WiLAN exceeds guidance with third-quarter results

Citing changes in business operations, the CEO of Ottawa-based licensing company WiLAN reported third-quarter revenues 25 per cent higher than guidance Wednesday.

WiLAN (TSX:WIN)(NASDAQ:WILN) reported revenue of $24.6 million surpassing the $19.7 million that was expected. It was also $3.9 million more than the same period last year.

"Benefiting from recent license signings, our trailing twelve month revenues have increased to over $105 million,” president and CEO Jim Skippen said in a statement. “Driven in part by a significant reduction in our litigation expenses, our trailing twelve month adjusted earnings have increased to over $63 million."

Litigation expenses for the three months ending Sept. 30 were just over $3 million, compared with $14.2 million in the same quarter last year. The company said litigation expenses vary from quarter to quarter.

Adjusted earnings for the quarter came in at $13.2 million or $0.11 per basic share.

Mr. Skippen said licensing agreements made significant contributions to third quarter numbers.

“The licenses, a number of which were signed less than four months after their programs were initiated, demonstrate our ability to execute licensing programs in new markets and generate timely results for WiLAN and our partners," he said.

The company has cash, cash equivalents and short-term investments worth $126.1 million, down $5.8 million from Dec. 31, 2013, mostly due to dividend payments and payments related to patent acquisitions.

Looking ahead, the company is expecting revenue of $20.6 million for the 2014 fourth quarter.