UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM 6-K
__________________________
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO
RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2014
Commission File Number: 001-35152
__________________________
WI-LAN INC.
(Translation of registrant’s name
into English)
__________________________
303 Terry Fox Drive
Suite 300
Ottawa, Ontario K2K 3J1
Canada
(Address of principal executive office)
__________________________
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F þ
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
EXHIBIT LIST
Exhibit |
|
Description |
|
|
|
99.1 |
|
Press Release dated October 22, 2014 |
99.2 |
|
Press Release dated
October 29, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
WI-LAN INC. |
|
|
Date: October 29, 2014 |
By: |
/s/ Prashant R. Watchmaker |
|
|
Name: Prashant R. Watchmaker
Title: Vice-President, Corporate Legal & Corporate Secretary |
Exhibit 99.1
WiLAN to Announce
Third Quarter 2014 Financial Results
OTTAWA, Canada
– October 22, 2014 – Top intellectual property licensing company, WiLAN (TSX:WIN) (NASD:WILN), will release its
financial results for the third quarter ended September 30, 2014 on October 29, 2014.
Following the release
of its third quarter 2014 financial results, WiLAN will host a conference call and audio webcast with Jim Skippen, CEO and Shaun
McEwan, CFO at 10:00 AM Eastern Time the same day.
Calling Information
A live audio webcast
will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=173269
| • | 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=173269
and accessible by
telephone until 11:59 PM ET on January 29, 2015.
Replay Number (Toll
Free): 1.877.660.6853
Replay Number (International):
1.201.612.7415
Conference ID #:
13592538
About WiLAN
WiLAN, founded in
1992, is a leading technology innovation and licensing company. WiLAN has licensed its intellectual property to over 290 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 TV receivers. WiLAN has a large and growing portfolio of more than 4,000 issued
or pending patents. For more information: www.wilan.com.
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 “will release”, “will host” 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
February 3, 2014 annual information form for the year ended December 31, 2013 (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.
www.wilan.com | © copyright Wi-LAN 2014 | 1 |
All trademarks
and brands mentioned in this release are the property of their respective owners.
-
## -
For media
and investor inquiries, please contact:
Tyler Burns
Director,
Investor Relations
O: 613.688.4330
C: 613.697.0367
E: tburns@wilan.com |
www.wilan.com | © copyright Wi-LAN 2014 | 2 |
Exhibit 99.2
WiLAN Reports
Third Quarter 2014 Financial Results
Revenues exceed
guidance by 25%
OTTAWA, Canada
– October 29, 2014 – Top intellectual property licensing company, WiLAN (TSX:WIN) (NASD:WILN), today announced
financial results for the third quarter of fiscal year 2014 ended September 30, 2014. All financial information in this press
release is reported in U.S. dollars, unless otherwise indicated.
Third Quarter
2014 Highlights
| · | Revenues
of $24.6 million, exceeding guidance of $19.7 million by 25%. |
| · | Adjusted
earnings* of $13.2 million, or 11 cents per basic share, exceeding the mid-point of guidance
by 35%. |
| · | Trailing
twelve month revenues and adjusted earnings exceed $105 million and $63 million, respectively. |
| · | Signed
16 licenses and renewal licenses in the quarter. |
| · | Company
granted first license to medical-related technology, to Stryker Corporation. |
| · | Added
four portfolios including portfolios related to smart meter and orthopedic technologies. |
| · | Returned
$4.5 million to shareholders in dividend payments. |
“Changes to
our business operations that we have put in place over the past twelve months are continuing to generate positive financial and
operational results,” said Jim Skippen, President & CEO. “Benefiting from recent license signings, our trailing
twelve month revenues have increased to over $105 million. Driven in part by a significant reduction in our litigation expenses,
our trailing twelve month adjusted earnings have increased to over $63 million.”
Added Skippen, “Licensing
partnerships made important contributions to our business in the third quarter with licenses related to non-standard networking,
medical stent and data device security technologies, adding millions of dollars to our top and bottom-line. 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.”
