Fintech PR

BGC Group Updates its Outlook for the Fourth Quarter of 2023 and Provides Update to FMX Announcement Timing

Published

11 months ago

December 29, 2023

bgc-group-updates-its-outlook-for-the-fourth-quarter-of-2023-and-provides-update-to-fmx-announcement-timing

NEW YORK, Dec. 29, 2023 /PRNewswire/ — BGC Group, Inc. (Nasdaq: BGC), today announced that it has updated its outlook for the quarter ending December 31, 2023 and provided an update to the expected timing of upcoming FMX announcements.

Updated Outlook
BGC expects to be around the high-end of its previously stated outlook ranges for revenue and pre-tax Adjusted Earnings for the fourth quarter of 2023. The Company’s outlook was contained in BGC’s financial results press release issued on October 30, 2023, which can be found at http://ir.bgcg.com.

Howard W. Lutnick, Chairman and CEO of BGC Group, a leading global brokerage and financial technology company, said, “Our business performed strongly throughout the fourth quarter. We expect to report double-digit revenue and pre-tax Adjusted Earnings growth for both the fourth quarter and full year 2023.”

Howard W. Lutnick also commented “We’ve made significant progress with FMX on multiple fronts during the quarter. We expect to have CFTC regulatory approval and announce our strategic partners in early 2024.”

Non-GAAP Financial Measures
The non-GAAP definitions below include references to certain equity-based compensation instruments, such as restricted stock awards and/or restricted stock units (“RSUs”), that the Company has issued and outstanding following its corporate conversion on July 1, 2023. Although BGC is retaining certain defined terms and references, including references to partnerships or partnership units, for purposes of comparability before and after the corporate conversion, such references may not be applicable following the period ended June 30, 2023.

The Company has clarified its practice in an updated definition of its “Calculation of Non-Compensation Adjustments for Adjusted Earnings”. BGC has not modified any prior period non-GAAP measures related to this clarification.

This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Non-GAAP financial measures used by the Company include “Adjusted Earnings before noncontrolling interests and taxes”, which is used interchangeably with “pre-tax Adjusted Earnings”; “Post-tax Adjusted Earnings to fully diluted shareholders”, which is used interchangeably with “post-tax Adjusted Earnings”; “Adjusted EBITDA”; “Liquidity”; and “Constant Currency”. The definitions of these terms are below.

Adjusted Earnings Defined
BGC uses non-GAAP financial measures, including “Adjusted Earnings before noncontrolling interests and taxes” and “Post-tax Adjusted Earnings to fully diluted shareholders”, which are supplemental measures of operating results used by management to evaluate the financial performance of the Company and its consolidated subsidiaries. BGC believes that Adjusted Earnings best reflect the operating earnings generated by the Company on a consolidated basis and are the earnings which management considers when managing its business.

As compared with “Income (loss) from operations before income taxes” and “Net income (loss) for fully diluted shares”, both prepared in accordance with GAAP, Adjusted Earnings calculations primarily exclude certain non-cash items and other expenses that generally do not involve the receipt or outlay of cash by the Company and/or which do not dilute existing stockholders. In addition, Adjusted Earnings calculations exclude certain gains and charges that management believes do not best reflect the underlying operating performance of BGC. Adjusted Earnings is calculated by taking the most comparable GAAP measures and adjusting for certain items with respect to compensation expenses, non-compensation expenses, and other income, as discussed below.

Calculations of Compensation Adjustments for Adjusted Earnings and Adjusted EBITDA

Treatment of Equity-Based Compensation Line Item for Adjusted Earnings and Adjusted EBITDA
The Company’s Adjusted Earnings and Adjusted EBITDA measures exclude all GAAP charges included in the line item “Equity-based compensation, dividend equivalents and allocations of net income to limited partnership units and FPUs” (or “equity-based compensation” for purposes of defining the Company’s non-GAAP results) as recorded on the Company’s GAAP Consolidated Statements of Operations and GAAP Consolidated Statements of Cash Flows. These GAAP equity-based compensation charges reflect the following items:

