Quarterhill Inc. (NASDAQ:QTRH) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 10:00 am ET
Good morning and welcome to Quarterhill's Q2 2020 Financial Results Conference Call. On this morning's call, we have Paul Hill, President and CEO; and David Cortens, Interim Chief Financial Officer. [Operator Instructions] Following management's presentation we'll conduct a question-and-answer session. [Operator Instructions].
Earlier this morning Quarterhill issued a news release announcing its financial results for the three and six month periods ended June 30, 2020. This news release, along with company's MD&A and financial statements, will be available on Quarterhill's website and will be filed on SEDAR. Certain matters discussed during today's conference call or answers that may be given to questions could constitute forward-looking statements. Actual results could differ materially from those anticipated. Risk factors that could affect results are detailed in the company's annual information form and other public filings that are made available on SEDAR. During this conference call, Quarterhill will refer to adjusted EBITDA. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS, adjusted EBITDA is defined in the company's quarterly and annual filings that are made available on SEDAR. Please note that all financial information provided is in Canadian dollars unless otherwise specified.
I would now like to turn the meeting over to Mr. Hill. Please go ahead.
Paul L. Hill
Good morning, everyone, and thanks for joining us on today's call. It's a pleasure to speak with you. It's an important time here at Quarterhill and I'm very excited to be leading the team. I'll start off with a look at recent business activity, followed by an update to our strategy. After that, Dave will take a more detailed look at some of the key numbers for the quarter, and we'll open it up for questions. Please note that during my strategy discussion, I will refer to slides, which will be available on the webcast.
Q2 saw lots of activity at Quarterhill. We announced the sale of VIZIYA, the appointment of Dr. Michel Fattouche to the Board in an SIB to purchase up to 20 million Quarterhill shares. We also announced final judgment in our trial versus Apple, a new CEO at IRD and the completion of the SIB. Today WiLAN announced the license agreement with Kingston Technology and we launched a new NCIB.
Since joining, I have spent my time getting to know the IRD and WiLAN businesses. I have met the equity analysts and many shareholders and have mapped at our growth strategy. Before getting into these items, a few words on Q2. Consolidated revenue was CAD16.8 million and adjusted EBITDA was negative CAD2 million. We ended the quarter with cash and equivalents of CAD143.1 million. Results reflect, steady performance with IRD as well as variability inherent in the business model at WiLAN. As most of you know, WiLAN performance over a longer timeframe is a more accurate gauge of its potential, compared to looking at the business on a quarterly basis. While WiLAN had negative adjusted EBITDA in Q2, it had positive adjusted EBITDA in five of the last seven quarters.