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Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $62.7 million, down from $64.3 million in Q1 2026 and $71.8 million in Q2 2025 [15] - GAAP gross margin improved to 37.6% from 35.3% in the prior quarter but decreased from 42.7% in the same quarter last year [16] - GAAP operating expenses decreased to $31.7 million from $35.3 million in the previous quarter and $36.2 million year-over-year [16] - GAAP net loss increased to $46.5 million, or $3.49 per share, compared to a loss of $17.2 million in Q1 2026 and $12.2 million in Q2 2025 [17] - Non-GAAP loss for Q2 2026 was $7.1 million, or $0.54 per share, an improvement from a loss of $14.5 million in Q1 2026 and $7.4 million in Q2 2025 [18] - Positive adjusted EBITDA of $0.5 million compared to a negative $6.5 million in Q1 2026 [19] Business Line Data and Key Metrics Changes - The company achieved a record backlog of over $25 million, significantly above the historical target range of $8 million to $10 million [16][9] - The Americas business outperformed other regions, reflecting improved coordination between inside and field sales teams [9] Market Data and Key Metrics Changes - APAC revenue more than doubled quarter-over-quarter following a shift to a new distribution model [8] - EMEA region continued to perform well, indicating strong execution across global markets [8] Company Strategy and Development Direction - The company aims to become debt-free, having entered into an agreement to convert approximately $52 million in term debt to senior secured convertible notes [4] - A revitalized go-to-market strategy is being implemented, focusing on customer experience and aligning with long-term partners [9] - The introduction of new capabilities in ActiveScale aims to enhance the functionality of cold data, making it more usable for AI and analytics [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position, citing the restructuring efforts and improved sales momentum [4][23] - The outlook for Q3 2026 anticipates revenue of approximately $67 million, with non-GAAP operating expenses expected to be around $25 million [20][21] Other Important Information - The company has added Jeff Barrow as Chief Product Officer to enhance product development and align with market needs [6] - The Library of Congress selected Quantum's solutions for a significant archiving project, validating the company's technology [10] Q&A Session Summary Question: Current health of the North American pipeline and lead development processes - Management reported a strong pipeline with record backlog and effective lead generation processes being implemented [25] Question: Details on product development priorities - Focus on scaling manufacturing for Scalar tape libraries and improving ActiveScale cold storage capabilities [26] Question: Clarification on backlog composition - The backlog consists solely of product, with product bookings up 28% year-over-year [31][32] Question: Customer concentration in backlog - The backlog is well-diversified across products, with no significant concentration in one customer [34] Question: Impact of government shutdown on federal business - The government shutdown did not significantly impact the federal business, but there is a need to close pending deals [42] Question: Product gross margin challenges - Management acknowledged challenges with too many SKUs and supply chain tightness affecting product gross margins [48][49]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $62.7 million, a decrease of $9.1 million or 13% compared to $71.8 million in the same period of 2024[127]. - For the six months ended September 30, 2025, total revenue decreased by $17.1 million, or 12%, to $127.0 million compared to $144.1 million in the same period of 2024[148]. - Product revenue decreased by $3.9 million, or 10%, to $35.4 million, primarily due to large orders in the prior period[128][129]. - Product revenue decreased by $9.0 million, or 11%, primarily due to a large video surveillance order in the prior period[149]. - Service and subscription revenue fell by $4.6 million, or 15%, to $25.6 million, attributed to certain long-lived products reaching their end-of-service-life[130]. - Service and subscription revenue also decreased by $6.4 million, or 11%, attributed to certain long-lived products reaching their end-of-service-life[150]. - Royalty revenue saw a decline of $1.7 million, or 33%, due to lower market volume and a mix weighted towards LTO types with lower royalty rates[151]. Profitability - Gross profit for the three months ended September 30, 2025, was $23.6 million, down $7.1 million or 23% from $30.6 million in 2024, with a gross margin of 37.6%[132]. - Gross profit for the six months ended September 30, 2025, was $46.3 million, down $11.4 million, or 20%, from $57.7 million in 2024, with a gross margin decrease from 42.7% to 37.6%[152]. - Net loss for the three months ended September 30, 2025, was $46.5 million, compared to a net loss of $12.2 million in the same period of 2024[127]. - The company generated negative cash flows from operations of approximately $32.5 million for the six months ended September 30, 2025, compared to $17.2 million in 2024[170]. Operating Expenses - Total operating expenses decreased by $4.5 million, or 12%, to $31.7 million, with significant reductions in general and administrative expenses by 21%[136]. - Operating expenses decreased by $13.0 million, or 16%, totaling $67.0 million, with significant reductions in general and administrative expenses by 30%[156]. Debt and Financing - Interest expense increased by $0.1 million, or 2%, to $6.2 million due to a higher effective interest rate on the Term Loan[142]. - Loss on debt extinguishment was $33.3 million, a significant increase from $2.3 million in the prior year, related to term loans issuance[144][145]. - The company recorded a loss on debt extinguishment of $30.7 million for the six months ended September 30, 2025, a significant increase of 922% compared to the prior year[164]. - Net cash provided by financing activities was $32.8 million for the six months ended September 30, 2025, significantly higher than $11.5 million in 2024, primarily related to borrowings on the Term Loan[177]. Restructuring and Future Outlook - Restructuring charges increased by $2.8 million, or 734%, to $3.2 million, reflecting workforce reductions and related severance[139]. - The company expects restructuring initiatives to yield future cost savings and productivity improvements starting in fiscal 2026[140]. - The restructuring plan is expected to result in future cost savings and productivity improvements beginning in fiscal 2026, with substantial completion anticipated by the end of Q4 2026[160]. Cash Flow and Liquidity - As of September 30, 2025, cash and cash equivalents were $14.7 million, with total outstanding Term Loan debt at $106.1 million[169]. - Net cash used in operating activities was $32.5 million for the six months ended September 30, 2025, compared to $17.2 million for the same period in 2024, primarily due to lower earnings[175]. - Net cash used in investing activities was $1.6 million for the six months ended September 30, 2025, down from $3.2 million in 2024, attributed to capital expenditures[176]. - The net decrease in cash, cash equivalents, and restricted cash was $1.3 million for the six months ended September 30, 2025, compared to a decrease of $8.9 million in 2024[174]. Contingent Liabilities and Risk Management - The company has contingent liabilities primarily related to product liability and potential infringement of intellectual property, with little historical cost impact due to insurance coverage[178]. - There have been no material changes to the contractual obligations disclosed in the Annual Report, indicating stability in financial commitments[181]. - The company does not have any off-balance sheet arrangements or holdings in variable interest entities, ensuring transparency in financial reporting[180]. - The preparation of financial statements requires management to make significant judgments and estimates, which could materially impact reported results if actual performance differs from historical experience[182]. - There have been no material changes to market risk disclosures from the Annual Report, indicating consistent risk management practices[184].