Charges related to amortization of RSUs, restricted stock awards, other equity-based awards, and limited partnership units;
Charges with respect to grants of exchangeability, which reflect the right of holders of limited partnership units with no capital accounts, such as LPUs and PSUs, to exchange these units into shares of common stock, or into partnership units with capital accounts, such as HDUs, as well as cash paid with respect to taxes withheld or expected to be owed by the unit holder upon such exchange. The withholding taxes related to the exchange of certain non-exchangeable units without a capital account into either common shares or units with a capital account may be funded by the redemption of preferred units such as PPSUs;
Charges with respect to preferred units and RSU tax accounts. Any preferred units and RSU tax accounts would not be included in the Company’s fully diluted share count because they cannot be made exchangeable into shares of common stock and are entitled only to a fixed distribution or dividend. Preferred units are granted in connection with the grant of certain limited partnership units that may be granted exchangeability or redeemed in connection with the grant of shares of common stock, and RSU tax accounts are granted in connection with the grant of RSUs. The preferred units and RSU tax accounts are granted at ratios designed to cover any withholding taxes expected to be paid. This is an alternative to the common practice among public companies of issuing the gross amount of shares to employees, subject to cashless withholding of shares, to pay applicable withholding taxes;
GAAP equity-based compensation charges with respect to the grant of an offsetting amount of common stock or partnership units with capital accounts in connection with the redemption of non-exchangeable units, including PSUs and LPUs;
Charges related to grants of equity awards, including common stock, RSUs, restricted stock awards or partnership units with capital accounts;
Allocations of net income to limited partnership units and FPUs. Such allocations represent the pro-rata portion of post-tax GAAP earnings available to such unit holders; and
Charges related to dividend equivalents earned on RSUs and any preferred returns on RSU tax accounts.

The amounts of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such expected charges during the annual period, as described further below under “Methodology for Calculating Adjusted Earnings Taxes.”

Virtually all of BGC’s key executives and producers have equity stakes in the Company and its subsidiaries and generally receive deferred equity as part of their compensation. A significant percentage of BGC’s fully diluted shares are owned by its executives, partners and employees. The Company issues RSUs, restricted stock, limited partnership units (prior to July 1, 2023) as well as other forms of equity-based compensation, including grants of exchangeability into shares of common stock (prior to July 1, 2023), to provide liquidity to its employees, to align the interests of its employees and management with those of common stockholders, to help motivate and retain key employees, and to encourage a collaborative culture that drives cross-selling and revenue growth.

All share equivalents that are part of the Company’s equity-based compensation program, including REUs, PSUs, LPUs, HDUs, and other units that may be made exchangeable into common stock, as well as RSUs (which are recorded using the treasury stock method), are included in the fully diluted share count when issued or at the beginning of the subsequent quarter after the date of grant.

Compensation charges are also adjusted for certain other cash and non-cash items.

Certain Other Compensation-Related Adjustments for Adjusted Earnings
BGC also excludes various other GAAP items that management views as not reflective of the Company’s underlying performance in a given period from its calculation of Adjusted Earnings. These may include compensation-related items with respect to cost-saving initiatives, such as severance charges incurred in connection with headcount reductions as part of broad restructuring and/or cost savings plans.

Calculation of Non-Compensation Adjustments for Adjusted Earnings
Adjusted Earnings calculations may also exclude items such as:

Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions;
Acquisition related costs;
Non-cash GAAP asset impairment charges;
Resolutions of litigation, disputes, investigations, or enforcement matters that are generally non-recurring, exceptional, or unusual, or similar items that management believes do not best reflect BGC’s underlying operating performance, including related unaffiliated third-party professional fees and expenses; and
Various other GAAP items that management views as not reflective of the Company’s underlying performance in a given period, including non-compensation-related charges incurred as part of broad restructuring and/or cost savings plans. Such GAAP items may include charges for professional fees and expenses, exiting leases and/or other long-term contracts as part of cost-saving initiatives, as well as non-cash impairment charges related to assets, goodwill and/or intangible assets created from acquisitions.

Calculation of Adjustments for Other (income) losses for Adjusted Earnings
Adjusted Earnings calculations also exclude gains from litigation resolution and certain other non-cash, non-dilutive, and/or non-economic items, which may, in some periods, include:

Gains or losses on divestitures;
Fair value adjustment of investments;
Certain other GAAP items, including gains or losses related to BGC’s investments accounted for under the equity method; and
Any unusual, non-ordinary, or non-recurring gains or losses.

Methodology for Calculating Adjusted Earnings Taxes
Although Adjusted Earnings are calculated on a pre-tax basis, BGC also reports post-tax Adjusted Earnings to fully diluted shareholders. The Company defines post-tax Adjusted Earnings to fully diluted shareholders as pre-tax Adjusted Earnings reduced by the non-GAAP tax provision described below and net income (loss) attributable to noncontrolling interest for Adjusted Earnings.

The Company calculates its tax provision for post-tax Adjusted Earnings using an annual estimate similar to how it accounts for its income tax provision under GAAP. To calculate the quarterly tax provision under GAAP, BGC estimates its full fiscal year GAAP income (loss) from operations before income taxes and noncontrolling interests in subsidiaries and the expected inclusions and deductions for income tax purposes, including expected equity-based compensation during the annual period. The resulting annualized tax rate is applied to BGC’s quarterly GAAP income (loss) from operations before income taxes and noncontrolling interests in subsidiaries. At the end of the annual period, the Company updates its estimate to reflect the actual tax amounts owed for the period.

