Fiscal Third Quarter 2025 Earnings Call Jamie Lerner Chairman and CEO Kenneth Gianella COO and CFO February 12, 2025 Safe Harbor Statement and Use of Non-GAAP Financial Information Safe Harbor Statement. Our presentation today contains forward-looking statements about the Company's plans, strategies, goals, target, and prospects including the company's cost reduction initiative and expected benefits of such initiative, capital structure and go-to-market strategies. We will also describe the Company's future ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $72.6 million, representing a 1% year-over-year increase and a 3% increase from the prior quarter [20] - GAAP gross margin improved to 43.8%, up 320 basis points year-over-year and 230 basis points sequentially [21] - Adjusted EBITDA was positive at $4.7 million, a significant improvement from a negative $2.6 million in the prior year [24] Business Line Data and Key Metrics Changes - Secondary storage revenue grew 15% year-over-year, driven by new DXi data protection appliances [13] - Subscription ARR increased 29% year-over-year to $21.3 million, with over 90% of new sales in the quarter being subscription-based [10][26] - Non-GAAP operating expenses were reduced by approximately 6% year-over-year to $30.1 million [23] Market Data and Key Metrics Changes - Bookings for the quarter exceeded expectations, with backlog normalizing to approximately $9.3 million [21] - The company secured significant deals, including a multimillion-dollar contract with a top European retailer and a 7-figure deal with a Japanese research institute [14][16] Company Strategy and Development Direction - The company is focused on transitioning to a subscription-based model and reducing outstanding debt to achieve financial independence [11][12] - A standby equity purchase agreement was established with Yorkville Advisors to ensure access to additional capital [30] - The company aims to drive sustainable revenue growth and EBITDA expansion through operational improvements and a higher-value product mix [12][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in becoming cash flow positive and returning to growth mode in the current year [42][76] - Concerns regarding supply chain issues and potential tariff impacts were acknowledged, but management remains optimistic about meeting revenue guidance [46][49] - The company is well-positioned to leverage its product portfolio and capitalize on market opportunities, particularly in data protection and cybersecurity [56][90] Other Important Information - The company reiterated its full-year revenue guidance of $280 million, with Q4 revenue expected to be approximately $66 million [32] - Cash and cash equivalents at the end of Q3 were approximately $20.6 million, with outstanding debt totaling $105.9 million [27][28] Q&A Session Summary Question: Inquiry about the standby equity purchase agreement with Yorkville - Management indicated that the agreement is a tool for raising capital efficiently and will be used strategically to support growth and debt reduction [42][45] Question: Clarification on manufacturing headwinds affecting guidance - Management noted that manufacturing challenges are due to long lead times for new products and potential tariff concerns, but they expect to be at the higher end of guidance if conditions stabilize [46][49] Question: Details on the large U.S. federal deal - The deal involved high-margin products focused on cybersecurity and high-speed analytics, contributing to a 54% year-over-year increase in federal revenue [55][59] Question: Future operating expenses and cost reduction - Management confirmed that while significant cost reductions have been achieved, there is always room for optimization, and they expect to maintain operating expenses around $30 million per quarter [60][62] Question: Demand trajectory for key products - Management highlighted strong demand across various product lines, particularly in data protection and the innovative i7 tape storage system [68][70]

