Wi-LAN Inc. 2011Annual Report
Wi-LAN Inc. 2011Annual Report CONTENTS 2 Letter to Shareholders 5 Management’s Discussion and Analysis (MD&A) 34 Management’s Report 35 Auditor’s Report 36 Consolidated December 31, 2011 Financial Statements 41 Notes to Financial Statements 61 Directors and Officers 62 Corporate Information Wi-LAN Inc. 2011 Annual Report 1 LETTER TO SHAREHOLDERS Dear Fellow Shareholders: 2011 was a great year for WiLAN. It was a year in which we had a number of successes. New license agreements dramatically increased our annual and booked revenue. Additions to our team expanded our leadership, experience and expertise. Valuable patent acquisitions more than doubled the size of our portfolio. A financing during the year substantially strengthened our balance sheet. Entering 2012, our foundation for growth has never been stronger. Early in 2011, WiLAN reached settlements with many marquis industry players, including Atheros, Broadcom, Intel, Marvell and Motorola Mobility, to end a number of major litigations. These settlements demonstrated the strength of our patent portfolio and our licensing capabilities. License agreements signed in 2011 positioned WiLAN to generate hundreds of millions of dollars in future revenues and contributed to 2011 revenues of over $105 million, more than double our 2010 revenue, and over $71 million in adjusted earnings. During the year, WiLAN invested $19 million in cash to acquire valuable technologies and returned over $13 million to shareholders in share buyback and dividend payments. WiLAN’s balance sheet ended the year stronger than ever, aided by a $75 million funding round and the generation of over $57 million from operations. In recognition of WiLAN’s strong balance sheet, significant backlog and strong expected earnings going forward, the Board of Directors voted to increase WiLAN’s 2012 annual dividend by 20% to 12 cents per common share.
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