To determine the non-GAAP tax provision, BGC first adjusts pre-tax Adjusted Earnings by recognizing any, and only, amounts for which a tax deduction applies under applicable law. The amounts include charges with respect to equity-based compensation; certain charges related to employee loan forgiveness; certain net operating loss carryforwards when taken for statutory purposes; and certain charges related to tax goodwill amortization. These adjustments may also reflect timing and measurement differences, including treatment of employee loans; changes in the value of units between the dates of grants of exchangeability and the date of actual unit exchange; changes in the value of RSUs and/or restricted stock awards between the date of grant and the date the award vests; variations in the value of certain deferred tax assets; and liabilities and the different timing of permitted deductions for tax under GAAP and statutory tax requirements.

After application of these adjustments, the result is the Company’s taxable income for its pre-tax Adjusted Earnings, to which BGC then applies the statutory tax rates to determine its non-GAAP tax provision. BGC views the effective tax rate on pre-tax Adjusted Earnings as equal to the amount of its non-GAAP tax provision divided by the amount of pre-tax Adjusted Earnings.

Generally, the most significant factor affecting this non-GAAP tax provision is the amount of charges relating to equity-based compensation. Because the charges relating to equity-based compensation are deductible in accordance with applicable tax laws, increases in such charges have the effect of lowering the Company’s non-GAAP effective tax rate and thereby increasing its post-tax Adjusted Earnings.

BGC incurs income tax expenses based on the location, legal structure and jurisdictional taxing authorities of each of its subsidiaries. Certain of the Company’s entities are taxed as U.S. partnerships and are subject to the Unincorporated Business Tax (“UBT”) in New York City. Any U.S. federal and state income tax liability or benefit related to the partnership income or loss, with the exception of UBT, rests with the unit holders rather than with the partnership entity. The Company’s consolidated financial statements include U.S. federal, state, and local income taxes on the Company’s allocable share of the U.S. results of operations. Outside of the U.S., BGC operates principally through subsidiary corporations subject to local income taxes. For these reasons, taxes for Adjusted Earnings are expected to be presented to show the tax provision the consolidated Company would expect to pay if 100% of earnings were taxed at global corporate rates.

Calculations of Pre- and Post-Tax Adjusted Earnings per Share
BGC’s pre- and post-tax Adjusted Earnings per share calculations assume either that:

The fully diluted share count includes the shares related to any dilutive instruments, but excludes the associated expense, net of tax, when the impact would be dilutive; or
The fully diluted share count excludes the shares related to these instruments, but includes the associated expense, net of tax, when the impact would be anti-dilutive.

The share count for Adjusted Earnings excludes certain shares and share equivalents expected to be issued in future periods but not yet eligible to receive dividends and/or distributions. Each quarter, the dividend payable to BGC’s stockholders, if any, is expected to be determined by the Company’s Board of Directors with reference to a number of factors. The declaration, payment, timing, and amount of any future dividends payable by the Company will be at the discretion of its Board of Directors using the fully diluted share count. For more information on any share count adjustments, see the table titled “Fully Diluted Weighted-Average Share Count under GAAP and for Adjusted Earnings” in the Company’s most recent financial results press release.

Management Rationale for Using Adjusted Earnings
BGC’s calculation of Adjusted Earnings excludes the items discussed above because they are either non-cash in nature, because the anticipated benefits from the expenditures are not expected to be fully realized until future periods, or because the Company views results excluding these items as a better reflection of the underlying performance of BGC’s ongoing operations. Management uses Adjusted Earnings in part to help it evaluate, among other things, the overall performance of the Company’s business and to make decisions with respect to the Company’s operations.

The term “Adjusted Earnings” should not be considered in isolation or as an alternative to GAAP net income (loss). The Company views Adjusted Earnings as a metric that is not indicative of liquidity, or the cash available to fund its operations, but rather as a performance measure. Pre- and post-tax Adjusted Earnings, as well as related measures, are not intended to replace the Company’s presentation of its GAAP financial results. However, management believes that these measures help provide investors with a clearer understanding of BGC’s financial performance and offer useful information to both management and investors regarding certain financial and business trends related to the Company’s financial condition and results of operations. Management believes that the GAAP and Adjusted Earnings measures of financial performance should be considered together.

For more information regarding Adjusted Earnings, see the sections of this document and/or in the Company’s most recent financial results press release titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS”, including the related footnotes, for details about how BGC’s non-GAAP results are reconciled to those under GAAP.

Adjusted EBITDA Defined
BGC also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as GAAP “Net income (loss) available to common stockholders”, adjusted to add back the following items:

Provision (benefit) for income taxes;
Net income (loss) attributable to noncontrolling interest in subsidiaries;
Interest expense;
Fixed asset depreciation and intangible asset amortization;
Equity-based compensation, dividend equivalents and allocations of net income to limited partnership units and FPUs;
Impairment of long-lived assets;
(Gains) losses on equity method investments; and
Certain other non-cash GAAP items, such as non-cash charges of amortized rents.

