Company Overview - Quantum Computing Inc. (QCi) is an innovative company specializing in integrated photonics and quantum optics technology, providing accessible and affordable quantum machines and TFLN foundry services [3] - The company's products are designed to operate at room temperature and low power, making them cost-effective [3] - QCi's technology portfolio includes capabilities in high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications [3] Event Participation - Dr. Yuping Huang, Interim Chief Executive Officer, and Chris Boehmler, Chief Financial Officer, will participate in a fireside chat during the J.P. Morgan Qubit Series on May 20, 2025, at 9:00 a.m. ET [1] - Attendance for the event is by invitation only for J.P. Morgan clients [2]

Core Insights - Mobilicom and ARK Electronics have formed a strategic partnership to develop affordable cybersecure solutions for mini and small-sized drones and robotics platforms, with the first product expected to launch in the second half of 2025 [2][4][6] - The mini and small-sized drones market was valued at $5.8 billion in 2023 and is projected to grow at a CAGR of 8.6%, reaching $10.4 billion by 2030 [2] - The partnership aims to combine Mobilicom's OS3 cybersecurity software with ARK's AI-driven hardware, enhancing the security and performance of uncrewed systems [4][6] Company Overview - Mobilicom is a leading provider of cybersecurity and robust solutions for the defense and commercial drones and robotics market, with a portfolio that includes software, hardware, and professional services [8][9] - ARK Electronics specializes in designing and manufacturing made-in-the-USA drone electronics, focusing on advanced technologies for drones [7] Market Context - The partnership is positioned to address the growing demand for secure and efficient technologies in both commercial and defense sectors, particularly as the market for mini and small-sized drones expands [2][4] - Both companies have products listed on the Blue UAS Framework, which is a vetted list of products available for procurement by the U.S. Department of Defense [5]

Industry Overview - The Zacks Security and Safety Services industry is positioned to benefit from strong demand for security products and solutions, driven by increased awareness of safety for people and infrastructure [1][4] - The industry includes firms providing advanced security solutions for residential, commercial, and institutional purposes, including personal defense and hazard detection [3] Demand Drivers - Rising instances of terrorism and criminal activities are increasing the demand for security services, with governments and businesses deploying IP-based cameras for enhanced surveillance [4] - Urbanization and the need for infrastructure safety are also contributing to industry growth, alongside a surge in demand for cybersecurity products due to hacking incidents [4] Investment Trends - Increased government budgets and funding are encouraging significant investments in research and development for advanced security products [5] - Collaboration between government agencies and industry players is aimed at strengthening security infrastructure in smart cities [5] Financial Metrics - The industry's long-term debt/capital ratio is 0.62, significantly higher than the Zacks S&P 500 composite index's 0.28, indicating a focus on innovation and product development [6] - The industry currently trades at a forward P/E of 16.56X, lower than the S&P 500's 21.88X and the sector's 19.35X, suggesting potential undervaluation [13] Performance Comparison - The Zacks Security and Safety Services industry has returned 7.7%, underperforming the S&P 500's 12% growth but outperforming the broader Industrial Products sector, which declined by 1.9% [10] Key Players - **Life360**: Engaged in location tracking and safety services, with a 42.7% share price increase over the past six months and a 9.1% upward revision in 2025 earnings estimates [18][19] - **Allegion**: A leading provider of security products, benefiting from demand in non-residential markets, with a 4.4% share price increase and a 0.5% upward revision in earnings estimates [22][23] - **Alarm.com**: Focused on IoT solutions, experiencing strong momentum in its SaaS business, with a 0.4% upward revision in earnings estimates [26][27] - **MSA Safety**: Develops safety products with a 12% share price increase in the past month, consistently surpassing earnings estimates [30][31]

