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Quarterhill Announces Q2 2024 Financial Results

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5 months ago

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Mr. Vineet Khosla, AI and Machine Learning Pioneer, joins the Board of Directors

TORONTO, Aug. 9, 2024 /CNW/ – Quarterhill Inc. (“Quarterhill” or the “Company”) (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (“ITS”) industry, announces its financial results for the three and six months ended June 30, 2024. All financial information in this press release is reported in United States (“US”) dollars, unless otherwise indicated.

Quarterhill has changed the presentation currency of its financial statements to US dollars, its functional currency. A significant proportion of the Company’s sales, expenses, assets, and liabilities are denominated in US dollars. This change in presentation currency aims to enhance external stakeholders’ ability to assess Quarterhill’s financial performance and to reduce the impact of foreign exchange volatility.

Q2 2024 Highlights

Revenue was $41.5 million, up 7.5% compared to $38.6 million in Q2 2023.Adjusted EBITDA1 was $1.7 million compared to $2.9 million in Q2 2023.Cash from operations was $0.8 million compared to cash used in operations of ($10.3) million in Q2 2023.Revenue backlog3 was $500 million at June 30, 2024.Completed acquisition of Red Fox I.D. Limited (“Red Fox”), expanding the Company’s software offerings.Red Fox won two prestigious King’s Awards: one for innovation and one for excellence in international trade.

“Q2 saw continued execution on our goals to drive top-line growth, expand Adjusted EBITDA margin and improve cash flow,” said Chuck Myers, CEO at Quarterhill. “Adjusted EBITDA margin grew sequentially from Q1, and we anticipate continued progress in growing our margin throughout the year. Additionally, we generated positive cash flow from operations for the first time in two years and expect our cash balance to grow through the end of the year.”

“Our two business units – tolling and enforcement – made progress in Q2 on their ongoing projects as well as closing new business, resulting in a contracted revenue backlog of $500 million at quarter end. We remain focused on leveraging the improvements we’ve made in the past year to our project management and contract bidding processes to grow these leading businesses. At the same time, we continue to work to increase our market reach through operational integration, exploring new opportunities in Europe, penetrating the logistics sector and building-out our suite of software solutions, in particular with artificial intelligence (AI) applications.”

Board of Directors Update

Quarterhill announces that Vineet Khosla, Chief Technology Officer at the Washington Post, has joined the Board of Directors, effective immediately. Mr. Khosla has an extensive track record as an innovator and executive at some of the world’s largest technology companies. A pioneering researcher and leading voice in AI, machine learning, and cloud computing, he has driven significant advancements in these fields.

Since joining the Washington Post in 2023, Mr. Khosla has led the engineering team, executing the next phase of the company’s innovation strategy. Prior to the Post, Vineet served as Senior Engineering Manager at Uber, where he was responsible for the development of their map routing engine, which optimizes routes and timing. Before his tenure at Uber, he was the first engineering hire for Siri’s natural language engine at Apple, where he spent over eight years in senior engineering roles, developing and managing Siri’s AI engine. Mr. Khosla holds a Master’s in AI from the University of Georgia, earned in 2005.

“We are very pleased to welcome Vineet to the Board,” said Rusty Lewis, Chair of the Board at Quarterhill. “His deep expertise in AI and machine learning, combined with his experience at the intersection of transportation and technology, will play a key role in the development of our product roadmap and our push to expand the software side of our business.”

Q2 2024 Financial Review

Quarterhill’s Management’s Discussion and Analysis and financial statements for the three and six months ended June 30, 2024 are available at the Company’s website and at its profile at SEDAR+.

Financial statements for the three and six months ended June 30, 2023, have been prepared to reflect continuing operations, and therefore, exclude results during that period from Wi-LAN Inc. (“WiLAN”), which was sold by Quarterhill on June 15, 2023.

Revenues for the three and six months ended June 30, 2024, were $41.5 million and $76.4 million, up 7.5% and 14%, respectively, compared to $38.6 million and $67.0 million in the three and six months ended June 30, 2023. The increase in revenues was due to increased activity and improved performance with North American project revenue.

Gross profit2 as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed. Gross profit for the three and six months ended June 30, 2024, was $8.5 million and $14.9 million, or 21% and 19%, as compared to $10.0 million and $13.8 million, or 26% and 21%, in the three and six months ended June 30, 2023. While gross profit margin percentage has increased on a sequential quarterly basis, the year-over-year decreases compared to the prior year periods were primarily due to one tolling project that is in the maintenance phase but experiencing a transitory period of lower-than-expected margin. The year-over-year decreases in gross profit margin were partially offset by continued strong performance in the Company’s enforcement operations.

Total operating expenses are comprised of selling, general and administrative costs (“SG&A”), research and development (“R&D”) costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and six months ended June 30, 2024, were $10.8 million and $21.2 million compared to $10.6 million and $22.2 million in the three and six months ended June 30, 2023. The year-over-year changes were primarily due to lower R&D expenses and other charges offset by higher SG&A.

