Horizon Quantum Computing Pte. (NASDAQ:HQ) Releases Quarterly Earnings Results

Horizon Quantum Computing Pte. (NASDAQ:HQ) released its earnings results on Tuesday. The quantum computing company reported $0.55 earnings per share (EPS) for the quarter, Zacks reports.

Here are the key takeaways from Horizon Quantum Computing Pte.’s conference call:

• Horizon reported a major advance in hardware characterization: its multiplexed method reduced the experiments needed to measure crosstalk on Rigetti’s 108-qubit processor from more than 5,000 to seven, with validation against pairwise tests. The company says the approach could scale to larger processors and adapt to other characterization tasks.
• Pulse-level integration of Triple Alpha with OQC’s 32-qubit processor enables developers to run and access characterization experiments through a web API. Management sees close hardware-software integration as important to improving processor performance, though it said no hardware partner is yet at the level of making Triple Alpha the default software stack.
• Horizon signed a non-binding letter of intent to acquire Entropica Labs for $27 million in Horizon shares, subject to due diligence and definitive agreements. Management expects Entropica’s error-correction and fault-tolerance expertise to complement Triple Alpha; the transaction would not use cash.
• Operating expenses rose to $10.5 million from $4.9 million a year earlier, and the Adjusted EBITDA loss widened to $6.3 million from $3.0 million. The reported $33.4 million net income included a $43.1 million non-cash warrant remeasurement gain; cash was $102.8 million at quarter-end, while operating cash use was $7.2 million.
• The company remains pre-revenue and said it does not pursue proof-of-concept services, planning instead to monetize through paid access when the industry reaches quantum advantage. Management believes its cash provides significant runway, but did not give a timeline for reaching that market milestone.

Horizon Quantum Computing Pte. Price Performance

Shares of HQ traded up $0.22 during trading hours on Wednesday, hitting $12.81. The stock had a trading volume of 28,969 shares, compared to its average volume of 413,854. The firm has a market capitalization of $660.84 million, a PE ratio of -27.87 and a beta of 0.37. Horizon Quantum Computing Pte. has a 12 month low of $8.29 and a 12 month high of $45.00. The stock has a fifty day moving average price of $14.56 and a 200 day moving average price of $15.39.

Analyst Ratings Changes

HQ has been the topic of several recent research reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Horizon Quantum Computing Pte. in a report on Monday, September 14th. Needham & Company LLC reduced their price target on Horizon Quantum Computing Pte. from $20.00 to $19.00 and set a “buy” rating on the stock in a research report on Wednesday. Wall Street Zen raised Horizon Quantum Computing Pte. from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 22nd. Finally, Craig Hallum assumed coverage on Horizon Quantum Computing Pte. in a research note on Monday, August 17th. They issued a “buy” rating and a $21.00 target price for the company. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $20.00.

Horizon Quantum Computing Pte. Company Profile

Horizon Quantum Holdings Ltd. is a quantum software infrastructure company focused on tools and systems that help developers build and deploy quantum applications. The company emphasizes software, algorithms, and workflow infrastructure intended to support practical quantum and hybrid quantum-classical use cases. Horizon Quantum became a public company through its business combination with dMY Squared Technology Group, Inc. (DMYY), which was formed to take a private company public through a business combination.