“Introducing inventions with mass appeal to the world.” That slogan is the way that Ottawa’s Wi-LAN, which holds a roster of patents covering everything from Bluetooth technology to WiMAX base stations to routers, sees itself. If certain people, and by certain people we mean people like Judge T. John Ward of the U.S. District Court for the Eastern District of Texas, who is presiding over Wi-LAN’s patent infringement litigations against giants such as Apple, Dell, Intel, Hewlett-Packard, LG and Broadcom, see things the same way, then the eighteen year old Wi-LAN will almost certainly earn mass appeal with investors. While success in the courtroom will mean a major splash for Wi-LAN, the company has had increasing success deriving revenue from licensing deals; more than 200 worldwide. It’s unlikely however, we have seen the last of Wi-LAN lawyers in US courtrooms as the Canadian junior has a impressive portfolio of more than eight hundred patents to defend. So how is all this action affecting the bottom line? With The Company’s Q2 numbers hitting the wire today, we break down Wi-LAN in an uopdated “Quant Snapshot”
1. Price to Sales: 8.17 x sales
As of Monday, August 9th Wi-LAN had 103,154,672 million shares outstanding. The Wi-lan stock price, as of the same date, was $3.55 This gave The Company a market capitalization of $366.2 million. In the trailing four quarters Wi-LAN posted sales of $44.82 million.
2. Cash to Market Cap: 26.5%
As of Q1, 2010 (March 31st, 2010) Wi-LAN had a Cash and Short Term Investments position of $97.03 million. The Company’s Market Capitalization, as of Monday, August 9th was $366.2 million.
3. Debt to Market Cap: Zero
As of Q1, 2010 (March 31st, 2010) Wi-LAN had a Long Term Debt position of zero.
4. Three Year Growth: 926%
Revenue was $2.11 million in FY 2006. This grew to $35.42 million in FY 2009.
5. Enterprise Value to Sales: 6x Sales
Wi-LAN’s Enterprise Value is $269.17 million, based on a market capitalization of $366.2 million, plus Long Term Debt of zero, minus Cash and Short Term Investments of $97.03 million. In the trailing four quarters, sales totaled $44.82 million.
All financial information about Wi-LAN is gleaned from
their filings with the System for Electronic Document Analysis and
All calculations are based on The Company’s closing share price as of
close August 9th, 2010: $3.55
Sales from trailing four quarters: $44.82 million
Cash and Short Term Investments as of Q1, 2010 (March 31st, 2010): $97.03 million
Shares outstanding: 103,154,672