Arqit Quantum Inc (ARQQ) 2025 Q2 法說會逐字稿

Thank you for standing by. On today's call, we will be referring to the press release issued this morning that details the company's first half fiscal year 2025 results, which can be downloaded from the company's website at arqit.uk.

感謝您的支持。在今天的電話會議上，我們將參考今天早上發布的新聞稿，其中詳細介紹了該公司 2025 財年上半年的業績，可以從該公司的網站 arqit.uk 下載。

At the end of the company's prepared remarks, there will be a question-and-answer period for selected equity research analysts. (Operator Instructions) Finally, a recording of the call will be available on the investor section of the company's website later today.

在公司準備好的發言結束時，將為選定的股票研究分析師安排問答環節。（操作員指示）最後，電話錄音將於今天稍晚在公司網站的投資者部分提供。

Please note that this webcast includes forward-looking statements. Statements about the company's beliefs and expectations containing words such as may, will, could, believe, expect, anticipate, and similar expressions are forward-looking statements and are based on assumptions and beliefs as of today.

請注意，該網路廣播包含前瞻性陳述。有關公司信念和期望的陳述包含諸如可能、將會、可以、相信、期望、預期等詞語和類似表達，均為前瞻性陳述，基於截至今天的假設和信念。

The company encourages you to review the Safe Harbor statements, risk factors, and other disclaimers contained in today's press release, as well as in the company's filings with the Securities and Exchange Commission, which identify specific risk factors that may cause actual results or events that differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this webcast.

本公司鼓勵您閱讀今天的新聞稿以及公司向美國證券交易委員會提交的文件中的安全港聲明、風險因素和其他免責聲明，這些文件列出了可能導致實際結果或事件與我們的前瞻性聲明中描述的結果或事件存在重大差異的具體風險因素。該公司不承諾在本次網路廣播後公開更新或修改任何前瞻性聲明。

And now I'll turn the call over to Andy Leaver, the company's Chief Executive Officer.

現在我將把電話轉交給公司執行長安迪·利弗 (Andy Leaver)。

Thank you and thank you for joining our first half of fiscal year 2025 earnings call.

謝謝大家，也謝謝大家參加我們 2025 財年上半年收益電話會議。

I'm pleased by Arqit's performance for the first half of fiscal year 2025 and by recently announced developments in the business. If one looks at our results solely through the lens of first half revenue, my comment may leave you slightly confused, but please bear with me for a moment. Arqit has developed a transformational technology for addressing significant weaknesses in today's encryption technology, weaknesses which will be magnified by the arrival of quantum computing.

我對 Arqit 2025 財年上半年的業績以及最近宣布的業務發展感到滿意。如果僅僅從上半年收入的角度來看待我們的業績，我的評論可能會讓您有些困惑，但請您耐心聽我說完。Arqit 開發了一種轉型技術，用於解決當今加密技術中的重大弱點，這些弱點將因量子運算的出現而放大。

We believe that our symmetric key agreement encryption software is the most secure standards compliance and implementation flexible solution to meet the threat to data and communications. We are building a company to deliver our technology to sophisticated large enterprises and government customers. This is an ambitious objective, one with significant obstacles to overcome and timelines which often seem elastic. However, I am pleased that we're making significant progress towards realizing our objective.

我們相信，我們的對稱金鑰協定加密軟體是應對資料和通訊威脅的最安全的標準合規性和實施靈活的解決方案。我們正在建立一家公司，將我們的技術提供給成熟的大型企業和政府客戶。這是一個雄心勃勃的目標，需要克服許多重大障礙，而且時間表往往看起來很靈活。然而，我很高興我們在實現目標的道路上取得了重大進展。

Circling back to our first half performance of recent announcements, I'm delighted because Arqit has made significant progress in product development, penetration of key identified markets, sales pipeline growth, shift in business model, and cost in business process discipline. Tangible progress along all of these vectors are additional courses of brick which build towards long-term success.

回顧我們最近宣布的上半年業績，我很高興，因為 Arqit 在產品開發、關鍵確定市場的滲透、銷售管道成長、商業模式轉變和業務流程紀律成本方面取得了重大進展。所有這些方面的實際進步都是邁向長期成功的基石。

Before I discuss Arqit's performance for the first half, let me briefly outline the market environment for our symmetric key agreement encryption software. The current weaknesses of today's public key cryptography, which safeguards much of the world's data, remain largely unmitigated. The pace of investment in and the development of quantum computers, which pose an existential threat to current encryption, is accelerating.

在討論 Arqit 上半年的表現之前，讓我先簡單概述一下我們的對稱金鑰協定加密軟體的市場環境。當今保護著全球大量資料的公鑰加密技術目前的弱點在很大程度上仍未得到緩解。對現有加密技術構成生存威脅的量子電腦的投資和開發步伐正在加快。

Google, Amazon, and Microsoft all announced quantum computing chips during the last six months. Last week, Quantinuum, which is majority owned by Honeywell, signed a $1 billion deal with Qatar, which further developments of its quantum computing technology. And this week, D-wave announced its 4,400-qubit 6th generation quantum computer, a major leap forward in capability which surprised the financial markets.

Google、亞馬遜和微軟都在過去六個月內發布了量子運算晶片。上週，霍尼韋爾控股的 Quantinuum 與卡達簽署了一項價值 10 億美元的協議，以進一步發展其量子計算技術。本週，D-wave 宣布推出其 4,400 量子位元的第六代量子計算機，其性能實現了重大飛躍，令金融市場感到驚訝。

There is little doubt that quantum computing at scale, known as Q-Day is coming. When Q-Day arrives, it's uncertain, but I would predict it will be sooner than most expect given the players developing the technology and the vast sums being invested. And when it does, data that has not been safeguarded with quantum safe encryption is at risk, as quantum computers will render existing public key cryptography obsolete.