Adjusted EBITDA1 for the three and six months ended June 30, 2024, was $1.7 million and $1.8 million compared to $2.9 million and ($0.9) million for the three and six months ended June 30, 2023. The decrease in Adjusted EBITDA for the three months ended June 30, 2024, compared to the prior year period, was due to lower gross profit as previously explained, and offset, in part, by increased revenue and lower operating expenses. This increase in Adjusted EBITDA for the six months ended June 30, 2024, compared to the prior year period, was due to higher revenue and lower operating expenses.

Net loss from continuing operations for the three and six months ended June 30, 2024, was ($3.0) million and ($7.2) million, or ($0.03) and ($0.06) per diluted share, compared to a net loss from continuing operations of ($10.2) million and ($19.3) million, or ($0.09) and ($0.17) per diluted share, for the three and six months ended June 30, 2023.

Cash generated (used) in continuing operations for the three and six months ended June 30, 2024, was $0.8 million and ($9.3) million compared to cash used in continuing operations of ($6.9) million and ($13.5) million for the three and six months ended June 30, 2023.

Cash and cash equivalents were $24.0 million at June 30, 2024, compared to $42.7 million at December 31, 2023. The uses of cash in the three months ended June 30, 2024, included a net amount of $4.9 million spent on the acquisition of Red Fox.

Adjusted Working Capital4 was $68.4 million at June 30, 2024, compared to $78.9 million at December 31, 2023. Due to the nature of the Company’s business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances.

1.

Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.

2.

Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.

3.

Please refer to the Backlog – Non-IFRS Financial Measures section for further information.

4.

Please refer to the Adjusted Working Capital – Non-IFRS Financial Measures section for further information.

Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results on Friday, August 9, 2024, at 10:00 AM Eastern Time.

Webcast Information

Live audio webcast will be available at: https://app.webinar.net/E0GnDAr2wRQWebcast replay will be available at: https://app.webinar.net/E0GnDAr2wRQ

Traditional Dial-in Information

To access the call from the U.S. and Canada, dial 1.800.836.8184 (Toll Free)To access the call from other locations, dial 1.289.819.1350 (International)

Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/4cZxWpC

Telephone Replay
Telephone replay will be available from August 9, 2024, until August 16, 2024, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.

Conference ID: 52352 and Replay Passcode: 52352#

Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA – Non-IFRS Financial Measures

We use the non-IFRS financial measure “Adjusted EBITDA” to mean net (loss) income adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock- based compensation; (vii) foreign exchange (gain) loss; and (viii) other income which includes equity in earnings from joint ventures; (ix) dividends received from joint ventures; and * changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net (loss) income and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net (loss) income.

Adjusted EBITDA per share – Non-IFRS ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share.

Adjusted Working Capital

Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months.

Backlog – Non-IFRS Financial Measures

We use the non-IFRS measure “backlog” to mean the total value of work that has not yet been completed but that in management’s experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in “backlog”, the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company (b) are not disclosed in the financial statement of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”) regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as “seek”, “anticipate”, “budget”, ‎‎”plan”, “goal”, and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2024 financial year, including revenue, gross margin and Adjusted EBITDA expectations; and the Company’s business plan.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company’s ability to execute on its business plan; successful integration of Red Fox; general economic and industry trends; operating assumptions relating to the ‎Company’s operations; demand for the Company’s products and services; cost estimates for fixed price contracts; and the other assumptions set forth in the ‎Company’s most recent annual information form available under the Company’s profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company’s actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company’s products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company’s industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; and the other risks set forth in the Company’s most recent annual information form ‎and management’s discussion and analysis for the three and twelve months ended December 31, 2023 available under the Company’s profile on SEDAR+ at www.sedarplus.ca.‎

The Company’s actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This news release contains “future-oriented financial information” and “financial outlooks” within the meaning of applicable Canadian securities laws (collectively, “FOFI”), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2024. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out ‎above in respect of forward-looking statements. Quarterhill’s actual financial position and results of operations may differ materially from ‎management’s ‎current expectations and, as a result, the Company’s financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company’s future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company’s actual ‎financial position or ‎results of operations.‎

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

(restated)

(restated)

Revenues

$41,513

$38,623

$76,410

$66,969

Direct cost of revenues

32,997

28,616

61,537

53,205

Gross profit

8,516

10,007

14,873

13,764

Operating expenses

Selling, general and administrative expenses

7,073

6,132

13,448

13,090

Research and development expenses

479

1,008

796

1,877

Depreciation of right-of-use assets

364

384

708

721

Depreciation of property, plant and equipment

383

407

760

818

Amortization of intangible assets

2,140

2,088

4,377

4,175

Other charges

321

555

1,155

1,519

10,760

10,574

21,244

22,200

Results from operations

(2,244)

(567)

(6,371)

(8,436)

Finance income

(97)

(27)

(365)