Core Insights - IBM has launched the IBM Quantum Nighthawk, the most advanced quantum processor to date, which allows for 30% more complex quantum circuits compared to its predecessors [1][8] - The new quantum processor is expected to enhance algorithm complexity and could lead to significant technological advancements in the quantum ecosystem [2] - IBM is upgrading its Qiskit software platform to improve performance and accuracy, achieving a 24% increase in accuracy for circuits with over 100 qubits [3][4] Quantum Technology Developments - The IBM Quantum Nighthawk processor enhances qubit connectivity, enabling users to execute more complex quantum circuits [1] - The evolution of Qiskit from a simple SDK to a comprehensive quantum software stack aims to maximize the performance of IBM's quantum hardware [3] - The latest Qiskit version introduces a new execution model that improves error mitigation, reducing the cost of obtaining accurate results [4] Financial Performance - Over the past year, IBM's stock has increased by 50.7%, outperforming Amazon (15.5%) and Microsoft (19.8%), but lagging behind the industry average growth of 75.8% [5] - Earnings estimates for IBM have risen by 6.2% for 2025 and 7.1% for 2026, indicating positive investor sentiment [8][10] Market Position and Challenges - IBM is experiencing strong demand in hybrid cloud and AI sectors, which are expected to drive growth in its Software and Consulting segments [6] - Despite positive trends, IBM faces significant competition from Amazon Web Services and Microsoft Azure, leading to margin pressure and declining profitability [12] - The company is implementing job cuts as part of a strategy to reduce operating costs, with many positions being shifted to India [13] Strategic Outlook - IBM's focus on hybrid cloud and AI, along with improving earnings estimates, is contributing to a positive investor perception [14] - However, high operating costs and competitive pressures are challenges that could impact future profitability [15]