Core Insights - White Hat, a cybersecurity company acquired by EPAM in 2021, won the 2025 Outstanding Security Performance Award in the category of Outstanding Cybersecurity Consultant [1][2] - The award recognizes White Hat's innovation in AI-driven security and an attacker-focused approach, demonstrating significant client impact [2][5] - Since its acquisition, White Hat has more than doubled its revenue through domestic growth and international expansion [4] Company Overview - Founded in 2013, White Hat provides cybersecurity services by adopting an adversarial perspective, enabling organizations to proactively identify vulnerabilities [3] - The company serves a diverse client base, including global enterprises, financial institutions, government agencies, and critical infrastructure operators [3][7] - White Hat's services include strategic consulting, threat hunting, APT simulations, and advanced offense-led penetration testing, supported by its proprietary 'Eye of the Enemy' platform and 360° Incident Response suite [5][7] Leadership and Recognition - The recognition from the Cyber OSPAs highlights White Hat's leadership and commitment to excellence in the cybersecurity sector [7] - CEO Nir Tenzer emphasized the importance of the award as a milestone for the team and reaffirmed the company's commitment to helping clients navigate complex threat landscapes [6]

Core Insights - Fortinet's share prices increased by 74% over the past year, significantly outperforming the Nasdaq Composite index's 17% gain [1] - Despite exceeding revenue and earnings expectations in Q1 2025, Fortinet's stock price fell due to lukewarm guidance [2] Financial Performance - Fortinet's Q1 revenue grew by 14% year over year, while adjusted earnings surged by 35% [4] - The company's remaining performance obligations (RPO) for unified SASE grew by 19% year over year, compared to 12% growth in overall RPO [6][7] - Fortinet's total RPO reached $6.5 billion, with SecOps and unified SASE accounting for nearly one-third of this total [9] Market Opportunities - The SecOps market is projected to nearly double over the next decade, potentially generating $84 billion in annual revenue by 2034 [8] - Fortinet anticipates $1.62 billion in revenue for the current quarter, reflecting a 13% increase from the previous year [10] - Analysts expect Fortinet's earnings to grow at a faster pace in 2027, with raised earnings guidance for 2025 and 2026 [11] Valuation Concerns - Fortinet's stock trades at 42 times earnings, which is considered expensive compared to the Nasdaq-100 index's earnings multiple of 29 [13] - The company's valuation requires a stronger growth profile to justify current levels, leading some investors to seek better entry points [14]

Core Viewpoint - Nucor experienced a cybersecurity incident that led to the temporary shutdown of some production operations as a precautionary measure [1][3]. Group 1: Incident Details - The company discovered unauthorized third-party access to certain information technology systems [1]. - Nucor is actively investigating the incident with the help of external cybersecurity experts and has notified federal law enforcement [5]. - The specific production operations that were shut down have not been disclosed, but the company is working to restore them [1][3]. Group 2: Company Profile - Nucor is considered the largest and most diversified steel and steel products producer in North America, manufacturing products such as bars, beams, electrical conduit, girders, and fasteners [5]. - The company's facilities are primarily located across North America [3].

Core Insights - The grand opening of Quantum Computing Inc.'s quantum photonic chip foundry in Tempe, Arizona marks a significant milestone in the company's growth strategy and aims to meet the increasing global demand for thin-film lithium niobate (TFLN) photonic chips [1][2][5] Group 1: Facility and Operations - The foundry construction was completed in March 2025 and is now operational, fulfilling existing customer pre-orders and positioned to scale production capacity for datacom, telecom, advanced sensing, and quantum computing markets [3][4] - The facility is designed to provide U.S.-based manufacturing of high-performance photonic chips and to supply critical components for QCi's proprietary quantum computing machines [4] Group 2: Strategic Importance - The opening of the foundry is a cornerstone of QCi's multi-phase growth strategy, which includes scaling capacity, enhancing vertical integration, and expanding into emerging quantum computing markets [5] - The company anticipates modest initial revenue from the foundry this year, with expectations for revenue growth to accelerate starting in 2026 as more customers come online [5] Group 3: Community and Economic Impact - The foundry is expected to bring high-tech jobs and economic development to Tempe, reinforcing the city's reputation as a hub for innovation in quantum technologies and advanced manufacturing [2]

