November 5, 2012 By Cantech

Byron Capital analyst Tom Astle says Wi-LAN’s track record of generating a return from both its purchased IP and litigation is excellent, and this makes him excited for next year.

Wi-LAN reported its Q2, 2012 results early in August. Revenue came in at $20.8-million, which was slightly better than company guidance. Adjusted earnings were $10.1-million, or $.08 cents per share. On a GAAP basis, however, the Ottawa-based patent player lost $149,000 as it ramped up litigation expenses.

Byron Capital analyst Tom Astle says Wi-LAN’s Q3 may the calm before storm. Astle, who expects revenue will report $.08 of adjusted earnings on revenue of $21-million, notes that the Ottawa patent player has been tremendously busy of late, and has some major litigation trials approaching next year. Astle says litigation costs could rise to as much as $6.5-million a quarter, but offers that this would be a good sign as it would mean settlements are near. In a research update to clients Friday, Astle reiterated his BUY rating and $7.50 target on Wi-LAN.