Quantum Computing - Quantum computing is considered a call option on the future of technology and computing, with increasing commercialization and advancements in material science, drug discovery, aerospace, and defense [2][3] - The US, China, and Europe are in a race in quantum computing, with increased capital expenditure (capex) in the space, exemplified by the collaboration between IBM and AMD [3] Market and Investment Strategy - Investors should monitor the Federal Reserve's (Fed) rate cut path for potential market impact; any changes in timing or quantity of cuts could pull the market back [5] - Mega-cap tech stocks are already widely held in investor portfolios, and new themes like AI power and infrastructure, and modern warfare offer new investment opportunities [11][12][14][15] Earnings and Technology Trends - S&P earnings were up 10% year-over-year, and NASDAQ earnings were up over 30% year-over-year, with mega-caps leading the growth, driven by capex in areas like AI [8] - Nvidia is central to the AI trade, and its performance is expected to impact hyperscalers, cybersecurity, AI chips, data centers, and cloud computing; expectations include over 50% revenue growth and close to 50% EPS growth [8] Modern Warfare - Modern warfare, including drones and satellites, presents investment opportunities, supported by government spending, with the last aerospace and defense contract being approximately $850 billion [14][15]

Financial Data and Key Metrics Changes - The company achieved record sales exceeding $11,000,000 in Q2 2025, surpassing total sales for the entire fiscal year 2024 [5] - Gross profit margins decreased by 17% due to front-loaded investments and one-time costs associated with supply chain activation [5][6] - As of June 30, 2025, cash and cash equivalents were $16,423,000, with working capital of $16,163,000 and zero long-term debt [6] Business Line Data and Key Metrics Changes - The company has a healthy inventory position of over $7,000,000 and a current backlog of approximately $15,000,000 [6][15] - Multiple purchase orders have been received, partially funding previously announced Letters of Intent (LOIs) with prominent ORAN 5G players [7] Market Data and Key Metrics Changes - The ORAN 5G infrastructure market is projected to grow at 33.4%, reaching over $42,000,000,000 globally by February 2030 [9] - Quantum computing hardware is expected to grow at a combined annual growth rate (CAGR) of 37.3%, exceeding $9,000,000,000 by February 2032 [9] - Satellite and high-speed connectivity equipment is estimated to grow at a 12% CAGR through February 2030, driven by LEO networks and rural broadband demand [9] Company Strategy and Development Direction - The company is focused on four key areas: open RAN, ORAN 5G networks, quantum computing, and satellite terrestrial high-speed connectivity, all expected to see high growth [8] - The strategy involves aggressive investment to secure long-term positions within critical next-generation infrastructure rollouts [8][10] - The company aims to leverage increasing demand for secure domestically manufactured communications equipment, positioning itself as a trusted alternative to foreign suppliers [10] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue growth exceeding 100% year-over-year in fiscal year 2025, driven by public and private 5G orders [13] - Gross margins are expected to improve beginning in Q3 2025 as production costs normalize and one-time costs are reduced [14] - Positive cash flow from operations and projected profitability are anticipated in fiscal year 2026, assuming current order pace and margin recovery continue [14] Other Important Information - The company maintains a strong cash management discipline and does not anticipate raising capital under unfavorable market conditions [14] - The company has a good backlog of about $15,000,000 and expects additional orders to continue funding its LOIs [15] Q&A Session Summary Question: Update on second tier one orders and feedback - The company has already received orders from the second tier one, with LOIs valued at $17,000,000 and $40,000,000, and additional orders are expected [18][19] Question: Visibility on 2026 production - The company has periodic meetings with both organizations and is able to energize the supply chain based on customer forecasts [21] Question: Pipeline with other operators - The company is seeing interest from other large MNOs transitioning to 5G ORAN technology, with expectations for a good response next year [24] Question: Quantum computing revenue expectations - The quantum computing business is not yet at a production phase, but the company has delivered products showing performance [25][26] Question: Update on space division and backlog - The satellite business is expected to ramp up next year as LEO applications are built out [29] Question: Inventory and manufacturing strategy - The company is building to forecast and has a manageable inventory level to satisfy upcoming purchase orders [59]

Quantum Investment Landscape - China is leading in quantum investment with approximately $17 billion, significantly surpassing other countries [1] - Europe's combined quantum investment, including the EU, totals around $11 billion [1] - The US quantum investment lags behind at approximately $5 billion [1] - The US needs to enhance its quantum strategy and increase investment to catch up with China [1] Quantum Computing Development & Impact - Quantum computing development follows varied approaches with differing maturity timelines [2] - Quantum is expected to significantly impact AI and machine learning in the medium term [2] - Companies delivering near-term quantum products should be closely monitored [2] - Long-term opportunities in quantum computing are substantial [2]

