WISeKey Announces First Half 2024
Unaudited Financial Results and Updates on Strategic Business
Initiatives
Substantial R&D investments aimed at
securing a competitive edge in the fast-approaching era of
post-quantum computing
Schedules Conference Call and Webcast for
Wednesday, October 2 at 10:00 am ET (4:00 pm CET)
Geneva, Switzerland – September 30,
2024: – Ad-Hoc announcement
pursuant to Art. 53 of SIX Listing Rules – WISeKey
International Holding Ltd. ("WISeKey") (SIX: WIHN, NASDAQ: WKEY), a
global leader in cybersecurity, digital identity and Internet of
Things (IoT) innovations operating as a holding company, today
announces its unaudited financial results for the six-month period
ending June 30, 2024 (H1 2024).
H1 2024 FINANCIAL AND OPERATIONAL
HIGHLIGHTS
WISeKey’s performance in the first half of 2024
underscores the company’s resilience and strategic adaptability
amidst rapid technological advancements.
-
$5.2 million H1 2024 revenue, reflecting the
expected slowdown in traditional semiconductor demand, with 2024
being a transitional year.
-
$26.3 million cash balance (as of June 30,
2024).
- $2.9
million Investments in R&D for the development of new projects
and technologies, including SEALSQ’s post-quantum chip,
SEALCoin, and our WISeSat satellites and next generations. This
investment is essential to support our growth in future years.
During H1 2024, the Company’s substantial
research & development investments, aimed at securing a
competitive edge in the fast-approaching era of post-quantum
computing and secure IoT transactions. With continued investments
in quantum technology, satellite communications, and secure digital
transactions, WISeKey is solidifying its position at the forefront
of the Fourth Industrial Revolution.
MOVING FORWARD
Outlook for Full Year 2024
For the remainder of 2024, WISeKey management
anticipates improved performance as compared to H1 2024, subject to
the materialization timing of previously announced project and
transitioning demand for next-generation semiconductor
products.
WISeKey’s strong pipeline of current and new
business opportunities valued at over $71 million as of September
20, 2024 is driven by the launch of the next generation of
semiconductors, which the Group expects to release in 2025, the
development of WISeSat.Space’s satellite-based security solutions
following the launch of its new picosatellite in the first quarter
of 2025, and the introduction of SEALCOIN’s machine-to-machine
(M2M) transactional IoT services (t-IoT).
Growth Strategy
WISeKey is gearing up for growth, fueled by:
- The full-scale
production of next-generation post-quantum semiconductors, with
initial pilot programs expected to begin by late 2024.
- Further
investments in space satellite technology, with a focus on
expanding WISeSat.Space's market share in the satellite
communications sector.
- The launch of
SEALCOIN, expected to drive significant growth in the t-IoT and M2M
transaction space.
- A potential
public listing of additional subsidiaries, as WISeKey continues to
mature its diverse portfolio in blockchain, cybersecurity, and
IoT.
STRATEGIC INITIATIVES BY
SUBSIDIARY
WISeKey is proactively taking steps at each of
its subsidiaries to strengthen its revenue streams and enhance
profitability.
SEALSQ
Expansion of Semiconductor
Production
SEALSQ Corp. (“SEALSQ”) (NASDAQ: LAES) secured
$20 million in additional financing during H1 2024 to expand its
production facilities. The funds are earmarked for the development
of post-quantum semiconductors, which are increasingly critical as
quantum computing poses challenges to traditional encryption
systems.
As a results, SEALSQ invested $2.4 million in
research and development initiatives, expanded its US-based sales
team, made significant progress towards the establishment of
several OSAT cybersecurity chip design and customization centers,
secured global partnerships, and made advancements in the
development of post-quantum chips. Representative of this progress,
SEALSQ is now preparing to release engineering samples of its
QS7001 Quantum-Resistant Secure Chips before the end of the
year.
New Distribution Agreements and
Partnerships
WISeKey, via SEALSQ has signed strategic
agreements with global distributors to expand the reach of its
semiconductor and cybersecurity products, notably in Asia, Europe,
and North America with both with existing clients in the healthcare
industry in the US and new customers in Asia (D-Link, HOSIDEN) and
Europe (In Lite), mostly around smart home applications.