Revenue Performance - Total revenue for the three months ended December 31, 2024, was $72,551 thousand, a 1% increase from $71,926 thousand in the same period of 2023[113]. - Total revenue for the nine months ended December 31, 2024, was $214.4 million, a decrease of $25.7 million or 11% compared to $240.1 million in 2023[130]. Product and Service Revenue - Product revenue increased by $1,497 thousand, or 4%, to $38,610 thousand, driven primarily by higher sales of StorNext-based solutions[114][115]. - Product revenue decreased by $22.2 million, or 16%, primarily due to a $20 million decrease in demand from large hyperscale customers[131]. - Service and subscription revenue decreased by $1,156 thousand, or 4%, to $31,615 thousand, attributed to certain long-lived products reaching their end-of-service-life[116]. - Service and subscription revenue decreased by $3.8 million, or 4%, mainly due to certain long-lived products reaching their end-of-service-life[133]. Profitability Metrics - Gross profit for the three months ended December 31, 2024, was $31,755 thousand, representing a gross margin of 43.8%, up from 40.6% in 2023[118]. - Gross profit for the nine months ended December 31, 2024, was $87.2 million, a decrease of $10.4 million compared to $97.6 million in 2023, with a gross margin of 40.7%[135]. - Product gross margin decreased by 420 basis points to 19.9%, attributed to a less favorable revenue mix[136]. Expenses and Losses - Operating expenses totaled $35,615 thousand, remaining consistent at 49% of revenue compared to the same period in 2023[122]. - General and administrative expenses rose by $2,249 thousand, or 19%, primarily due to higher compliance-related costs[123]. - General and administrative expenses increased by $14.4 million, or 41%, primarily due to non-recurring costs related to financial statement restatements[141]. - Interest expense increased by $2,903 thousand, or 74%, to $6,840 thousand due to a higher effective interest rate on the Term Loan[127]. - Interest expense increased by $5.8 million, or 52%, due to a higher effective interest rate on the Term Loan[145]. - Restructuring charges increased by $845 thousand, or 170%, reflecting cost reduction initiatives undertaken in the current year[125]. - Net loss for the three months ended December 31, 2024, was $71,433 thousand, compared to a net loss of $9,869 thousand in the same period of 2023[113]. Cash Flow and Debt - Cash and cash equivalents as of December 31, 2024, were $20.4 million, with total outstanding Term Loan debt of $105.9 million[151]. - Net cash used in operating activities was $20.3 million for the nine months ended December 31, 2024, primarily due to lower earnings[155]. - The company expects to be in violation of its net leverage covenant as of June 30, 2025, which may trigger defaults on outstanding debt[152]. Contingent Liabilities and Commitments - The company has contingent liabilities primarily related to product liability and potential intellectual property infringement, with little historical cost impact on operating results[159]. - There are no off-balance sheet arrangements or holdings in variable interest entities, aside from indemnification commitments[161]. - Contractual obligations and commercial commitments remain unchanged from the Annual Report, with no material changes noted[162]. Accounting and Risk Disclosures - Critical accounting estimates require significant management judgment, which could materially impact financial statements if actual performance differs from historical experience[163]. - There have been no material changes to quantitative and qualitative disclosures about market risk from the previous Form 10-K[166].