Core Insights - Energy Plug Technologies Corp. and Quantum eMotion Corp. have established a Joint Development Steering Committee to enhance the integration of quantum-secure battery technology for critical infrastructure [1][2] Group 1: Joint Development and Technical Integration - The committee has defined technical integration pathways to embed Quantum eMotion's Quantum Random Number Generator (QRNG) chips into Energy Plug's next-generation energy storage systems, moving from concept to engineering specifications within weeks [2][3] - Prototype development is targeted for Q1 2026, with field trials planned in collaboration with Canadian defense and utility partners [2] Group 2: Cybersecurity and Market Context - The integration of QRNG technology aims to provide post-quantum cybersecurity for critical systems, addressing the increasing threats faced by Canada's energy sector, which experienced a 23% rise in ransomware attempts in 2024 compared to 2022 [3] - QRNG-enhanced batteries will generate cryptographic keys with true quantum randomness, significantly improving security against remote exploitation attacks [3] Group 3: Company Profiles - Quantum eMotion Corp. specializes in quantum-safe cybersecurity solutions, focusing on its patented QRNG technology and Entropy-as-a-Service platform [4] - Energy Plug Technologies Corp. is a leader in secure energy storage solutions, committed to enhancing grid stability and cybersecurity while promoting sustainable energy adoption [7]

VANCOUVER, British Columbia, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Scope Technologies Corp. (CSE: SCPE | OTC: SCPCF | FSE: VN8) (“Scope Technologies”, “QSE” or the “Company”) is pleased to announce that its QSE Group division has signed a non-exclusive value-added distributor (“VAD”) agreement with Enzo Plus Asia Pte Ltd (“Enzo Plus”), a regional technology provider with established operations in Malaysia and Singapore. Through its QSE Group division, Scope Technologies continues expanding its footprint across ...

Core Insights - Thin-film lithium niobate (TFLN) is becoming a preferred material in telecommunications due to its resilience and high efficiency, making it ideal for chip-scale photonic integration [1] - Quantum Computing Inc. (QCi) has secured its first government contract from the National Institute of Standards and Technology (NIST) for TFLN photonic integrated circuits (PICs), marking a significant milestone in its strategy to become a trusted U.S. supplier of advanced photonic technologies [2][8] - QCi and POET Technologies Inc. have formed a strategic collaboration to develop 400G/Lane TFLN modulators for next-generation computing, targeting ultra-fast data transfer speeds to meet the demands of AI networks and data centers [3][4] Company Developments - QCi's contract with NIST includes design support and fabrication of TFLN-based PICs, focusing on low optical-loss waveguides, high-performance modulators, and narrow-band filters [2] - The partnership with POET aims to integrate QCi's TFLN modulators with POET's Optical Interposer platform, with a project completion target set for the second half of 2026 [4] - QCi's stock has seen a significant increase of 318.8% over the past year, outperforming the industry growth of 10.8% and the S&P 500's growth of 16.8% [7] Industry Context - Lumentum Holdings Inc. has developed 400 Gbps-per-lane laser technology, which is essential for the next generation of ultra-fast data links, paving the way for 3.2-terabit optical transceivers [5] - Lumentum is also advancing ultra-high-power lasers for co-packaged optics, enhancing space efficiency and reducing energy use in networking switches [6] - QCi's current valuation is notably high, trading at a forward Price-to-Sales (P/S) ratio of 1978.60X compared to the industry average of 5.61X [9]