Eligible Dividend
The Board of Directors
has declared an eligible dividend of CDN $0.05 per common share to be paid on January 7, 2015 to shareholders of record on December
12, 2014.
www.wilan.com | © copyright Wi-LAN 2014 |
1 |
Third Quarter
2014 Revenue Review
In the three month
period ended September 30, 2014, WiLAN generated revenues of $24.6 million, as compared to $20.7 million in the three month period
ended September 30, 2013. The increase in revenues is primarily attributable to the timing of fixed-payment amounts as a result
of the significant license agreements signed during the twelve months ended December 31, 2013 and the nine months ended September
30, 2014 for which certain agreements contained higher fixed-payments at the beginning of the license agreement. Approximately
12% of the revenue recognized in the three months ended September 30, 2014 was generated from licensing programs related to partnerships.
Third Quarter
2014 Operating Expense Review
In the three month
period ended September 30, 2014, cost of revenue expenses totaled $17.6 million as compared to $25.7 million in the comparative
period. The decrease in expenses is primarily attributable to a decrease in litigation expense partially offset by an increase
in amortization expense, patent maintenance, prosecution and evaluation expenses, compensation and benefits and contingent partner
payments and legal fees.
| |
Three
months ended | | |
Nine
months ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
| |
| | |
| | |
| | |
| |
Compensation
and benefits | |
$ | 1,750 | | |
$ | 1,569 | | |
$ | 6,021 | | |
$ | 4,359 | |
Litigation | |
| 3,072 | | |
| 14,234 | | |
| 6,437 | | |
| 40,377 | |
Patent maintenance,
prosecution, and evaluation | |
| 1,692 | | |
| 1,458 | | |
| 5,095 | | |
| 4,143 | |
Contingent partner
payments and legal fees | |
| 1,615 | | |
| - | | |
| 1,615 | | |
| - | |
Amortization of patents | |
| 8,903 | | |
| 7,464 | | |
| 25,626 | | |
| 20,293 | |
Stock-based compensation | |
| 262 | | |
| 341 | | |
| 715 | | |
| 762 | |
Other | |
| 345 | | |
| 605 | | |
| 1,232 | | |
| 1,182 | |
| |
$ | 17,639 | | |
$ | 25,671 | | |
$ | 46,741 | | |
$ | 71,116 | |
For the three months
ended September 30, 2014, litigation expenses amounted to $3.1 million compared to $14.2 million for the same period last year.
Litigation expenses are expected to vary from period to period due to the variability of litigation activities and any contingent
payments that may be required from licenses signed in any particular quarter.
In the third quarter
ended September 30, 2014, marketing general and administration expenses amounted to $2.7 million as compared to $3.1 million in
the third quarter ended September 30, 2013. The decrease in spending is primarily attributable to a decrease in stock-based compensation
as a result of changes in staffing levels.
www.wilan.com | © copyright Wi-LAN 2014 | 2 |
| |
Three
months ended | | |
Nine
months ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
| |
| | |
| | |
| | |
| |
Compensation
and benefits | |
$ | 1,216 | | |
$ | 1,261 | | |
$ | 3,201 | | |
$ | 3,816 | |
Depreciation | |
| 129 | | |
| 122 | | |
| 454 | | |
| 364 | |
Stock-based compensation | |
| 203 | | |
| 469 | | |
| 946 | | |
| 1,884 | |
Public company
costs | |
| 532 | | |
| 265 | | |
| 1,835 | | |
| 1,219 | |
Facilities | |
| 162 | | |
| 140 | | |
| 525 | | |
| 411 | |
Other | |
| 450 | | |
| 889 | | |
| 1,473 | | |
| 1,825 | |
| |
$ | 2,692 | | |
$ | 3,146 | | |
$ | 8,434 | | |
$ | 9,519 | |
For the three months
ended September 30, 2014, R&D expenses were $576,000 as compared to $697,000 in the same period last year. Although expenses
declined slightly quarter over quarter, compensation and benefits increased during the quarter as a result of an increase in staffing
levels.
