Rigetti Computing (RGTI) reported solid Q2 results, driven by Novera shipments and a shift toward a more commercial revenue mix, while coherence remains the key technical hurdle, Wedbush Securities said in a note Friday.
The analysts said Novera carried the quarter, with system and component sales contributing $4.1 million of the $5.1 million in revenue, compared with no contribution a year ago. Research and services revenue declined to $1 million from $1.7 million.
Government revenue fell to 18% of sales from 92% a year ago, while US revenue increased to 80% of total sales. Both nine-qubit systems delivered this year went to commercial buyers, the analysts said, adding, "we have been waiting on RGTI booking commercial revenues, and sales arrived faster than we had previously modeled."
The analysts said Q4 is expected to be a key driver of full-year revenue growth, with the company expecting to recognize revenue from its $8.4 million C-DAC 108-qubit system upon installation and acceptance.
Wedbush Securities cut its price target on Rigetti Computing to $37 from $40 while reiterating its outperform rating.
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