The Company’s management believes that its Adjusted EBITDA measure is useful in evaluating BGC’s operating performance, because the calculation of this measure generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions. Such items may vary for different companies for reasons unrelated to overall operating performance. As a result, the Company’s management uses this measure to evaluate operating performance and for other discretionary purposes. BGC believes that Adjusted EBITDA is useful to investors to assist them in getting a more complete picture of the Company’s financial results and operations.

Since BGC’s Adjusted EBITDA is not a recognized measurement under GAAP, investors should use this measure in addition to GAAP measures of net income when analyzing BGC’s operating performance. Because not all companies use identical EBITDA calculations, the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow or GAAP cash flow from operations because the Company’s Adjusted EBITDA does not consider certain cash requirements, such as tax and debt service payments.

For more information regarding Adjusted EBITDA, see the section of this document and/or in the Company’s most recent financial results press release titled “Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted EBITDA”, including the footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP.

Timing of Outlook for Certain GAAP and Non-GAAP Items
BGC anticipates providing forward-looking guidance for GAAP revenues and for certain non-GAAP measures from time to time. However, the Company does not anticipate providing an outlook for other GAAP results. This is because certain GAAP items, which are excluded from Adjusted Earnings and/or Adjusted EBITDA, are difficult to forecast with precision before the end of each period. The Company therefore believes that it is not possible for it to have the required information necessary to forecast GAAP results or to quantitatively reconcile GAAP forecasts to non-GAAP forecasts with sufficient precision without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The relevant items that are difficult to predict on a quarterly and/or annual basis with precision and may materially impact the Company’s GAAP results include, but are not limited, to the following:

Certain equity-based compensation charges that may be determined at the discretion of management throughout and up to the period-end;
Unusual, non-ordinary, or non-recurring items;
The impact of gains or losses on certain marketable securities, as well as any gains or losses related to associated mark-to- market movements and/or hedging. These items are calculated using period-end closing prices;
Non-cash asset impairment charges, which are calculated and analyzed based on the period-end values of the underlying assets. These amounts may not be known until after period-end; and
Acquisitions, dispositions, and/or resolutions of litigation, disputes, investigations, or enforcement matters, or similar items, which are fluid and unpredictable in nature.

Liquidity Defined
BGC may also use a non-GAAP measure called “liquidity”. The Company considers liquidity to be comprised of the sum of cash and cash equivalents, reverse repurchase agreements (if any), financial instruments owned, at fair value, less securities lent out in securities loaned transactions and repurchase agreements (if any). The Company considers liquidity to be an important metric for determining the amount of cash that is available or that could be readily available to the Company on short notice.

For more information regarding Liquidity, see the section of this document and/or in the Company’s most recent financial results press release titled “Liquidity Analysis”, including any footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP.

Constant Currency Defined
BGC generates a significant amount of its revenues in non-U.S. dollar denominated currencies, particularly in the euro and pound sterling. In order to present a better comparison of the Company’s revenues during the period, which exhibited highly volatile foreign exchange movements, BGC provides revenues year-over-year comparisons on a “Constant Currency” basis. BGC uses a Constant Currency financial metric to provide a better comparison of the Company’s underlying operating performance by eliminating the impacts of foreign currency fluctuations between comparative periods. Since BGC’s consolidated financial statements are presented in U.S. dollars, fluctuations in non-U.S. dollar denominated currencies have an impact on the Company’s GAAP results. The Company’s Constant Currency metric, which is a non-GAAP financial measure, assumes the foreign exchange rates used to determine the Company’s comparative prior period revenues, apply to the current period revenues. Constant Currency revenue percentage change is calculated by determining the change in current quarter non-GAAP Constant Currency revenues over prior period revenues. Non-GAAP Constant Currency revenues are total revenues excluding the effect of foreign exchange rate movements and are calculated by remeasuring and/or translating current quarter revenues using prior period exchange rates. BGC presents certain non-GAAP Constant Currency percentage changes in Constant Currency revenues as a supplementary measure because it facilitates the comparison of the Company’s core operating results. This information should be considered in addition to, and not as a substitute for, results reported in accordance with GAAP.

