Quantum Computing Q3 swings to net loss on higher operating expenses, acquisitions

Overview

• US quantum photonics manufacturer's Q3 revenue rose sharply, beating analyst expectations

• Company posted a net loss of $15.1 mln as operating expenses increased

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• ACQUISITIONS - Revenue growth was primarily driven by the recently acquired LSI, NuCrypt and NHanced businesses, which contributed photonic components, quantum communications products and advanced packaging services

• OPERATING COSTS - Higher operating expenses were mainly due to increased personnel costs and spending on research and development, sales and marketing, and acquisition-related expenses

• MANUFACTURING UTILIZATION - Company said it is focusing on increasing manufacturing utilization and improving operating efficiency as it scales commercial operations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for Quantum Computing Inc. is $18.00, about 184.4% above its November 6 closing price of $6.33

Reuters Recommended Reads

• Nov 9 - ADC Therapeutics Q3 revenue beats estimates on sales volume

• Nov 9 - Canada's Adentra Q3 sales beat estimates on higher product prices

• Nov 6 - Canada's Constellation Software Q3 revenue slightly beats estimates on acquisitions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)