LONDON, June 20, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, announces the full commercial launch of a new feature of its Symmetric Key Agreement Platform, the "Encryption Intelligence" service. Encryption Intelligence assists organizations in identifying network risks and developing mitigation plans to enhance their security posture against current and evolving cybersecurity threats. Arqit secured its first paid contract for this feature ...

Financial Data and Key Metrics - Revenue for the first half of fiscal year 2024 was $0.1 million, a modest result but supported by strong customer engagements [5] - Year-over-year revenue growth from $19,000 in 2023 to $119,000 in 2024, driven by increased contracts for the Symmetric Key platform [26] - Operating loss decreased to $16.6 million from $25.4 million in the same period last year, primarily due to cost reductions [29] - Cash balance at the end of the period was $21.3 million, down from $44.5 million at the end of fiscal year 2023 [30] Business Line Data and Key Metrics - The company experienced a 100% renewal rate for expiring contracts, particularly for the Symmetric Key Agreement platform and network secure firewall products [7] - Three additional major telcos agreed to launch or launched initial test installations of Arqit's SKA products, bringing the total to six major telcos engaging with the product [7] - The company secured its first seven-figure multi-year government contract, expected to be finalized in early summer [11] Market Data and Key Metrics - The company is engaged with about a dozen large-scale telecom operators, with Telecom Italia Sparkle completing the initial installation of Arqit's SKA platform [15][16] - The government market is showing significant interest, with growing opportunities in defense and enterprise sectors [12][13] - The enterprise market is slower to adopt, but 40% of respondents in a recent survey are planning to implement post-quantum cryptographic solutions within the next 12 months [21] Company Strategy and Industry Competition - The company is focusing on government contracts, telco partnerships, and OEM collaborations to drive revenue growth [12][17] - The integration with Intel's Xeon Scalable processors represents a significant market opportunity, with joint marketing efforts already underway [17][18] - The company is prioritizing cost control, with a 40% reduction in monthly operating costs expected by July 2024 [28] Management Commentary on Operating Environment and Future Outlook - Management expressed high conviction in the business trajectory, citing multiple contract awards and partnerships as evidence of market maturation [5][19] - Sales cycles are shortening, with customer engagements now taking three to four months, indicating a growing mainstream appreciation for quantum-safe encryption [20] - The company expects significant revenue flow in 2024, driven by government contracts, telco rollouts, and OEM partnerships [24][33] Other Important Information - The company announced further cost-saving initiatives, including headcount reductions and real estate rationalization, reducing employee count to 81 [28] - The collaboration with Intel is seen as a large-scale route to market, with significant potential for global revenue generation [17][18] Q&A Session Summary Question: Timing and revenue potential for the EMEA contract - The EMEA contract is a multi-year seven-figure deal, with first revenues expected in the current half-year [37] - Additional contracts and telco rollouts are also expected to contribute to revenue in the same timeframe [37] Question: Feedback from partners on contract renewals - Partners report that Arqit's products are easy to use, quick to deploy, and highly stable, with no network outages experienced [40] - The integration with Intel, Fortinet, and Juniper enhances ease of deployment and performance, providing a competitive advantage [41] Question: Cost control and potential for adding back infrastructure - Cost reductions have been achieved through exiting the satellite business and scaling back software development [43] - The company expects to maintain a stable cost base, with only modest additions in customer support and service as contracts ramp up [44]

Core Insights - Arqit Quantum Inc. reported $119,000 in revenue for the six months ending March 31, 2024, a significant increase from $19,000 in the same period in 2023, despite some expected deals slipping into the second half of the fiscal year [1][12] - The company has renewed or extended contracts with nine existing customers, indicating a stable customer base with potential for larger future revenue opportunities [1][12] - Arqit has initiated a cost reduction program aimed at decreasing monthly operating costs to approximately $1.8 million, down from $3.0 million, which is expected to result in a 40% reduction in costs starting July 2024 [1][3] Financial Performance - Revenue for the first half of fiscal 2024 was generated from Arqit SKA (PaaS)™, Arqit NetworkSecure™, and professional services, with nine customers increasing or renewing contracts [12] - Administrative expenses decreased to $16.8 million from $25.4 million in the comparable period in 2023, primarily due to reduced headcount [12][13] - The operating loss for the period was $16.6 million, an improvement from a loss of $25.4 million in the first half of fiscal 2023 [12][13] Operational Highlights - Arqit has re-branded its flagship product from QuantumCloud™ to SKA Platform™, emphasizing its focus on software without hardware components [2] - The company secured a seven-figure multi-year contract with a government customer in the EMEA region, marking its first such contract [2] - Arqit has established partnerships with major telecom operators and financial institutions, indicating growing market adoption of its technology [2][8] Market Position and Strategy - The company is focusing on delivering applications such as NetworkSecure™, TradeSecure™, and WalletSecure™, targeting governments, network operators, and financial institutions [8] - Arqit’s technology has been recognized for its compliance with NSA standards, enhancing its competitive advantage in the cybersecurity market [3][4] - The collaboration with Intel for post-quantum cryptography solutions is seen as a significant milestone, with commercial efforts already underway [2][7] Future Outlook - Arqit anticipates generating more consistent revenues by the end of the first half of the 2025 fiscal year, driven by increasing market awareness and demand for post-quantum cryptography [6][9] - The company is optimistic about the potential for its SKA Platform™ as organizations recognize the need for stronger encryption solutions [6][10]