Quantum Computing Advantages - Quantum computing offers significantly better computing power, potentially a million (1,000,000) to a billion (1,000,000,000) times better than classical computing [2] - Quantum computing consumes a small fraction of the energy compared to classical computing, offering a double win in both computing and energy efficiency [2] - Quantum computing can solve problems currently unsolvable by classical computing, while consuming less energy [1] Applications and Potential - Quantum computing has numerous potential applications, including weather forecasting, AI (bridging Gen AI to AGI), drug discovery, material synthesis, and encryption [3] - The quantum computing business is expected to reach hundreds of billions of dollars in a decade or two [4] R&D and Future Outlook - The industry is still in the R&D stage, with the next three to four years focused on technology milestones [4][5] - Technology milestones are the most important factor in the near term, with financial excitement expected beyond that [5]

Market Trend & Investment Opportunity - Quantum computing stocks are experiencing a speculative frenzy with potentially significant gains, exemplified by D-Wave's nearly 2,000% increase over the past 12 months [1] - D-Wave is positioned as the only truly commercial quantum computing company with customers using its systems in their business operations [5][6] - D-Wave's quantum computers excel at solving hard business optimization problems, including workforce scheduling, manufacturing plant optimization, and loyalty rewards programs [7] Financial Performance & Business Development - D-Wave reported a 92% year-over-year increase in bookings, although the actual bookings stood at just 13 million [2] - D-Wave is in the early stages of commercialization, working with customers through professional services to identify and build quantum applications, which is expected to drive significant revenue growth [12] - D-Wave's technology has the potential to significantly reduce power consumption in areas like blockchain, potentially impacting the energy sector [16][17] Technology & Innovation - D-Wave demonstrated its quantum systems can solve real-world problems, such as material simulation, in minutes, a task that would take millions of years classically [14][15] - D-Wave's quantum processor is a superconducting chip with over a million Josephson junctions and 100m of wiring, requiring cryogenic cooling [19] - D-Wave's quantum computers offer significant energy efficiency compared to massively parallel GPU systems, consuming 12kW of power for computations that would require much more power and cooling on exascale supercomputers [21]

Quantum Computing Advancement - The industry aims to achieve quantum advantage by developing quantum computing systems and making them accessible to customers [1] - The co-design process has enabled rapid progress and new records in achieving logical qubits [2] - The focus is on error correction during computation to achieve practical applications [3] - The company redesigned the architecture to create more reliable logical qubits from neutral atoms [4] - The technology allows for the creation of entangled logical states and running algorithms on logical qubits, with the unique ability to move and interact qubits from far distances [5] Technology and Collaboration - The company is enabling logical qubits to create reliable quantum machines [6] - The collaboration between atom computing experts and Microsoft's quantum error correction and algorithm expertise aims to produce the most reliable quantum machine [7] Core Technology - A new class of algorithms and error correcting codes are being developed for qubit virtualization systems, tailored for atom hardware [3]

Market Trends & Speculation - 80,000 Bitcoin (BTC) from eight Satoshi-era wallets were moved on July 4 [1] - Each wallet transferred 10,000 BTC [1] - Speculation suggests quantum computing threats prompted the transfers [1]

Quantum Computing & Blockchain Security - Research indicates that millions of wallets are potentially at risk due to advancements in quantum computing [1] - New research on Sui demonstrates that EdDSA wallets (Sui, Solana, Near, Cosmos) can securely prove ownership post-quantum [1] - This provides a future-proof defense for mnemonic-based wallets [1] Blockchain Applicability - The quantum transition solution works for EdDSA-based chains like Sui, Solana, Near, and Cosmos [1] - The solution is not applicable to Bitcoin and Ethereum [1]

How did two Pritzkers—JB and Penny—get obsessed with quantum computing, a technology so complex even the savviest struggle to grasp it? It’s a mix of deep faith in the tech’s potential—and FOMO. https://t.co/1ZNo1aaFGW ...

Industry Focus - Quantum Computing - Quantum computing is a complex technology that many struggle to understand [1] - Two Pritzkers, JB and Penny, are deeply interested in quantum computing due to faith in its potential and FOMO (Fear Of Missing Out) [1]