Technology
Quarterhill Announces Q2 2024 Financial Results
Published
1 month agoon
By
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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SK hynix Applies CXL Optimization Solution to Linux
Published
58 mins agoon
September 23, 2024By
HMSDK, a proprietary memory control solution lauded for its performance, is now available on Linux, the world’s largest open source operating systemHMSDK optimizes performance between heterogeneous memories, increasing bandwidth by 30% and performance by over 12%The company will foster the ecosystem by increasing software competitiveness as well as AI memory such as HBM
SEOUL, South Korea, Sept. 22, 2024 /PRNewswire/ — SK hynix Inc. (or “the company”, www.skhynix.com) announced today that the key features of its Heterogeneous Memory Software Development Kit (HMSDK)1 are now available on Linux2, the world’s largest open source operating system.
1Heterogeneous Memory Software Development Kit (HMSDK): SK hynix’s proprietary software development kit. It enables effective memory control, improving the performance of heterogeneous memory systems such as CXL memory.
2Linux: An operating system developed in 1991 by Linus Torvalds that has since expanded to become the world’s largest open source operating system. Most operating systems for cloud systems and supercomputers, as well as smartphones, cars, and appliances, are built on Linux.
HMSDK is SK hynix’s proprietary software for optimizing the operation of Compute Express Link (CXL)3, which is gaining attention as a next-generation AI memory technology along with High Bandwidth Memory (HBM). Having received global recognition for HMSDK’s performance, SK hynix is now integrating it with Linux. This accomplishment marks a significant milestone for the company as it highlights the company’s competitiveness in software, adding to the recognition for its high-performance memory hardware such as HBM.
3Compute Express Link (CXL): A next-generation interface that efficiently connects CPU, GPU, memory, and other components in high-performance computing systems to support massive, ultra-fast computation. By applying CXL to existing memory modules, the capacity can be expanded by more than 10 times.
In the future, developers around the world working on Linux will be able to use SK hynix’s technology as the industry standard for CXL memory, putting the company in an advantageous position for global collaboration on next-generation memory.
SK hynix’s HMSDK enhances memory package’s bandwidth by over 30% without modifying existing applications. It achieves this by selectively allocating memory based on the bandwidth between existing memory and expanded CXL memory. Additionally, the software improves performance by more than 12% over conventional systems through optimization based on access frequency, a feature which relocates frequently accessed data to faster memory.
The semiconductor industry anticipates full commercialization of CXL in the second half of 2024, coinciding with the release of the first server CPUs featuring the “CXL 2.0” specification. In preparation for this, SK hynix is currently validating CXL 2.0 memory in 96 GB and 128 GB capacities with customers. The company plans to begin mass production by the end of the year.
“For the development and spread of AI systems such as large language models (LLMs), it is now necessary to significantly improve not only semiconductors but also the level of system applications to support them,” said Youngpyo Joo, Head of Software Solution at SK hynix. “With this Linux integration and collaboration, we will strive to improve our status as a total AI memory solutions provider by innovating technologies and expanding the ecosystem in this field.”
About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world’s top-tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”), and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.
View original content:https://www.prnewswire.com/news-releases/sk-hynix-applies-cxl-optimization-solution-to-linux-302254053.html
SOURCE SK hynix Inc.
Technology
TeraBox Is Set to Provide Premier Cloud Storage Solutions to Top Indonesian University Faculty and Students
Published
58 mins agoon
September 23, 2024By
Transforming Classrooms: TeraBox’s 1TB Free Cloud Storage Becomes Essential for Educators and Students
TOKYO, Sept. 23, 2024 /PRNewswire/ — TeraBox (“TeraBox” or “the Company”), a globally trusted cloud storage service headquartered in Tokyo, also a favored cloud storage solution among Indonesian users, held its first large-scale campus event at prominent Indonesian universities such as University Diponegoro, Universitas Indonesia, and Institut Teknologi Sepuluh Nopember. The company hosted numerous offline events, attracting interactions from more than 30,500 students and teachers, and handed out 85,000 flyers. Event videos posted on the universities’ official Instagram and YouTube accounts received tens of thousands of views. TeraBox looks forward to deepening its collaboration with academic institutions to offer innovative cloud storage solutions for students.
In an era where digital resources are integral to academic success, TeraBox is committed to becoming an essential tool for students, providing a secure and efficient way to save and share curriculum files and materials, simplifying file management. By offering a massive 1TB (1024GB) of free cloud storage space per account, TeraBox alleviates the challenges of managing extensive educational materials, such as e-books, digital textbooks, learning notes, and experimental data in the new semester to come. Furthermore, TeraBox enhances productivity by enabling students to engage in online assignments and collaborative projects, fostering sharing, collaboration, and communication among students and between students and teachers. TeraBox not only addresses issues related to insufficient memory on devices like smartphones and laptops, but also significantly boosts efficiency in data management in an environmentally friendly manner.
