RE:Large revenue jump in Q4Still a work in progress but put the highlight on PROGRESS.
Gross profit for the three and twelve months ended
December 31, 2023, was
$11.5 million and
$40.6 million, or 19.7% and 20.9%, as compared to
$10.2 million and
$37.8 million, or 25.3% and 23.7% in the prior year comparative periods, respectively.
The decrease in gross profit margin percentage compared to the prior year periods is primarily attributed to tolling implementation expense overruns. These expense overruns resulted in additional unanticipated costs and a reduced margin profile for the implementation projects. This decrease in gross profit margin was partially offset by continuing strong performance in our enforcement operations.
As a percentage of revenue, SG&A in Q4 2023 was 16% compared to 30% in Q4 2022
Cash used in continuing operations for the three and twelve months ended December 31, 2023 was $1.6 million and $22.6 million, compared to cash generated from continuing operations of $7.8 million and cash used in continuing operations of $43.8 million in the comparative prior year periods, respectively.
Cash and cash equivalents and short-term investments were $56.6 million at December 31, 2023, compared to $60.9 million at September 30, 2023 and $67.9 million at December 31, 2022. Working capital was $104.6 million at December 31, 2023, compared to $111.1 million at September 30, 2023 and $71.5 million at December 31, 2022. 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.
Under the terms of the definitive agreement, Quarterhill will acquire Red Fox for up to US$10.2 million through a combination of cash and equity.
Red Fox owners , iMO, see some value in taking shares as partial payment