毫無疑問，大規模量子運算（即所謂的 Q-Day）即將到來。Q-Day 何時到來尚不確定，但考慮到正在開發該技術的參與者和投入的巨額資金，我預測它將比大多數人預期的要早。當這種情況發生時，未使用量子安全加密保護的資料將面臨風險，因為量子電腦將使現有的公鑰加密技術失效。

Awareness of the need to upgrade to post quantum cryptography is growing, and the call to action increasingly urgent. Last week, Japan's financial services agency instructed Japanese banks to take immediate action to begin shifting to post-quantum cryptography. This is just the latest example of influential government bodies, including the White House and the NSA, sounding the alarm.

人們越來越意識到升級到後量子密碼學的必要性，採取行動的呼聲也越來越迫切。上週，日本金融服務機構指示日本銀行立即採取行動，開始轉向後量子密碼技術。這只是白宮和國家安全局等有影響力的政府機構發出警報的最新例子。

Arqit was early in identifying the risks to current cryptography and early in identifying a market opportunity for a solution. We've developed symmetric key cryptography software which is quantum safe and easily adopted as it is compliant with many of the most widely used communication standards.

Arqit 很早就發現了當前密碼學的風險，並且很早就發現了解決方案的市場機會。我們開發了對稱金鑰加密軟體，它具有量子安全性且易於採用，因為它符合許多最廣泛使用的通訊標準。

Put simply, we as a company have heavily invested in the right products for the current quantum threats at the right time. We feel uniquely positioned to take on the coming threats in the commercial, federal, and defense sectors. The market for our product keeps moving towards us.

簡而言之，作為一家公司，我們在正確的時間對針對當前量子威脅的正確產品進行了大力投資。我們覺得自己擁有獨特的優勢，可以應付商業、聯邦和國防部門即將面臨的威脅。我們的產品市場不斷向我們靠攏。

We're beginning to feel the market bail way pushing us forward and it's evident in our recent developments of prospective customer interactions. We talked much about our collaboration with a leading Tier 1 telecom network operator during our fiscal year 2024 results. Our partner integrated our Arqit NetworkSecure encryption products into its network as a service and announced in 2024 it will be rolling the product out to market.

我們開始感受到市場救助方式正在推動我們前進，這在我們最近與潛在客戶的互動發展中得到了明顯體現。在 2024 財年業績發表會上，我們多次談到與領先的一級電信網路營運商的合作。我們的合作夥伴將我們的 Arqit NetworkSecure 加密產品整合到其網路中作為服務，並宣布將在 2024 年將該產品推向市場。

Importantly, shortly before the close of our first half to enable commercial rollout, the network operator signed a three-year contract licensing NetworkSecure for resale to its end customers as part of its network as a service offering. Arqit NetworkSecure enhances and differentiates its offering. It sees a market need which we can address. The signing was the culmination of a 14-month journey from testing to business development to go to market strategizing. The contract highlights a number of important points.

重要的是，在我們上半年結束前不久，為了實現商業推廣，網路營運商簽署了一份為期三年的合同，授權 NetworkSecure 作為其網路即服務產品的一部分轉售給其最終客戶。Arqit NetworkSecure 增強並區分了其產品。它看到了我們可以滿足的市場需求。此次簽約是為期14個月的從測試到業務開發再到市場策略制定的歷程的巔峰。合約強調了許多要點。

One, our focused targeting of large value vertical markets, particularly telecom networks and government defense was the right decision. Two, our shift to a go-to-market strategy through leading hardware and technology vendors and network operators is the correct approach, integrating with and enhancing products and services which end users already consume is an easier sale, and our partners are a field salesforce multiplier. Three, our shift to a subscription licensing model properly aligns our interests with those of our customers.

首先，我們專注於高價值垂直市場，特別是電信網路和政府防禦，這是正確的決定。二，我們透過領先的硬體和技術供應商以及網路營運商轉向行銷策略是正確的方法，整合和增強最終用戶已經消費的產品和服務更容易銷售，我們的合作夥伴是現場銷售人員的倍增器。第三，我們轉向訂閱許可模式，使我們的利益與客戶的利益一致。

Our arrangement with the network operator is a B2B2B model. The initial license is for a defined amount of capacity of our products and can grow as end customer demand increases. This style of contract encourages the initial commitment to our product by our customer and a pay-as-you-grow approach as end customers take up the offering. Our customer succeeds, we succeed. Our interests are aligned.

我們與網路營運商的安排是B2B2B模式。初始許可證針對我們產品的一定容量，並且可以隨著最終客戶需求的增加而成長。這種合約方式鼓勵客戶對我們產品的初步承諾，並在最終客戶採用產品時採用按需付費的方式。我們的客戶成功了，我們就成功了。我們的利益是一致的。

Four, and most importantly, there is end user demand. The network operator is already engaged with three significant end user customers for its network as a service secured by Arqit NetworkSecure. I expect that book of business will continue to grow, and we will be scaling up the contract to meet demand. And a final thought on this contract, it was a 14-month journey from a standing start to a signed contract. It's a blueprint which we are replicating with a significant number of other large brand name network operators with whom we are engaged. We expect cycle times to compress for these opportunities.

