Q: Can I have your comments on the latest results from Quarterhill . It has a huge backlog of work, but it seems to find it very hard to make a profit. Any hope here , or time to move on ?
5i Research Answer:
EPS of a loss of 4c missed estimates of -3c. Revenue of $34.9M missed estimates of $40.2M. EBITDA of $169K missed estimates of $2.0M. Net debt is now $34M. Backlog is more than $500M now, but we have watched QTRH for more than a decade, and it has always found a way to disappoint. Revenue rose 23%. But it has lost money in five of the past six years, and the balance sheet has gone from lots of net cash to now net debt. There has been a bit of net insider buying this year. But overall, its weak momentum, small size, cancelled dividend (April 2023) means we would not miss this one (i.e. sell).