Core Insights - Arqit Quantum Inc. and Telecom Italia Sparkle have successfully completed a Proof of Concept for the first quantum-safe VPN, enhancing network security against future quantum decryption threats [1][2] - The implementation of Arqit's Symmetric Key Agreement Platform into Sparkle's infrastructure signifies a major advancement in secure data transmission across international borders [1][2] Company Overview - Arqit Quantum Inc. specializes in quantum-safe encryption, providing a unique software service that secures communications against current and future encryption attacks, including those from quantum computers [4] - Telecom Italia Sparkle is a leading global operator, offering a comprehensive range of connectivity services and managing over 600,000 km of fiber network across multiple continents [3] Technological Advancements - The successful PoC demonstrates the scalability of the SKA Platform, which can be integrated into existing telecom networks to protect sensitive data from evolving cybersecurity threats [2] - The SKA Platform allows for the creation of encryption keys locally, facilitating Zero Trust Network Access and ensuring the resilience of critical networks [4] Market Implications - The establishment of the first quantum-safe VPN is a significant milestone in telecom cybersecurity, positioning Sparkle as a pioneer in secure communication solutions [2] - The collaboration between Arqit and Sparkle anticipates the potential threats posed by quantum decryption, reinforcing their commitment to enhancing security and resilience in telecommunications [2][4]

LONDON, May 02, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, and SoftIron, the worldwide leader in true private cloud infrastructure announce a partnership to enable customers to make a seamless migration to quantum safe cloud tasks, with a priority focus on the defense sector. Arqit's quantum-safe products will be available as part of the SoftIron Partner Marketplace alongside other industry-leading solutions. SoftIron has integrated Arqit ...

LONDON, April 29, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, today announced the creation of the World's First Quantum-Safe, 1.89 Tb IPsec products collaborating with Intel. Arqit and Intel have joined forces for out-of-the-box post-quantum cryptography solutions using Arqit's Symmetric Key Agreement Platform (SKA-Platform™) running on Intel Xeon Scalable processors. Combining Intel technologies with Arqit's SKA-Platform™ achieves high-pe ...

LONDON, April 24, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, today announced the successful trial deployment of Arqit's Network Secure product by the Satellite Applications Catapult which works across the space sector to make use of and benefit from satellite technologies. The satellite sector is strategically important with long lived sensitive data and so is a prime target for intellectual property theft. Satellite sector organisations ...

LONDON, April 15, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, announced today that D2BW Limited, an existing shareholder beneficially owned by Arqit's Founder, Chairman and Chief Executive Officer, David Williams, and Founder and Chief Technology Officer, David Bestwick has agreed to purchase 1,241,379 ordinary shares from Arqit, with total gross proceeds to Arqit prior to the deduction of expenses of approximately $900,000. The purchase p ...

LONDON, April 03, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, announced today clarification regarding certain Form 144 filings. On a routine basis, Form 144 filings are made by officers and directors of the Company in connection with shares sold to cover tax obligations arising from the vesting of compensatory equity grants (also known as "sale to cover" transactions). Such "sale to cover" transactions do not represent any discretionary sa ...

LONDON, April 03, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), Traxpay GmbH (Traxpay) and Lux Kapitalmarkt Management AG (LuxAG), have entered into a trade and supply chain financing partnership for Lux AG to invest in digital negotiable instruments (DNIs), enabling businesses to use DNIs to get easy access to new pools of working capital. Leveraging Arqit's TradeSecure™ application that generates highly secure DNIs, Traxpay's superior supply chain finance (SCF) technology, an ...