Core Insights - Quantum Computing Inc. (QCi) has promoted Milan Begliarbekov to Chief Operating Officer and Pouya Dianat to Chief Revenue Officer to support the company's strategic growth and commercialization efforts [1][2] - The promotions come after the completion of QCi's quantum photonic chip foundry construction and the successful execution of its pilot chip sales initiative [1][7] Leadership Changes - Milan Begliarbekov, previously the Director of Quantum Foundry, will oversee day-to-day operations, drive manufacturing efficiency, and manage the development of advanced photonic circuits for quantum computers in his new role [3][4] - Pouya Dianat, formerly the Director of Photonic Integrated Circuits, will focus on global commercial strategy, customer acquisition, and revenue expansion across QCi's offerings as Chief Revenue Officer [5][6] Strategic Growth - The company aims to strengthen its leadership team to effectively execute its strategy, particularly in the datacom and telecom sectors, where there is increasing demand for high-performance TFLN solutions [7] - QCi's quantum photonic chip foundry in Tempe, Arizona, completed construction in March 2025, with an upgraded ISO certification finalized ahead of schedule, positioning the company to meet global demand for TFLN photonic chips [7][9] Market Positioning - QCi provides accessible and affordable quantum machines and TFLN foundry services, with products designed to operate at room temperature and low power [9] - The company's technologies offer unique capabilities in high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications [9]

Fourth Quarter 2025 Earnings May 8, 2025 Disclaimers Forward-looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expres ...

Financial Data and Key Metrics Changes - Revenue for the first quarter declined year over year to $25.4 million, primarily due to lower revenue from VSAT airtime service, including the loss of U.S. Coast Guard revenue [6][12] - Airtime gross margin improved to 31.5% in Q1 from 28.2% in the previous quarter, with adjusted EBITDA for the quarter at $1 million [14][17] - Ending cash balance decreased by approximately $2 million to $48.6 million, driven by movements in working capital [17] Business Line Data and Key Metrics Changes - Subscriber base increased by 5% to over 7,400 subscribing vessels, recovering from the decline experienced in 2023 [8][15] - Quarterly shipments of connectivity terminals exceeded 1,300 units, marking the fifth consecutive record quarter, with significant increases in Starlink terminals [7][10] - Product gross profit was breakeven compared to a positive $300,000 in the prior quarter, with expectations for product margins to remain about breakeven [16] Market Data and Key Metrics Changes - Starlink revenue continued to increase as a percentage of total revenue, with strong demand in both commercial and leisure markets [6][9] - Approximately 30% of Starlink activations in Q1 were hybrid configurations, showcasing the company's ability to deliver multi-orbit managed solutions [9] Company Strategy and Development Direction - The company is transitioning from a GEO-focused business model to a primarily LEO-based mobile connectivity market, with ongoing double-digit annual growth in subscribers [18] - The addition of OneWeb to the product and service portfolio is expected to enhance offerings and market reach [12][13] - The company is closely managing GEO bandwidth commitments, anticipating continued pressure on GEO margins while benefiting from strong LEO margins [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives, highlighting record-breaking subscriber growth and increased product shipments [13][14] - The company is monitoring tariffs but does not expect them to have a material impact on costs due to prior component purchases [12][13] - Management acknowledged challenges ahead but remains optimistic about the path forward, particularly with the growth of the LEO business [14] Other Important Information - The company is in the process of selling its headquarters and factory facilities, expecting to close the sale of the headquarters before the end of the quarter [12] - Share buybacks were initiated under a program approved by the Board of Directors, with over 30,000 shares purchased at a cost of approximately $163,000 [12][13] Q&A Session Summary Question: Breakdown of LEO margins - The majority of the margin is derived from actual airtime, with strong underlying LEO bandwidth margins [20][21] Question: Optimization of plans for customers - Current plans are well optimized, but changes in pricing and terminal access charges are anticipated [22][23] Question: Concerns about market saturation - The market is significantly larger than before, and saturation is not expected in the foreseeable future [25][26] Question: Expansion beyond maritime applications - The existing sales team is handling land-based applications, with no immediate hiring plans but efforts to identify new service providers [27][28] Question: Coast Guard contract revenue roll-off - Negative variance from the Coast Guard contract is expected through the third quarter, with a smaller impact in the fourth quarter [30][32] Question: Future buyback efforts - The company is continuing to buy back shares, with expectations for a larger number to be disclosed in the next quarter [33]