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Wi-LAN (WILN) Posts Q1 Results, Reaffirms Fiscal 2011 Forecast

Wi-LAN Inc. yesterday announced financial results for the three months ended March 31, 2011, posting considerable increase in revenue, as well as record net earnings.

The company noted that at the start of 2011 it changed its primary basis of accounting to U.S. GAAP from Canadian GAAP, reflecting the company’s listing on the NASDAQ exchange on June 1, 2011. The change also lines WiLAN up with industry peers listed in the United States. In additional, the company has changed its functional and reporting currency to the U.S. dollar.

“The recent start of trading of WiLAN shares alongside our peers on NASDAQ is another exciting accomplishment and signals the significant strength of our business,” Jim Skippen, chairman and CEO of the company stated in the press release. “We have only started to realize WiLAN’s potential and with our strong financial position, we are better positioned than ever to build long-term shareholder value.”

For the first quarter of 2011, Wi-LAN posted record cash revenues of $26.3 million, up 65 percent compared to $15.9 million in the three-month period ended March 31, 2010.

Net earnings were a record $19.8 million, or $0.17 per share, compared to net earnings of $1.1 million, or $0.01 per share, for the comparable quarter of 2010.

The company noted key agreements with some of the industry’s leading players, positioning the company to generate hundreds of millions in future revenues.

“WiLAN was transformed in the first quarter of fiscal 2011,” Skippen stated. “Agreements signed during the quarter with marquee corporations including Intel, Broadcom and Motorola contributed to record revenues during the quarter. The agreements also ended four major litigations which should contribute to a significant reduction in our future litigation expenses. I stated many times before, my belief that our past investment in litigation could generate a significant return in the future. Our record revenues and earnings in the first-quarter signal the beginning of that return to WiLAN and its shareholders.”

At March 31, 2011, the company reported net cash, comprised of cash, cash equivalents and short-term investments at $192.9 million. During the first quarter of 2011, the company generated $11.0 million from operations and raised net proceeds of $72.0 million in an equity offering.

The company reiterated its guidance for fiscal 2011, forecasting revenues for the fiscal year ended December 31, 2011, to be within the range of $110 million to $115 million; adjusted earnings are expected to be within the range of $75 million to $80 million.

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