UPDATE: WiLAN stock dives after it loses patent battle to Apple

The Canadian Press ~ OBJ
Send to a friend

Send this article to a friend.

Wi-LAN Inc. shares lost about a quarter of their value in heavy trading Thursday following a court ruling against the Ottawa-based company in a patent-infringement battle with Apple Inc.

(Stock image)

The stock was down $1.02 to $3.06 with more than 5.2 million shares traded, unusually heavy volume for WiLAN (TSX:WIN), a relatively small company that routinely takes on some of the industry's giants.

WiLAN is attempting to assure investors that the Texas jury's ruling on Wednesday will have limited impact on its overall business, which primarily generates revenue from a portfolio of 3,000 patents.

Trial proceedings involving Apple began on Oct. 15 after six other defendants – Alcatel-Lucent USA Inc., Dell Inc., Hewlett-Packard Company, HTC Corp., Novatel Wireless, Inc. and Sierra Wireless Inc. – all signed licence and settlement agreements to resolve the litigation.

Its initial announcement about the ruling said the company didn't believe the decision would have a negative impact on licensing agreements with other companies.

But WiLAN said Thursday morning before trading began that the Texas jury's decision affected only one patent and that it expires in about three months.

The company also estimated that its 2013 annual revenue for 2013 will be in a range of $85 million to $87 million, above analyst expectations.

WiLAN said it had between $26 million and $28 million of revenue in the fourth quarter beginning Oct. 1 and $20.7 million in the third quarter ended Sept. 30.

Analysts had been looking for WiLAN to generate $82.5 million of revenue this year, down from $87.96 million last year, according to recent estimates compiled by Thomson Reuters.

Organizations: Apple, Wi-LAN, Alcatel-Lucent USA Dell Inc. Hewlett-Packard Company HTC Novatel Wireless, Inc. Sierra Wireless Inc.

Geographic location: Texas, Ottawa

  • 1
  • 2
  • 3
  • 4
  • 5

Thanks for voting!

Top of page