Wi-LAN (TSE:WIN) (NASDAQ:WILN), an intellectual property licensing company, reported higher-than-expected revenue in the third quarter helped by recent license signings.
Revenue increased to $24.6 million in the July-to-September quarter from $20.7 million in the year-earlier period, the Ottawa, Ontario-based company said in a statement today.
The result topped the company’s own guidance of $19.7 million and analysts’ average estimate of $21.89 million.
Wi-LAN attributed the increase in revenue 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 percent of the revenue recognized in the three months ended September 30, 2014 was generated from licensing programs related to partnerships, the company said.
"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 company’s chief executive officer Jim Skippen said in the statement.
The company reported net loss shrank to $0.4 million, or breakeven per share, in the third quarter, from a net loss $6.5 million, or $0.05 loss per share, a year earlier.
Adjusted profit was $0.11 per share, above the $0.10 average estimate of 4 analysts.
During the third quarter, the company signed 16 licenses and renewal licenses, and it added four portfolios including portfolios related to smart meter and orthopedic technologies.
Wi-LAN also declared an eligible dividend of C$0.05 per common share to be paid on January 7, 2015 to shareholders of record on December 12, 2014.
Shares closed up 1.4 percent at C$3.58 in Toronto yesterday.