| |
Three
months ended | | |
Nine
months ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
| |
| | |
| | |
| | |
| |
Compensation
and benefits | |
$ | 481 | | |
$ | 406 | | |
$ | 1,508 | | |
$ | 1,260 | |
Depreciation | |
| 36 | | |
| 169 | | |
| 142 | | |
| 408 | |
Stock-based compensation | |
| 14 | | |
| 75 | | |
| 23 | | |
| 288 | |
Other | |
| 45 | | |
| 47 | | |
| 171 | | |
| 240 | |
| |
$ | 576 | | |
$ | 697 | | |
$ | 1,844 | | |
$ | 2,196 | |
Third Quarter
2014 Earnings Review
In the third quarter
ended September 30, 2014, WiLAN generated adjusted earnings of $13.2 million or 11 cents per basic share as compared
to a loss of $0.3 million or nil per basic share, in the comparative period. The increase in adjusted earnings for the third quarter
of 2014 is primarily attributable to increased revenues and reduced litigation expenses.
The Company’s
GAAP earnings amounted to a loss of $0.4 million, or nil per share on a basic and fully diluted level, in the third quarter 2014,
as compared to a GAAP loss of $6.5 million, or 5 cents per share on a basic and fully diluted level, in the same period last year.
Third Quarter
2014 Balance Sheet and Cash Flow Review
At September 30,
2014, the Company’s cash, comprised of cash and cash equivalents and short-term investments, totaled $126.1 million, representing
a decrease of $5.8 million from the cash position at December 31, 2013. The decrease is primarily attributable to $44.6 million
of cash generated in operations offset by the payment of dividends totaling $13.4 million and payments related to patent acquisitions
totaling $36.3 million. The Company’s cash equivalents and short-term investments include T-bills, term deposits and GICs.
www.wilan.com | © copyright Wi-LAN 2014 | 3 |
Fourth Quarter
2014 Financial Guidance
For the fourth quarter
2014 ending December 31, 2014, the Company expects revenue to be at least $20.6 million. This revenue guidance does not include
the potential impact of any additional reports yet to be received, new agreements that may be signed during the balance of the
fourth quarter of 2014 or the potential impact of any royalties identified in audits conducted by the Company. This guidance is
provided prior to the completion of the first month of this fiscal quarter and as such, a number of reports that normally are
submitted at or shortly after the month end have yet to be received by the Company.
Operating expenses
for the fourth quarter are expected to be in the range of $11.5 million to $12.7 million of which $4.0 million to $5.0 million
is expected to be litigation expense. For the fourth quarter of 2014, and assuming no additional agreements are signed, adjusted
earnings are expected to be in the range of $8.3 million to $9.2 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 2013 fiscal year dated February 3, 2014 (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, 2014 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, brokerage opportunities, new litigation actions, contingent payments to licensing partners and litigation
counsel that may be required from certain licenses signed in any particular 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. Actual expenses incurred may exceed the expense guidance provided
due, in part, to contingent payments to licensing partners and litigation counsel that may be required from certain licenses signed
during the quarter.
www.wilan.com | © copyright Wi-LAN 2014 | 4 |
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.
Conference
Call Information – October 29, 2014 – 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=173269
| • | 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=173269
and accessible by
telephone until 11:59 PM ET on January 29, 2015.
Replay Number (Toll
Free): 1.877.660.6853
Replay Number (International):
1.201.612.7415
Conference ID #:
13592538
About WiLAN
WiLAN, founded in
1992, is a leading technology innovation and licensing company. WiLAN has licensed its intellectual property to over 290 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 TV receivers. For more information: www.wilan.com.
