Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW), a quantum encryption technology company, reported on its operational and financial results for the first half of its fiscal year, in a company statement.
In the statement the company reported $12.3 million in revenue in the last half of year with an operating loss of $14.3 million for the same period. In a comparable period last year, Arqit had a loss of $5.5 million.
The company also reported that it made significant progress in integrating QuantumCloud software with the security products of a major enterprise grade vendor and signed an enterprise license with Virgin Orbit for QuantumCloudTM to protect its launch and space solutions businesses.
“Arqit has made significant progress in the commercialization of our QuantumCloudTM product in the first six months of this fiscal year,” said David Williams, Arqit’s Founder, Chairman and Chief Executive Officer. “In the period we signed and fulfilled contracts with leading enterprises in our key identified market sectors, including Virgin Orbit and AUCloud. We also began the process of demonstrating our stronger, simpler encryption in demonstration projects with numerous customers.”
QuantumCloud revenue added about $5.3 million for the period, from four contracts, including Virgin Orbit and AUCloud, which provided most of that revenue.
Williams also informed investors about a series of contract signings.
“Our contract wins, other announced activity, such as our participation in the UK Ministry of Defense multi-domain integration project and UK 5G Open RAN, and prospective customer dialogues confirm our belief that telecoms, defense, financial institutions and IoT are the early adopter markets that understand the issues with today’s public key infrastructure and the future threat posed by quantum computers,” he said. “Our symmetric key agreement service is increasingly being recognized as a solution that meets the moment – it is computationally light, quantum safe, available in the instant needed as a single use key or in unlimited group sizes and does not require changes to the existing AES256 encryption infrastructure.”
A Wall Street Journal report suggested weakening investor interest in Arqit. However, the company said that investor support is still strong.
According to the company, the majority of former shareholders of the company and former members of Centricus Heritage, LLC have voluntarily entered into extensions of their lock-up agreements with the Company.
“Today, we also announced that shareholders holding 105.9 million of the 108.6 million shares currently subject to lock-up agreements that were due to expire in connection with this results announcement were approached to voluntarily extend their lock-up agreements until September,” said Williams. “All approached shareholders agreed to participate, which is a strong statement of support.”
Williams said it signals their long-term support.
“We are pleased to see that shareholders share our conviction in the prospects of the company and chose to signal this to other stakeholders through this voluntary lock-up. We are confident that Arqit’s technology is capable of delivering significant transformation to cybersecurity in many industries and see encouraging signs of momentum with potential customers.”
According to the statement, the company ended the period with a $82.2 million cash balance. In 2021, the cash balance was around $87.0 million.
On the intellectual property front, Arqit reported 145 patent claims on 5 patents were filed in the first half of FYE 2022, bringing Arqit’s total to 1,580 patent claims on 26 patents.
For more information, you can review Arqit’s details on TQI’s data platform.