第四，最重要的是，存在最終用戶需求。該網路營運商已經與三個重要的最終用戶客戶合作，為其網路提供由 Arqit NetworkSecure 保護的服務。我預計業務量將持續成長，我們將擴大合約規模以滿足需求。最後想一下，這份合約從開始到簽署總共 14 個月。我們正在與眾多其他與我們合作的大型品牌網路營運商複製這張藍圖。我們預計這些機會的周期時間將會縮短。

In addition to the telecom network vertical market, the defense sector is another key market on which we are focused. Cybersecurity is a critical focus for defense and intelligence organizations. The battlefield from the warfighter to drones and finally command and control, is increasingly being digitalized. The digital battlefield requires the highest levels of data security. We have spent significant time and resources in our effort to penetrate the defense market.

除了電信網路垂直市場外，國防領域是我們關注的另一個關鍵市場。網路安全是國防和情報組織關注的重點。戰場從作戰人員到無人機，最後到指揮控制，正日益數位化。數位戰場需要最高等級的資料安全。我們投入了大量的時間和資源來努力打入國防市場。

Shortly before the close of our first half, we signed a contract which has Arqit symmetric key agreement software embedded into a solution sold to the US Department of Defense for a funded program of record. This is our first win with the DoD. The solution is in partnership with perhaps the largest IT vendor to the DoD and was sold through one of our established government sales channels. More details will be forthcoming. The importance of this contract win cannot be underestimated. It is a significant break in building the future success of the company.

在我們上半年結束前不久，我們簽署了一份合同，其中將 Arqit 對稱金鑰協議軟體嵌入到出售給美國國防部用於資助記錄項目的解決方案中。這是我們與國防部合作的第一次勝利。該解決方案是與國防部最大的 IT 供應商合作開發的，並透過我們已建立的政府銷售管道之一進行銷售。更多細節即將公佈。贏得這份合約的重要性不容小覷。這對於公司未來的成功具有重大意義。

The contract confirms our technology is compliant with the National Security Agency's commercial solution for classified program. Compliance with the program is critical to being considered for such contracts. Being able to reference this contract and the DoD program of record makes the pursuit of additional DoD opportunities easier, as well as proves a bona fide to other military organizations around the world. We have our foot now in the door of the large DoD market. It has taken longer than we expected to get to this point. We have arrived and we'll push to capitalize on this success with additional defense contract wins.

合約確認我們的技術符合國家安全局機密計畫的商業解決方案。遵守該計劃對於獲得此類合約的考慮至關重要。能夠參考該合約和國防部的記錄計劃使得尋求額外的國防部機會變得更加容易，同時也向世界各地的其他軍事組織證明了其真實性。我們現在已經進入了龐大的國防部市場。我們到達這一點所花的時間比預期的要長。我們已經到達了這個目標，我們將努力利用這項成功贏得更多的國防合約。

An additional error of tangible success has been the continued development of further applications and use cases for our symmetric key agreement encryption software. Currently our sales and contract activities is focused largely on our Arqit NetworkSecure product, which enables quantum secure VPN connectivity, effectively securing data in transit. Ultimately, we want to develop applications for our core technology for securing data in transit, data in process, and data at rest.

另一個實際成功的錯誤是，我們繼續開發對稱金鑰協定加密軟體的進一步應用和用例。目前，我們的銷售和合約活動主要集中在我們的 Arqit NetworkSecure 產品上，該產品支援量子安全 VPN 連接，可有效保護傳輸中的資料。最終，我們希望為我們的核心技術開發應用程序，以保護傳輸中的資料、處理中的資料和靜態資料的安全。

Perhaps the most exciting application development has been in securing data in process, otherwise known as confidential computing. Confidential computing protects data by encrypting it while it is being processed by a computer, which is particularly important when processing sensitive data on shared infrastructure like a public cloud. For instance, confidential computing would allow AI to train and run on sensitive data without exposing the data to cloud providers, systems administrators, or data center hosts.

也許最令人興奮的應用程式開發是保護處理中的數據，也稱為機密計算。機密運算透過在電腦處理資料時對資料進行加密來保護數據，這在公有雲等共享基礎設施上處理敏感資料時尤其重要。例如，機密運算將允許人工智慧在敏感資料上進行訓練和運行，而無需將資料暴露給雲端提供者、系統管理員或資料中心主機。

We announced in collaboration with Intel, the integration of Arqit NetworkSecure who are running inside a trusted domain enclave created by Intel TDX. What this means is that together with Intel, Arqit can protect both data, both on the cloud server and while it's moving between cloud servers in a way that makes it completely hidden from any would-be hackers, as well as the hosting providers themselves. It provides data sovereignty across domains as information is processed, moved through data centers and sent to or from cloud repositories.

我們宣布與英特爾合作，整合 Arqit NetworkSecure，它在由英特爾 TDX 創建的可信任域區域內運行。這意味著，Arqit 與英特爾攜手合作，可以保護雲端伺服器上的資料以及在雲端伺服器之間移動的數據，使其完全隱藏在潛在駭客和託管服務提供者的視線之外。當資訊被處理、透過資料中心移動以及發送到雲端儲存庫或從雲端儲存庫發送時，它提供跨域的資料主權。

Confidential computing is a focus for large enterprises and is a significant addressable market with use cases that include AI training and inference, processing of regulated data, and the enforcement of zero trust. Our collaboration with Intel delivers a highly secure, differentiated solution to the market. The collaboration takes Arqit as a significant step closer to having additional applications for data in transit, process, and the rest.

機密運算是大型企業關注的重點，也是一個重要的潛在市場，其用例包括人工智慧訓練和推理、受監管資料的處理以及零信任的實施。我們與英特爾的合作為市場提供了高度安全、差異化的解決方案。此次合作使 Arqit 在擁有用於傳輸、處理和其他數據的更多應用程式方面邁出了重要的一步。

This is our third collaboration with Intel. We now have joint efforts across secure mobile communications, confidential computing, and server technology. Arqit is working jointly with Intel on further developments of these integrated technologies and go-to-market strategies. We are excited about where our efforts with Intel may lead.

