March 2, 2011 / 12:38 PM / in 7 years

UPDATE 2-Wi-LAN's FY loss widens, sees lower oper costs in 2011

* Backs 2011 rev view of $110-$115 mln

* Still sees 2011 adj earnings of $75-$80 mln

* FY10 adj earnings of C$5 mln, net loss of C$22.1 mln

* Shares down 5 pct (Adds details, share movement)

March 2 (Reuters) - Canadian patent licensing firm Wi-LAN Inc said it expects lower operating expenses in 2011, as it benefits from a clutch of lawsuit settlements made in the last two months, even as it posted a wider annual net loss.

The company also maintained its 2011 forecast of adjusted earnings of $75-$80 million on revenue of $110-$115 million.

Wi-LAN, which signed license deals with a host of companies, including Intel , Apple , Dell and Hewlett Packard , in the last two months, said the settlements would drive the increase in revenue and decrease in operating expenses this year.

Litigation expenses for the year were C$29.8 million, up from C$21.3 million, primarily due to the lawsuits it had filed in Texas and New York, with the Texas cases accounting for about 75 percent of litigation expenses in 2010.

For 2010, net loss was C$22.1 million ($22.7 million), or 21 Canadian cents per share, compared with C$1.7 million, or 2 Canadian cents per share, in the comparable 14-month period a year ago.

Revenue rose 43 percent to C$50.7 million. License royalties contributed about C$46.9 million of total revenue in the year.

Adjusted earnings for the year doubled to 5 Canadian cents per share, buoyed by the increase in royalties from licensing its patents.

Analysts on average were expecting the company to post adjusted earnings of 6 Canadian cents per share on revenue of C$50.7 million, according to Thomson Reuters I/B/E/S.

Shares of the Ottawa-based company were down about 5 percent at C$5.67 on Wednesday morning on the Toronto Stock Exchange. ($1 = 0.974 Canadian Dollars) (Reporting by Abhiram Nandakumar; Editing by Don Sebastian)

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