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)
Enjoy rustic luxury at Fairmont Château Montebello on the Ottawa River
Look no further for a bit of rest and relaxation this summer than Château Montebello, the log cabin resort that offers rustic luxury.
If you build it, they will stay: Ending Ottawa’s biotech brain drain
The University of Ottawa’s Advanced Medical Research Centre will help stop the brain drain of talent.
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.
