Pasqal ramps up growth plans after Nasdaq listing strengthens balance sheet

By Leo Marchandon

Sept 24 (Reuters) - French quantum processor maker Pasqal on Thursday said it held €312.9 million ($355.8 million) in cash following its Nasdaq listing, giving it funds to expand sales operations as it works to convert early customer interest into sustainable revenue.

The company said it would use the fresh capital primarily to expand commercial and technical-sales teams, advance its technology and increase production capacity in 2027 and 2028.

Pasqal currently operates seven quantum processors, deployed across customer sites and internal research programmes, and has annual production capacity for 13 machines at facilities near Paris and in Canada.

It sells machines directly to large companies and data centres, while also selling time-based access to its machine through Google Cloud and Microsoft Azure. Its clients include Saudi's Aramco and Crédit Agricole . 

Machine sales can take more than 12 months from contract signing to delivery, while revenue from cloud-based services is recognised as customers use the platform, Pasqal said.

The lengthy sales cycle means there can be a significant lag between securing an order and recognising revenue. Pasqal reported first-half revenue of 4.9 million euros, up 14%, and 70.4 million euros in booked and awarded business, a measure that includes grants, tax credits and multi-year customer contracts.

Its operating loss widened to 59.2 million euros from 19.8 million euros a year earlier, including 37.5 million euros in share-based payments and listing-related costs.

($1 = 0.8794 euros)

(Reporting by Leo Marchandon in Gdansk; editing by Bartosz Dabrowski)