Revenue Performance - Revenue for the fiscal third quarter of 2025 increased to $72.6 million, compared to $71.9 million in the same quarter of the prior year, representing a year-over-year growth of 1%[9] - Total revenue for the three months ended December 31, 2024, was $72,551,000, a slight increase from $71,926,000 in the same period of 2023, while total revenue for the nine months ended December 31, 2024, decreased to $214,364,000 from $240,099,000 in 2023[31] Profitability Metrics - Adjusted EBITDA improved to $4.7 million, a $5 million sequential increase from the previous quarter[12] - Adjusted EBITDA for the three months ended December 31, 2024, was $4,715,000, compared to an adjusted EBITDA loss of $2,602,000 in the same period of 2023, while for the nine months ended December 31, 2024, adjusted EBITDA was $1,325,000, up from $562,000 in 2023[42] - GAAP gross profit was $31.8 million, with a gross margin of 43.8%, up from 40.6% in the prior fiscal year quarter[9] - Gross profit for the three months ended December 31, 2024, was $31,755,000, an increase from $29,181,000 in 2023, while gross profit for the nine months ended December 31, 2024, decreased to $87,159,000 from $97,556,000 in 2023[31] Net Loss and Adjustments - GAAP net loss was $71.4 million, or ($14.56) per share, which included a non-cash adjustment of $61.6 million related to warrant liabilities[11] - The net loss for the three months ended December 31, 2024, was $71,433,000, compared to a net loss of $9,869,000 in the same period of 2023, and for the nine months ended December 31, 2024, the net loss was $105,780,000, up from $22,342,000 in 2023[31] - GAAP net loss for Q4 2024 was $71,433,000 compared to a loss of $9,878,000 in Q4 2023[43] - Adjusted net loss for Q4 2024 was $3,960,000, improving from an adjusted net loss of $8,515,000 in Q4 2023[43] - Adjusted net loss for the nine months ended December 31, 2024, was $21,147,000, compared to $17,049,000 in the same period of 2023[43] Debt and Interest Expenses - Total interest expense for the third quarter was $6.8 million, compared to $3.9 million for the same period a year ago[17] - Outstanding term loan debt increased to $105.9 million, up from $87.3 million as of December 31, 2023[17] - The company reported a significant increase in interest expense, which rose to $6,840,000 for the three months ended December 31, 2024, compared to $3,937,000 in 2023, and for the nine months ended December 31, 2024, interest expense increased to $16,761,000 from $10,992,000 in 2023[31] Operational Expenses - Operating expenses for the three months ended December 31, 2024, totaled $35,615,000, slightly up from $35,397,000 in 2023, and for the nine months ended December 31, 2024, operating expenses increased to $115,678,000 from $112,625,000 in 2023[31] Cash and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period for December 31, 2024, was $20,603,000, down from $24,549,000 at the end of the same period in 2023[33] - The company reported a net cash used in operating activities of $20,345,000 for the nine months ended December 31, 2024, compared to $20,727,000 in the same period of 2023[33] Future Guidance and Strategic Focus - The company expects revenue guidance for the fiscal fourth quarter of 2025 to be approximately $66 million, plus or minus $2 million[18] - The company is focused on reducing outstanding debt and has entered into a standby equity purchase agreement to enhance capital access[5] Product Performance - New product successes include multi-million dollar contracts for DXi data protection appliances and ActiveScale solutions, indicating strong market traction[6] Shareholder Information - The weighted average shares outstanding for the three months ended December 31, 2024, was 4,907,000, compared to 4,751,000 in 2023, indicating a slight increase in shares[31] - Total weighted average shares for Q4 2024 were 4,907,000, up from 4,751,000 in Q4 2023[43]

SHENZHEN, China, Feb. 12, 2025 /PRNewswire/ -- MicroCloud Hologram Inc. (NASDAQ: HOLO), ("HOLO" or the "Company"), a technology service provider, they are dedicated to advancing innovation and progress in quantum technology. Currently, they are developing an advanced high-order quantum switch technology, which lays a solid foundation for achieving more efficient and secure quantum communication.In predicting qubit communication scenarios, HOLO has applied advanced quantum mechanics theories and mathematical ...

Looking for a smart spin on future tech investments? These household-name tech titans might be your best bet in the long run.Quantum computing stocks come in a surprising variety of shapes and sizes. I'm not here to recommend one of the smaller quantum experts that have skyrocketed in recent months. They are too risky for my taste, and their big gains seem to be based on unrealistic expectations.But there are better options out there. You should consider turning your sights to IBM (IBM 2.18%) and Alphabet ( ...

Core Insights - BTQ Technologies Corp. has announced a strategic partnership with Coxwave to develop advanced AI chatbot solutions aimed at enhancing quantum physics education and research [1][2] - The collaboration is supported by a US$117,000 grant from the Korean Government's "AI Voucher" program, which promotes partnerships between domestic AI companies and international clients [1][5] - The partnership aims to make quantum education more accessible and to foster broader industry adoption of quantum technology [2][5] Partnership Details - The collaboration will produce two specialized AI-driven solutions: AI Tutor, designed for the general public to simplify quantum physics concepts, and AI Assistant, aimed at professional researchers to facilitate in-depth inquiries and data analysis [5][6] - BTQ's CEO emphasized the commitment to expanding the quantum ecosystem and breaking down barriers to quantum learning through this partnership [2][5] Company Background - BTQ Technologies focuses on securing mission-critical networks and has a technology portfolio aimed at accelerating quantum advantage [7] - Coxwave, founded in 2021, specializes in advanced analytics and AI-driven solutions, with its flagship product Align AI launched in 2022 [3][5]

