Arqit Quantum Inc (ARQQ)

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LONDON, Dec. 05, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (“Arqit” or the “Company”), a leader in quantum safe encryption, today announced its operational and financial results for the fiscal year ended 30 September 2024.

Operational Highlights for fiscal year 2024

Arqit reported revenue of $293,000 for the fiscal year. The company executed on contracts during the period for 13 customers. Most contracts were limited licenses for demonstration and integration testing of Arqit’s symmetric key agreement software. Arqit saw an increase in the number of customers executing such contracts through the period. The company believes this is a positive indicator of product momentum.

As previously announced, Arqit was awarded a multi-year enterprise license contract in the EMEA region for a government end user that is expected to result in seven figures in annual recurring revenue in total. Prior to the end of the 2024 fiscal year, the contract was finalized. Revenue generation is expected to commence in the current fiscal period.

Previously, Sparkle, a top global telecommunications service operator, announced it completed demonstrations of a fully automated implementation of an on-demand MEF Internet Access Service secured by post-quantum cryptography It is the second Network-as-a-Service (“Naas”) quantum safe internet use case completed by Sparkle. Its first use case was an Arqit secured international VPN between Italy and Germany. Sparkle’s stated roll out this year of its quantum safe NaaS offerings continues apace supported by Arqit. Take up of Sparkle’s NaaS offerings by end customers requires licenses for Arqit’s SKA software which would result in revenue to Arqit.

The company engaged in demonstration and integration activity with eight telecom network operators during the period. Engagements increased from three in the first half of the fiscal year to an additional five in the second half.

Arqit joined Intel Partner Alliance working in cooperation to develop and execute go-to-market activity targeting muti-vertical customers across the Telco, Enterprise and Government customer landscape.

In September, Arqit was named a 2024 International Data Corp (IDC) Innovator for post quantum cryptography. The company is one of only five vendors recognized by IDC that are providing transformative solutions which enterprises can use to protect classical data and infrastructure with a long shelf value from the risk of a potential quantum cyberattack.

On 27 September 2024, Arqit announced Andy Leaver, a seasoned software company executive and Operating Partner from Notion Capital, has been appointed as Chief Executive Officer. Mr. Leaver brings a wealth of experience to the Chief Executive role having held senior executive roles at leading software companies including: Ariba, Bazaarvoice, Hortonworks, SuccessFactors and Workday as well as having been an adviser to several successful private software scale ups. He has expertise in driving sustainable revenue growth and scaling businesses. Notion Capital is a leading European venture capital firm and early backer of Arqit. Mr. Leaver will act independently of Notion Capital in his role as CEO.

Nicola Barbiero was appointed as a Class I Director on 26 November 2024. Mr. Barbiero has nearly two decades of experience in investment management and financial operations. He has been Investment Director of the Heritage Group since 2020. From 2013 to 2020, he held the positions of CFO and CIO at Solidarietà Veneto, one of Italy’s largest pension plan companies. Mr. Barbiero holds a Master’s degree in Economics and Finance from Ca’ Foscari University of Venice.

The company previously announced cost reduction initiatives. Operating costs for the last three months of fiscal year 2024 averaged $2.3 million per month. Pro forma for additional operating cost saving which have or will be actioned shortly, budgeted average monthly operating costs for fiscal year 2025 are expected to be approximately $2.15 million.

On 30 September 2024, Arqit entered into a securities purchase agreement pursuant to which it sold 5,440,000 ordinary shares (on a post reverse share split basis) at an offering price of $2.50 per share in a registered direct offering. Gross proceeds to the company were approximately $13.6 million. In a concurrent private placement, Arqit issued unregistered warrants to purchase up to 5,440,000 shares (on a post reverse share split basis) with an exercise price of $2.50, exercisable upon the later of (i) one year from the issuance date, (ii) the date of the approval by the Arqit’s shareholders of an increase in authorized capital sufficient to permit the issuance of shares upon the exercise of the warrants and (iii) the date that the closing trading price of Arqit’s ordinary shares has exceeded $5.00 for 60 consecutive trading days. The purchasers were Heritage Assets SCSP (Arqit director Manfredi Lefebvre d’Ovidio has shared investment and voting power over the shares held by Heritage Assets SCSP), existing Arqit shareholder Notion Capital, the beneficial owner of the Arqit shares held by Ropemaker Nominees Limited, and Carlo Calabria and Garth Ritchie, each a director of the Company.

As of 30 September 2024, Arqit had $18.7 million of cash and cash equivalents.

On 25 September 2024, Arqit effected a 25:1 reverse share split consolidating its authorized share capital. The Company effected the reverse share split in an effort to regain compliance with Nasdaq’s minimum $1.00 bid price per share requirement. The Company was first notified by Nasdaq of its failure to maintain a minimum bid price of $1.00 per share for 30 consecutive trading days under Nasdaq Listing Rule 5550(a)(2) on 19 October 2023. Arqit was notified on 18 October 2024 by Nasdaq that it had regained compliance with Nasdaq’s listing standards. The Company previously disclosed that the par value of its ordinary shares following the reverse share split was $0.000004, however the par value of the Company’s ordinary shares following the reverse share split is $0.0025.

In December 2022, Arqit established an at-the-market equity offering program (the “ATM Program”) pursuant to which it may issue and sell ordinary shares with an aggregate offering amount of up to $50.0 million. Effective 15 April 2024, Arqit amended its ATM Program reducing the aggregate offering amount to $29.0 million. Effective 8 September 2024, Arqit amended its ATM Program further reducing its offering amount to $16.0 million. As a result, the remaining balance available for issuance, net of amounts issued in previous periods, is $4.1 million. Arqit issued 48,803 shares (on a post reverse split basis) under the ATM Program during fiscal year 2024.

https://finance.yahoo.com/news/arqit-quantum-inc-announces-financial-130000040.html