
Financing                                                                  
  Dividends paid                (4,848)     (3,663)    (13,949)    (10,383)
  Repayment of convertible                                                 
   debentures                         -           -           -   (233,247)
  Common shares repurchased                                                
   under normal course                                                     
   issuer bid                   (2,934)     (1,092)     (5,846)    (15,729)
  Common shares issued for                                                 
   cash on the exercise of                                                 
   options                            -         568         478       2,562
  Common shares issued for                                                 
   cash from Employee Share                                                
   Purchase Plan                      -           -         102         116
                           ------------------------------------------------
Cash used in financing          (7,782)     (4,187)    (19,215)   (256,681)
                           ------------------------------------------------
Investing                                                                  
  Sale (purchase) of short-                                                
   term investments                (30)        (55)         113        (93)
  Purchase of furniture and                                                
   equipment                    (1,541)        (38)     (1,608)       (369)
  Purchase of patents and                                                  
   other intangibles              (687)    (22,963)     (3,702)    (24,340)
                           ------------------------------------------------
Cash used in investing          (2,258)    (23,056)     (5,197)    (24,802)
                           ------------------------------------------------
Foreign exchange gain                                                      
 (loss) on cash held in                                                    
 foreign currency                 (351)       1,000         902       4,058
                           ------------------------------------------------
                                                                           
Net cash and cash                                                          
 equivalents used in the                                                   
 period                        (17,054)    (18,018)    (34,483)   (260,633)
Cash and cash equivalents,                                                 
 beginning of period            157,817     189,571     175,246     432,186
                           ------------------------------------------------
Cash and cash equivalents,                                                 
 end of period                $ 140,763   $ 171,553   $ 140,763   $ 171,553
                           ------------------------------------------------
                           ------------------------------------------------
                                                                           
                                                                           
Wi-LAN Inc.                                                                
Reconciliation of GAAP Net Earnings to Adjusted Earnings                   
(Unaudited)                                                                
(in thousands of United States dollars, except share and per share amounts)
                                                                           
                           Three monthsThree months Nine months Nine months
                               ended       ended       ended       ended   
                             September   September   September   September 
                             30, 2013    30, 2012    30, 2013    30, 2012  
                           ------------------------------------------------
                                                                           
Net earnings (loss) under                                                  
 GAAP                         $ (6,459)     $ 2,159  $ (20,525)  $ (12,401)
                                                                           
Adjusted for:                                                              
  Unrealized foreign                                                       
   exchange (gain) loss         (1,187)     (1,189)         924     (5,460)
  Depreciation and                                                         
   amortization                   7,662       6,621      20,881      18,959
  Stock based compensation          979       1,024       3,118       2,955
  Restructuring and other                                                  
   one time charges                   -           -           -         418
  Loss of disposal of                                                      
   assets                            78           -          71           -
  Asset write-off related                                                  
   to restructuring                   -           -           -         209
  Interest expense                    -           -           -       1,126
  Debenture financing, net            -           -           -      31,138
  Income tax expense                                                       
   (recovery)                   (1,336)         645     (4,193)     (2,218)
                           ------------------------------------------------
Adjusted earnings (loss)        $ (263)     $ 9,260       $ 276    $ 34,726
                           ------------------------------------------------
                           ------------------------------------------------
                                                                          
 
                                                                           
Adjusted earnings (loss)                                                   
 per basic share               $ (0.00)      $ 0.08      $ 0.00      $ 0.29
                                                                           
Weighted average number of                                                 
 common shares                                                             
  Basic                     120,701,944 121,225,793 121,154,330 121,459,574
  Diluted                   120,701,944 122,086,343 121,154,330 121,459,574
                           ------------------------------------------------

Contacts:
For media and investor inquiries, please contact:
Shaun McEwan
Chief Financial Officer
O: 613.688.4898
C: 613.697.7159
E: smcewan@wilan.com 
Tyler Burns
Director, Investor Relations
O: 613.688.4330
C: 613.697.0367
E: tburns@wilan.com