(60)

Finance expense

1,651

1,731

3,356

3,368

Foreign exchange (gain) loss

(387)

769

(1,497)

1,104

Other income

(267)

(227)

(134)

(458)

Change in fair value of derivative liability

(432)

(11)

(927)

(215)

Loss before taxes

(2,712)

(2,802)

(6,804)

(12,175)

Current income tax expense (recovery)

272

(2,688)

345

(2,570)

Deferred income tax (recovery) expense

(17)

10,073

36

9,665

Income tax expense 

255

7,385

381

7,095

Net loss from continuing operations

(2,967)

(10,187)

(7,185)

(19,270)

Net loss from discontinued operations

–

(11,594)

–

(14,061)

Net loss

(2,967)

(21,781)

(7,185)

(33,331)

Other comprehensive loss that may be reclassified
subsequently to net loss:

Foreign currency translation adjustment

(247)

(2,905)

(932)

(2,590)

Comprehensive loss

($3,214)

($24,686)

($8,117)

($35,921)

Loss per share – Basic

From continuing operations

($0.03)

($0.09)

($0.06)

($0.17)

From discontinued operations

–

(0.10)

–

(0.12)

Loss per share – Basic

($0.03)

($0.19)

($0.06)

($0.29)

Loss per share – Diluted

From continuing operations

($0.03)

($0.09)

($0.06)

($0.17)

From discontinued operations

–

(0.10)

–

(0.12)

Loss per share – Diluted

($0.03)

($0.19)

($0.06)

($0.29)

Interim Condensed Consolidated Statements of Financial Position
(in thousands and in United States dollars)

As at

June 30, 2024

December 31, 2023

January 1, 2023

(restated)

(restated)

Current assets

Cash and cash equivalents

$24,041

$42,733

$48,905

Short-term investments

–

–

1,142

Restricted short-term investments

–

–

4,812

Accounts receivable, net

29,396

27,291

17,155

Unbilled revenue

39,465

34,247

30,529

Income taxes receivable

130

–

251

Inventories (net of obsolescence)

11,453

10,760

10,076

Prepaid expenses and deposits

4,067

4,795

5,050

108,552

119,826

117,920

Non-current assets

Accounts and other long-term receivables

4,516

4,364

397

Long-term prepaid expenses and deposits

–

–

1,257

Right-of-use assets, net

5,452

5,288

7,600

Property, plant and equipment, net

3,786

4,136

5,104

Intangible assets, net

79,799

79,092

104,164

Investment in joint venture

4,782

5,054

5,712

Investment in other entity

2,898

2,898

–

Deferred compensation asset

1,048

952

991

Deferred income tax assets

–

–

18,903

Goodwill

31,046

29,019

41,556

133,327

130,803

185,684

TOTAL ASSETS

$241,879

$250,629

$303,604

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$28,350

$30,330

$34,685

Income taxes payable

734

662

724

Current portion of lease liabilities

2,056

1,954

1,924

Current portion of deferred revenue

6,869

5,806

6,295

Current portion of long-term debt

2,125

2,125

21,588

Convertible debentures

37,840

38,196

35,655

Derivative liability

1,296

2,290

1,316

79,270

81,363

102,187

Non-current liabilities

Deferred revenue

1,252

621

2,022

Long-term lease liabilities

5,529

5,727

7,116

Long-term debt

16,293

17,312

–

Deferred compensation liabilities

1,065

945

862

Deferred income tax liabilities

2,032

1,221

1,519

26,171

25,826

11,519

TOTAL LIABILITIES

105,441

107,189

113,706

Shareholders’ equity

Capital stock

314,119

313,738

401,248

Contributed surplus

126,863

126,129

37,545

Accumulated other comprehensive income

14,720

15,652

15,928

Deficit

(319,264)

(312,079)

(264,823)

136,438

143,440

189,898

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$241,879

$250,629

$303,604

Interim Condensed Consolidated Statements of Cash Flows
(in thousands and in United States dollars)

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

(restated)

Operating activities:

Net loss from continuing operations

($2,967)

($10,187)

($7,185)

($19,270)

Add (deduct) non-cash items:

Stock-based compensation expense

708

39

1,212

270

Depreciation and amortization

2,887

2,879

5,845

5,714

Foreign exchange (gain) loss

(387)

769

(1,497)

1,104

Other income

(315)

(227)

(134)

(458)

Deferred and non-cash income tax (recovery) expense

(17)

10,073

36

9,665

Embedded derivatives

(33)

–

6

93

Change in fair value of derivative liability

(432)

(11)

(927)

(215)

Non-cash interest expense

552

873

1,092

1,351

Net change in non-cash working capital balances

806

(11,083)

(7,760)

(11,704)

Cash generated from (used in) continuing operations

802

(6,875)

(9,312)

(13,450)

Net operating cash flows attributable to discontinued operations

–

(3,378)

–

(4,685)

Net cash generated from (used in) operating activities

802

(10,253)

