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Wi-LAN sharply cuts Q1 loss to US$6.4M despite big decline in revenue

OTTAWA – Wi-LAN Inc. (TSX:WIN) cut its first-quarter loss to less than half compared with a year ago when the patent licensing firm was hit by foreign exchange losses and a charge related to a refinancing.

The company, which reports in U.S. dollars, said Wednesday the loss for the quarter ended March 31 was US$6.4 million or five cents per share, an improvement over a loss of $14.4 million or 12 cents per share a year ago.

However, revenue from royalties declined to US$18.4 million from US$24.7 million.

Adjusted earnings were $1.3 million or a penny per share, down from $15.4 million, or 13 cents per share, in the comparative period, due to lower revenue and higher litigation expenses.

During the quarter, Wi-LAN record a unrealized foreign exchange gain of US$944,000 compared with a loss of US$5.4 million in the year-earlier period. As well, in the 2012 first quarter, the company incurred $31.1 million in expenses related to a debenture financing, partly offset by an income tax recovery of $4.3-million.

Wi-LAN licenses wireless technology and other patents to companies around the world.