Quantum Computing Inc. (QCi) has released its financial results for the second quarter of 2024. The company reported an earnings per share (EPS) of (6 cents), which is better than the (12 cents) recorded during the same period last year.
QCi’s revenue also increased, reaching $183,000 from $112,000 in the previous year. William McGann, CEO of QCi, said: “During the first half of 2024, we strengthened our position in the quantum computing landscape. Our progress on establishing our U.S.-based Thin Film Lithium Niobate (TFLN) foundry is proceeding well, marking a critical step toward positioning QCi as a leader in the growing optical chip market.
Our partnerships continued to evolve, highlighted by our successful product sale to Johns Hopkins University and ongoing collaboration with NASA.”
McGann also announced that the company is now in compliance with Nasdaq and has fulfilled its reporting requirements with the Securities and Exchange Commission (SEC). “Like some other companies that experienced delays due to forced auditor transitions, we’ve navigated this process effectively while ensuring adherence to best practices. We are now well-positioned to continue advancing our mission,” he added.
QCi’s strengthened position in the market is further supported by an ongoing collaborative agreement with Los Alamos National Laboratory (LANL) and a continued push to innovate in quantum computing technologies. Despite receiving a noncompliance notice from Nasdaq earlier, QCi has taken necessary steps to align with regulatory requirements and remains optimistic about future growth. Quantum Computing (NASDAQ:QUBT) announced its quarterly earnings data on Wednesday.
The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.02. Following the news, shares of Quantum Computing rose 2.5%, opening at $0.66 on Thursday. Quantum Computing has had a twelve-month low of $0.35 and a high of $1.32.
The stock’s 50-day moving average is $0.65, while its 200-day moving average is $0.72. The firm has a market capitalization of $60.31 million, a price-to-earnings ratio of -2.13, and a beta of 1.73. Quantum Computing Inc.
is an integrated photonics company that offers accessible and affordable quantum machines. The company’s product offerings include Dirac systems, which are portable, low-power, and room-temperature qubit and qudit entropy quantum computers (EQC).
Q2 performance and market position
Additionally, it provides solutions in reservoir computing, remote sensing, and single-photon imaging. Other products include the Quantum random number generator (uQRNG), a portable device that provides genuine random numbers from quantum processes, and quantum authentication, which enhances cybersecurity by eliminating vulnerabilities inherent in classical cryptographic schemes. This entanglement-based quantum cyber solution integrates seamlessly into existing telecom fiber and communication infrastructure.
Key highlights of the report include:
– Q2 2024 Revenue: $183,000 with a 32% gross margin, up from $112,000 in Q2 2023. – Q2 2024 Operating Expenses: Decreased by 24% year-over-year to $5.3 million. – Net Loss: Reduced to $5.2 million ($0.06 per basic share) from $7.6 million ($0.12 per basic share) in Q2 2023.
– Cash and Cash Equivalents: $2.5 million as of June 30, 2024. – Total Assets: $76.0 million. – Shareholders’ Equity: $65.5 million.
Operational highlights include significant progress in establishing a U.S.-based Thin Film Lithium Niobate foundry, successfully selling a $200,000 quantum LiDAR prototype to Johns Hopkins University, and enhancing their sales strategy with key appointments. The company also regained compliance with Nasdaq and SEC reporting requirements. QCi’s efforts in integrated photonics and quantum optics are noteworthy.
The successful sale of a quantum LiDAR prototype to Johns Hopkins University demonstrates commercial viability. Developing a U.S.-based Thin Film Lithium Niobate foundry is part of its strategy to capture market share in the growing optical chip sector. Additionally, the company extended its Cooperative Research and Development Agreement (CRADA) with Los Alamos National Laboratory for the Dirac-3 entropy quantum optimization machine.
This collaboration showcases QCi’s capabilities in solving complex problems across various domains, positioning it at the forefront of quantum applications in high-performance computing, AI, and cybersecurity. However, despite the improvements, QCi remains unprofitable with a significant cash burn rate. The current revenue levels are minimal compared to the company’s $62.7 million market cap.
The success of QCi hinges on its ability to transition from prototypes and research partnerships to large-scale commercial deployments. Investors should watch for signs of accelerating revenue growth and expanding partnerships in the coming quarters as indicators of market traction. QCi’s progress in quantum computing and integrated photonics has positioned it in a high-growth sector, but investors should closely monitor cash burn and the path to commercialization.