About BGC Group, Inc.
BGC Group, Inc. (“BGC”) is a leading global brokerage and financial technology company. BGC, through its affiliates, specializes in the brokerage of a broad range of products, including Fixed Income (Rates and Credit), Foreign Exchange, Equities, Energy and Commodities, Shipping, and Futures. BGC, through its affiliates, also provides a broad range of services, including: trade execution, brokerage, clearing, trade compression, post-trade, information, and other back-office services to a broad range of financial and non-financial institutions. Through its brands, including Fenics®, FMX™, FMX Futures Exchange™, Fenics Markets Xchange™, Fenics Digital™, Fenics UST™, Fenics FX™, Fenics Repo™, Fenics Direct™, Fenics MID™, Fenics Market Data™, Fenics GO™, Fenics PortfolioMatch™, BGC®, BGC Trader™, kACE²™, and Lucera®, BGC offers financial technology solutions, market data, and analytics across a broad range of financial instruments and markets. BGC, BGC Group, BGC Partners, BGC Trader, GFI, GFI Ginga, CreditMatch, Fenics, Fenics.com, FMX, Sunrise Brokers, Poten & Partners, RP Martin, kACE², Capitalab, Swaptioniser, CBID, Caventor, LumeMarkets and Lucera are trademarks/service marks and/or registered trademarks/service marks of BGC and/or its affiliates.

BGC’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms. BGC’s Class A common stock trades on the Nasdaq Global Select Market under the ticker symbol “BGC”. BGC is led by Chairman of the Board and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcg.com. You can also follow BGC at https://twitter.com/bgcgroupinc, https://www.linkedin.com/company/bgc_group and/or http://ir.bgcg.com.

Discussion of Forward-Looking Statements about BGC
Statements in this document regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, BGC undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

Media Contact:
Jason Angrisani
+1 212-915-1224

Investor Contact:
Jason Chryssicas
+1 212-610-2426

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Fintech PR

Dechert Elevates 13 Attorneys to Partnership

Published

18 minutes ago

December 5, 2024

CISION (PR Newswire)

NEW YORK, Dec. 5, 2024 /PRNewswire/ — Dechert LLP is proud to announce that 13 lawyers will be joining the firm’s global partnership, effective January 1, 2025. This year’s class is larger than the previous class in 2023, representing seven of the firm’s global practices and six offices across the U.S., the UK and France.

Among the new partners are one of the hosts of the firm’s popular Dechert4Real podcast, a “Woman Worth Watching in STEM” as recognized by Profiles in Diversity Journal, two Dechert STARS award winners, a Legal 500 “Rising Star,” a Chambers UK “Associate to Watch,” and a Samuel E. Klein Pro Bono Award winner.

“These new partners bring diverse backgrounds to the firm, blending both homegrown and lateral talent,” said Mark Thierfelder, co-chair of Dechert. “We are confident this accomplished group will deliver outstanding work for our clients and help us execute on the firm’s strategic plan.”

Dave Forti, co-chair of Dechert, said, “These outstanding lawyers have distinguished themselves with their talent, creativity, work ethic, business acumen and commitment to the Dechert culture of stewardship. We are proud to welcome them to firm partnership.”

The new partners include:

Hilary Bonaccorsi, Enforcement and Investigations, Charlotte
Jonathan Gaynor, Finance and Real Estate, Philadelphia
Brian Goldberg, Intellectual Property, Philadelphia
Richard Hodge, Enforcement and Investigations, London
D. Brett Kohlhofer, Enforcement and Investigations, Washington, D.C.
Ross Macconnell, Corporate and Securities, Philadelphia
Avni Patel, Corporate and Securities, New York
Caroline Power, Product Liability and Mass Torts, Philadelphia
Marion Provost, Antitrust/Competition, Paris
Darius Ravangard, Corporate and Securities, Washington, D.C.
Greg Renick, Finance and Real Estate, New York
Marina Schwarz, Product Liability and Mass Torts, New York
Mansi Seth, Tax, London

About Dechert
Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients’ rights in extreme situations. Our nearly 1,000 lawyers across 19 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.

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Fintech PR

Quantum Computing Boom: $1 Trillion in Value Creation Forecasted by 2035

Published

4 hours ago

December 5, 2024

CISION (PR Newswire)

Issued on behalf of Scope Technologies Corp. with the installation of new hardware.

VANCOUVER, BC, Dec. 5, 2024 /PRNewswire/ — USA News Group News Commentary – In recent weeks, Amazon’s quantum advancements have ignited significant momentum across the market, propelling the industry closer to the dawn of the “Quantum Age.” In response, the U.S. government has acted decisively, partnering with quantum pioneers to support a $2.7 billion National Quantum Initiative Reauthorization Act. While Polaris Market Research previously estimated the Global Quantum Computing Market could exceed US$5.7 billion by 2032 at an impressive 19.1% CAGR, updated projections from The Quantum Insider now anticipate quantum computing could generate $1 trillion in value by 2035. At the forefront of this technological revolution are companies driving advancements in quantum computing and infrastructure, including Scope Technologies Corp. (CSE: SCPE) (OTCQB: SCPCF), Quantum Computing Inc. (QCi) (NASDAQ: QUBT), Cisco Systems, Inc. (NASDAQ: CSCO), Rigetti Computing, Inc. (NASDAQ: RGTI, RGTIW), and International Business Machines Corporation (IBM) (NYSE: IBM).

