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Quantum Computing Inc. secures new NASA contract

Published 10/17/2024, 10:08 AM
QUBT
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HOBOKEN, N.J. - Quantum (NASDAQ:QMCO) Computing Inc. (Nasdaq: QUBT), a company specializing in photonics and quantum optics technology, has been awarded a new contract by NASA to develop cost-effective quantum remote sensing technology for spaceborne LIDAR imaging, which could enhance climate change research. This marks the fifth project between the two organizations, emphasizing their ongoing strategic partnership focused on innovating LIDAR technology for atmospheric measurements.

The initiative aims to reduce the cost of LIDAR missions, potentially from billions to millions of dollars, allowing NASA to conduct more frequent and detailed climate studies. The contract is a significant step in validating the practicality of QCi's technology and its potential application in both civilian and military surveillance.

Dr. William McGann, CEO of QCi, expressed the company's honor in supporting NASA's mission to monitor climate change and protect the environment. He highlighted the cost-reduction goals of the new technology and its alignment with QCi's commitment to providing innovative solutions for remote sensing applications.

QCi's work with NASA includes helping to denoise sunlight in satellite LIDAR images by utilizing their Dirac-3 entropy quantum optimization machine. This technology assists in simulating background noise, transforming the denoising challenge into an optimization problem.

Quantum Computing Inc. offers quantum machines that are designed to function at room temperature and low power, aiming to make quantum computing accessible and affordable. The company's portfolio spans high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications.

The new contract reinforces QCi's role in advancing quantum technology for practical and scientific uses, particularly in the context of climate research and environmental management. The announcement is based on a press release statement from Quantum Computing Inc.

In other recent news, Quantum Computing Inc. has extended its partnership with Los Alamos National Laboratory (LANL), focusing on the company's Dirac-3 quantum optimization machine. The company has also revised its annual report for the years ended December 31, 2023, and 2022, resulting in non-cash adjustments to its financial statements. Despite these changes, the restatement did not significantly impact the company's cash balances or operating cash flows.

Quantum Computing Inc. is at risk of being delisted from the Nasdaq Stock Market due to non-compliance with a listing rule, following a delay in submitting its quarterly financial report. The company has until December 16, 2024, to regain compliance. In other recent developments, the company has welcomed Dr. Javad Shabani, an Associate Professor of Physics at New York University, to its Board of Directors.

The company has made amendments to its Code of Ethics, implementing stricter policies on conflicts of interest and a new procedure for granting waivers. Ascendiant Capital has adjusted its outlook on Quantum Computing Inc., reducing the 12-month price target to $8.25 from the previous $8.75, while maintaining a Buy rating on the company's stock. These are the recent developments at Quantum Computing Inc.

InvestingPro Insights

Quantum Computing Inc.'s (QUBT) recent NASA contract aligns with the company's growth trajectory, as evidenced by InvestingPro data. The company's revenue growth of 23.21% over the last twelve months and a significant 63.39% quarterly growth indicate a positive trend in line with its expanding NASA partnership.

InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which could be fueled by contracts like the one with NASA. This expectation is particularly relevant given the potential for QCi's technology to reduce LIDAR mission costs dramatically.

However, investors should note that QUBT is quickly burning through cash and is not profitable over the last twelve months. The company's operating income margin of -7686.17% underscores the challenges it faces in achieving profitability, a common scenario for innovative tech companies in their growth phase.

The stock's volatility, as mentioned in another InvestingPro Tip, is reflected in its recent performance, with a 15.19% return over the last week and a 15.75% return over the last three months. This volatility could be attributed to market reactions to new contracts and technological developments.

For investors seeking a deeper understanding of QUBT's financial health and growth prospects, InvestingPro offers 12 additional tips, providing a more comprehensive analysis of the company's position in the quantum computing sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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