results are out
Press Release Source: Wi-LAN Inc.
Wi-LAN Announces Fiscal 2002 Revenue and 2003 Financial Guidance; Conference Call Scheduled for November 7
Wednesday November 6, 7:56 pm ET
CALGARY, CANADA--Wi-LAN Inc. (TSX: WIN - News), a global provider of broadband wireless communications products and technologies, today announced its unaudited revenue and cash balance for the three months and twelve months ended October 31, 2002 and financial guidance for the twelve months ended October 31, 2003. Revenue for the three months and twelve months ended October 31, 2002 met the company's recent guidance of August 2002. Revenue for the fourth quarter was up by 7% compared to the prior quarter, and increased by 15% compared to the same period in 2001. Revenue for the twelve months ended October 31, 2002 was $23.1 million, which is 7% less than that of the previous year. Revenue for the company's broadband fixed wireless access products increased by 36% in the 2002 fiscal year. Wi-LAN expects revenue for the twelve months ended October 31, 2003 to be in the range of $25 million to $30 million. All financial amounts are expressed in Canadian dollars unless otherwise noted.
ADVERTISEMENT
"We are pleased with the momentum in our sales growth," said Dr. Hatim Zaghloul, Chairman, President and CEO, Wi-LAN Inc. "The 36% increase in our broadband wireless revenue implies a significant gain in our market share, especially given the substantial declines in our competitors' revenues."
Financial Highlights:
* Quarterly and Annual Revenue: Revenue for the three months ended October 31, 2002 was $6.2 million, which is $0.4 million more than the $5.8 million for the prior three months ended July 31, 2002, and $0.8 million more than the $5.4 million for the same period in 2001. Revenue for the twelve months ended October 31, 2002 is $23.1 million, which meets the company's guidance for the period. This amount is $1.7 million or 7% less than the fiscal 2001 revenue of $24.8 million, and this decline is due to a reduction of sales from the company's non-core antenna business.
* Segmented Revenue: The Company's broadband fixed wireless access product revenue grew by $4.8 million or 36%, from $13.4 million in fiscal 2001 to $18.2 million in fiscal 2002. Antenna revenue declined from $11.4 million in fiscal 2001 to $4.9 million in fiscal 2002, driven by a general decline in the demand for cellular and broadcast antennas. Over the same period, competitors in the fixed wireless access sector have typically seen declining revenues. As a result Wi-LAN believes it has significantly increased its market share in this sector. This positions the company well for future growth as telecom carriers begin to divert spending from wireline applications to broadband fixed wireless access.
* Revenue Guidance: Wi-LAN expects revenue for the twelve months ended October 31, 2003 to be in the range of $25 million to $30 million. Achieving or exceeding the upper end of this range depends largely on the timing of events such as the award of additional contracts for 3.5 GHz broadband wireless equipment in various global markets and the closing of additional technology licensing agreements.
* Cash: Wi-LAN's cash balance as of October 31, 2002 is $5.5 million, a reduction of $0.9 million compared to $6.4 million as of July 31, 2002 and the same as the $5.5 million reported as of October 31, 2001. Wi-LAN continues to tighten spending controls, liquidate product inventory and improve product gross margins. These improvements, along with continued sales growth, are expected to generate positive cash flow from continuing operations for the three months ended January 31, 2003.
Fourth Quarter Operations Highlights
Several significant strategic initiatives were accomplished in the fourth quarter, including:
* Collaboration with ETRI on 4G Specifications: Wi-LAN announced an agreement with ETRI, a non-profit Korean government-funded research organization that has been at the forefront of technological excellence for more than 25 years to collaborate to define specifications for future mobile wireless systems beyond International Mobile Telecommunication 2000 (IMT-2000) systems. IMT-2000 Third Generation (3G) systems and 2.5G mobile systems are beginning to be deployed globally. 2.5G mobile systems, such as GPRS, offer data transmission speeds of 64 to 144 kilobits per second (Kbps). IMT-2000 3G mobile systems, such as EDGE, CDMA-2000 and W-CDMA, offer data speeds that range from 384 Kbps to 2,000 Kbps (2 Mbps). While 2.5G and 3G systems are a major improvement over existing 2G mobile systems, which offer data transmission speeds in the single-digit Kbps range, demand for mobile data capacity is expected to drive the need for Fourth Generation (4G) systems, with data capacity in excess of 10,000 Kbps (10 Mbps), over the next several years. ETRI and Wi-LAN are collaborating to define one of the technology specifications for these ultra high-speed mobile wireless systems.
* Fujitsu ASIC Development and Licensing Agreement: Wi-LAN announced an Application Specific Integrated Circuit (ASIC) development and technology license agreement with Fujitsu Microelectronics America, Inc. (FMA), a major designer and marketer of semiconductors and electronic devices. Under the terms of the non-exclusive agreement, Wi-LAN will combine its expertise in W-OFDM technology with FMA's ASIC design capabilities to integrate embedded processors and mixed signal technology into systems-on-chips (SoCs). This agreement is a key component in Wi-LAN's ongoing strategy of cost-reducing its products and licensing its intellectual property.
