By Mackenzie Tatananni

Shares of Quantum Computing surged Friday after the company said its planned quantum chip foundry was progressing.

In a statement Thursday, interim CEO Yuping Huang said the company had taken another step toward launching an operational foundry. Huang said the company had finished construction of its Arizona-based factory in the quarter, marking a "major milestone."

The foundry will process the materials used in the photonic chips that power certain quantum machines. Quantum Computing also secured its fifth purchase order in the quarter from a Canadian research group.

"We're encouraged by our early traction, which is the first step in what we believe is a significant, multi-year opportunity to serve the expanding markets in datacom, telecom, and quantum-enabled applications, " Huang said.

Quantum Computing stock surged 20% to $11.12 on Friday. The S&P 500 and tech-heavy Nasdaq Composite were both flat.

Quantum Computing works closely with research institutions, and counts NASA and Los Alamos National Laboratory among its clients. Huang said the company "continued to deepen engagement with both government and commercial partners," underscoring a growing interest in quantum technology.

Also on Friday, the New Jersey-based company, which isn't profitable, reported quarterly results. While its revenue of $39,000 in the March quarter was higher than the $27,000 reported a year earlier, it was nearly half the $62,000 recorded the previous quarter.

Operating expenses declined to $8.3 million from $8.9 million in the previous quarter, but were notably higher than the $6.3 million expenses recorded in the year-ago period. Management attributed the year-over-year increase to "higher employee-based expenses."

The stock has seen explosive gains over the past 12 months, skyrocketing 1,277% amid mounting interest in quantum computing. However, shares have slumped this in 2025, remain down 34% despite Friday's gains.

The stock tumbled in March following disappointing fourth-quarter financials and an industry-wide selloff that occurred on the heels of Nvidia's annual developer conference.

Quantum Computing was also the subject of a short report in January that raised questions about health of its business. The development came after another short report in November 2024 presented similar concerns.

The company faced a leadership shake-up last month when former CEO William McGann announced his retirement. Huang will oversee the post until a permanent successor is found.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 16, 2025 11:35 ET (15:35 GMT)

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