OTTAWA – Wi-LAN Inc. (TSX:WIN) is raising its dividend as the company works to improve its business following a review of strategic alternatives.
The company launched the review, including a possible sale of the company, in October 2013.
Wi-LAN, which generates revenue by licensing technology patents, said Wednesday that it will increase its quarterly dividend by a penny or 25 per cent to a nickel per share starting with the second quarter of this year.
Based on the company’s share price of $3.55, the stock will yield about 5.6 per cent with the new dividend.
“We entered into the strategic review process highly confident in the strength of our stand-alone business,” Wi-LAN chairman Paul McCarten said.
“In our view, continuing with an updated strategy is the best way to maximize shareholder value.”
The company said it hoped to increase its earnings to at least 30 cents per share by 2018 by doubling revenues and increasing its operating leverage.
Wi-LAN reported an adjusted profit of $17.6 million or 15 cents per share for 2013.
The company said it will work to diversify its revenue base by moving its focus from licensing its entire portfolio to licensing smaller subsets of the portfolio and reduce risk by limiting the outright purchases of patent portfolios and instead seek licensing partners.
Wi-LAN will also focus on increasing profitability by ensuring the law firms it works with share in some of the risk of its licensing programs and will also consider selling some of the non-core patents.