PALO ALTO, Calif. - D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), known for its quantum computing technology, has reported a non-compliance issue with the New York Stock Exchange (NYSE) listing standards. The company's average stock price fell below the required minimum over a 30-day trading period, as of October 2, 2024. Despite this setback, D-Wave's common stock remains listed on the NYSE, with the company actively seeking remedies to rectify the deficiency.
In response to the NYSE notification, D-Wave has expressed its intention to address the stock price shortfall and achieve compliance within the next six months. The company has the opportunity to meet NYSE standards if its stock closes at $1.00 or higher on the last trading day of any month during this period and maintains the average for the preceding 30 days.
D-Wave is considering several options to correct the stock price issue, including a potential reverse stock split, subject to shareholder approval. The company has assured the NYSE of its plans to resolve the situation, which could involve measures that necessitate stockholder consent. To regain compliance, the share price must exceed $1.00 and remain above that threshold for at least 30 consecutive trading days.
The company, a pioneer in the quantum computing industry, continues to focus on providing quantum computing systems, software, and services. D-Wave emphasizes its role as the first commercial supplier of quantum computers and the only firm developing both annealing and gate-model quantum computers. Its clientele spans various sectors, including automotive, finance, healthcare, and government agencies.
D-Wave's forward-looking statements in the press release reflect plans and aspirations, which are inherently subject to risks, uncertainties, and other factors that could cause actual outcomes to diverge from expectations. Investors are cautioned not to place undue reliance on these projections.
This article is based on a press release statement from D-Wave Quantum Inc.
In other recent news, D-Wave Quantum Inc. has experienced significant growth in the second quarter of 2024, as reported by CEO Dr. Alan Baratz. The company has seen a 41% increase in revenue to $4.6 million and a 58% increase in bookings to $7.2 million. D-Wave Quantum's financial metrics also indicate an improved net loss position, substantial increase in gross profit, and a decrease in operating expenses.
In a recent reassessment, Roth/MKM lowered D-Wave Quantum's stock price target to $2.00 from $3.00, while maintaining a Buy rating. The firm remains optimistic about D-Wave Quantum's market position, citing consistent revenue and bookings, and the company's focus on strategic vertical opportunities and partnerships.
D-Wave Quantum has been integrating quantum annealing with artificial intelligence processes, a move expected to contribute to its future financial performance. The company has expanded its partnership with Zapata AI and installed a second quantum computer in the U.S. D-Wave Quantum also announced a $175 million S3 shelf registration statement and an equity line of credit of $82.1 million. These are among the recent developments that have been highlighted.
InvestingPro Insights
D-Wave Quantum's recent NYSE compliance issue is reflected in its recent stock performance. According to InvestingPro data, the company's stock has taken a significant hit, with a 10.73% decline in the past week and a more substantial 54.02% drop over the last six months. This aligns with the company's struggle to maintain the required $1.00 minimum share price.
Despite these challenges, InvestingPro Tips reveal that two analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about D-Wave's future performance. However, it's important to note that analysts do not anticipate the company will be profitable this year, which could contribute to the stock's current valuation challenges.
The company's financial health also presents concerns. An InvestingPro Tip indicates that D-Wave is quickly burning through cash, which may impact its ability to fund operations and address the NYSE compliance issue without resorting to measures like a reverse stock split. Additionally, with a market capitalization of $200.62 million and revenues of $10.12 million in the last twelve months, the company is trading at a high revenue valuation multiple.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into D-Wave's financial situation and market position.
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