Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quantum Computing Inc (QUBT, Financial) completed the construction of its Quantum photonic chip foundry in Tempe, Arizona, marking a significant milestone.
- The company secured its fifth purchase order for foundry services from a leading Canadian research institute, indicating global demand for its capacities.
- Quantum Computing Inc (QUBT) announced a collaboration with the Sanders Tri-Institutional Therapeutics Discovery Institute, leveraging its Dirac-3 quantum optimization machine for advanced research.
- The company secured a new subcontract with NASA's Langley Research Center to apply its Dirac-3 quantum machine, building on prior collaborations.
- Quantum Computing Inc (QUBT) strengthened its Board with the addition of Eric Schwartz, who brings over 20 years of experience in financing, M&A, and corporate strategy.
Negative Points
- First quarter 2025 revenues were only $39,000, showing modest growth from $27,000 in the prior year quarter.
- Gross margin decreased to 33% from 41% in the first quarter of 2024, indicating variability at the current revenue level.
- Operating expenses increased to $8.3 million from $6.3 million in the same quarter last year, driven mainly by employee-based expenses.
- The company is still in the process of discovering customers and validating its products, which takes time and may delay revenue growth.
- Despite a stronger financial position, the company acknowledges past financial challenges and the need to boost its sales and business development team.
Q & A Highlights
Q: Congratulations on the opening of the Tempe foundry. Is there any expectation of capacity constraints in the near term? Have you considered opening another foundry either in the US or internationally?
A: Yuping Huang, Interim CEO, responded that while there may be capacity constraints, QCI is focused on building an ecosystem that is open and mutually beneficial. They are currently in the process of educating customers about their technology. Once the market sees the power of their products, they expect rapid revenue growth. They have plans to expand their sales and business development teams to prepare for this growth. Regarding a second foundry, discussions have already begun, and they are excited about future developments.
Q: Can you provide more details on the financial performance for the first quarter of 2025?
A: Christopher Boehmler, CFO, reported that first-quarter revenues were approximately $39,000, up from $27,000 in the previous year. The gross margin decreased to 33% from 41% due to variable revenue levels. Operating expenses increased to $8.3 million, driven by employee-based expenses. The company reported a net income of $17 million, primarily due to a $23.6 million noncash gain related to the QPhoton merger. Total assets increased to $242.5 million, with cash and cash equivalents rising to $166.4 million.
Q: What are the strategic goals for Quantum Computing Inc moving forward?
A: Yuping Huang, Interim CEO, stated that QCI aims to advance real-world applications of their quantum photonic technologies, build valuable partnerships across various sectors, and lay the groundwork for long-term sustainable growth. With the completion of their chip foundry and a strengthened balance sheet, they are well-positioned to continue delivering on their mission.
Q: How is QCI planning to leverage its partnerships for growth?
A: Yuping Huang, Interim CEO, highlighted collaborations with institutions like the Sanders Tri-Institutional Therapeutics Discovery Institute and NASA's Langley Research Center. These partnerships demonstrate the real-world impact of QCI's systems and help broaden the adoption of their quantum solutions across academic and industrial markets.
Q: What are the key areas of focus for QCI's technology development?
A: Yuping Huang, Interim CEO, emphasized that QCI is focusing on quantum machines that solve complex optimization, machine learning, and sensing problems, and their thin-film lithium niobate photonic chip foundry. These areas are critical for next-generation telecommunications, AI, and quantum applications.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
