Quantum Computing Shares Rally After Profitable Quarter

PHOENIX, Ariz. — Quantum Computing shares jumped 12% in premarket trading on Friday, following a profitable quarter driven by growth in demand for its photonic chips. The company reported earnings of $17 million, or $0.11 per share, for the first quarter, a significant turnaround from the loss of $6.4 million, or $0.08 per share, recorded a year earlier.

Revenue rose from $27,000 to $39,000, attributed in part to a substantial non-cash gain of $23.6 million resulting from the mark-to-market valuation of warrants as a consequence of the company’s merger with QPhoton in June 2022.

Interim CEO Dr. Yuping Huang shared that the construction of the Quantum Photonic Chip Foundry in Tempe, Arizona, was completed during this period. Huang emphasized the company’s early success as a stepping stone towards capturing burgeoning markets in datacom, telecom, and quantum applications.

“We are encouraged by our early traction, which we believe marks a substantial, multi-year opportunity to serve expanding markets,” Huang added. The company has also deepened its collaboration with government and commercial partners, further highlighting the rising interest in their quantum and photonic technologies.

In stark contrast, Rigetti Computing experienced setbacks this week, with their shares declining 10% as they announced a 52% drop in quarterly revenue to $1.5 million. Their reported net income of $42.6 million included $62.1 million in non-cash gains, raising questions about their profitability.

Despite the year-to-date decline of 44%, Quantum Computing’s latest earnings report has injected optimism into their trading performance.