HOBOKEN, N.J. – Quantum (NASDAQ:QMCO) Computing Inc. (NASDAQ: QUBT), a company specializing in photonics and quantum optics technology, has reported significant progress in the run-up to the launch of its quantum photonic chip foundry, expected to be operational in the first quarter of 2025. The company has recently engaged in contract negotiations with several prospective partners and customers across North America, Europe, and Asia, anticipating multiple orders for its thin film lithium niobate (TFLN) electro-optical modulator chips by year's end.
In a strategic move to bolster its photonic integrated circuits (PICs) and nanophotonic device production, QCi has initiated a pilot program to attract early adopters for its foundry services. This initiative is part of the company's broader effort to create a unified ecosystem for high-performance and energy-efficient PICs.
QCi has also announced the signing of two memorandums of understanding (MOUs) with key partners in the PIC industry. The first MOU with Spark Photonics Design, Inc., a prominent U.S.-based PIC solutions provider, will facilitate the introduction of evaluation chip kits in 2025. The second MOU with Alcyon Photonics, a European photonics design company, aims to advance the development of process design kits (PDKs) and design services, extending QCi's global reach.
Dr. William McGann, CEO of QCi, expressed confidence in the growth potential for the company's photonic chips, citing strong market interest in TFLN technology. He highlighted the technology's promise for substantial performance advantages and energy cost savings in various applications, including photonic-based quantum computing, defense, AI, and data center connectivity.
QCi's recent presentation at the Optica Photonic-Enabled Cloud Computing (PECC) Industry Summit unveiled the foundry and its services, emphasizing the burgeoning interest in TFLN technology, which NVIDIA (NASDAQ:NVDA) has identified as a "hot topic" for 2025.
The company continues to build strategic partnerships and secure pre-orders as it moves into the final phase of construction and capital equipment installation for the foundry. The QCi Foundry will feature front-end and packaging capabilities for a 150 mm wafer line and will be equipped to design, simulate, and characterize optoelectronic devices.
This article is based on a press release statement from Quantum Computing Inc.
In other recent news, Quantum Computing Inc. is making significant strides in the quantum computing sector. The company is nearing the completion of its quantum photonic chip foundry in Arizona, expected to begin operations in 2025. The foundry will manufacture components crucial for the development of photonic-based quantum computers, secure quantum communications, and high-speed datacom solutions.
Quantum Computing Inc. has also secured a new contract with NASA to develop cost-effective quantum remote sensing technology for spaceborne LIDAR imaging. This initiative aims to significantly reduce the cost of LIDAR missions. In addition, the company has extended its partnership with Los Alamos National Laboratory, focusing on the Dirac-3 quantum optimization machine.
In other developments, Quantum Computing Inc. has revised its annual report for the years ended December 31, 2023, and 2022, resulting in non-cash adjustments to its financial statements. The company is currently facing potential delisting from the Nasdaq Stock Market due to non-compliance with a listing rule. Quantum Computing Inc. has until December 16, 2024, to regain compliance.
The company has welcomed Dr. Javad Shabani, an Associate Professor of Physics at New York University, to its Board of Directors. Ascendiant Capital has adjusted its outlook on Quantum Computing Inc., reducing the 12-month price target to $8.25 from the previous $8.75, while maintaining a Buy rating on the company's stock. These are among the recent developments at Quantum Computing Inc.
InvestingPro Insights
As Quantum Computing Inc. (NASDAQ: QUBT) gears up for the launch of its quantum photonic chip foundry, recent InvestingPro data provides additional context to the company's financial position and market performance.
QUBT's market capitalization stands at $111.44 million, reflecting its status as a niche player in the quantum computing industry. The company's revenue for the last twelve months as of Q2 2024 was $0.34 million, with a notable revenue growth of 23.04% over the same period. This aligns with the company's reported progress and growing interest in its TFLN technology.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which corresponds with QCi's expectations of multiple orders for its TFLN chips by year-end. However, it's important to note that the company is currently not profitable, with an operating income of -$24.77 million for the last twelve months as of Q2 2024.
The stock has shown strong performance recently, with a 86.86% price return over the last month and an 84.01% return over the last three months. This surge in stock price may reflect investor optimism about QCi's strategic moves and potential market opportunities.
Investors should be aware that QUBT is quickly burning through cash, which could be attributed to the ongoing development and construction of its foundry. The company's focus on securing pre-orders and strategic partnerships may be crucial for its financial sustainability as it approaches the foundry's operational phase in Q1 2025.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for QUBT, providing a more comprehensive view of the company's financial health and market position.
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