By Connor Hart

Shares of Quantum Computing more than doubled after the company secured its first chip order, which it said underscores the growing global demand for its technologies.

The stock surged 111%, to $2.92, in afternoon trading Wednesday. Shares have more than tripled since the beginning of the year.

The Hoboken, N.J., software company, which focuses on software for complex optimization computations, secured its first order for its thin film lithium niobate, or TFLN, photonic chip foundry. These chips will aid in the production of optical devices and photonic engines, which the company said are currently in demand across the coherent communication, telecommunication and data communication markets.

Terms of the order, which was placed by a prominent research and technology institute based in Asia, weren't disclosed. The first chips for this order are expected to be delivered in December, with the full order set to be completed by the end of the first quarter of 2025.

This announcement came a week after Quantum reported its third-quarter results, narrowing its loss to $5.7 million, or 6 cents a share, from a loss of $7.1 million, or 10 cents a share, a year earlier. Revenue doubled to just over $100,000.

These results are reflective of the company's developmental and early-commercialization stage, Edward Woo, an analyst at Ascendiant Capital Markets, said in a research note Monday. "We believe investors should be focused on its product commercialization, which we believe that revenue should grow significantly in 2025."

The rapid and widespread adoption of cutting-edge technologies will additionally continue to drive demand for high-performance computing, which Quantum will help to provide, Woo added.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 13, 2024 15:05 ET (20:05 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.