WiLAN Concludes Strategic Review; Formulates Growth Plan
May 14 2014 - 4:19PM
Marketwired
WiLAN Concludes Strategic Review; Formulates Growth Plan
$200 million sustainable annual revenue opportunity in five
years
Quarterly dividend to increase 25% to a current per share yield
of 5.6%
Company to hold conference call on May 14, 2014 at 5:00 PM
ET
OTTAWA, CANADA--(Marketwired - May 14, 2014) - Wi-LAN Inc.
("WiLAN" or the "Company") (TSX:WIN) (NASDAQ:WILN) today announced
that its Board of Directors has concluded its review of strategic
alternatives for the Company. Following a comprehensive process
involving financial advisor Canaccord Genuity, the Board of
Directors determined that it is in the best interests of the
Company and our shareholders to execute an updated business plan
focused on business diversification, licensing partnerships,
improved profitability and increasing the return of cash generated
from operations to shareholders.
"We entered into the strategic review process highly confident
in the strength of our stand-alone business," said Paul McCarten,
Chairman of the Board of Directors. "After conducting a
comprehensive review of a wide range of strategic options in
collaboration with our financial advisor, Canaccord Genuity, we
have concluded that shareholders are best served by modifying the
Company's business strategy to address current market dynamics. In
our view, continuing with an updated strategy is the best way to
maximize shareholder value."
"Since we commenced this review process our business has made
significant progress," said Jim Skippen, President & CEO. "We
have:
- Delivered two quarters with very strong revenues and GAAP
earnings;
- Signed a partnership deal with Panasonic that anchors several
new semiconductor licensing programs which we expect to begin
generating revenue in the near term;
- Entered licensing partnerships in the automotive, networking,
and industrial products markets;
- Signed license agreements with HTC, Sierra Wireless, Toshiba,
and Hon Hai;
- Signed our first license in the network management market with
a US based cellular carrier;
- Signed our first two licenses in a partnership program for
technology used in video games;
- Succeeded in having the Judge overturn a jury's determination
in our Texas case against Apple that our '802 patent was invalid;
and
- In our California case involving Apple and LTE- related
technology, succeeded in having the court clarify certain claim
constructions, which we believe help our overall case."
"However, successful companies do not stand still, but embrace
change," continued Skippen. "WiLAN has identified a number of
strategies that we believe will enhance the value of the enterprise
over the short and long term:
- First, we will diversify our revenue base by moving our focus
from licensing WiLAN's entire portfolio to licensing smaller
subsets of the portfolio. We will also continue to add licensing
programs in new market segments;
- Second, to reduce the risk in our business model, we will limit
the outright purchases of patent portfolios we make. Instead, we
will focus on attracting portfolios from companies seeking a
licensing partner that are willing to share with us the risk of the
success of the licensing program;
- Third, we will focus on increasing the profitability of our
business by ensuring that law firms working with us share in some
of the risk of our licensing programs; and
- Fourth, we will consider selling some of the non-core patents
in our portfolio to generate revenues and reduce the maintenance
costs of the portfolio."
Incorporating these strategies, we have established a roadmap to
increase GAAP earnings to at least $0.30 per share by 2018 by more
than doubling our revenues and increasing our operating leverage.
If these targets are achieved, the strong profitability of our
business will drive higher returns to shareholders through
quarterly dividends that we will strive to increase regularly. The
first increase, to $0.05 per quarter per share, represents a 25%
increase and will take effect with the Q2 2014 declaration. At
today's share price, this represents a yield of approximately
5.6%."
The board has also approved the entering into of a Normal Course
Issuer Bid to repurchase for cancellation upto 10% of the issued
and outstanding common shares of the Company subject to the receipt
of regulatory and other approvals.
Conference Call Information - May 14, 2014 - 5:00 PM ET
WiLAN will conduct a conference call at 5:00 PM Eastern Time
(ET) today. WiLAN President & CEO, Jim Skippen and other
members of the Company's management team will be on the call.
Calling Information |
A live audio webcast will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=172773 |
- 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=172773 |
and accessible by telephone until 11:59 PM
ET on August 14, 2014. |
Replay Number (Toll Free):
1.877.660.6853 |
Replay Number (International):
1.201.612.7415 |
Conference ID #: 13582853 |
About WiLAN
WiLAN, founded in 1992, is a leading technology innovation and
licensing company. WiLAN has licensed its intellectual property to
over 280 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.
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 "to continue", "to
increase", "to hold", "to execute an updated business plan",
"business diversification", "improved profitability", "increasing
the return of cash generated from operations to shareholders",
"best served by modifying the Company's business strategy", "to
address", "continuing with an updated strategy is the best way to
maximize shareholder value", "we will diversify our revenue base",
"to licensing", "we will", "continue to add licensing programs",
"to reduce", "we will limit the outright purchases of patent
portfolios", "seeking a licensing partner", "to share", "increasing
the profitability of our business", "will also consider selling
some of the non-core patents", "to generate", "reduce the
maintenance costs", "to increase", "to at least $0.30 per share by
2018", "more than doubling our revenues", "increasing our operating
margins", "will drive higher returns to shareholders", "we will
strive to increase regularly", "will take effect", "will focus",
"will enhance the value"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, 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.
Tyler BurnsDirector, Investor RelationsO: 613-688-4330C:
613-697-0367tburns@wilan.comwww.wilan.com
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