Note
(*) 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, infrequent charges.
www.wilan.com | © copyright Wi-LAN 2014 | 5 |
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 “ability to execute”, “to be paid”, “litigation
expenses are expected to vary from period to period due to the variability of litigation activities and any contingent payments
that may be required from licenses signed in any particular quarter”, “Company expects revenue to be at least”,
“potential impact”, “yet to be received”, “new agreements that may be signed”, “conducted
by”, “expected to be”, “are signed”, “is expected”, “actual results may differ
materially”, “may be”, “can be”, “expectations”, “subject to”, “cannot
be accurately forecast”, “actual revenues may exceed guidance”, “the receipt”, “signing of
new license agreements”, “completion of”, “Actual expenses incurred may exceed the expense guidance provided”,
“contingent payments to licensing partners and litigation counsel that may be required from licenses signed during the quarter”,
“to negotiate”, “actual results may vary”, “will be”, 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 and the expected effects of new business strategies, 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 February 3, 2014 annual information form for the year ended December 31, 2013
(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.
-
## -
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 |
www.wilan.com | © copyright Wi-LAN 2014 | 6 |
Wi-LAN
Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in
thousands of United States dollars, except share and per share amounts)
| |
Three
months ended | | |
Three
months ended | | |
Nine
months ended | | |
Nine
months ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
| |
| | |
| | |
| | |
| |
Revenue | |
| | | |
| | | |
| | | |
| | |
Royalties | |
$ | 24,576 | | |
$ | 20,724 | | |
$ | 76,209 | | |
$ | 59,034 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses | |
| | | |
| | | |
| | | |
| | |
Cost of revenue | |
| 17,639 | | |
| 25,671 | | |
| 46,741 | | |
| 71,116 | |
Research
and development | |
| 576 | | |
| 697 | | |
| 1,844 | | |
| 2,196 | |
Marketing,
general and administration | |
| 2,692 | | |
| 3,146 | | |
| 8,434 | | |
| 9,519 | |
Foreign
exchange loss (gain) | |
| 1,077 | | |
| (825 | ) | |
| 1,354 | | |
| 1,474 | |
Total
operating expenses | |
| 21,984 | | |
| 28,689 | | |
| 58,373 | | |
| 84,305 | |
Earnings (loss)
from operations | |
| 2,592 | | |
| (7,965 | ) | |
| 17,836 | | |
| (25,271 | ) |
Investment
income | |
| 124 | | |
| 170 | | |
| 402 | | |
| 553 | |
Earnings (loss)
before income taxes | |
| 2,716 | | |
| (7,795 | ) | |
| 18,238 | | |
| (24,718 | ) |
| |
| | | |
| | | |
| | | |
| | |
Provision for (recovery
of) income tax expense | |
| | | |
| | | |
| | | |
| | |
Current | |
| 928 | | |
| 1,293 | | |
| 3,708 | | |
| 3,887 | |
Deferred | |
| 2,163 | | |
| (2,629 | ) | |
| 5,337 | | |
| (8,080 | ) |
| |
| 3,091 | | |
| (1,336 | ) | |
| 9,045 | | |
| (4,193 | ) |
Net and comprehensive
income (loss) | |
$ | (375 | ) | |
$ | (6,459 | ) | |
$ | 9,193 | | |
$ | (20,525 | ) |
| |
| | | |
| | | |
| | | |
| | |
Earnings (loss) per share | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.00 | ) | |
$ | (0.05 | ) | |
$ | 0.08 | | |
$ | (0.17 | ) |
Diluted | |
$ | (0.00 | ) | |
$ | (0.05 | ) | |
$ | 0.08 | | |
$ | (0.17 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common
shares | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 120,211,493 | | |
| 120,701,944 | | |
| 120,065,487 | | |
| 121,154,330 | |
Diluted | |
| 120,211,493 | | |
| 120,701,944 | | |
| 120,352,084 | | |
| 121,154,330 | |
www.wilan.com | © copyright Wi-LAN 2014 | 7 |
Wi-LAN
Inc.
