LONDON, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, today announced a reseller agreement with Phalanx Solutions (Phalanx), a trusted provider of security, compliance and technology solutions, for Arqit's Symmetric Key Agreement Platform and NetworkSecure™ Adaptor. Enterprises face growing threats from cyber adversaries and need to take urgent action to strengthen their encryption in the ever-connected world of devices. Easily inte ...

Arqit Quantum Inc. (NASDAQ:ARQQ) Q4 2023 Results Conference Call November 21, 2023 11:00 AM ET Company Participants David Williams - Founder, Chairman and CEO Nick Pointon - CFO Conference Call Participants Scott Buck - H.C. Wainwright Operator On today's call, we will be referring to the press release issued this morning that details the company's fiscal year-end 2023 results, which can be downloaded from the company's website at arqit.uk. [Operator Instructions] Finally, a recording of the call will be av ...

Cash Flow Activities - Arqit's cash used in operating activities was $32.825 million for the year ended September 30, 2023, primarily due to a net loss of $74.049 million and non-cash adjustments of $37.708 million[311] - Net cash used in investing activities was $16.082 million for the year ended September 30, 2023, a decrease from $24.432 million in 2022 due to lower capital expenditure and staff costs[313][315] - Net cash generated from financing activities was $44.853 million for the year ended September 30, 2023, primarily from share issuances under the ATM Program and registered direct offerings[316][318] Share Issuances and Offerings - Arqit issued 7,814,459 shares under its ATM Program in 2023, generating proceeds of approximately $11.5 million before fees and expenses[306] - In February 2023, Arqit completed a registered direct offering, selling 10,000,000 ordinary shares and warrants, generating proceeds of approximately $20.0 million[307] - In September 2023, Arqit completed another registered direct offering, selling 20,755,677 ordinary shares and warrants, generating proceeds of approximately $16.2 million[309] Financial Instruments and Risk Management - Arqit's financial instruments primarily consist of cash and cash equivalents, with no significant exposure to interest rate risk or credit risk[295][296][297] - Arqit is exposed to foreign exchange risk primarily with respect to British pounds sterling and Euro, and manages this risk by holding multi-currency bank accounts[298] Regulatory and Reporting Status - Arqit qualifies as an "emerging growth company" under the JOBS Act, allowing it to rely on reduced reporting requirements until September 3, 2026[302][303] Research and Development Costs - Arqit's research costs are expensed as incurred, while development costs are capitalized after technical and commercial feasibility are established[319] - Capitalized development costs as of September 30, 2023, were $3.414 million, down from $40.291 million in 2022 and $18.235 million in 2021[327] Compensation and Valuation Models - Share-based compensation fair value is estimated using the Black Scholes model, with assumptions disclosed in audited financial statements[328] - Compensation expense for RSUs is based on the market price of shares at grant date and expensed over a one to five-year vesting period[329] Tax and Asset Valuation - Deferred tax assets recognition depends on the likelihood of generating sufficient taxable earnings in future periods[330] - Assets held for sale are recognized at fair value less costs to sell, with potential revisions due to changes in the economic environment[331]

Financial Performance - Arqit generated $5.6 million in revenue and other operating income from discontinued operations for fiscal year 2023, down from $20.0 million in fiscal year 2022[12]. - QuantumCloud revenue totaled $639,968 for fiscal year 2023, significantly lower than $7.2 million in fiscal year 2022[12]. - The operating loss for fiscal year 2023 was $84.4 million, compared to a loss of $63.7 million in fiscal year 2022[15]. - For the year ending September 30, 2023, Arqit reported an IFRS loss before tax of $74.0 million, compared to a profit of $53.4 million for the same period in 2022[24]. - The adjusted loss before tax for the same period was $84.7 million, an increase from $64.0 million in the previous year, reflecting a year-over-year increase of approximately 32.5%[24]. - Cash and cash equivalents at the end of fiscal year 2023 stood at $44.5 million, down from $48.9 million at the end of fiscal year 2022[16]. - Total assets were reported at $99.8 million, which included cash reserves of $44.5 million[25]. - As of September 30, 2023, total liabilities amounted to $33.1 million, with $6,519 related to outstanding warrants classified as liabilities[25]. - The change in fair value of warrants was a loss of $10.6 million for the year ending September 30, 2023, compared to a loss of $117.4 million in the previous year[24]. - Arqit emphasizes that the adjusted loss before tax is a non-IFRS measure and should be considered alongside IFRS measures for a comprehensive view of financial performance[23]. - The company acknowledges the limitations of non-IFRS financial measures, which may not be comparable to similar measures used by other companies[22]. Operational Developments - The company signed 13 channel partnerships in fiscal year 2023, with 8 established in the second half, leading to revenue generation through 6 of these partnerships[1]. - Arqit introduced three specialized applications: NetworkSecure™, TradeSecure™, and WalletSecure™, targeting specific vertical markets[4]. - Arqit aims to fully activate its channel partnerships to drive product adoption and revenue growth[11]. - Arqit expects to announce additional channel partner relationships to further expand its market reach[2]. - The company has reclassified its satellite assets as "held for sale," impacting the reporting of income and expenses[6]. Risks and Forward-Looking Statements - Forward-looking statements indicate potential risks including legal proceedings, competitive industry changes, and operational performance variations[26]. - The company does not intend to update or revise forward-looking statements after the date of issuance, highlighting the inherent uncertainties[26]. - Arqit’s financial performance is subject to various risks that could materially affect future results, as outlined in their annual report filed with the SEC[26]. Expense Management - Administrative expenses decreased to $55.2 million in fiscal year 2023 from $71.0 million in fiscal year 2022, primarily due to lower share-based compensation[14].

Arqit Quantum's (NASDAQ:ARQQ) Q2 2023 Earnings Conference Call May 17, 2023 11:00 AM ET Company Participants David Williams - Founder, Exec. Chairman & CEO Nick Pointon - CFO & Exec. Director Conference Call Participants Scott Buck - H.C. Wainwright Jim Shelton - Deutsche Bank Operator Good day, ladies and gentlemen. Thank you for standing by. On today's call, we will be referring to the press release issued this morning that details the company's first half of fiscal year end 2023 results, which can be dow ...

Arqit Quantum Inc. (NASDAQ:ARQQ) Q4 2022 Earnings Conference Call December 14, 2022 11:00 AM ET Company Participants David Williams - Founder, Chairman and CEO Nick Pointon - CFO Conference Call Participants Scott Buck - H.C. Wainwright Nihal Choksi - Northland Capital Markets Operator Good day and welcome to Arqit's 2022 Fiscal Year Earnings Conference Call. On today's call, we will be referring to the 20-F and press release filed this morning that details the company's full fiscal year-end 2022 results, w ...

Arqit Quantum Inc. (NASDAQ:ARQQ) Q1 2022 Earnings Conference Call May 12, 2022 11:00 AM ET Company Participants David Williams – Founder, Chairman and Chief Executive Officer Nick Pointon – Chief Financial Officer Conference Call Participants Scott Buck – H.C. Wainwright Simon Strong – Cenkos Operator Good day and thank you for standing by. Welcome to the Arqit Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer ses ...

Arqit Quantum Inc. (NASDAQ:ARQQ) Q4 2021 Earnings Conference Call December 16, 2021 10:30 AM ET Company Participants David Williams - Founder, Chairman & Chief Executive Officer Nick Pointon - Chief Financial Officer Conference Call Participants Operator On today's call we will be referring to the Forum 20F and press release filed this morning that detail the Company's Fiscal Year End 2021 Results, which can be downloaded from the Company's website at arqit.uk. You'll also find the latest earnings presentat ...