Expectations are supported by several key growth
factors including the expansion of Matter certification, global
adoption of new IoT security standards such as the US Cyber Trust
Mark or the EU Cyber Resilience Act, and SEALSQ’s strong value
proposition on the PKI market for both IoT device makers segment
and GSMA eUICC manufacturers and service providers. This has been
reflected by significant new agreements signed in H1 2024,
WISeSat.Space
Developments & Key
Initiatives
WISeSat.Space is leading the way in utilizing
low-orbit and picosatellites for secure IoT connectivity and
climate change monitoring. The Company is working on a variety of
announced projects at the WISeSat.Space level, expected to
materialize in H2 2024 and beyond, including:
- Launch of a
constellation of 88 low-orbit satellites by the end of 2027. To
date, the company has successfully launched 17 low-orbit satellites
in collaboration with FOSSA Systems, primarily through SpaceX’s
Transporter Rideshare missions. These satellites will incorporate
SEALSQ semiconductor technology and WISeKey cryptographic keys,
ensuring secure space-based communication.
- WISeSat.Space is
also utilizing picosatellites and low-power sensors to offer a
cost-effective IoT connectivity solution. These picosatellites are
smaller and more affordable than traditional satellites, making
secure IoT connectivity accessible to a wider range of
businesses.
- The launch of a
new generation of satellites from California with SpaceX (currently
scheduled for early 2025), will enhance global IoT
connectivity and environmental monitoring, with improved
performance in areas such as climate change detection, disaster
management, and smart agriculture.
- The installation
of a satellite antenna in Switzerland, enabling more efficient
monitoring and management of the satellite constellation. This
infrastructure will ensure optimal performance for IoT connectivity
solutions, highlighting WISeSat.Space's commitment to secure
satellite operations.
- The development
of a European-based, neutral satellite constellation, aimed at
ensuring data sovereignty and enhancing international cooperation.
This constellation is crucial for reducing dependence on
non-European entities and fostering technological
independence.
- Collaboration
with the Swiss Army to leverage WISeSat.Space’s secure IoT
connectivity solutions for defense and national security purposes,
including enhancing logistics, situational awareness, and disaster
response capabilities.
WISe.ART
Launch of WISe.ART 2.0
Platform
WISeKey is also deepening its presence in the
NFT and digital assets space with the launch of the WISe.ART 2.0
platform, a highly secure environment for trading NFTs and
conducting authenticated online transactions. This platform
integrates blockchain and cybersecurity technology, positioning
WISeKey to capture a growing share of the NFT market and drive new
revenue streams.
Strategic Investment from The Hashgraph
Association
WISe.ART successfully concluded a strategic
investment round with The Hashgraph Association (THA), a Swiss
non-profit organization focused on promoting the global adoption of
the Hedera network. This partnership is expected to significantly
bolster WISe.ART's growth by leveraging Hedera's decentralized,
sustainable public ledger.
SEALCOIN AG
$50 Million Investment
Commitment
WISeKey has secured a $50 million token
investment commitment from GEM Digital Limited to support its
SEALCOIN project housed at SEALCOIN AG. By enabling
machine-to-machine (M2M) transactions without human intervention,
SEALCOIN is poised to become a key player in the Transactional IoT
(t-IoT) ecosystem.
In addition to financial backing, The Hashgraph
Group (THG) has entered into an agreement with WISeKey to provide
engineering expertise and strategic guidance in the Web3 economy,
further enhancing SEALCOIN’s capabilities.
A Proof of Concept for SEALCOIN is already
available for at https://youtu.be/daOvoOxqGvQ.
WISeID
Expansion of Post-Quantum and IoT
Solutions
WISeKey’s INeS Platform, offering “PKI as a
Service,” is gaining significant traction. The platform allows
companies to manage Device Attestation Certificates (DACs) without
the need for costly infrastructure investments. With
pre-provisioning of FIPS-certified secure elements, WISeKey
supports the rapid market entry of smart home products under the
Matter Protocol, a key standard for IoT device security.
CONFERENCE CALL
The Company will host a conference call to
review its results on Wednesday, October 2, 2024, at 10:00 am ET
(4:00 pm CET). To join, please use the following dial-in
numbers:
- Toll-Free
Dial-In Number: 877-445-9755
- International
Dial-In Number: 201-493-6744
The webcast of the call can be accessed through
the Investor Relations section of WISeKey’s website at
www.wisekey.com. An archived version of the call will also be made
available.