The article continued: Analysts at IDTechEx predict even stronger growth for the Global Quantum Computing Market, forecasting a 30% CAGR through 2045. As industries prepare for this transition, the World Economic Forum has emphasized public-private collaborations within the financial sector to strengthen security for the post-quantum era.

Scope Technologies Expands Global Entropy Delivery Network with Significant Data-in-Transit Security Advancements

Scope Technologies Corp. (CSE: SCPE) (OTCQB: SCPCF), a pioneering technology company specializing in quantum security and machine learning (ML), today announced significant advancements to its data-in-transit security infrastructure with the installation of new hardware. These updates, which expand Scope’s entropy delivery system across new locations in Europe, Asia, and North America, represent a milestone in delivering secure and efficient global data transmission.

The expanded network enhances the speed and redundancy of QSE’s services while significantly reducing latency for businesses worldwide. These improvements not only ensure faster, more reliable data encryption but also strengthen protections against cyber threats such as man-in-the-middle attacks and Harvest Now, Decrypt Later (HNDL) strategies.

“Our global network expansion reflects our commitment to providing unparalleled data security,” said Sean Prescott, Founder and CTO of QSE Group. “By increasing our infrastructure’s speed and reliability, we’re not only enhancing the user experience but also building the resilience needed to safeguard data during transmission, now and into the future. This is critical for industries handling sensitive information, where interception risks can lead to significant consequences.”

As part of Scope’s mission to continuously advance quantum-resilient encryption, these updates position the QSE platform as a leader in secure, real-time communications. The advancements also align with industry compliance requirements, offering organizations a seamless, secure solution to meet regulatory demands.

Moreover, these upgrades lay the groundwork for QSE’s forthcoming secure mobile application, designed to provide industries with rapid, encrypted data-sharing capabilities. Further announcements on this next-generation platform are expected soon.

Scope Technologies’ commitment to expanding its infrastructure ensures that businesses and individuals are equipped with the tools needed to protect their data against current and emerging threats.

The announcement follows Scope’s recent announcement of the signing of a Letter of Intent (LOI) with Global Care Innovations Inc. (GCI) and BitLab. This strategic partnership aims to provide quantum-secure data solutions and advanced AI-powered tools to healthcare providers throughout North America.

As well, Scope recently launched a subscription model offering round-trip encrypted, quantum-resilient cloud storage for both businesses and individuals. With this new strategic partnership, Scope aims to demonstrate its capability to improve patient care through advanced technology and solidify its position as a leader in secure technology solutions for critical sectors such as healthcare.

CONTINUED… Read this and more news for Scope AI at: https://usanewsgroup.com/2024/04/26/the-currency-of-tomorrow-why-investing-in-cutting-edge-ai-recognition-tech-could-mean-big-money/

In other industry developments and happenings in the market include:

Quantum Computing Inc. (QCi) (NASDAQ: QUBT), an innovative, integrated photonics and quantum optics technology company, recently announced it received its second purchase order for its thin film lithium niobate (TFLN) photonic chip foundry from the University of Texas at Austin. The order will support the research efforts of the University’s RF Acoustic Microsystem Group and is part of the QCi Foundry’s pilot launch program, with fulfillment expected in Q1 2025.

The order enables the University to advance chip-scale acoustic and cross-domain microsystems using QCi Foundry’s scalable TFLN processes, supporting a custom fabrication run that highlights TFLN’s versatility for next-generation photonics and micro electromechanical systems.

“This strategic collaboration with the University of Texas at Austin underscores the expanding capabilities and commercial viability of the QCi Foundry, which has been designed to meet the increasing demand for signal processing, sensing, and computing applications as well as advanced acoustic systems for volume deployment,” said Dr. William McGann, CEO at QCi. “We are excited to support the University’s innovative research, and this collaboration further highlights the growing recognition of TFLN as a critical driver in the future of telecom, datacom, and quantum markets.”

Cisco Systems, Inc. (NASDAQ: CSCO), a tech infrastructure giant, recently announced at its Quantum Summit 2024 that Cisco researchers are reporting substantial efforts are underway now to develop practical quantum networks and data centers. Cisco’s vision for a quantum data center includes the ability to execute multiple quantum circuits, support dynamic network interconnections, and leverage diverse entanglement generation protocols, according to Reza Nejabati, head of quantum research at Cisco’s advanced development group Outshift, during a presentation at the event.

“It is well known in academic research that quantum computing cannot become useful by monolithically scaling it to 10s of millions of qubits—that is not practical,” said Nejabati. “It seems, at least with the current technology, it is more realistic to build a network of smaller quantum computers. And essentially you develop the notion of the data center—that is we build a network connecting a large number of smaller processors in a controlled environment, the data center warehouse, and provide them as a service to a larger user base. That’s the basic definition of a quantum data center.”