這是我們與英特爾的第三次合作。我們目前在安全行動通訊、機密運算和伺服器技術方面開展了共同努力。Arqit 正在與英特爾合作進一步開發這些整合技術和市場策略。我們對與英特爾的合作可能帶來的成果感到興奮。

We stated on our fiscal year 2024 earnings call that focus was an important watchword for fiscal year 2025. One area of focus has been cost control, be it headcount, infrastructure, real estate, or travel. Nick Pointon, our CFO, will touch on these shortly. We've been disciplined, doing more with less and yet making substantial progress. Our performance compared to the budgeted cost has been strong. I'm pleased by the discipline we have exercised, and we'll continue to do so going forward.

我們在 2024 財年財報電話會議上表示，專注是 2025 財年的重要口號。重點關注的領域之一是成本控制，無論是員工人數、基礎設施、房地產還是旅行。我們的財務長 Nick Pointon 很快就會談到這些問題。我們嚴守紀律，用更少的資源做更多的事情，並且取得了實質的進步。與預算成本相比，我們的表現非常出色。我對我們實行的紀律感到滿意，我們將繼續這樣做。

Despite positive momentum in the market's understanding of our proposition and product adoption, some revenues were slower to be recognized than expected. We previously announced a multi-year contract with seven-figure total contract value for a customer in the Middle East. Revenue under the contract was expected to commence in early 2025. Due to unforeseen delays on part of the end customer, revenue did not commence until very late in March, just before the close of the financial period.

儘管市場對我們的主張和產品採用的理解呈現出積極的勢頭，但一些收入的確認速度比預期的要慢。我們先前宣布與中東的一位客戶簽訂了一份多年期合同，合約總價值達七位數。合約項下的收入預計將於 2025 年初開始。由於最終客戶的不可預見的延誤，收入直到 3 月下旬，也就是財務期結束之前才開始產生。

As our contract base is still modest and not able to readily absorb changes in timing, any unforeseen delays in contracts closing or revenue recognition can have an adverse effect on our results. Fortunately, the full terms of our Middle East contract remain in effect, and we expect to be recognizing revenue during the second half. I'm pleased with the progress we've made since the beginning of the first half of fiscal year 2025. With contractual wins in our two key vertical markets, telecom networking and defense, with additional visible opportunities to come.

由於我們的合約基礎仍然不大，無法輕易吸收時間變化，合約結束或收入確認的任何不可預見的延遲都可能對我們的業績產生不利影響。幸運的是，我們中東合約的全部條款仍然有效，我們預計將在下半年確認收入。我對自2025財年上半年以來我們的進展感到滿意。我們在兩個關鍵垂直市場（電信網路和國防）贏得了合同，未來還將有更多明顯的機會。

We have paying customers in the US, Europe, and the Middle East. We have exciting developments regarding additional applications in mobile communications and confidential computing, plus others that I have not yet discussed. We remain disciplined in our cost control and internal processes.

我們在美國、歐洲和中東都有付費客戶。我們在行動通訊和機密計算領域的其他應用方面取得了令人興奮的進展，還有一些我尚未討論過的應用。我們在成本控制和內部流程方面保持嚴格紀律。

For the balance of this fiscal year, the key focus points for the company will be: conversion of concluded tests and evaluation engagements into licenses, I see near-term opportunities, particularly in the telecom network space. Also, the commencement and hopefully completion of an end-to-end test and evaluation collaboration, which brings together a leading data center operator, leading telecom network operator, an AI company, and leading network and server technology vendors.

對於本財年的剩餘時間，公司的重點將是：將已完成的測試和評估工作轉化為許可證，我看到了近期的機會，特別是在電信網路領域。此外，端到端測試和評估合作也將開始並有望完成，它將匯集領先的資料中心營運商、領先的電信網路營運商、人工智慧公司以及領先的網路和伺服器技術供應商。

Finally, cost control will remain a priority. We have laid many additional courses of work to support our success going forward. Our progress is being recognized in the marketplace, and brand and product awareness is driving sales inquiries. The level of foot traffic at our stand at the recent RSA Cybersecurity Conference and the (inaudible) generator was substantial, higher than we've experienced at prior conferences.

最後，成本控制仍將是首要任務。我們已經制定了許多額外的工作計劃來支持我們未來的成功。我們的進步得到了市場的認可，品牌和產品知名度正在推動銷售諮詢。在最近的 RSA 網路安全大會上，我們展位和（聽不清楚）發電機的客流量非常大，比我們在之前的會議上遇到的要高。

The positive inquiry generated from leading IT vendors and network operators resulting from our tech and contract and partnership announcements was exciting. The sales leads generator created grounds for continued and increased optimism for the company's prospects. I believe revenue will ramp. Our encryption software is proven and unique. The market is moving towards us. We are well positioned to meet the rapidly growing quantum threat and address the results, the resulting market opportunity.

我們的技術、合約和合作夥伴關係公告引發了來自領先 IT 供應商和網路營運商的積極詢問，這令人興奮。銷售線索產生器為公司前景的持續和日益樂觀創造了基礎。我相信收入會增加。我們的加密軟體是經過驗證的且獨一無二的。市場正在向我們靠攏。我們已做好準備，應對快速增長的量子威脅並解決其結果以及由此產生的市場機會。

Thank you. Before I turn over the floor to Nick and discuss the financials, a quick housekeeping note. As of May 20, Nick has stepped down from the Board of Directors. I have joined the Board in his stead. I and the Board want to thank Nick for his service on the Board during these formative years of the company. He will continue in his role as our Chief Financial Officer.

