Ottawa’s Wi-LAN Inc. released its 2014 second-quarter results Wednesday, reporting revenues and earnings that both exceeded guidance.
The intellectual property licensing company (TSX: WIN) said revenue for the three-month period ending June 30 came in at $25.7 million, 32 per cent ahead of guidance and almost $6 million more than during the same period last year.
The company said the increased revenue was largely due to fixed payments related to contracts signed in 2013 and the first half of 2014.
OBJ360 (Sponsored)

AI notetaking for meetings? It could cost you if you don’t do your legal due diligence
We’ve all been there: You hop on a video call and see that, along with your fellow meeting attendees, AI notetaking software is also there, recording, transcribing, and diligently listening

Give your home a stunning makeover—for 30 to 40 per cent less cost—with NorthCo Services
In the home renovation industry, companies don’t often see repeat clientele—but Ottawa’s NorthCo Services is a rare exception. “We have an upcoming project which will be the third one for
Wi-LAN’s adjusted earnings of $16.6 million, or 14 cents per basic share, exceeded guidance by almost 60 per cent. The company posted a loss of $762,000 in the same quarter last year.
“In the second quarter, we made significant progress in our ongoing efforts to increase the profitability and diversification of our business,” company president and CEO Jim Skippen said in a statement.
“Strong revenues, driven in part by signed licence agreements with Nokia Networks and Sony, and the control of litigation expenses, contributed to the third straight quarter of positive GAAP earnings and adjusted earnings exceeding 55 per cent of revenue.”
GAAP net earnings were $5.6 million, or five cents per share, compared with a loss of $7.6 million during the same period last year.
The company said litigation expenses will vary from period to period but were down significantly in the second quarter because of new shared-risk fee arrangements with its external counsel.
The company has $140.1 million in cash on hand, an increase of $8.2 million from six months ago.
Mr. Skippen said new licensing agreements will help Wi-LAN enter new markets, including the automotive, data networking, medical and semi-conductor markets.
The company also announced a 25 per cent increase to its quarterly dividend, which rose to five cents per share.
Looking ahead, Wi-LAN predicts third-quarter revenue to be at least $19.7 million, with adjusted earnings expected to be between $9.4 million and $10.2 million.
Wi-LAN’s shares were trading at $3.52 on Wednesday morning, down from a 52-week high of $4.74.