Download the complete report here http://www.globalmci.com/reports/wi-lan-inc-02242014.pdf

WIN AND HON HAI SETTLE PENDING LITIGATIONS

HON HAI LITIGATION| WIN reached an agreement to settle all pending litigations (relating to its V-Chip patent) with Hon Hai Precision Industry. All financial terms of the agreement are confidential. WIN filed the original suit on October 1, 2012, in Florida State Court concerning Hon Hai’s failure to report TV revenues related to WIN’s V-Chip patent as a part of a deal signed with WIN in January 2008. Hon Hai’s response was to file a suit on October 23, 2012, in New York requesting a declaratory judgement (DJ) that it did not infringe WIN’s V-Chip patent and to declare the patent invalid.

Q114 GUIDANCE| WIN management sees Q114 revenue of at least $22.6M, operating expenses of $10.2-12.2M ($3.0-5.0M in litigation expenses), and adjusted earnings in the range of $10.6-12.6M. The revenue guidance was provided prior to the completion of the first month of Q114 and, as such, a number of reports that normally are submitted at or shortly after the month-end had yet to be received by WIN. This guidance did not include Toshiba (6502-TYO, Not Rated) and Hon Hai and management indicated revenue could be higher by at least $2M. Thus, the Hon Hai agreement supports our estimates for Q114 revenue of $23.1M (Cons: $23.4M), and should reduce litigation expenses.

UPCOMING LITIGATION AND LICENSING OPPORTUNITIES| Management indicated that it had 31 prospective licensing meetings with clients in Q413. WIN has signed a "deal in principle" with Toshiba. In the Apple (AAPL-US, Not Rated) cases, WIN has filed motions on the case lost in October 2013, with a hearing coming up in March. If the motions go against the company, WIN will appeal to

federal circuit court (CAFC). The LTE patent trial with Apple in California is set for November 2014. The LG (066570-KRX, Not Rated) dispute is ongoing and the current deliberation is whether the wireless patent deal with LG covers TVs that have Wi-Fi.

WIN PATENTS| WIN’s diversified business model consists of licensing its core portfolio of over 3,000 patents (~250 considered "essential") covering wireless (Bluetooth, Wi-Fi, WiMAX, 3G, 4G/LTE, CDMA, HSPA) and wireline (xDSL, DOCSIS) access, digital TV and display, as well as emerging areas such as semiconductors, medical devices, and cloud computing. WIN has ~1,000 semiconductor related patents (including the 900 Panasonic patents).

F2013| WIN added to its patent portfolio – 1,000 patents in F2013, 900 of those from the Panasonic deal announced in December 2013. In F2013, WIN signed licenses with 17 companies (bringing the total number of companies licensed to 279) and 7 licensing partnerships (bringing the total to 17).