Wi-LAN Inc revenue growth decelerated from 11.5% in 2014 to 4.6% in 2015
04.02.2016 • About Wi-LAN Inc (
$WIN) • By InTwits
Wi-LAN Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 53.2% in 2015, 56.2% in 2014, 12.2% in 2013, 40.9% in 2012, 26.5% in 2011
- Wi-LAN Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has business model with low profitability: ROIC is at 7.4%
- It operates with high leverage: Net Debt/EBITDA is -1.7x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wi-LAN Inc ($WIN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 105.8 | 88.0 | 88.2 | 98.3 | 102.9 | 4.6% |
| Gross Profit | 33.3 | 32.0 | -0.4 | 35.1 | 32.5 | -7.6% |
| SG&A | 20.3 | 12.3 | 13.1 | 10.6 | 7.5 | -29.4% |
| EBITDA | 28.0 | 36.0 | 10.8 | 55.2 | 54.7 | -1.0% |
| Net Income | 31.8 | -14.5 | -18.1 | 9.7 | 10.0 | 3.3% |
Balance Sheet
|
|---|
| Cash | 432.2 | 175.2 | 130.4 | 126.3 | 93.4 | -26.0% |
| Short Term Debt | 203.9 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.9 | 0.4 | 1.8 | 0.4 | 0.2 | -57.8% |
Ratios
|
|---|
| Revenue growth | 114.9% | -16.9% | 0.3% | 11.5% | 4.6% | |
| EBITDA growth | 1,478.9% | 28.3% | -70.0% | 412.2% | -1.0% | |
| Gross Margin | 31.5% | 36.4% | -0.5% | 35.7% | 31.6% | -4.2% |
| EBITDA Margin | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% | -3.0% |
| Net Income Margin | 30.1% | -16.5% | -20.5% | 9.9% | 9.8% | -0.1% |
| SG&A, % of revenue | 19.2% | 14.0% | 14.8% | 10.7% | 7.3% | -3.5% |
| CAPEX, % of revenue | 1.8% | 0.5% | 2.0% | 0.4% | 0.2% | -0.3% |
| ROIC | 1.4% | 2.6% | -7.6% | 8.9% | 7.4% | -1.5% |
| ROE | 11.1% | -4.7% | -6.6% | 3.9% | 4.1% | 0.2% |
| Net Debt/EBITDA | -8.1x | -4.9x | -12.1x | -2.3x | -1.7x | 0.6x |
Revenue and profitability
Wi-LAN Inc's Revenue increased on 4.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from -108% to -105% in 2015.
Gross Margin decreased on 4.2 pp from 35.7% to 31.6% in 2015. SG&A as a % of Revenue decreased on 3.5 pp from 10.7% to 7.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.17% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.88%.
Return on investment
The company operates at low ROIC (7.36%) and ROE (4.12%). ROIC decreased slightly on 1.5 pp from 8.9% to 7.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 26.0% in 2015.
Appendix 1: Peers in Technology
Below we provide Wi-LAN Inc benchmarking against other companies in Technology industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | | -4.5% | 151.6% | 81.4% | -13.6% |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 10.2% | 6.6% | 12.4% | 15.2% | 11.5% |
|---|
| Wi-LAN Inc ($WIN) | | -16.9% | 0.3% | 11.5% | 4.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 50.9% | 59.2% | 53.2% | 52.2% | 48.1% |
|---|
| Wi-LAN Inc ($WIN) | 31.5% | 36.4% | -0.5% | 35.7% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | 35.1% |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | 21.9% |
| Descartes Systems Group Inc/The ($DSG) | 21.8% | 26.0% | 27.0% | 23.8% | 27.9% |
| |
|---|
| Median (33 companies) | 8.5% | 8.3% | 5.5% | 7.0% | 17.1% |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.6% | 1.4% | 1.3% | 1.5% |
|---|
| Wi-LAN Inc ($WIN) | 1.8% | 0.5% | 2.0% | 0.4% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | 21.7% |
| |
|---|
| Median (33 companies) | 5.5% | 4.4% | -4.3% | 0.5% | 9.8% |
|---|
| Wi-LAN Inc ($WIN) | 1.4% | 2.6% | -7.6% | 8.9% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | 1.0x |
| |
|---|
| Median (21 companies) | -0.3x | -0.2x | -0.2x | -1.3x | -0.1x |
|---|
| Wi-LAN Inc ($WIN) | -8.1x | -4.9x | -12.1x | -2.3x | -1.7x |