Condensed
Consolidated Balance Sheets
(Unaudited)
(in
thousands of United States dollars)
As at | |
September 30, 2014 | | |
December 31, 2013 | |
Current assets | |
| | | |
| | |
Cash and cash equivalents | |
$ | 124,711 | | |
$ | 130,394 | |
Short-term investments | |
| 1,384 | | |
| 1,457 | |
Accounts receivable | |
| 6,342 | | |
| 11,999 | |
Prepaid expenses and deposits | |
| 1,476 | | |
| 592 | |
| |
| 133,913 | | |
| 144,442 | |
| |
| | | |
| | |
Loan receivable | |
| 1,214 | | |
| 1,075 | |
Furniture and equipment, net | |
| 1,968 | | |
| 2,159 | |
Patents and other intangibles, net | |
| 153,771 | | |
| 150,025 | |
Deferred tax asset | |
| 21,539 | | |
| 26,876 | |
Goodwill | |
| 12,623 | | |
| 12,623 | |
| |
$ | 325,028 | | |
$ | 337,200 | |
| |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 19,515 | | |
$ | 25,011 | |
Current portion of patent finance obligation | |
| 20,042 | | |
| 19,480 | |
| |
| 39,558 | | |
| 44,491 | |
| |
| | | |
| | |
Patent finance obligation | |
| 30,635 | | |
| 32,552 | |
Success fee obligation | |
| 4,703 | | |
| 7,048 | |
| |
| 74,895 | | |
| 84,091 | |
Commitments and contingencies | |
| | | |
| | |
| |
| | | |
| | |
Shareholders' equity | |
| | | |
| | |
Capital stock | |
| 426,062 | | |
| 425,238 | |
Additional paid-in capital | |
| 15,892 | | |
| 14,635 | |
Accumulated other comprehensive income | |
| 16,225 | | |
| 16,225 | |
Deficit | |
| (208,046 | ) | |
| (202,989 | ) |
| |
| 250,133 | | |
| 253,109 | |
| |
$ | 325,028 | | |
$ | 337,200 | |
www.wilan.com | © copyright Wi-LAN 2014 | 8 |
Wi-LAN
Inc.
Condensed
Consolidated Statements of Cash Flow
(Unaudited)
(in
thousands of United States dollars)
| |
Three
months ended | | |
Three months
ended | | |
Nine
months ended | | |
Nine months
ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
Cash generated from (used in) | |
| | |
| | |
| | |
| |
Operations | |
| | | |
| | | |
| | | |
| | |
Net earnings (loss) | |
$ | (375 | ) | |
$ | (6,459 | ) | |
$ | 9,193 | | |
$ | (20,525 | ) |
Non-cash items | |
| | | |
| | | |
| | | |
| | |
Stock-based compensation | |
| 502 | | |
| 979 | | |
| 1,719 | | |
| 3,118 | |
Depreciation
and amortization | |
| 9,046 | | |
| 7,662 | | |
| 26,187 | | |
| 20,881 | |
Foreign
exchange loss (gain) | |
| 651 | | |
| 351 | | |
| 651 | | |
| (902 | ) |
Disposal
of assets (gain) loss | |
| (5 | ) | |
| 78 | | |
| 1 | | |
| 78 | |
Disposal of patents | |
| - | | |
| - | | |
| - | | |
| 46 | |
Deferred
income tax expense (recovery) | |
| 2,163 | | |
| (2,629 | ) | |
| 5,337 | | |
| (8,080 | ) |
Accrued
investment income | |
| (47 | ) | |
| (40 | ) | |
| (139 | ) | |
| (118 | ) |
Change
in non-cash working capital balances | |
| | | |
| | | |
| | | |
| | |
Accounts
receivable | |
| (1,701 | ) | |
| (6,357 | ) | |
| 5,657 | | |
| (11,099 | ) |
Prepaid
expenses and deposits | |
| (124 | ) | |
| (98 | ) | |
| (884 | ) | |
| (465 | ) |
Payments
associated with success fee obligation | |
| (869 | ) | |
| (989 | ) | |
| (3,278 | ) | |
| (3,161 | ) |
Accounts
payable and accrued liabilities | |
| 1,436 | | |
| 839 | | |
| 146 | | |
| 9,254 | |
Cash
