Quantum Leap: Quantum ushers in new leadership

Welcome to the latest edition of “Quantum Leap” where The Fly decodes news and activity in the quantum computing space.

QUANTUM SAFE FIBER OPTICS: Nokia (NOK), CSC and Surf have successfully tested a high-capacity, quantum-safe fibre-optic connection exceeding 1.2 terabit per second between Amsterdam, the Netherlands and Kajaani, Finland with data traversing over 3500 kilometers. The trial, which was conducted in May, demonstrated the potential of ultra-fast, cross-border connectivity for research. Tests were carried out along several routes, including the longest which spanned 4,700 km through Norway at a capacity of 1Tbit/s. To put this in perspective, 1 Tbit/s is enough to stream 200,000 full HD movies simultaneously.

RAISING CAPITAL: D-Wave Quantum (QBTS) filed a $400M mixed securities shelf on Tuesday.

CEO TRANSITION: Quantum (QMCO) announced that it appointed Hugues Meyrath as its new CEO, effective June 2. Meyrath is a storage industry veteran with over 30 years of experience, most of which includes affiliation with Quantum as a supplier, employee, competitor, and independent member of the company’s board of directors. Meyrath succeeds Jamie Lerner, who served as CEO since July 1, 2018. With Lerner’s departure, the company named current lead independent director Donald Jaworski as its new chairman of the board, also effective June 2. Quantum also announced that chief administrative officer Brian Cabrera would be leaving the company. Finally, the company provided an update on its efforts to transform its capital structure. Quantum has raised approximately $60M to date from its previously announced standby equity purchase agreement. In addition, it continues to make progress with its lenders to restructure its remaining outstanding debt.

MANUFACTURING SITE: FormFactor (FORM) has purchased a manufacturing site in Farmers Branch, Texas. The site, which comprises four structures and includes 50,000 square feet of clean room space, was purchased for $55M.

QUANTUM-SAFE NETWORKING: Colt Technology Services, a global digital infrastructure company, Honeywell (HON) and Nokia announced a collaboration to explore quantum-safe networking using satellite communications. As part of the initiative, the companies are planning to test new ways of protecting encrypted optical network traffic from risks presented when quantum computing potentially breaks through traditional encryption methods, leaving data vulnerable to cyber threats. The companies will trial quantum key distribution – a method used to securely share encryption keys between two parties – using low earth orbit satellites for ultra-long distances and transatlantic reach. The three companies share a collective goal: enable customers to benefit from the huge potential of quantum computing in ways that help solve pressing challenges, while protecting them from risk. The trial is expected to be of interest to organizations responsible for vast amounts of highly sensitive data such as financial firms, healthcare and pharmaceutical organizations and government bodies.

RAISING CAPITAL: Rigetti Computing (RGTI) also filed automatic mixed securities shelf last week.

DEVICE ATTESTATION: Sealsq (LAES) announced that Hager has selected its PKI-as-a-Service platform, INeS, to provide Device Attestation Certificates for Hager’s Matter-compliant smart home range, launched recently: Hager Integrates Matter for Smarter, Safer Homes. Sealsq’s INeS platform enables Hager to integrate devices into the Matter ecosystem, enhancing connectivity and simplifying certificate management from design to manufacturing. “Our solution accelerates Hager’s Matter compliance while future-proofing IoT security,” said Frank Buonnano, VP of Global Sales at Sealsq. “With our Post-Quantum Root of Trust, INeS generates quantum-resistant certificates, ensuring long-term protection against emerging threats.”

RUSSELL INDICES: Quantum Computing (QUBT) is set to join the broad-market Russell 3000 Index and the small-cap Russell 2000 Index at the conclusion of the Russell indexes annual reconstitution, effective after the US market opens on June 30, according to a preliminary list of additions posted Friday, May 23. The broad-market Russell 3000 Index includes the largest 3,000 U.S. public companies by market capitalization. The Russell 2000 Index is a subset of the broader Russell 3000 Index limited to small-cap companies. The indexes are reconstituted annually by re-ranking companies based on total market capitalization as of the reconstitution rank date, which was April 30 this year. Index membership remains in place for one year and results in automatic inclusion in the relevant growth and value style indexes. Russell indexes are used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Russell US indexes belong to FTSE Russell, wholly owned by London Stock Exchange Group (LNSTY).