(9,312)

(18,135)

Financing activities:

Dividends paid

–

(1,067)

–

(2,127)

Payment of lease liabilities

(561)

(436)

(1,138)

(828)

Repayment of long-term debt

(531)

(625)

(1,062)

(1,250)

Cash used in financing activities

(1,092)

(2,128)

(2,200)

(4,205)

Net financing cash flows attributable to discontinued operations

–

(51)

–

(100)

Net cash used in financing activities

(1,092)

(2,179)

(2,200)

(4,305)

Investing activities:

Net proceeds from disposition of a subsidiary

–

32,021

–

32,021

Cash sold on disposition of a subsidiary

–

(8,000)

–

(8,000)

Acquisition of business, Red Fox

(7,181)

–

(7,181)

–

Cash acquired on acquisition of business, Red Fox

2,296

–

2,296

–

Proceeds from sale of property, plant and equipment

10

–

10

–

Purchase of property, plant and equipment

(344)

(305)

(545)

(638)

Capitalized software costs

(650)

(932)

(1,373)

(2,316)

Cash (used in) generated from investing activities

(5,869)

22,784

(6,793)

21,067

Net investing cash flows attributable to discontinued operations

–

1,194

–

1,194

Net cash used in investing activities

(5,869)

23,978

(6,793)

22,261

Foreign exchange on cash held in foreign currencies

(223)

(2,514)

(386)

(2,692)

Net (decrease) increase in cash and cash equivalents

(6,382)

9,032

(18,692)

(2,871)

Cash and cash equivalents, beginning of period

30,423

37,002

42,733

48,905

Cash and cash equivalents, end of period

$24,041

$46,034

$24,041

$46,034

Interim Condensed Consolidated Statements of Shareholders’ Equity
(in thousands and in United States dollars)

Capital
Stock

Contributed
Surplus

Accumulated
Other
Comprehensive
Income

Deficit

Total
Shareholders’
Equity

Balance, January 1, 2023 (restated)

$401,248

$37,545

$15,928

($264,823)

$189,898

Net loss

–

–

–

(33,331)

(33,331)

Other comprehensive loss

–

–

(2,590)

–

(2,590)

Stock-based compensation expense

–

288

–

–

288

Common shares issued from restricted stock units

60

(63)

–

–

(3)

Reduction of stated capital

(87,948)

87,948

–

–

–

Dividends declared

–

–

–

(1,060)

(1,060)

Balance, June 30, 2023

$313,360

$125,718

$13,338

($299,214)

$153,202

Balance, January 1, 2024

$313,738

$126,129

$15,652

($312,079)

$143,440

Net loss

–

–

–

(7,185)

(7,185)

Other comprehensive loss

–

–

(932)

–

(932)

Stock-based compensation expense

–

1,212

–

–

1,212

Common shares issued from restricted stock units

326

(423)

–

–

(97)

Common shares issued from deferred stock units

55

(55)

–

–

–

Balance, June 30, 2024

$314,119

$126,863

$14,720

($319,264)

$136,438

Reconciliation of Net Loss to Adjusted EBITDA
(in thousands and in United States dollars, except share and per share amounts)

Three months ended June 30,

2024

2023

$

Per Share [2]

$

Per Share

(restated)

Net loss from continuing operations

($2,967)

($0.03)

($10,187)

($0.09)

Adjusted for:

Income tax expense

255

0.00

7,385

0.06

Foreign exchange (gain) loss

(387)

(0.00)

769

0.01

Finance expense, net

1,554

0.01

1,704

0.02

Other charges

321

0.00

555

0.01

Depreciation and amortization

2,887

0.03

2,879

0.03

Stock based compensation expense

708

0.01

39

0.00

Change in fair value of derivative liability

(432)

(0.00)

(11)

(0.00)

Other income

(267)

(0.00)

(227)

(0.00)

Adjusted EBITDA [1]

$1,672

$0.01

$2,906

$0.03

________________

________________

________________

________________

Weighted average number of Common Shares

Basic

115,274,980

114,649,772

Six months ended June 30,

2024

2023

$

Per Share [2]

$

Per Share

(restated)

Net loss from continuing operations

($7,185)

($0.06)

($19,270)

($0.17)

Adjusted for:

Income tax expense

381

–

7,095

0.06

Foreign exchange gain

(1,497)

(0.01)

1,104

0.01

Finance expense, net

2,991

0.03

3,308

0.03

Other charges

1,155

0.01

1,519

0.01

Depreciation and amortization

5,845

0.05

5,714

0.05

Stock based compensation expense

1,212

0.01

270

0.00

Change in fair value of derivative liability

(927)

(0.01)

(215)

(0.00)

Other income

(134)

–

(458)

(0.00)

Adjusted EBITDA [1]

$1,841

$0.02

($933)

($0.01)

________________

________________

________________

________________

Weighted average number of Common Shares

Basic

115,186,092

114,644,764

1.

