Patent licensing firm Wi-LAN Inc. had a small net loss in the second quarter and substantially reduced adjusted earnings compared with last year but says its quarterly dividend will edge up at the next payment in October.
The Ottawa-based company, which reports in U.S. currency, says its net loss of $100,000 (U.S.) was less than a cent per share.
The quarter included higher expenses related to its litigation of patent rights, which were up $2.5-million from the same time last year while revenue was down by about $7-million, as anticipated.
In addition, Wi-LAN incurred a $418,000 restructuring charge related a curtailment of technical research for the purpose of generating patents, which are the primary source of the company’s revenue.
Wi-LAN’s more closely watched adjusted earnings fell to US$10.1-million or eight cents per share, down from US$20.8-million or 17 cents per share a year earlier.
The adjusted EPS was in line with a consensus estimate of eight cents per share compiled by Thomson Reuters.
Wi-LAN’s revenue totalled $20.8-million – about $1.1-million above the company’s guidance but $500,000 short of the consensus estimate of $21.3-million. A year earlier Wi-LAN’s revenue was $27.4-million.
The company says it will bump its quarterly dividend by half a cent per share, or 16 per cent, to 3.5 cents with the Oct. 5 payment.