generated from (used in) operations | |
| 10,677 | | |
| (6,663 | ) | |
| 44,590 | | |
| (10,973 | ) |
Financing | |
| | | |
| | | |
| | | |
| | |
Dividends
paid | |
| (4,510 | ) | |
| (4,848 | ) | |
| (13,359 | ) | |
| (13,949 | ) |
Common
shares repurchased under normal course issuer bid | |
| (297 | ) | |
| (2,934 | ) | |
| (423 | ) | |
| (5,846 | ) |
Common
shares issued for cash on the exercise of options | |
| 52 | | |
| - | | |
| 696 | | |
| 478 | |
Common
shares issued for cash from Employee Share Purchase Plan | |
| - | | |
| - | | |
| 89 | | |
| 102 | |
Cash
used in financing | |
| (4,755 | ) | |
| (7,782 | ) | |
| (12,997 | ) | |
| (19,215 | ) |
Investing | |
| | | |
| | | |
| | | |
| | |
Sale of short-term investments | |
| 69 | | |
| (30 | ) | |
| 73 | | |
| 113 | |
Purchase
of furniture and equipment | |
| (44 | ) | |
| (1,541 | ) | |
| (371 | ) | |
| (1,608 | ) |
Purchase
of patents and other intangibles | |
| (19,219 | ) | |
| (687 | ) | |
| (36,327 | ) | |
| (3,702 | ) |
Cash
used in investing | |
| (19,194 | ) | |
| (2,258 | ) | |
| (36,625 | ) | |
| (5,197 | ) |
Foreign
exchange (loss) gain on cash held in foreign currency | |
| (651 | ) | |
| (351 | ) | |
| (651 | ) | |
| 902 | |
| |
| | | |
| | | |
| | | |
| | |
Net cash and cash equivalents
generated (used) in the period | |
| (13,923 | ) | |
| (17,054 | ) | |
| (5,683 | ) | |
| (34,483 | ) |
Cash
and cash equivalents, beginning of period | |
| 138,634 | | |
| 157,817 | | |
| 130,394 | | |
| 175,246 | |
Cash
and cash equivalents, end of period | |
$ | 124,711 | | |
$ | 140,763 | | |
$ | 124,711 | | |
$ | 140,763 | |
www.wilan.com | © copyright Wi-LAN 2014 | 9 |
Wi-LAN Inc.
Reconciliation
of GAAP Net Earnings to Adjusted Earnings
(in
thousands of United States dollars, except share and per share amounts)
| |
Three
months ended | | |
Nine
months ended | |
| |
September
30, 2014 | | |
September
30, 2013 | | |
September
30, 2014 | | |
September
30, 2013 | |
| |
| | |
| | |
| | |
| |
Net
earnings (loss) under GAAP | |
$ | (375 | ) | |
$ | (6,459 | ) | |
$ | 9,193 | | |
$ | (20,525 | ) |
| |
| | | |
| | | |
| | | |
| | |
Adjusted for: | |
| | | |
| | | |
| | | |
| | |
Unrealized
foreign exchange loss (gain) | |
| 903 | | |
| (1,187 | ) | |
| 410 | | |
| 924 | |
Depreciation
and amortization | |
| 9,046 | | |
| 7,662 | | |
| 26,187 | | |
| 20,881 | |
Stock
based compensation | |
| 502 | | |
| 979 | | |
| 1,719 | | |
| 3,118 | |
Disposal
of assets (gain) loss | |
| (5 | ) | |
| 78 | | |
| 1 | | |
| 71 | |
Income
tax expense (recovery) | |
| 3,091 | | |
| (1,336 | ) | |
| 9,045 | | |
| (4,193 | ) |
Adjusted
earnings (loss) | |
$ | 13,162 | | |
$ | (263 | ) | |
$ | 46,555 | | |
$ | 276 | |
| |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Adjusted earnings
(loss) per basic share | |
$ | 0.11 | | |
$ | (0.00 | ) | |
$ | 0.39 | | |
$ | 0.00 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common
shares | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 120,211,493 | | |
| 120,701,944 | | |
| 120,065,487 | | |
| 121,154,330 | |
www.wilan.com | © copyright Wi-LAN 2014 | 10 |
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