Please refer to the Adjusted EBITDA Non- IFRS Financial Measures section for further information.

2.

Please refer to the Supplementary Financial Measures for further information.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q2-2024-financial-results-302218638.html

SOURCE Quarterhill Inc.

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Technology

ASE Technology Holding Co., Ltd. Announces Monthly Net Revenues*

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33 minutes ago

on

January 10, 2025

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TAIPEI, Jan. 10, 2025 /PRNewswire/ — ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711, “ASEH” or the “Company”), announces its revised unaudited consolidated net revenues for December, 4th quarter and full year of 2024.

CONSOLIDATED NET REVENUES (UNAUDITED)

Dec

Nov

Dec

Sequential

YoY

(NT$ Million)

2024

2024

2023

Change

Change

Net Revenues

52,905

52,933

49,906

-0.1 %

+6.0 %

Dec

Nov

Dec

Sequential

YoY

(US$ Million)

2024

2024

2023

Change

Change

Net Revenues

1,632

1,648

1,589

-1.0 %

+2.6 %

 

Q4

 

Q3

 

Q4

 

Sequential

 

YoY

(NT$ Million)

2024

2024

2023

Change

Change

Net Revenues

162,264

160,105

160,581

+1.3 %

+1.0 %

Q4

Q3

Q4

Sequential

YoY

(US$ Million)

2024

2024

2023

Change

Change

Net Revenues

5,046

4,956

5,028

+1.8 %

+0.4 %

Full Year

Full Year

YoY

(NT$ Million)

2024

2023

Change

Net Revenues

595,410

581,914

+2.3 %

Full Year

Full Year

YoY

(US$ Million)

2024

2023

Change

Net Revenues

18,596

18,688

-0.5 %

 

Net revenues for ATM assembly, testing and material business are as follows:

ATM NET REVENUES (UNAUDITED)

Dec

Nov

Dec

Sequential

YoY

(NT$ Million)

2024

2024

2023

Change

Change

Net Revenues

29,858

29,185

26,218

+2.3 %

+13.9 %

Dec

Nov

Dec

Sequential

YoY

(US$ Million)

2024

2024

2023

Change

Change

Net Revenues

921

909

835

+1.3 %

+10.3 %

 

Q4

 

Q3

 

Q4

 

Sequential

 

YoY

(NT$ Million)

2024

2024

2023

Change

Change

Net Revenues

88,363

85,791

82,004

+3.0 %

+7.8 %

Q4

Q3

Q4

Sequential

YoY

(US$ Million)

2024

2024

2023

Change

Change

Net Revenues

2,747

2,655

2,568

+3.5 %

+7.0 %

Full Year

Full Year

YoY

(NT$ Million)

2024

2023

Change

Net Revenues

325,875

315,114

+3.4 %

Full Year

Full Year

YoY

(US$ Million)

2024

2023

Change

Net Revenues

10,178

10,128

+0.5 %

*This press release is intended to comply with Taiwan regulatory requirements.

Safe Harbor Notice:

This press release contains “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors.  For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2022 Annual Report on Form 20-F filed on April 10, 2023.

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

https://www.aseglobal.com

View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-announces-monthly-net-revenues-302347727.html

SOURCE ASE Technology Holding Co., Ltd.

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Amrop, a Leading Global Executive Search and Leadership Consulting Firm, Announces New Office in Japan

Published

33 minutes ago

on

January 10, 2025

By

BRUSSELS, Jan. 10, 2025 /PRNewswire/ — Amrop, a leading global executive search and leadership consulting firm, appoints JOMON Associates as its new team in Tokyo, marking the group’s re-entry in the Japanese market and adding significant coverage in the Asia Pacific region.

Led by Naohiro Furuta, CEO, JOMON Associates is Japan’s premier leadership advisory firm, offering services in senior Executive Search, Board & Corporate Governance Consulting, Leadership Assessment and Executive Coaching.

With 13 consultants and a team of 30 employees, the firm serves more than 200 companies, constituting about one-third of Japan’s major companies and representing Japan’s key industry sectors, including Industrial & Automotive, Chemicals & Materials, Consumer & Retail, Pharmaceuticals & Healthcare, Finance & Insurance, IT and Telecommunications.

The firm’s deep connection to the local Japanese market is matched by its unsurpassed reputation for quality and its innovative approach to executive search. By offering personalized leadership advisory and board services in addition to its acclaimed recruitment solutions, JOMON Associates is well-positioned to support companies in their quest for transformative leaders.

“Japan is a significant market for executive search and leadership consulting, and we are delighted welcome JOMON Associates to our global team,” says Annika Farin, Chair of the global Amrop Partnership. “We are now able to directly serve multinational companies operating in Japan as well as Japanese companies that are redefining boundaries as they follow their global or regional expansion strategies. Together with JOMON’s uncompromised quality approach and top market positioning, we can be instrumental in assisting these companies with the recruitment of their executive teams and attracting the best talent in new markets. “

“JOMON Associates shares our values and our ambition to continuing serving clients in the premium segment of the market. We feel naturally close to our new partners in Japan and are also proud to announce that Naohiro Furuta will immediately join our Board to help us drive the future of Amrop’s global partnership,” Farin added.