Core Insights - SuperQ Quantum Computing Inc. has extended its engagement with Winning Media LLC for digital marketing services, paying an additional US$50,000 for their services [2]. Company Overview - SuperQ Quantum Computing Inc. aims to lead in quantum and supercomputing solutions, targeting enterprise transformation and providing return on investment (ROI) for global organizations [4]. - The company's flagship platform, Super™, is designed to make advanced computational power accessible, enabling various sectors such as finance, healthcare, and defense to achieve immediate business impacts [5]. Engagement Details - Winning Media was initially engaged on October 28, 2025, to enhance market and brand awareness through various digital marketing strategies, including online advertising and digital podcasts [2]. - The agreement with Winning Media has been extended until December 15, 2025, ensuring compliance with applicable securities laws [2].

Core Insights - The quantum computing sector is experiencing significant attention as companies report their Q3 earnings, with varying results across different firms [1] Rigetti Computing (RGTI) - Rigetti reported Q3 losses of $0.03 per share, outperforming analyst expectations of a $0.04 loss [2] - Quarterly revenue was $1.94 million, falling short of the $2.17 million estimate and down from $2.37 million year-over-year [3] - The company aims to deliver a 100+ qubit chiplet-based quantum system by the end of 2025, targeting a median two-qubit gate fidelity of 99.5% [3] - Rigetti plans to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027, with anticipated gate fidelities of 99.7% and 99.8%, respectively [4] - Rigetti's stock has declined by 30% over the past month [4] IonQ (IONQ) - IonQ reported adjusted losses of $0.17 per share, beating the consensus estimate of a $0.44 loss [5] - The company achieved quarterly revenue of $39.9 million, exceeding the $27 million estimate by 47.75% and marking a 221.5% increase from $12.4 million in the same quarter last year [5] - IonQ raised its full-year 2025 revenue outlook to between $106 million and $110 million, up from the previous range of $82 million to $100 million [6] D-Wave Quantum (QBTS) - D-Wave reported an adjusted loss of $0.41 per share, missing the consensus estimate of a $0.07 loss, but revenue of $3.73 million exceeded the estimate of $3.03 million [7] - Revenue for Q3 increased by 100% year-over-year from $1.9 million, with bookings reaching $2.4 million, an 80% increase from the previous quarter [7][8] - D-Wave shares have decreased by over 9% in the past month [9] Quantum Computing, Inc. (QUBT) - Quantum Computing, Inc. is set to report its Q3 results, with analysts expecting losses of $0.06 per share and revenue of $116,670 [10] - The company's shares have dropped more than 35% over the past month [10]

Core Insights - Rigetti Computing Inc (NASDAQ:RGTI) experienced a decline of 4.6%, trading at $31.57 after reporting mixed third-quarter results [1] - The company reported adjusted losses of 3 cents per share, which were better than the anticipated losses of 5 cents per share, but revenue of $1.95 million fell short of estimates of $2.2 million [1] Stock Performance - Since reaching a record high of $58.15 on October 14, RGTI has seen a 45% decrease in its stock price [2] - Despite the recent decline, the stock has increased by 107.6% year to date [2] Options Activity - RGTI has seen significant options trading activity, with 30,000 puts and 24,000 calls exchanged [4] - The most popular option is the November 12 put, with new positions being opened at the weekly 11/14 31-strike put [4] - The stock's 50-day put/call volume ratio stands at 3.18, indicating a higher put bias compared to 95% of readings from the past year [4]