Looks like growth to me..... - Reduced leverage with a $20.8 million debt repayment; total long-term debt was $30.2 million at quarter-end compared to $62.1 million at September 30, 2021
"With the benefit of a pick-up in implementation activity, our ITS business delivered solid sequential growth in Q3 with revenue increasing 8% from Q2 and Adjusted EBITDA increasing to $1.9 million from negative $4.5 million," said Bret Kidd, CEO of Quarterhill. "The environment for implementation activity improved in Q3, though certain factors, such as labour scarcity and shifting customer priorities, continue to have some impact on the pace of certain project roll-outs and inflationary conditions are putting upward pressure on costs for some materials. While these market conditions have persisted into Q4, we expect to continue to make progress on our implementation activity in the current quarter, which we believe will result in sequential top-line growth though inflationary pressures are expected to lead to flat-to-modestly-higher Adjusted EBITDA."
"Looking out to 2023, we expect to grow both our top-line and expand our Adjusted EBITDA margin. With a solid base of contracted revenue in place for 2023, a sales pipeline valued in the billions and the potential for follow-on orders from existing customers, we believe we have good visibility into next year. 2023 will see the continuation of a significant level of implementation business, with some projects likely to convert to the higher margin operations phase later in the year and we expect to increase the number of new projects that we bid on during the year to further lay the foundation for future growth. We also continue to make progress on integrating areas of our ITS businesses and expect to realize further strategic and cost benefits from these actions in 2023."
Mr. Kidd continued: "WiLAN's results in Q3 reflect the variability in the patent licensing business model. When viewed over a longer time horizon, the business has a track record for generating strong cash flows and its positive results year-to-date in 2022 further reinforce that reputation. Subsequent to quarter-end, WiLAN signed a license agreement with Micron, which will be reflected in its Q4 results."