Quarterhill Inc. (QTRH) Tops Q3 EPS by 10c, Revenues Beat

Quarterhill Inc. (NASDAQ: QTRH) reported Q3 EPS of $0.08, $0.10 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $25.4 million versus the consensus estimate of $24.26 million.

Third Quarter 2019 Highlights

• Revenues of $25.4 million, compared to $19.6 million in Q3 last year
• Recurring revenues of $4.7 million, compared to $6.3 million in Q3 last year
• Adjusted EBITDA* of $2.0 million, compared to ($2.5) million in Q3 last year
• Net income of $9.3 million, or $0.08 per basic and diluted common share, compared to net loss of ($9.3) million, or ($0.08) per basic and diluted common share, in Q3 last year
• Cash and cash equivalents were $72.1 million at September 30, 2019, compared to $67.3 million at December 31, 2018
• Subsequent to quarter-end, appointed David Cortens as interim CFO

"Q3 revenue and Adjusted EBITDA increased year-over-year due to stronger performance at IRD and VIZIYA," said John Gillberry, Chairman of Quarterhill. "Overall, on a year-to-date basis, each business is performing ahead of the prior year with the net result being an increase in cash from operations and a strengthening of our balance sheet to support our diversification strategy. Our CEO search is now firmly underway and subsequent to quarter-end, we were very pleased to appoint Dave Cortens as interim CFO of Quarterhill. Dave was CFO of IRD at the time of the appointment, so we expect a smooth transition for that role."

"With our Q2 results we announced that VIZIYA had signed two software license contracts in July and we noted the related impact that those contracts could have on the earn-out portion of the VIZIYA acquisition. In terms of an update, we were able to recognize revenue from one contract during the quarter, toward the end of September, while the second contract was not completed. As a result, VIZIYA's Q3 results reflect only the economics from the one contract and based on the timing of that contract being recognized, we have reversed the earn-out contingency in full in our Q3 financial statements. We continue to believe that these larger multi-million-dollar opportunities reflect the operational and economic value that VIZIYA's solutions can bring to its customers."

For earnings history and earnings-related data on Quarterhill Inc. (QTRH) click here.

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