Naohiro Furuta, CEO JOMON Associates, added, “We are very pleased to announce that we have joined the global Amrop Partnership. As the global business environment becomes increasingly complex, the demand for strong and visionary leadership is higher than ever. Japanese companies are also strongly seeking talent to drive innovation and international competitiveness. Through our partnership with Amrop, we will provide our clients with valuable services that combine global insights and local expertise, making a significant impact on the domestic market and contributing to the international success of our clients.”

Amrop’s new Tokyo office is located at Tokyo Toranomon Global Square, 13th Floor, 1-3-1 Toranomon, Minato-ku, Tokyo. The addition of Japan office reinforces the group’s presence in the region, with teams in China, South Korea, India and Australia.

About Amrop

Amrop is a global leadership consulting firm, offering retained executive search, Board and leadership advisory services. We advise the world’s most dynamic, agile organizations on identifying and positioning Leaders For What’s Next – adept at working across borders, in markets around the world. Established in 1977, Amrop operates in Asia, EMEA and the Americas across 69 offices in 57 countries.

Media Contact:

The Amrop Partnership SC
Rue Abbé Cuypers 3
1040 Brussels, Belgium
T. +32 471 733 825
E. contact@amrop.com
Brigitte Arhold, COO

Logo – https://mma.prnewswire.com/media/1755576/Amrop_Logo.jpg

 

View original content:https://www.prnewswire.co.uk/news-releases/amrop-a-leading-global-executive-search-and-leadership-consulting-firm-announces-new-office-in-japan-302347193.html

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Tuya Smart Hosts Successful ‘Tuya Developer Day’ During CES 2025, Leading Industry Change with Innovative AI Technology

Published

34 minutes ago

on

January 10, 2025

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LAS VEGAS, Jan. 10, 2025 /PRNewswire/ — Tuya Smart (NYSE: TUYA, HKEX: 2391), a global cloud platform service provider, successfully hosted its highly anticipated Tuya Developer Day event during CES 2025.

This year’s CES theme “DIVE IN” brought innovators, decision-makers, visionaries, and potential partners from across the global tech companies and ecosystem to explore cutting-edge advancements shaping modern lifestyles. Building on this vision, Tuya embraced the theme “AI DIVE IN” for its showcase, spotlighting the transformative fusion of AI with smart products and innovative solutions to drive industry growth and evolution.

To further this mission, Tuya Developer Day welcomed distinguished representatives from leading global organizations, institutions, and enterprises to engage in in-depth discussions about AI trends and application prospects. The event provided developers with insights to unlock new business opportunities in the AI era.

At the beginning of the event, Alex Yang, Co- Founder, COO and CFO of Tuya Smart, delivered the opening keynote titled “AI DIVE IN.”

“We are currently witnessing an era of rapid advancement in AI. To help global developers leverage the power of AI, we’ve deeply integrated AI capabilities with the Tuya Cloud Developer Platform, strengthening three key areas: AI hardware development, AI Agent development, and AI infrastructure construction. These enhancements significantly simplify both workflows and development processes for developers,” Yang said. “Regarding AI Agent development, we’ve successfully integrated with leading models of OpenAI, Gemini, Claude, and Amazon Nova. By leveraging our AI Agent development platform and Tuya-enabled T3/T5 SoC modules, developers need only a single SDK to connect with any large language model, enabling seamless integration of audio, video, and other data types to create their ideal AI hardware products. Additionally, Tuya is committed to helping developers build practical and innovative AI solutions. In the energy sector, we’ve introduced features like AI energy analysis, AI energy-saving assistants, and AI energy optimization, which help users significantly reduce energy consumption. Furthermore, Tuya has partnered with industry leaders such as Apple and Amazon Web Services to achieve deeper ecosystem integration. Looking ahead, we aspire to collaborate with even more partners to launch innovative AI products and solutions that will lead the next wave of technological innovation.”

Amazon Web Services keynote: The Era of Generative AI Value Creation

Since 2006, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud. AWS has been continually expanding its services to support virtually any workload, and it now has more than 240 fully featured services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, media, and application development.

Olivier Bernard, Worldwide Smart Home GTM Lead of AWS highlighted the transformative potential of generative AI during his keynote. “Generative AI is rapidly becoming a transformative force in productivity, yet businesses often encounter challenges in building applications, such as data processing, model training, and resource allocation. Tuya Smart uses AWS’s leading generative AI technologies to deliver high-efficiency solutions, building an intelligent developer platform that significantly boosts productivity. With newly launched services of Amazon Bedrock, Amazon SageMaker and Amazon Q during 2024 AWS re:Invent, we look forward to deepening our collaboration with Tuya to further lower technical barriers for developers and unlock greater business value across industries,” said Bernard.