謝謝。在我把發言權交給尼克並討論財務問題之前，先簡單介紹一下情況。截至 5 月 20 日，尼克已辭去董事會職務。我已代替他加入董事會。我和董事會要感謝尼克在公司成立初期為董事會所做的貢獻。他將繼續擔任我們的財務長。

With that, now over to you, Nick.

說完這些，現在輪到你了，尼克。

Thank you, Andy.

謝謝你，安迪。

For the first half of fiscal year 2025, Arqit generated $67,000 in revenue as compared to $119,000 in revenue for the comparable period in 2024. As discussed earlier, revenue for the first half of the fiscal period was adversely affected due to end customer delays in commencing activity under a previously announced multi-year contract in the EMEA region.

2025 財年上半年，Arqit 的營收為 67,000 美元，而 2024 年同期的營收為 119,000 美元。如前所述，由於最終客戶推遲開始根據先前宣布的 EMEA 地區多年期合約開展活動，本財政年度上半年的收入受到不利影響。

The variance between periods was also due to less revenue being recognized under customer contracts as Arkit continues to transition from primarily enterprise sales, for which revenue is recognized up front, to sales through channel partners for which revenue is recognized over time as services are provided under the contract. Going forward, we expect less further impact from the transition from enterprise sales to SaaS sales as the shift is now largely complete.

期間之間的差異也是由於根據客戶合約確認的收入減少，因為 Arkit 繼續從主要的企業銷售（預先確認收入）轉向透過通路合作夥伴的銷售（隨著合約規定的服務提供而逐漸確認收入）。展望未來，我們預期從企業銷售到 SaaS 銷售的轉變將不會帶來太大影響，因為這項轉變目前已基本完成。

Revenue from the Arqit SKA platform as a service and Arqit NetworkSecure products totaled $52,400. Professional services and maintenance revenue in support of contract activity was $14.5,000 for the period. For the comparable period in fiscal year 2024, Arqit SKA platform as a service and Arqit NetworkSecure contract revenue totaled $65,000 and professional services and maintenance in support of contracts activity was $54,000.

Arqit SKA 平台即服務和 Arqit NetworkSecure 產品的收入總計 52,400 美元。本期間支援合約活動的專業服務和維護收入為 14,5000 美元。2024 財年同期，Arqit SKA 平台即服務和 Arqit NetworkSecure 合約收入總計 65,000 美元，支援合約活動的專業服務和維護收入為 54,000 美元。

Arqit SKA platform revenue for the period was generated from contracts with six customers. For the six months ended March 31, 2024, the revenue was generated for contracts with nine customers. Four contracts represent a license for SKA platform as a service. Two such contracts represent multi-year recurring revenue contracts, specifically our contract in EMEA and our contract with a Tier 1 telecom network operator. We began recognizing revenue under both contracts immediately before the close of the first half period.

Arqit SKA 平臺本期收入來自與六位客戶簽訂的合約。截至 2024 年 3 月 31 日的六個月內，收入來自與九位客戶簽訂的合約。四份合約代表了SKA平台即服務的許可。其中兩份合約代表多年期經常性收入合約，特別是我們在歐洲、中東和非洲地區簽訂的合約以及我們與一級電信網路營運商簽訂的合約。我們在上半年結束前立即開始確認兩份合約的收入。

Two of our six revenue generating contracts were for Arqit NetworkSecure licenses. Two contracts for Arqit SKA platform as a service are professional services and maintenance contracts attached to them. It is our expectation that future SKA platform as a service contract will similarly have professional services and maintenance contracts attached.

我們簽訂的六份創收合約中有兩份是 Arqit NetworkSecure 授權。Arqit SKA平台即服務的兩份合約是專業服務合約以及附帶的維護合約。我們預期未來的 SKA 平台即服務合約同樣會附帶專業服務和維護合約。

Our administrative expenses equates to operating costs for those more familiar with US GAAP. The Administrative expenses for the first half of fiscal year 2025 were $18 million versus $16.8 million for the comparable period in fiscal year 2024. The variance between periods was due to a lower headcount resulting in lower staff expenses and share-based compensation, and a reduction in property costs as a result of the termination of Arqit's previous office lease arrangement being more than offset by unfavorable changes in foreign exchange.

對於熟悉美國公認會計準則的人來說，我們的管理費用相當於營運成本。2025 財年上半年的管理費用為 1,800 萬美元，而 2024 財年同期的管理費用為 1,680 萬美元。期間之間的差異是由於員工人數減少，從而導致員工費用和股權激勵減少，以及由於 Arqit 終止之前的辦公室租賃安排而導致的財產成本減少，但外匯的不利變化抵消了這一影響。

Arqit's headcount, as of March 31, 2025, was 72 employees as compared to 125 as of March 31, 2024.Administrative expenses for the period include a $1.3 million credit for a non-cash charge associated with share-based compensation versus a $293,000 credit for the comparable period in 2024. Operating loss for the period was $17.8 million versus a loss of $16.6 million for the first half of fiscal year 2024. The variance in operating losses -- in operating loss between the periods primarily reflects lower revenue and an increase in administrative expenses for the period.

截至 2025 年 3 月 31 日，Arqit 的員工人數為 72 人，而截至 2024 年 3 月 31 日的員工人數為 125 人。本期間的管理費用包括與股權激勵相關的非現金費用 130 萬美元的抵免額，而 2024 年同期的抵免額為 293,000 美元。本期間營業虧損為 1,780 萬美元，而 2024 財年上半年的虧損為 1,660 萬美元。營業虧損的差異－期間之間的營業虧損主要反映了本期間收入的減少和管理費用的增加。

For the period, loss before tax from continuing operations was $17.2 million. For the first half of the fiscal year 2024, loss before tax from continuing operations was $16.1 million. The variance between periods is primarily due to lower revenue, increased administrative expenses, lower finance income offset by lower finance costs. As of March 31, 2025, the company had cash and cash equivalents to hand of $24.8 million.