Rigetti Computing, Inc. (NASDAQ: RGTI, RGTIW), a pioneer in full-stack quantum-classical computing, recently announced that it successfully completed sales of $100 million gross proceeds of its common equity offering program. Rigetti immediately followed up by announcing another $100 million registered direct offering, while intending to use the funds generated by the previous fund raising for working capital, capital expenditures and other general corporate purposes, including continuing to focus on its strategy as a leader in superconducting quantum computing and continuing to work to improve its 2-qubit gate fidelity and scale towards higher qubit count systems.

“We are pleased to see the enthusiasm for the quantum computing sector and our company,” said Dr. Subodh Kulkarni, CEO of Rigetti. “We are seeing a great deal of interest from national labs and academic institutions for on-premises quantum computers to pursue hands-on R&D. As the technology continues to improve and more quantum applications are developed we expect to see increasingly more interest from industry and the private sector.”

International Business Machines Corporation (IBM) (NYSE: IBM), a computing giant that provides integrated solutions and services worldwide, recently announced quantum hardware and software advancements to execute complex algorithms on IBM quantum computers with record levels of scale, speed, and accuracy.

IBM Quantum Heron, the company’s most advanced quantum processor, can now run certain quantum circuits with up to 5,000 two-qubit gates, nearly doubling its previous capability and completing tasks 50 times faster than last year’s demonstration. Combined with IBM’s enhanced Qiskit software, which leads the industry in performance and reliability, these advancements push the boundaries of quantum computing’s potential in tackling complex scientific challenges.

“Advances across our hardware and Qiskit are enabling our users to build new algorithms in which advanced quantum and classical supercomputing resources can be knit together to combine their respective strengths,” said Jay Gambetta, Vice President, IBM Quantum. “As we advance on our roadmap towards error-corrected quantum systems, the algorithms discovered today across industries will be key to realizing the potential to solve new problems realized through the convergence of QPUs, CPUs, and GPUs.”

Article Source: https://usanewsgroup.com/2024/04/26/the-currency-of-tomorrow-why-investing-in-cutting-edge-ai-recognition-tech-could-mean-big-money/

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Fintech PR

Centrical Announces 2024 Customer SELECT Award Winners

Published

4 hours ago

December 5, 2024

CISION (PR Newswire)

centrical-announces-2024-customer-select-award-winners

The awards recognize leaders and organizations transforming frontline employee performance experience and innovation across industries.

NEW YORK, Dec. 5, 2024 /PRNewswire/ — Centrical today unveiled the winners of the 2024 Customer SELECT Awards, celebrating organizations and individuals that have redefined excellence in employee performance experience management and innovation. These trailblazers have leveraged Centrical’s solutions to transform their workplaces, empower their frontline teams, and achieve remarkable results.

“The Centrical Customer SELECT Awards shine a spotlight on the incredible achievements of our customers and the remarkable individuals within their organizations,” said Daphne Saragosti, Chief Customer Officer at Centrical. “Each winner embodies what’s possible when technology, innovation, and a commitment to people come together to unlock extraordinary outcomes. Their success inspires us all, and we are proud to be their partner on this journey.”

Team Award Winners:

The Scholar: Arise Virtual Solutions
Arise redefined training with a dynamic onboarding and certification process for its service partners. Through competency validation, personalized learning paths, and real-time analytics, Arise set a new standard for service partner readiness and performance. Their approach resulted in faster, more effective training processes and improved client satisfaction.
“With the launch of Centrical and using many of its tools, we’ve been able to reduce speed to proficiency by almost half. This means where it was taking three months to reach a particular level, we’re now achieving that in half the time. Our service partners feel more supported, and this translates into better metrics and exceptional results for our clients and their customers.”— Sonia Brant Mullins, Vice President of Service Partner Experience, Arise Virtual Solutions
The Innovator: IHG Hotels and Resorts
IHG Hotels & Resorts launched IHG Climb to empower frontline colleagues with targeted resources, including training and tools to enhance guest experiences and boost Enrollment Efficiency and Loyalty Recognition. Since its launch, the program has improved loyalty recognition scores year over year and surpassed pre-pandemic enrollment levels, driving increased direct bookings and guest retention.
“IHG One Rewards members are our most profitable and valuable guests. They’re loyal to our brands and help drive revenue to our hotels with each of their repeat stays. We really wanted to see a step change performance heading into 2024 and make sure that our branded hotels are delivering the program day in and day out, while finding new ways to engage with our frontline team members.” — Natasha Scott, Senior Vice President, Americas Revenue Management and Commercial Teams, IHG Hotels & Resorts
The Gamechanger: Purpose Financial
Purpose Financial, a leader in financial services, introduced an innovative gamification platform powered by Centrical that transforms routine tasks into engaging, interactive challenges. By combining performance tracking with gamified goals, the platform has improved performance metrics, reduced turnover, and fostered a purpose-driven culture. The solution empowers managers along with field, call center and collection agents across more than 800 U.S. branches to achieve new milestones while equipping managers with actionable insights to deliver impactful coaching and real-time recognition. This approach has boosted productivity and strengthened team cohesion, setting a new standard for employee engagement within the organization.