Understanding the need for seamless collaboration, TeraBox features user-friendly sharing options that allow students and faculties to create links with just one click. This facilitates easy sharing of multiple files simultaneously, which can greatly improve collaborative efforts among peers. Whether accessing files from mobile devices or desktops, students can manage their documents effortlessly anytime and anywhere. Feedback from offline surveys reveals that many users in Indonesia are impressed with TeraBox’s offering of 1TB (1024GB) of free storage space. This generous storage not only meets the needs of university students for sharing various social and lifestyle content but also eliminates the necessity of creating multiple accounts with other storage services to fulfill their storage requirements.
As of July 2024, TeraBox boasts over 320 million registered users worldwide, with more than 20 million active daily users across over 231 countries and regions. The platform ensures top-tier security by employing advanced measures such as TLS/SSL protocols, encryption algorithms, and access controls. TeraBox is accredited with ISO standards (ISO 27001/27701/27018) certifications to protect the safety of data storage and transmission. These technologies also guarantee the stored and transmitted information is safe through client-side endpoint encryption within a large-scale distributed system architecture.
About TeraBox
TeraBox, developed by Flextech Inc., is a globally trusted cloud storage app headquartered in Tokyo, Japan. With a focus on intelligent, efficient, and secure cloud storage, TeraBox is dedicated to providing users with innovative and user-friendly solutions for their data storage needs. Download the TeraBox App on Android, iOS, Linux, Mac, and Windows devices, or visit www.terabox.com for online access. To learn more about the fantastic Referral Program, please visit the provided site.
View original content:https://www.prnewswire.com/apac/news-releases/terabox-is-set-to-provide-premier-cloud-storage-solutions-to-top-indonesian-university-faculty-and-students-302254286.html
SOURCE Flextech Inc.
Technology
Elmo Motion Control Exhibiting at Industrial Automation Show in Shanghai, China
Published
58 mins agoon
September 23, 2024By
Elmo brings live demonstrations to present the power of motion to Hall 5.1 in Booth E181.
PETAH TIKVA, Israel, Sept. 23, 2024 /PRNewswire/ — Elmo Motion Control, a global technology leader in motion control solutions, announces its participation at the annual IAS (Industrial Automation Show) exhibition at NECC in Shanghai, China, from September 24 to September 28. At the show, Elmo will display the Platinum line of servo drives, which include fully certified Functional Safety capabilities in small yet powerful packages, and conduct live demonstrations.
Elmo’s featured demonstrations will include an operating customer XYZT stage dynamic demo with four-axis movement controlled by a single multi-axis servo drive – the Platinum Quartet. Also on the floor will be a multi-axis gantry machine from our customer PBA Systems PTE Ltd and more. In addition, visitors can be the first in China to see the future of motion control – the next-generation motion controller with artificial intelligence readiness and a new line of multi-axis servo drives.
“We look forward to greeting visitors at this year’s show and presenting the latest Elmo products. On display throughout our booth is the future of motion control and the experience of seeing our multi-axis products in action. This year, we created an environment for machine developers to learn about advanced motion performance for any application in real-time,” stated Dr. Wayne Chen, Elmo China GM.
About Elmo Motion Control
Elmo has been a motion control technology leader for over 35 years, with millions of servo drives working 24/7 worldwide. Elmo offers complete motion control solutions from design to delivery of cutting-edge servo drives, network-based multi-axis motion controllers, and integrated servo motors. All solutions can be customized and configured using Elmo’s proprietary advanced and easy-to-use software tools for any machine in any industry, such as semiconductors, lasers, robots, life sciences, industrial automation, AGV, and more. The company employs more than 350 personnel with headquarters in Israel and offices in the United States, China, Germany, Italy, Korea, Singapore, and an additional manufacturing facility in Poland. Elmo has a worldwide distribution network. By advancing motion control with state-of-the-art technology, Elmo makes smart machines even smarter. As of 2022, Elmo is a Bosch Rexroth company.
For more information, visit www.elmomc.com or email marketing@elmomc.com.
Copyright 2024. All brand names are the property of their respective owners and may or may not be trademarked.
Elmo Motion Control:
Robert Dugan, Marketing Manager at Elmo Motion Control
T: +972-(3)-929-2300 (ext. 368)
E: robertd@elmom.com
View original content:https://www.prnewswire.com/apac/news-releases/elmo-motion-control-exhibiting-at-industrial-automation-show-in-shanghai-china-302254926.html
SOURCE Elmo Motion Control, Ltd.
SK hynix Applies CXL Optimization Solution to Linux
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