Questor Technology (QST) Q3 2023 earnings summary

Executive summary

• Q3 revenue was flat YoY, while 9M revenue fell $1.0M as lower equipment sales outweighed rental and service growth.

• A $3.6M impairment charge drove a Q3 net loss of $3.2M; cash, short-term investments and working capital totaled $3.7M, $9.6M and $12.5M, respectively, at quarter-end.

Financial highlights

• Q3 revenue was $1.69M vs. $1.67M YoY; 9M revenue was $5.75M vs. $6.72M.

• Gross profit was $443K in Q3 vs. $484K YoY, and $1.99M for 9M vs. $1.55M.

• Net loss was $3.24M in Q3 and $3.91M for 9M, vs. losses of $12K and $836K in the respective 2022 periods; loss/share was $0.12 and $0.14.

• Rental revenue rose 13% in Q3 and 29% for 9M; service revenue increased 48% and 64%, respectively, while equipment sales fell $0.2M and $1.9M.

Outlook and guidance

• $0.5M of equipment sales revenue was committed for completion in 2023; large proposals were in progress.

• The 1,500 kW waste-heat-to-power prototype is being assembled; shop testing is expected in Q1 2024, with installation and field testing targeted for H2 2024.

• Growth opportunities are being pursued in North America and international markets as emission regulations take effect; a sales team is being developed to support expansion.