Wi-LAN Inc. rose to a third-quarter profit of $7.3-million (U.S.) as the patent licensing company strengthened revenues.
The results were equal to six cents per share, compared to a loss of $6-million, or six cents per share a year earlier.
On an adjusted basis, earnings were $22.8-million, or 18 cents per share, which put it in line with analyst expectations and up from a profit of $903,000, or a penny per share in the prior-year period.
The stronger adjusted results came from lower litigation and total operating expenses, it said.
Revenues grew to $27.8-million from $10.8-million as it reached licensing agreements with several major companies that also resulted in the dismissal of four lawsuits.
Analysts on average had expected Wi-LAN to report an adjusted profit of 18 cents per share on $29-million in revenue, according to figures compiled by Thomson Reuters.
“We remain firmly committed to growing our business to generate sustained, long-term value for Wi-LAN's shareholders,” chairman and CEO Jim Skippen said in a release accompanying the earnings report.
“We have everything we need to build a global IP licensing powerhouse, including a strong balance sheet, significant revenue backlog and an exceptional team.”
Wi-LAN primarily collects licensing fees from companies that use technologies covered by its portfolio of patents.
Last week, the company walked away from a hostile takeover offer for Mosaid Technologies Inc. in the face of a richer friendly bid by a U.S. private equity firm.
The company bid $531-million or $42 per share for the rival Ottawa-based technology patent company, but it fell short of the $590-million or $46 per share offer from by U.S. private equity firm Sterling Partners.
However, Wi-LAN said last week that it wouldn't be walking away completely empty-handed. It expects to sell the Mosaid shares it currently owns to Sterling for a gain of $3.6-million to help offset some of the costs associated with its takeover bid.
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