“Purpose Financial’s gamification platform has changed the way we work. It’s not just about hitting targets; it’s about creating an environment where our agents feel valued, motivated, and equipped to succeed. The impact on engagement and performance has been remarkable.” — Michelle Goldsberry, Senior Business Integrations Specialist, Purpose Financial
The Captain: Wix.com
Wix empowered its managers and teams by centralizing workflows and aligning coaching processes. With over 70% of managers adopting Centrical’s coaching feature immediately, the company scaled its leadership strategies, boosting engagement and performance.

“There was a lot of excitement among managers to finally have a tool that aligns processes and supports them in coaching their teams more effectively.”— Helene Zerbib, TLV Customer Care Delivery Site Lead, Wix
The High Performer: Capita Experience
Capita Experience transformed its approach to performance management by leveraging Centrical to unify workflows, enhance collaboration, and provide real-time insights. Through gamification and tailored coaching strategies, the organization empowered its remote workforce and fostered measurable improvements, including a dramatic increase in customer resolution rates and efficiency gains across all service lines.
“With Centrical, we’ve not only reduced Average Handling Time by 9.9%, with some teams achieving a 13% reduction, but we’ve also enhanced the support we provide to both our managers and employees. The platform has become a key enabler of collaboration, engagement, and performance improvement, even in a fully remote environment.” – Gianni Petrillo, Senior Operations Manager, Capita Experience
The Nurturer: Teleperformance Samsung
Teleperformance Samsung tackled hybrid work challenges with innovative solutions like daily wellness checks, gamification, and AI-driven performance insights. These initiatives fostered transparency, well-being, and a remarkable +70 NPS.
“With Centrical, team leaders conduct daily wellness checks, particularly focusing on employees working remotely. These checks provide insight into individual well-being, making Centrical a conversation starter and ensuring employees feel supported and acknowledged, even in a remote work setting.”— Marco Brouwer, Contact Centre Manager, Teleperformance Samsung

Individual Award Winners:

The Visionary: Liz Millington, Head of Digital Transformation, Ascensos
Liz Millington exemplifies visionary leadership through her people-first approach, driving cultural and operational excellence at Ascensos. By leveraging real-time data insights and fostering collaboration, she inspired transformative changes that empowered employees and elevated client outcomes for organizations like Selfridges and John Lewis.
The Employee Experience Champion: Michelle Goldsberry, Sr. Business Integration Specialist, Purpose Financial
Michelle Goldsberry redefined employee engagement, inspiring a culture of growth and high performance within Purpose Financial’s customer contact center. Her leadership drove remarkable business outcomes, including a 163% increase in new money contributions and a 134% rise in calls handled.
The Creative Content Pioneer: Izabella Mendes, Learning Designer, Foundever Brazil
Izabella Mendes revolutionized learning for Foundever’s Technical Operations team by embedding soft skills into client communication through SCORM-based games, animated podcasts, and personalized content. Her creative approach ensured learners stayed engaged and inspired through meaningful learner experiences.

Celebrating Excellence
Congratulations to all the 2024 Centrical Customer SELECT Award winners! These innovators have set new benchmarks for employee engagement and organizational success, demonstrating the transformative potential of Centrical’s solutions.

For more details about the winners and their exceptional programs, including additional resources, visit Centrical Customer SELECT Awards 2024.

About the Centrical Customer SELECT Awards

The Centrical Customer SELECT Awards, now in their fifth year, celebrate organizations and individuals who exemplify excellence and innovation in leveraging Centrical’s solutions to drive business success. These awards recognize both teams and individuals who have set new benchmarks in employee engagement, operational performance, and innovation. Building on the success of past years, the 2024 awards continue to highlight achievements across industries, including new categories for individual excellence. Winners demonstrate the transformative power of Centrical’s platform in fostering continuous growth, performance improvement, and measurable business impact.

About Centrical

Centrical, the Performance Experience Platform, empowers best-in-class customer experiences for the world’s leading brands by building highly engaged and productive frontline teams. The platform personalizes the employee experience, guiding individual success and growth, through AI-driven performance, coaching and quality management, personalized microlearning, and voice of the employee—all wrapped in industry-leading gamification to make the experience both fun and rewarding. In addition, Centrical’s AI copilot empowers frontline managers to develop their teams through more effective and efficient coaching.

Centrical was founded in 2013 and serves customers in 150 countries in 40 different languages. Centrical has offices in New York, Tel Aviv, and London and customers include leading multinational enterprises such as IHG, Teleperformance, DHL, Synchrony Financial, and more.  