Quarterhill Streamlines Operations to Reduce Costs and Align with Strategic Priorities
Quarterhill (OTCQX: QTRHF) has announced a significant workforce reduction initiative affecting approximately 100 positions, representing 15% of its total headcount. The strategic restructuring aims to achieve annualized cost savings of US$12 million and accelerate the company's path toward sustainable positive Adjusted EBITDA and operating cash flow.
The reduction, split evenly between contract and full-time positions, primarily targets operational areas affecting cost of sales. The company expects to realize partial benefits in 2025, with full benefits materializing in 2026. CEO Chuck Myers emphasized that these changes are necessary to strengthen the company's financial foundation while maintaining high service standards for customers.
Quarterhill (OTCQX: QTRHF) ha annunciato un'importante iniziativa di riduzione del personale che coinvolge circa 100 posizioni, pari al 15% del totale dei dipendenti. La ristrutturazione strategica mira a ottenere un risparmio annuo di 12 milioni di dollari USA e ad accelerare il percorso dell'azienda verso un EBITDA rettificato e un flusso di cassa operativo sostenibili e positivi.
La riduzione, equamente distribuita tra posizioni contrattuali e a tempo pieno, interessa principalmente le aree operative che incidono sul costo delle vendite. L'azienda prevede di ottenere benefici parziali nel 2025, con pieno effetto nel 2026. Il CEO Chuck Myers ha sottolineato che questi cambiamenti sono necessari per rafforzare la solidità finanziaria dell'azienda, mantenendo al contempo elevati standard di servizio per i clienti.
Quarterhill (OTCQX: QTRHF) ha anunciado una importante iniciativa de reducción de personal que afectará aproximadamente a 100 puestos, lo que representa el 15% de su plantilla total. La reestructuración estratégica tiene como objetivo lograr un ahorro anualizado de 12 millones de dólares estadounidenses y acelerar el camino de la compañía hacia un EBITDA ajustado positivo y un flujo de caja operativo sostenible.
La reducción, dividida equitativamente entre posiciones contractuales y de tiempo completo, se centra principalmente en las áreas operativas que afectan el costo de ventas. La empresa espera obtener beneficios parciales en 2025 y beneficios completos en 2026. El CEO Chuck Myers destacó que estos cambios son necesarios para fortalecer la base financiera de la empresa, manteniendo altos estándares de servicio para los clientes.
Quarterhill (OTCQX: QTRHF)는 전체 인력의 15%에 해당하는 약 100명의 인력 감축 계획을 발표했습니다. 이번 전략적 구조조정은 연간 1,200만 미국 달러의 비용 절감을 목표로 하며, 회사가 지속 가능한 긍정적인 조정 EBITDA와 영업 현금 흐름을 달성하는 데 속도를 높이고자 합니다.
감축 인원은 계약직과 정규직에 균등하게 분배되며, 주로 매출원가에 영향을 미치는 운영 부문을 중심으로 진행됩니다. 회사는 2025년에 부분적인 효과를 기대하며, 2026년에는 완전한 효과가 나타날 것으로 전망합니다. CEO 척 마이어스는 이러한 변화가 고객에게 높은 서비스 수준을 유지하면서 회사의 재무 기반을 강화하기 위해 필요하다고 강조했습니다.
Quarterhill (OTCQX : QTRHF) a annoncé une importante initiative de réduction des effectifs touchant environ 100 postes, soit 15 % de son personnel total. Cette restructuration stratégique vise à réaliser des économies annuelles de 12 millions de dollars US et à accélérer la trajectoire de l'entreprise vers un EBITDA ajusté positif et un flux de trésorerie opérationnel durable.
La réduction, répartie équitablement entre postes contractuels et à temps plein, cible principalement les zones opérationnelles impactant le coût des ventes. L'entreprise prévoit de bénéficier partiellement de ces mesures en 2025, avec des avantages complets en 2026. Le PDG Chuck Myers a souligné que ces changements sont nécessaires pour renforcer la solidité financière de l'entreprise tout en maintenant un haut niveau de service pour les clients.
Quarterhill (OTCQX: QTRHF) hat eine bedeutende Personalabbau-Initiative angekündigt, die etwa 100 Stellen betrifft und 15 % der Gesamtbelegschaft ausmacht. Die strategische Umstrukturierung zielt darauf ab, jährliche Kosteneinsparungen von 12 Millionen US-Dollar zu erzielen und den Weg des Unternehmens zu einem nachhaltigen positiven bereinigten EBITDA und operativen Cashflow zu beschleunigen.
Der Abbau, der gleichmäßig auf Vertrags- und Festanstellungen verteilt ist, konzentriert sich hauptsächlich auf operative Bereiche, die die Herstellungskosten betreffen. Das Unternehmen erwartet teilweise Effekte im Jahr 2025 und volle Vorteile im Jahr 2026. CEO Chuck Myers betonte, dass diese Veränderungen notwendig sind, um die finanzielle Basis des Unternehmens zu stärken und gleichzeitig hohe Servicestandards für Kunden aufrechtzuerhalten.
- Expected annualized cost savings of US$12 million
- Strategic focus on achieving positive Adjusted EBITDA margins
- Improved operational efficiency through workforce optimization
- 15% reduction in total workforce (approximately 100 positions)
- Partial cost savings benefits delayed until 2026
- Potential impact on operational capacity and execution
The reduction, affecting both contract and full-time roles in roughly equal measure, is expected to generate annualized cost savings of approximately
"While it is always difficult to part with good people, these changes are necessary to ensure we remain focused and well-positioned for long-term growth," said Chuck Myers, CEO at Quarterhill. "This is one of several decisive steps we are taking to strengthen our financial foundation, and represents a critical milestone in our objective to achieve positive Adjusted EBITDA margins and operating cash flow. At the same time, as we progress through this transition period, we will be better positioned to serve our customers with the highest standard of service."
About Quarterhill
Quarterhill is a leading provider of tolling, safety and enforcement, and logistics solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our 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"). 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", "expect" and similar expressions. Specifically, this news release contains forward-looking statements relating to, but not limited to: the anticipated cost savings from the workforce reduction; the Company's ability and path to achieve sustainable positive Adjusted EBITDA; and the impact of the workforce reduction on the Company's operations, financial position and results.
Forward-looking 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. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; force majeure risks; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca. The Company believes the expectations reflected in the 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. Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. These foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's most recent annual information form and other public documents on file with the Canadian Securities regulatory authorities on www.sedarplus.ca.
The forward-looking statements represent the Company's views as at the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statement. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
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SOURCE Quarterhill Inc.
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