Amazon Alexa: Building the Ambient Home Together with Alexa

Customers have connected more than 400 million smart home devices to Alexa, and use Alexa hundreds of millions of times each week to control their devices. More than one million registered developers, brands, and device makers are creating conversational, natural, and proactive experiences with Alexa. Amazon offers a collection of tools, APIs, reference solutions, and documentation to make it easier for developers to build Alexa experiences for their customers.

“Our goal is to develop a diverse range of best-in-class products and services in collaboration with brands for users globally. By participating in our Works with Alexa certification program, they can deliver smarter, more reliable, and responsive products to users, enhancing the smart home living experience. A key focus for us is simplifying the device setup process. With Frustration-Free Setup, getting started with Alexa is as simple as opening the box. We will continue collaborating with Tuya to bring more seamless and intuitive smart home experiences to end-users,” said David Wurster, Senior Manager of Alexa Smart Home Business Development.

Connectivity Standards Alliance: A Connected Future with Matter

The Connectivity Standards Alliance is the foundation and future of the IoT. Their wide-ranging global membership is on a mission: to ignite creativity and collaboration in the Internet of Things by developing, evolving, and promoting universal open standards that enable all objects to securely connect and interact. The Connectivity Standards Alliance believes all objects can work together to enhance the way people live, work, and play.

“Matter is a unifying, IP-based connectivity protocol, empowering developers to build reliable and secure IoT ecosystems while enhancing user experiences,” said Tobin Richardson, President and CEO of the Connectivity Standards Alliance. “As a Board Member, Tuya, along with hundreds of other Members are dedicated to collaboratively advancing and evolving Matter in different use cases across the IoT. With the release of Matter 1.4 in November 2024, developers can now create more sophisticated smart devices by leveraging Tuya’s Cloud Developer Platform.”

Texas Instruments: Wireless Connectivity

Texas Instruments (TI) designs, manufactures, tests, and sells analog and embedded semiconductors that are the essential building blocks of electronic systems. With more than 80,000 products, it has the most comprehensive portfolio of general-purpose analog products, as well as a full breadth of analog and embedded products that help customers create differentiated applications.

Marian Kost, Vice President and General Manager of Connectivity at TI, highlighted the critical role of connectivity in enabling seamless operations across sectors like construction, retail, and healthcare. “Applications that are easy to operate and manage are essential for these industries, and stable connectivity technology is the backbone of such innovations,” Kost stated. “To simplify the development of connected applications, TI has partnered with Tuya Smart to integrate its SimpleLink™ wireless MCU (CC2340) technology into the Tuya Cloud Developer Platform. This collaboration combines TI’s high-performance, low-power connectivity solutions with Tuya’s versatile development tools.”

“By leveraging the power of the Tuya Cloud Developer Platform alongside TI’s advanced connectivity technology, businesses can rapidly create stable, reliable, and easy-to-manage applications. This partnership accelerates the intelligent transformation of industries, fostering innovation and driving development across the board,” Kost added.

Silicon Labs: AI/ML for Tiny Edge Devices

Silicon Labs is a trailblazer in wireless connectivity for the Internet of Things. Our integrated hardware and software platform, intuitive development tools, and unmatched ecosystem support make Silicon Labs the ideal long-term partner in building advanced industrial, commercial, and home and life applications. Silicon Labs lead the industry in high-performance, low-power, and security with support for the broadest set of multi-protocol solutions.

Fritz Werder, Senior Director at Silicon Labs, emphasized the transformative role of artificial intelligence and machine learning in shaping the future of the smart device industry. “AI and machine learning are increasingly crucial in driving innovation within the IoT industry. Silicon Labs’ AI/ML solutions focus on developing more efficient and advanced SoCs to enhance the performance of smart edge devices and support diverse application scenarios. In the future, Silicon Labs will continue collaborating with Tuya to empower device manufacturers, unlock new opportunities, and create a more intelligent and safer interconnected world.” said Fritz.

Positivo Tecnologia: A Unique Smart Home Experience in Brazil with an Exclusive App

Positivo Tecnologia, a leading Brazilian tech company, develops and markets a wide range of solutions, including computers, smartphones, tablets, smart home devices, electronic security systems, payment terminals, servers, and IT infrastructure. Known for its expertise in educational technologies and innovative projects, the company delivers products like self-service kiosks, and demographic data collection devices.

Serving consumers, businesses, schools, and public institutions, Positivo also provides IT equipment leasing, technical support, and managed services. Its diverse portfolio combines innovation and reliability, driving technological progress across Brazil.

“The rapid advancement of technology is not only reshaping the way we work but also profoundly enhancing our daily lives. Smart home solutions, as a key application of IoT, are revolutionizing living experiences. This progress relies heavily on engineering innovation and evolving business models,” said Rafael Sczcepanik, Business Director of Positivo. “Tuya’s cutting-edge technological expertise and strong global presence in the smart home sector make them an ideal partner for us. We are excited about the opportunity to collaborate and envision a smarter, more efficient, and sustainable future together.”

