Shares of internet of things firm Quarterhill (TSX:QTRH) (NASDAQ: QTRH) jumped more than 20 per cent on Monday to reach a three-month high after the local company released a third-quarter revenue and earnings forecast.
The Ottawa company formerly known as WiLAN said it expects revenues for the three-month period that ended Sept. 30 to be in the range of $72.5 million to $82.5 million (all figures in U.S. dollars).
Adjusted EBITA is expected to be in the range of $50 million to $56 million, the company said.
Quarterhill’s industrial internet of things subsidiary International Road Dynamics has landed a slew of multimillion-dollar highway technology contracts in recent months, including deals in Oklahoma, Saskatchewan and British Columbia.
However, company executives highlighted the performance of its former core business, intellectual property licensing, in Monday’s guidance report.
“We are very pleased to have such a substantial contribution from WiLAN this quarter,” said Shaun McEwan, Quarterhill’s interim CEO, in a statement. “As we have said in the past, financial results in this segment of our business can be variable from quarter to quarter and this is a prime example of the upside potential of this variability.”
On Friday, Quarterhill said WiLAN had signed a “comprehensive” licensing agreement with Korean electronics giant Samsung, expanding upon a 2013 deal covering wireless technologies. It said the terms of the agreement were confidential.
Quarterhill is scheduled to release its third-quarter results on Thursday, Nov. 9.
The company’s share price closed up 22 per cent, or 35 cents, to $2 on the Toronto Stock Exchange Monday.