Brian Kinstlinger: Great. And then my second question would be, has anything changed in terms of your technology roadmap? Do you still believe, is there anything that’s happened that changes your belief that you will accomplish your goal this year and more importantly next year?
Subodh Kulkarni: Well, as we mentioned in our press release, we are certainly excited to announce that we have accomplished 99.3% 2-qubit gate fidelity with our 9-qubit device. That gives us confidence that before the end of this year, we should be able to demonstrate more than 99% or higher 2-qubit gate fidelity on our 84-qubit device. So, that’s consistent with what we have said. We feel pretty good about executing to that roadmap. Once we hit 99%, we will embark on scaling up the qubit count, but we will also continue to work on fidelity. I mean this is going to be an ongoing evolution. Ultimately, long-term, a decade from now, we expect quantum computers to hit 99.9% or even higher fidelity. So, we will continue to improve both fidelity and qubit count.
We feel really good about where we are right now with our 9-qubit device and the 84-qubit device. So, we certainly feel that we are executing well on the roadmap. And before the end of this year, we will have 84-qubit at 99% or better 2-qubit gate fidelity. And before the end of next year, we should be able to improve both the qubit count and fidelity significantly from that point on. So, overall, we feel very good about the roadmap and where we are and also the overall benefits of superconducting quantum computing and the overall roadmap of that modality.
Brian Kinstlinger: Great. Thank you so much.
Subodh Kulkarni: Thanks Brian.
Operator: Please standby for our next question. Our next question comes from the line of Krish Sankar with TD Cowen. Your line is open.
Unidentified Analyst: Hi. Thanks for taking my questions. This is Steven calling on behalf of Krish. Yes, the first question I had was regarding the Horizon QPU sale. I am just wondering, first of all, like for that transaction, was the revenue recognized during the quarter or is that potentially a later rev-rec based on installation? And I have a couple of follow-ups as well.
Subodh Kulkarni: So…
Jeff Bertelsen: Yes. We…
Subodh Kulkarni: Go ahead.
Jeff Bertelsen: I was going to say, we anticipate that rev-rec for that would be in Q2.
Unidentified Analyst: Okay. Got it. Thanks for that, Jeff. And I guess more broadly speaking for these announcements related to sales to research labs where the installation may be further out in the future. In general, is the rev-rec at the time of shipment or is that during – potentially during the time of installation?
Jeff Bertelsen: I will take that one too, Subodh. I mean it does depend somewhat on the terms of the contracts and what acceptance criteria might be in them, but generally we would expect to recognize revenue for the QPUs when we ship them for Novera.
Unidentified Analyst: Okay. Great. And just lastly, maybe a kind of a bigger picture question for you. And it’s sort of related to the trade-off of hardware sales and Novera QP sales in the near, medium-term versus sort of longer term revenue opportunities from your quantum computing services. I know like in the near-term here, these incremental Novera sales are great for cash generation, but just kind of wondering for these research labs and other contract-based labs that they are selling QPUs to, is there sort of a potential longer term revenue opportunity that’s being traded off for the near-term hardware sale? Thank you.
Subodh Kulkarni: It’s a good question, Steven. I don’t believe there is a trade-off involved here. The national labs who are purchasing the 9-qubit or in UK’s case the 24-qubit quantum computing system. They are doing it primarily for research purposes. They want to get their hands on the system. They want to experiment with it. They want to see what kind of pulses they should be using and optimization of pulses and fundamental understanding where their researchers understand how quantum computers work and how they should improve the parts of the system that they are working on. When we enable quantum advantage, which we think will happen in a couple years when we are at a few hundred qubits at 99.5% or higher 2-qubit gate fidelity, they will start using them for applications and getting practical benefits.
We don’t think the current purchases of the research systems is going to be hurting future opportunities with QCS because by that time quantum advantage will be demonstrated or what we call, narrow quantum advantage will be demonstrated and the applications they will be running on will be more commercial kind of applications or practical problems. Right now, it’s mostly research type work that they are doing. So, I don’t believe there is a trade-off. I view it as a first and a necessary step for national labs and researchers to understand quantum computing. It is a very different form of computing. They really need to understand how it works, what the firmware looks like, what kind of application software and user interfaces they need to develop.
So, it’s a good way to get their hands dirty if you will understand the system at a fundamental level. Once we enable narrow quantum advantage, they will move more into the application and so on. So, I don’t believe there is a trade-off going on. I think these are cumulative opportunities. So, when we enable narrow quantum advantage, I do believe the existing customers will come back and want to start either buying bigger devices or start using QCS services and they are not going to offset that against current purchases. Hopefully that answers your question.
Unidentified Analyst: Yes, it does. Thank you so much and nice job on the execution.
Subodh Kulkarni: Thanks Steven.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of David Williams with The Benchmark Company. Your line is open. Check to see if you are on mute. David Williams, your line is open. Due to no response, we will go to the next person. Ladies and gentlemen, I am showing no further questions in the queue. I would now like to turn the call back over to Subodh for closing remarks.
Subodh Kulkarni: Thank you for your interest and questions. We look forward to updating you after our Q2 earnings call. Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