FiberX: Smart home success cases through internet providers in Brazil

Founded in 2008, FiberX distributes fiber optic network equipment in western Santa Catarina. Through hard work and dedication, FiberX has grown to become one of the largest companies in the sector, serving over 6,000 customers and delivering more than 7 million products nationwide. The company realized that its expertise could go beyond the ISP market and be applied to a variety of solutions involving technology and innovation. This led to the creation of new verticals and work teams, always guided by the same purpose: simplifying the complex.

“As a technology integrator, FiberX has made significant efforts to empower ISPs in attracting and retaining customers. In an environment where the adoption of AI is surpassing retail productivity, our smart home devices brand, Veld, is taking the lead in driving substantial change through advanced technologies and solutions that prioritize convenience, security, and innovation. By utilizing the Tuya Cloud Developer Platform and its extensive hardware ecosystem, we are committed to further enabling ISPs to enhance end-customers’ daily lives and cater to their evolving needs,” said Clayton Costa, Chief Product Officer of FiberX.

FOTILE: FOTILE Fully Embraces the Intelligence of Kitchen Space

FOTILE has always been committed to providing people with high-quality products and services, creating a healthy and environmentally-friendly lifestyle, and allowing more families to enjoy a happy and confident kitchen life. For the last 20 years, FOTILE has helped families around the world improve their kitchen environments and protect their health. FOTILE continues forging ahead for the happiness of hundreds of millions of families.

Guitao Yu, Director of the Intelligent Research Institute at FOTILE Group, commented, “In response to the evolving needs of modern living, FOTILE has leveraged AI algorithms and cutting-edge smart hardware to create the FOTILE Smart Kitchen System.This innovative system offers users a fully integrated, intelligent kitchen experience that combines safety, health, convenience, socialization and entertainment. To further elevate users’ quality of life, FOTILE has partnered with Tuya to launch a versatile recipe platform. This platform not only offers recipe management capabilities but also supports a variety of cooking modes, providing a personalized cooking experience for every user. Moving forward, we will continue to deepen our collaboration, expand the ecosystem, and further enrich the kitchen experience for our users.”

Pioneer Solutions: US/ Mexico Drayage and FTL

Founded in 2016 by a team of logistics professionals with a true passion for international trade, Pioneer Solution’s mission has always been to be the preferred freight forwarder serving and facilitating the logistics needs of other entrepreneurs and helping them realize their business’s full potential on a global scale.

The company’s expertise in connecting Trans-Pacific trade has enabled them to grow together with their customers. Headquartered in Los Angeles but with a strong global vision, Pioneer Solutions is a leading integrated logistics company comprising four business segments: NVOCC, Warehousing & Distribution, Customs Clearance & Trade Advisory, and Trucking.

Jose Torres, Logistics Director at Pioneer Solutions, stated, “In today’s logistics landscape, intelligence-driven solutions are crucial. Tuya, with its cutting-edge AI, cloud computing, and other technological capabilities, provides the tools we need to enhance the visibility and security of goods, optimize transportation and warehousing processes, proactively mitigate transportation risks, and significantly boost logistics efficiency. This partnership enables us to excel in the modern supply chain environment.”

Construlita: Creating smart buildings to improve profit and productivity

Construlita is a leading brand in commercial lighting for a range of settings, including workplaces, retail stores, restaurants, and hotels. To meet customers’ needs for lighting through knowledge, technology, and solutions that add value to lighting projects, it is constantly updating its solution portfolio with innovative technologies like IoT devices and smart platforms that are in line with global trends. This results in the creation of spaces full of captivating experiences that heighten end-users’ sense through light.

Roberto Enriquez Gómez, Vice President of Sales at Construlita, remarked, “In commercial buildings across Mexico, the electricity demand for lighting, HVAC, and air conditioning is notably high. To help these buildings reduce operating costs and improve profit margins, we have integrated the Tuya ecosystem. This system consolidates energy data from multiple buildings into a single platform for efficient energy management. Beyond energy optimization, it enhances the quality of life and job satisfaction for occupants, fostering greater productivity and well-being. Together, we are advancing the sustainable development of the construction industry.”

The successful “Tuya Developer Day” event at CES 2025 not only expanded Tuya’s market reach but also provided a platform for global developers to showcase their talents, fostering in-depth communication and sparking innovative collaboration. Moving forward, Tuya will continue to partner with developers worldwide, driving the integration of AI, cloud computing, and other advanced technologies across various scenarios. This collaboration will accelerate the pace of intelligent transformation and help co-create a new era of smart technology.

View original content:https://www.prnewswire.com/news-releases/tuya-smart-hosts-successful-tuya-developer-day-during-ces-2025-leading-industry-change-with-innovative-ai-technology-302347803.html

SOURCE Tuya Smart

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