Quantum computing has generated huge buzz, with potential to tackle problems in drug discovery, materials science, and optimization that stump traditional computers. ...

Core Viewpoint - MicroCloud Hologram Inc. has launched a multi-class classification method based on Quantum Convolutional Neural Network (QCNN) using hybrid quantum-classical learning, showcasing the potential of quantum computing in artificial intelligence and addressing limitations of traditional computing architectures [1][12]. Technology Development - The new technology addresses bottlenecks in classical neural networks, particularly in computing power, energy consumption, and model complexity, as data scales and classification categories expand [2][10]. - The core of the technology is a multi-class classification model that integrates quantum convolutional neural networks with a hybrid quantum-classical optimization framework, utilizing the TensorFlow Quantum platform [3][9]. Model Design - HOLO introduced a quantum perceptron model that leverages quantum state evolution and measurement, enhancing feature extraction through quantum gates, which allows for high-dimensional feature mappings [4][9]. - The model optimizes circuit complexity and improves expressive power by reducing redundant gate operations and enhancing entanglement structures [4][9]. Training Mechanism - The hybrid quantum-classical learning mechanism significantly improves training efficiency and model convergence speed by combining quantum state encoding with classical optimization algorithms [5][12]. - The training process involves quantum circuits encoding input samples, producing measurement results that are normalized and used to update quantum circuit parameters iteratively [5][8]. Experimental Results - Experimental results indicate that HOLO's quantum convolutional neural network achieves accuracy comparable to classical convolutional networks in four-class classification tasks, validating the feasibility of quantum neural networks for practical applications [6][12]. Industry Context - The technology is positioned to address challenges in various fields such as computer vision, medical image analysis, and natural language processing, where traditional deep learning methods face limitations due to high energy consumption and long training times [10][12]. - HOLO's quantum convolutional neural network method aims to reduce computational complexity and leverage future advancements in quantum hardware for significant breakthroughs in computing power [10][11]. Future Prospects - The technology lays the groundwork for broader applications of quantum machine learning, with expectations for expansion into large-scale image recognition and real-time video processing as quantum hardware advances [11][12]. - HOLO plans to further optimize quantum circuits and explore multi-layer quantum convolutional networks combined with deep residual structures in future research [11].

智通财经APP获悉，周五，多数量子计算概念股强势反弹，截至发稿，昆腾(QMCO.US)涨超10%， Quantum Computing(QUBT.US)涨超10%，D-Wave Quantum(QBTS.US)涨超2%，Rigetti Computing(RGTI.US)微涨。 ...

Core Insights - The article suggests that while artificial intelligence (AI) has been a major growth trend, quantum computing is emerging as a significant competitor, with stocks in this sector experiencing substantial gains over the past year [2][3]. Group 1: Quantum Computing Growth - Quantum computing stocks such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen price increases ranging from 123% to 2,090% over the past year, indicating strong investor interest and potential for early investors [2]. - The potential economic value of quantum computing is projected to reach up to $850 billion by 2040, with applications in AI, weather modeling, cybersecurity, and drug development [3]. Group 2: Financial Performance and Valuation Concerns - Despite significant sales growth, companies in the quantum computing sector are currently facing substantial operational losses, with IonQ reporting a loss from operations of $168.8 million, up from $53.1 million year-over-year [10][11]. - Valuations for quantum computing stocks are considered unsustainable, with IonQ, Rigetti, D-Wave, and Quantum Computing Inc. trading at price-to-sales (P/S) ratios that are historically high, indicating potential for a significant decline in stock prices [13][20]. Group 3: Historical Context and Market Trends - Historical trends show that new technologies often take time to mature, with past examples including the internet and other technological advancements, suggesting that quantum computing may follow a similar trajectory [5][6][7]. - The current stock market is also viewed as historically pricey, with the S&P 500's Shiller P/E Ratio peaking at 41.20, indicating that a market correction could adversely affect high-valuation stocks like those in the quantum computing sector [22][23].

Group 1 - The article does not provide any specific content related to a company or industry [1]

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]

Core Perspective - Scope Technologies Corp. has signed a non-exclusive value-added distributor agreement with Enzo Plus Asia Pte Ltd to expand its presence in Southeast Asia, focusing on post-quantum security and data protection technologies [1][3]. Strategic Collaboration Overview - Enzo Plus will represent QSE's quantum-resilient data protection technologies across a network of over 300 channel partners and system integrators in Southeast Asia, marking a significant milestone in QSE's global expansion strategy [3][8]. - The collaboration allows Enzo Plus to provide sales and technical support for QSE Group, enhancing customer response times and reducing time-to-value for clients adopting QSE's solutions [5][11]. Market Access and Intelligence - By leveraging Enzo Plus' established presence in Malaysia and Singapore, QSE can deliver scalable coverage and support without incurring substantial fixed operational costs [6]. - The partnership provides QSE with immediate access to localized market intelligence, lowering customer acquisition costs and accelerating adoption among enterprise and government clients [7][10]. Regional Expertise and Network - Enzo Plus has built a regional footprint with hundreds of distributor engagements, reinforcing the importance of this collaboration for QSE's Southeast Asia expansion strategy [8]. - The collaboration is seen as a regional alliance aimed at making quantum-resilient security a practical reality for organizations in Southeast Asia [9]. Broader Goals and Opportunities - This partnership supports QSE's broader goal of making quantum-resilient security accessible worldwide, integrating QSE solutions into Enzo Plus' ecosystem to reach hundreds of enterprises and service providers [10][12]. - The collaboration enhances QSE's ability to participate in regulated industries and public-sector opportunities across finance, healthcare, defense, and infrastructure [12].