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We present an experimental demonstration of balanced heterodyne readout thatcircumvents the 3 dB heterodyne signal-to-noise penalty on a dual Michelsonsensor. Our readout obtains both amplitude and phase quadrature informationsimultaneously. We also employ a high-frequency spectrally entangled, two-modesqueezed state to show further signal-to-noise improvement of an injectedaudio-band signal. We achieve a quantum enhancement of 3.5 dB, consistent withour experimental efficiencies and dephasing. This technique is applicable forquantum-limited high-precision experiments, with application to searches forquantum gravity, gravitational wave detection and wavelength-multiplexedquantum communication.

Quantum enhanced balanced heterodyne readout for differential interferometry