本期間持續經營業務的稅前虧損為 1,720 萬美元。2024財年上半年，持續營業稅前虧損為1,610萬美元。期間之間的差異主要是由於收入減少、管理費用增加、財務收入減少被財務成本減少所抵銷。截至 2025 年 3 月 31 日，該公司持有現金及現金等價物 2,480 萬美元。

And with that, I turned the call back to Andy.

說完，我把電話轉回給了安迪。

Thank you, Nick. I want to thank you for joining us today. My final comment is that we believe momentum is building for Arqit. Market awareness of the need for quantum safe encryption is growing. Awareness of our products is growing as well. Partners are selling Arqit-enabled solutions to their customers. Leading technology players are actively integrating our encryption software into applications to address market needs. The breadth and depth of discussions with additional potential partners is significant. All indicators are pointing in a positive direction for the company.

謝謝你，尼克。感謝您今天加入我們。我最後的評論是，我們相信 Arqit 的發展勢頭正在增強。市場對量子安全加密需求的認識正在不斷增強。人們對我們產品的認知度也在不斷提高。合作夥伴正在向其客戶銷售支援 Arqit 的解決方案。領先的科技公司正在積極將我們的加密軟體整合到應用程式中以滿足市場需求。與其他潛在合作夥伴進行討論的廣度和深度非常重要。所有指標都對公司的發展指向正面方向。

Thank you again, and with that, I hand the call back over to the operator for Q&A.

再次感謝您，然後我將電話交回給接線員進行問答。

(Operator Instructions) Scott Buck, H.C. Wainwright.

（操作員指示） Scott Buck，H.C.溫賴特。

Hi, good morning, guys. Thanks for taking my questions. Andy, there's a lot to digest there. The deals that closed at or near the end of the fiscal period, are they currently generating revenue today? And are these under multi-year contracts for the most part or shorter periods?

大家好，早安。感謝您回答我的問題。安迪，有很多東西要消化。在財務期末或接近財務期末完成的交易目前是否正在產生收入？這些合約大部分是多年期合約還是較短的期限？

Hey, Scott, appreciate the question. Thank you. Let me tackle that. So as we mentioned in the earnings release, the contract with the Tier 1 network operates for three years. The initial size of the contract minimizes its risk. We expect the contract will grow materially as it signs up end users. We noted that it's already engaged with three significant end users, as I mentioned, and we expect to revisit the contract relatively soon. As for the DoD contract, it's a one-year contract, a successful completion of the contract could lead to unity.

嘿，斯科特，我很感謝你提出這個問題。謝謝。讓我來解決這個問題。正如我們在收益報告中提到的那樣，與 Tier 1 網路簽訂的合約有效期為三年。合約的初始規模使其風險最小化。我們預計，隨著最終用戶的簽約，合約金額將大幅成長。我們注意到，正如我所提到的，它已經與三個重要的最終用戶合作，我們預計很快就會重新審視合約。至於國防部的合同，這是一份為期一年的合同，成功完成合約可以帶來統一。

Great. And then I'm curious on the sales team. It sounds like you guys have been doing some hiring there. What type of folks are you hiring? What industries are they coming from? And generally, how long does it take to get new sales higher up to speed?

偉大的。我對銷售團隊很好奇。聽起來你們在那裡一直在招募員工。您僱用什麼類型的人？他們來自哪些行業？一般來說，需要多長時間才能提高新銷售額？

This is Nick Pointon. I fear Andy may have lost reception. Just bear with us please, Scott.

我是 Nick Pointon。我擔心安迪可能已經失​​去訊號了。請耐心等待，斯科特。

Of course, thank you.

當然，謝謝。

I see he's trying to get back in. He's back on, I think. Andy, are you there now?

我看到他正試著回來。我想他又回來了。安迪，你現在在那裡嗎？

I am, I'm not even sure where I cut off. My apologies, my line dropped.

是的，我什至不確定我在哪裡停止了。抱歉，我的線路斷了。

It dropped at the end of the last -- Scott's first question -- your answer to your first question. So Scott, would you please repeat the second question regarding the sales people?

它在最後一個問題結束時出現——斯科特的第一個問題——你對你第一個問題的回答。那麼斯科特，您能重複一下有關銷售人員的第二個問題嗎？

Yeah, of course, Andy it sounds like you guys have been active in in hiring on the sales side. I'm curious what types of people have you been hiring, what industries are they coming from and generally how long does it take to get a new hire up to speed?

是的，當然，安迪，聽起來你們在銷售方面一直積極招募。我很好奇您招募了哪些類型的人才，他們來自哪些行業，以及通常需要多長時間才能讓新員工上手？

Yeah, hey, great question, Scott. So if you think to what I just talked to in the release there is the early salespeople are the people that have really proved out a lot of these use cases. So I said that for instance, the telco operator was a 14-month cycle from start to end. So these people have really had to roll their sleeves up and get to work in figuring a lot of things out.

是的，嘿，斯科特，這個問題問得好。因此，如果您想想我剛才在發布會上談到的內容，您會發現早期的銷售人員是真正證明了許多這些用例的人。所以我說，例如，電信業者從開始到結束是一個 14 個月的週期。因此，這些人真的必須捲起袖子，開始努力解決許多問題。

Now that the majority of that is done, we can hire more commercially available salespeople because we have a blueprint in the sales book for that. So the first of type operators for each space in each region and vertical, they of course they need to figure out the use cases and everything around compliance, how it fits in the infrastructure, et cetra.

