Quarterhill Inc T.QTRH

Iteris

[cabbieJBJ]

Iteris posted Q3 results today.  The stock has been on a bit of a tear this week (+7%).  Iteris seems to have turned the corner on profitabilty.  The presser is very positive and can be read here:

https://www.businesswire.com/news/home/20240208565886/en/

Prior to Q4-22 (calendar 2023), Iteris was consistenly negative EBITDA.  It is truly amazing what a positive EBITDA trend can do...even a small one:

	Q3-23	Q2-23	Q1-23	Q4-22	Q3-22
Total Revenue	$42,129	$43,563	$43,545	$42,440	$40,686
Cost of Revenue	$26,580	$27,299	$26,742	$28,952	$28,886
Gross Profit	$15,549	$16,264	$16,803	$13,488	$11,800
Margin	36.9%	37.3%	38.6%	31.8%	29.0%
General Admin	$5,226	$6,344	$5,801	$5,179	$5,499
Selling	$6,421	$6,236	$6,290	$6,150	$5,780
R&D	$2,858	$2,565	$2,108	$1,965	$2,047
Operating Expenses	$14,505	$15,145	$14,199	$13,294	$13,326
EBITDA	$1,044	$1,119	$2,604	$194	-$1,526
EBITDA Percent	2.5%	2.6%	6.0%	0.5%	-3.8%
Depreciation and Amortization	$650	$651	$651	$650	$651
Operating Income	$394	$468	$1,953	-$456	-$2,177

[Socrates1]

All PROFITABLE stocks are on a tear Cabbie........Markets are on an ALL TIME HIGH! All our pears are celebrating..... Only the loosers are not making gains.......  feel soooo undervalued and neglected................. Chuck will not release any info at all..... hate being at the mercy of luck, we must close this guessing game with timely company forcasts and profit.......

[cabbieJBJ]

You are correct Socrates, the Oracle must speak. 

[Homework]

Socrates.... Cabbie...... You are both right........ You must however let 2024 unfold as it pertains to Qtrh achieving profitability........... Once that happens the market will price the shares accordingly......... Also they will become a takeover target now that the mgmt has made t he company mean and lean. A larger rival with scale and lower ( GOGS) will pay $5+ per share or a 50% premium to a

[cabbieJBJ]

Patience on the road to trended profitability is a key homework, no doubt.  Q2 was EBITDA positive; Q3 missed, with and explanation (I know, I know, there's always an excuse); Q4 should be positive; Q4 results release provides an opportunity to guide Q1, if that fits QTRH's communication strategy.  I see the elements to gain credibility on profitability as near in place