* INS Subcontracting Agreement: Wi-LAN announced a Reciprocal Consulting Services Subcontracting agreement with International Network Services Inc. (INS), a leading provider of network consulting and security services for enterprises. INS (www.ins.com) has completed more than 15,000 consulting engagements over the last decade, and includes more than half of the Fortune 500 among its clients. The agreement defines the terms under which either company may act as the prime contractor in a project and obtain subcontractor services from the other company within the United States and Canada for a period of two years. It gives Wi-LAN access to the tremendous network expertise of INS, and it gives INS access to Wi-LAN's leading edge broadband wireless products for inclusion in its end-to-end network solutions.
* Product Improvements and Certifications:
* Wi-LAN announced that its broadband wireless products deliver field proven non-line-of-sight (NLOS) performance across several frequency bands. Wi-LAN products can deliver coverage to over 90% of potential customers, compared to 30% to 50% coverage for conventional wireless solutions. Increased coverage is a crucial metric in the fixed wireless business model, which directly translates into an increased subscriber base, increased revenue, lower installation costs, and lower total cost of customer acquisition.
* Wi-LAN announced that it is acquiring new Fixed Wireless Access customers worldwide with its Ultima3 products. Ultima3 provides high reliability, multi-layered security, modular scalability, long-range coverage, and easy installation, all in a rugged, weatherproof, fully integrated single unit design. As with all Wi-LAN products, the Ultima3 is supported by Wi-LAN applications engineers, with many years of Wi-LAN product experience. It is available globally in the 5.8 GHz license-exempt spectrum and is certified for use in all major telecommunications markets worldwide, having received certification from the USA Federal Communications Commission (FCC), the State Regulatory Radio Commission (SRRC) of the Peoples' Republic of China, Industry Canada (IC), and having recently received the CE Mark indicating the product conforms to the standards of the European Telecommunications Standards Institute (ETSI).
* Litigation: Wi-LAN Inc. was served with two statements of claim. The lawsuits allege that Wi-LAN, Wi-Com Technologies Inc. (a private Alberta company) and Dr. Hatim Zaghloul, Chairman, President and CEO of Wi-LAN, among others, are liable for failing to deliver certain common share certificates of Cell-Loc Inc. in a timely manner to the claimants. The claimants are former shareholders of Wi-Com Technologies Inc. Wi-LAN believes that any claim against Wi-LAN is without merit.
Conference Call
The Wi-LAN fiscal 2002 conference call will be held on November 7, 2002 at 9:00 a.m. MST (11:00 a.m. EST, 8:00 a.m. PST). The call-in number is 416-405-9328 (Toronto area) or 1-800-387-6216. Participants are advised to call in 10 minutes early. The call will be audio webcast from Wi-LAN's website at www.wi-lan.com and will be archived there. A replay of the call will be available until 10:00 p.m. MST (12:00 a.m. EST, 9:00 p.m. PST) on November 14, 2002 at 416-695-5800 (Toronto area) or 1-800-408-3053 (passcode: 1303716).
Quarterly Consolidated Results
Wi-LAN intends to release its consolidated results for the twelve months ended October 31, 2002 on January 22, 2003 after the markets close.
About Wi-LAN Inc.
Wi-LAN is a global provider of broadband wireless communications products and technologies, specializing in products for Wireless Metropolitan Area Networks (WMAN) supporting both broadband data and voice. Wi-LAN's broadband wireless access products are known worldwide for their high quality and industry-leading technology. Wi-LAN believes its W-OFDM patent is necessary for the implementation of devices using the IEEE 802.11a, IEEE 802.11g or ETSI BRAN HiperLAN/2 standards as well as the current drafts of the IEEE802.16a and ETSI BRAN HiperMAN proposed standards. Wi-LAN licenses its W-OFDM technology and has executed non-exclusive W-OFDM license agreements with semiconductor companies. Wi-LAN is the Chair Company of the OFDM Forum (www.ofdm-forum.com). Wi-LAN's common shares trade on The Toronto Stock Exchange under the symbol "WIN." Detailed information on Wi-LAN can be found at www.wi-lan.com.
Forward Looking Information
Certain statements in this release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. These can include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless data communications industry. These risks and uncertainties include, but are not restricted to, continued increased demand for the Company's products, the Company's ability to maintain its technological leadership in the field of high-speed data communications, the Company's ability to attract and maintain key employees, the enforceability of the Company's patents, and the availability of key components.
These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
--------------------------------------------------------------------------------
Contact:
Wi-LAN Inc.
Ken Wetherell
Investor and Media Relations
Phone: (403) 207-6329
Email: kwetherell@wi-lan.com
Website: www.wi-lan.com
--------------------------------------------------------------------------------
Source: Wi-LAN Inc.