現在大部分工作已經完成，我們可以僱用更多有商業資格的銷售人員，因為我們在銷售手冊中已經有了這方面的藍圖。因此，對於每個區域和垂直領域中的每個空間來說，第一種類型的運營商當然需要弄清楚用例以及與合規性有關的一切，以及它如何適應基礎設施等等。

Behind that then we're starting to hire people that know that vertical very well so they can talk the language of the customers. So for instance, in the US now we're looking at filling roles around telco and we'll be looking to fill roles more around defense. So these are people that are well versed and deep operators in those sectors, but we have a number of open roles which we're actively recruiting for within our operating plan to start capitalizing all that inbound that we saw at the RSA show recently in San Francisco.

在此之後，我們開始聘請非常了解該垂直領域的人才，以便他們能夠用客戶的語言進行交流。例如，在美國，我們現在正在尋找電信領域的職位，我們也將尋找更多國防領域的職位。這些人都是這些領域經驗豐富的深度營運人員，但我們在營運計畫中還有很多空缺職位正在積極招聘，以開始利用我們最近在舊金山舉行的 RSA 展會上看到的所有入站資源。

Hopefully that helps.

希望有幫助。

Yeah, absolutely. So as you guys start stacking these contract wins, it sounds like the sale cycle is starting to compress a little bit. How much of that do you attribute to your ability to sell versus kind of broader market, interest and maybe even a little bit of fear of missing out by some of the folks that are not as quick to move?

是的，絕對是如此。因此，當你們開始累積這些合約勝利時，聽起來銷售週期開始有點壓縮了。您認為這在多大程度上歸因於您的銷售能力，而不是更廣泛的市場、興趣，甚至可能是因為某些行動遲緩的人害怕錯過機會？

Yeah, so I think for us, we talked about earlier, a kind of pay-as-you-grow model, and I think it really aligns, the two of us as in the customer, but then it also allows them in this B2B2B model to align with their end customers, particularly in telco. So we spent a lot of time trying to remove the friction in the sales model such that incremental contracts, particularly around consumption of our services, so you think about things such as endpoints of the number of keys generated. Make it as easy as possible for them to incrementally sign up and absorb incremental capacity under the existing contracts. And again, for renewal upsizing, we make it as easy as possible.

是的，所以我認為對於我們來說，我們之前討論過一種按需付費的模式，我認為它確實將我們雙方作為客戶進行了整合，但它也允許他們在這種 B2B2B 模式中與他們的最終客戶保持一致，特別是在電信公司。因此，我們花費了大量時間試圖消除銷售模式中的摩擦，例如增量合同，特別是圍繞我們服務的消費，這樣您就可以考慮諸如生成的密鑰數量的端點之類的事情。讓他們盡可能輕鬆地在現有合約下逐步簽約並吸收增量容量。再次強調，對於續約規模的擴大，我們會盡量簡化流程。

So once we're in the estate of an existing customers broaden our footprint, we think we'll make it as easy as possible. And we have technical familiarity with the customer's architecture, so implementation becomes more of a blueprint. And again, I want to stress we're a software company and not a professional services company, so we want to make that implementation as smooth and as simple as possible. And we really believe we are probably one of the best in the market at that in terms of just embedding our tech into more complex customer environments.

因此，一旦我們進入現有客戶的領域並擴大我們的足跡，我們認為我們會盡可能地簡化這個過程。而且我們在技術上熟悉客戶的架構，因此實作變得更像藍圖。我想再次強調，我們是一家軟體公司，而不是專業服務公司，因此我們希望使實施盡可能順利和簡單。我們確實相信，就將我們的技術嵌入到更複雜的客戶環境而言，我們可能是市場上最好的公司之一。

As for new customers, being able to point to existing customers and having precedent implementation blueprints makes the initial sale easier than in the past. As I just talked about for the new salespeople, that should compress sales cycles substantially from the first type 14-month in telco, for instance. That being said, any new customer will still want to feel comfortable that they're -- when they're adopting new technology, particularly into their critical infrastructure, that the new tech technology is properly tested before it's adopted.

對於新客戶來說，能夠指向現有客戶並擁有先例實施藍圖使得初始銷售比過去更容易。正如我剛才談到的新銷售人員，這應該會大大壓縮銷售週期，例如電信業的第一種銷售週期為 14 個月。話雖如此，任何新客戶在採用新技術時，尤其是在關鍵基礎設施中採用新技術時，仍然希望新技術在採用之前經過適當的測試。

So all that said, we do believe, the bigger picture is we're going to see shorter sales cycles as we move forward, which means it speeds up that adoption and rev recycle. And I talked to -- I called it a course of bricks, and I kind of think of subscription revenue recognition that way as you layer it on the course of bricks, especially if they're multi-year agreements because then you've got the out years and that deferred revenue to take as well.

所以，總而言之，我們確實相信，更大的前景是，隨著我們不斷前進，我們將看到更短的銷售週期，這意味著它加快了採用和回收的速度。我和大家聊過——我稱它為“磚塊路線”，我認為訂閱收入確認的方式就像你把它放在“磚塊路線”上一樣，特別是如果它們是多年期協議，因為這樣你就有了未來幾年的收入，還有遞延收入可以拿。

So it just builds and builds and builds rather than the older world which we've moved away from, which is these very big one-off perpetual licenses which had a lot of friction commercially and had a lot of friction to adopt and were just causing a slowdown in the market. So we believe this new model is really to the benefit of us and the customers.

因此，它只是不斷地建設，而不是我們已經遠離的舊世界，也就是這些非常大的一次性永久許可證，這些許可證在商業上存在很多摩擦，在採用方面也存在很多摩擦，這導致了市場放緩。因此我們相信這種新模式確實對我們和客戶有利。

No, that makes a lot of sense. And your Intel partnership on confidential computing, how should investors think about how that can be monetized?

