Quantum firms set to report earnings amid negative reports


SOURCE: FIERCEELECTRONICS.COM
MAY 06, 2022

The stocks of pure-play quantum computing companies have been getting hammered in recent weeks, perhaps as part of the recent general deflation of the stock indices, but also amid some negative reports and observations about specific firms.

As it turns out, three of the companies hounded by negative comments report earnings within coming days.

First up is U.K. quantum encryption technology company Arqit, which is scheduled on May 12 to post its financial performance for the six month period that ended on March 31. Arqit recently was the subject of a report in The Wall Street Journal that questioned statements the company has made about its growth prospects.

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Next up for earnings will be IonQ and Rigetti Computing, both reporting first quarter 2022 results on May 16. IonQ sounded bullish after reporting fourth quarter and full-year 2021 numbers in March, saying at that time that it expected to report at least $1.8 million in revenue for the first quarter on the way to a stellar 2022.

However, in recent days, IonQ was the target of an extremely harsh short report (although not literally short at 183 pages) from Scorpion Capital that alleged the company is a “side hustle” and that its claimed quantum computing advances represent a “hoax.” IonQ partners and users rallied to its defense on Twitter, and the firm followed up a statement that said in part, “The report’s author has preemptively disclosed that it stands to profit in the event that the stock price of IonQ declines.”

Rigetti back in March reported 48% revenue growth during 2021, but a larger loss than the year before. The company has since terminated COO Taryn Naidu, a move Rigetti said was “not related” to the company’s financial condition, but more details could emerge during Rigetti’s earnings call.

All three of the companies up for earnings within the next week went public through mergers with special purpose acquisition companies, a trendy move in recent years that has been coming under increasing criticism over misguided valuations and unrealistic expectations.

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