(In United States dollars, except where noted otherwise) TORONTO, Feb. 11, 2025 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. (“First Quantum” or the "Company”) (TSX: FM) today reports results for the three months ended December 31, 2024 (“Q4 2024” or the "fourth quarter") of net earnings attributable to shareholders of the Company of $99 million ($0.12 earnings per share) and adjusted earnings1 of $31 million ($0.04 adjusted earnings per share2). “While 2024 began with several challenges brought about fr ...

Core Viewpoint - Quantum Corporation (QMCO) is set to report its third-quarter fiscal 2025 results, with expectations of a loss of 70 cents per share and total revenues of $72 million, reflecting an improvement in earnings estimates over the past 60 days [1][2]. Financial Performance - The Zacks Consensus Estimate for the upcoming quarter indicates a loss of 70 cents per share, which is an improvement of 22 cents compared to previous estimates [2]. - The company missed the Zacks Consensus Estimate for earnings in the last reported quarter by 82% [3]. - For the third quarter of fiscal 2025, QMCO forecasts revenue of $72 million (+/-2 million) and a non-GAAP adjusted net loss per share of 75 cents, +/- 5 cents [12]. Product Demand and Innovation - Strong demand for Myriad and ActiveScale products is expected to support top-line performance in the fiscal third quarter [5]. - Quantum introduced an advanced parallel file system client for Myriad, enhancing support for NVIDIA GPUDirect Storage, which is tailored for demanding workloads such as AI and machine learning [6]. - The Scalar i7 RAPTOR, an advanced tape storage solution optimized for AI and cloud applications, was announced, indicating strong demand for data protection offerings [7]. - The DXi9200, a hybrid data protection appliance, was unveiled to address evolving cyber threats, showcasing the company's commitment to innovation [8]. Revenue Model Transition - QMCO is transitioning towards a subscription-based selling model, with Subscription ARR increasing by 28% year over year to $19.6 million [9]. - Over 88% of new unit sales in the last reported quarter were subscription-based, indicating a strategic shift in revenue generation [9]. Cost Efficiency and Operational Performance - Focus on cost efficiency is expected to cushion margin performance, with non-GAAP operating expenses down 9% year over year [10]. - QMCO anticipates $40 million in savings by the end of fiscal 2025 compared to fiscal 2023, guiding for positive free cash flow in the second half of fiscal 2025 [10]. Stock Performance - QMCO shares have surged 203.8% over the past six months, significantly outperforming the Computer Storage Devices Industry and the Zacks S&P 500 composite [14]. - The stock's performance is better than peers like NetApp and Pure Storage, which saw gains of 0.1% and 24.1%, respectively [16]. Investment Considerations - QMCO's strategy focuses on growth through innovative products, operational efficiency, and a subscription-based selling model, which bodes well for future performance [17]. - Continued investment in product innovation aims to capitalize on high-growth trends in AI, data protection, and cloud storage [18]. - However, challenges such as high debt levels and supply chain disruptions may impact top-line performance [19]. Conclusion - Improving demand for Myriad and ActiveScale solutions, a shift towards subscription selling, and extensive cost reductions make QMCO an attractive investment opportunity [20].

The quantum hype might not be all it seems. See why you should pay closer attention to surprisingly familiar names in this exciting space.Quantum computing is a hot topic these days. Six months ago, the four largest pure play stocks in this market added up to a total market value of $1.9 billion. Today, their combined market value has soared to $15 billion. And that's not even a peak value -- the tally topped out at $19.2 billion on Jan. 6.It's too early to pick a winner among pure play expertsBut I'm not h ...