不，這很有道理。您與英特爾在機密計算方面的合作，投資者該如何思考如何將其貨幣化？

So we're working on a number of different use cases and I mentioned some of them in the earlier part of the call, which is really for us, if you think about any large enterprise and even in federal defense as well, they have substantial investments in cloud infrastructure and now they have substantial investments in AI as well. And we feel with a common thread and common wrapper, that enables them to take advantage of those existing investments but basically protect themselves from the emerging quantum threat.

因此，我們正在研究許多不同的用例，我在電話會議的早些時候提到了其中一些，這對我們來說確實很重要，如果你想想任何大型企業，甚至聯邦國防部，他們在雲端基礎設施上都進行了大量投資，現在他們也在人工智慧上進行了大量投資。我們認為，透過共同的思路和共同的包裝，他們可以充分利用現有的投資，但基本上可以保護自己免受新興量子威脅。

Intel is a fabulous partner for us and I cannot speak more highly of the work we're doing with them. We feel like we've really clicked into a great rhythm with them, and we have a very common view of kind of this emerging confidential compute space. They believe it's going to be a big attitude for their business, and we believe that as well. But now being able to adopt the new public cloud infrastructures, multi-cloud infrastructures, AI, LLNs, et cetera, and not have to worry about that threat of quantum is a big weight off their shoulders.

英特爾是我們優秀的合作夥伴，我對我們與他們合作的成果給予了極高的評價。我們感覺我們確實與他們達成了很好的共識，並且我們對這種新興的機密運算空間有著非常共同的看法。他們相信這對他們的業務來說將是一個重要的態度，我們也相信這一點。但現在能夠採用新的公有雲基礎設施、多雲基礎設施、人工智慧、LLN 等，而不必擔心量子威脅，這讓他們如釋重負。

And again, we make this as easy to consume as possible and running on chip on in the TDX enclave, which Intel provided in the new generation of devices means that we're exactly where it's needed as well. And you can see the footprint of our technology is small enough to fit in there but powerful enough to protect against all of those different variables I talked about. So we're thrilled with the work we're doing with Intel.

再次強調，我們盡可能地簡化了使用，並在 TDX 飛地晶片上運行，英特爾在新一代設備中提供了此功能，這意味著我們也正好滿足了它的需求。您可以看到，我們的技術佔用空間足夠小，但功能卻足夠強大，可以防禦我所談到的所有不同變數。因此，我們對與英特爾的合作感到非常興奮。

That's perfect. And then last one, if I can squeeze in, Nick, given the momentum in the business on the sales side, do you expect any increase in OpEx to support some of these new contracts you signed towards the end of the period? Just want to understand what the operating leverage could look like here at the business scales.

那很完美。然後最後一個問題，如果我可以插話的話，尼克，考慮到銷售方面的業務勢頭，您是否預計營運支出會增加以支持您在本期末簽署的一些新合約？只是想了解在業務規模上經營槓桿是什麼樣的。

Okay, so I think the main thing is to mention is that our headcount is down materially from a year ago. And we kind of repositioned our employee base to increase the focus on customer fulfillment, as we have been winning customer contracts and expecting more to come. And we are currently sufficiently staffed for the near term. We do have a handful of budget to open positions, as Andy mentioned earlier, that we are looking to fill, but we have no plans for meaningful growth in headcount at this time.

好的，我認為主要要提到的是，我們的員工人數與一年前相比大幅下降。我們重新定位了員工基礎，更加重視客戶滿意度，因為我們已經贏得了客戶合同，並期待未來能贏得更多合約。目前，我們的人員配備在短期內是足夠的。正如安迪之前提到的，我們確實有少量預算可以開放職位，我們希望填補這些職位，但目前我們還沒有計劃大幅增加員工人數。

In terms of other operating costs, we do not see significant growth over the near term. Our trailing monthly cash burn has been around sort of $2.2 million to $2.4 million-ish, and we expect that to stay around that level for the meaningful amount of time. Does that give you what you need?

就其他營運成本而言，我們認為短期內不會有顯著成長。我們過去每月的現金消耗大約在 220 萬美元到 240 萬美元之間，我們預計這一水平將在相當長的一段時間內保持在這個水平上。這能滿足您的需求嗎？

Yes, that's Very helpful.

是的，這非常有幫助。

Okay.

好的。

I appreciate the added color, guys. Thank you very much and congrats on all the momentum in the business.

我很欣賞你們所添加的顏色。非常感謝您，並祝賀業務取得如此大的進展。

Thank you, Scott. I appreciate the questions.

謝謝你，斯科特。我很感謝你們提出這些問題。

Thank you. We have no further questions at this time. Now, I'll turn the call back over to Andy Leaver for closing remarks. Andy?

謝謝。目前我們沒有其他問題。現在，我將把電話轉回給安迪·利弗 (Andy Leaver) 作結束語。安迪？

Thank you. Again, thank you for joining us today. We look forward to speaking with you again following the close of our first half fiscal 2025 results. That said, we will find additional forms in which to engage with you in the coming year in an effort to be more timely in providing updates to investors. We appreciate your interest in the company. Thank you again.

謝謝。再次感謝您今天加入我們。我們期待在 2025 財年上半年業績結束後再次與您交談。儘管如此，我們將在未來一年尋找其他形式與您合作，以便更及時地向投資者提供最新資訊。我們感謝您對我們公司的關注。再次感謝您。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect. Speakers, please stand by for your debrief.

謝謝各位，女士們、先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。各位發言人，請稍候，聽取報告。