Questor Technology (QST) Q1 2023 earnings summary

Executive summary

• Q1 2023 revenue was $1.84M versus $2.59M in Q1 2022; gross profit rose to $743K from $631K, with gross margin improving to 40% from 24%.

• Rental and service revenue increased YoY, while equipment sales fell due to the timing of unit fabrication; demand indicators included strong RFP activity and four announced equipment contracts totaling $2.6M.

Financial highlights

• Revenue was $1,838,775 for Q1 2023 versus $2,587,707 in Q1 2022; gross profit was $742,516 versus $630,909.

• Net loss narrowed to $174,868 from $365,620; basic and diluted loss per share was $0.01 in both periods.

• At March 31, 2023, cash and cash equivalents were $5.0M, short-term investments were $10.4M, and working capital was $14.7M.

Outlook and guidance

• A 1,500 kW waste-heat-to-power prototype was under assembly; completion and installation at a third-party site for final field testing were expected before year-end 2023.

• Four equipment sales contracts totaling $2.6M had been announced as of the MD&A date, and customer RFP activity remained strong in 2023.

• Operations and sales capacity were being expanded to pursue opportunities in North America and international markets; increased emissions-reduction demand was expected as regulatory and investor pressure grows.