About WISeKeyWISeKey
International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a
global leader in cybersecurity, digital identity, and IoT solutions
platform. It operates as a Swiss-based holding company through
several operational subsidiaries, each dedicated to specific
aspects of its technology portfolio. The subsidiaries include (i)
SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI,
and post-quantum technology products, (ii) WISeKey SA which
specializes in RoT and PKI solutions for secure authentication and
identification in IoT, Blockchain, and AI, (iii) WISeSat AG which
focuses on space technology for secure satellite communication,
specifically for IoT applications, (iv) WISe.ART Corp which focuses
on trusted blockchain NFTs and operates the WISe.ART marketplace
for secure NFT transactions, and (v) SEALCOIN AG which focuses on
decentralized physical internet with DePIN technology and house the
development of the SEALCOIN platform.Each subsidiary contributes to
WISeKey’s mission of securing the internet while focusing on their
respective areas of research and expertise. Their technologies
seamlessly integrate into the comprehensive WISeKey platform.
WISeKey secures digital identity ecosystems for individuals and
objects using Blockchain, AI, and IoT technologies. With over 1.6
billion microchips deployed across various IoT sectors, WISeKey
plays a vital role in securing the Internet of Everything. The
company’s semiconductors generate valuable Big Data that, when
analyzed with AI, enable predictive equipment failure prevention.
Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey
provides secure authentication and identification for IoT,
Blockchain, and AI applications. The WISeKey Root of Trust ensures
the integrity of online transactions between objects and people.
For more information on WISeKey’s strategic direction and its
subsidiary companies, please visit www.wisekey.com.
ADDITIONAL FINANCIAL & OPERATIONAL
DATA
Consolidated Statements of Comprehensive
Income/(Loss) [as reported]
|
|
Unaudited 6 months ended June 30, |
|
USD'000 |
2024 |
|
2023 |
|
|
|
|
|
| Net
sales |
5,174 |
|
15,107 |
|
Cost of sales |
(3,834) |
|
(6,924) |
|
Depreciation of production assets |
(228) |
|
(84) |
|
Gross profit |
1,112 |
|
8,099 |
|
|
|
|
|
|
Other operating income |
178 |
|
21 |
|
Research & development expenses |
(2,942) |
|
(2,151) |
|
Selling & marketing expenses |
(3,967) |
|
(3,887) |
|
General & administrative expenses |
(8,518) |
|
(7,968) |
|
Total operating expenses |
(15,249) |
|
(13,985) |
|
Operating loss |
(14,137) |
|
(5,886) |
|
|
|
|
|
|
Non-operating income |
1,129 |
|
598 |
|
Debt conversion expense |
(21) |
|
(484) |
|
Interest and amortization of debt discount |
(529) |
|
(119) |
|
Non-operating expenses |
(584) |
|
(896) |
|
Loss before income tax expense |
(14,142) |
|
(6,787) |
|
|
|
|
|
|
Income tax expense |
(1,310) |
|
(322) |
|
|
|
|
|
|
Net loss |
(15,452) |
|
(7,109) |
|
|
|
|
|
|
Less: Net loss attributable to noncontrolling interests |
(5,982) |
|
(141) |
|
Net loss attributable to WISeKey International Holding
AG |
(9,470) |
|
(6,968) |
|
|
|
|
|
|
Earnings per Class A Share (USD) |
|
|
|
|
Earnings per Class A Share |
|
|
|
|
Basic |
(0.45) |
|
(0.25) |
|
Diluted |
(0.45) |
|
(0.25) |
|
|
|
|
|
|
Earning per Class A Share attributable to WISeKey
International Holding Ltd |
|
|
|
|
Basic |
(0.27) |
|
(0.24) |
|
Diluted |
(0.27) |
|
(0.24) |
|
|
|
|
|
|
Earnings per Class B Share (USD) |
|
|
|
|
Earnings per Class B Share |
|
|
|
|
Basic |
(4.48) |
|
(2.49) |
|
Diluted |
(4.48) |
|
(2.49) |
|
|
|
|
|
|
Earning per Class B Share attributable to WISeKey
International Holding Ltd |
|
|
|
|
Basic |
(2.74) |
|
(2.44) |
|
Diluted |
(2.74) |
|
(2.44) |
| |
|
|
|
| Other
comprehensive income / (loss), net of tax: |
|
|
|
| Foreign
currency translation adjustments |
(515) |
|
(1,118) |
| Defined benefit
pension plans: |
|
|
|
| Net gain
arising during the period |
34 |
|
16 |
| Other
comprehensive loss |
(481) |
|
(1,102) |
|
Comprehensive loss |
(15,933) |
|
(8,211) |
| |
|
|
|
| Other
comprehensive income / (loss) attributable to noncontrolling
interests |
45 |
|
(63) |
| Other
comprehensive loss attributable to WISeKey International Holding
AG |
(526) |
|
(1,039) |
| |
|
|
|
| Comprehensive
loss attributable to noncontrolling interests |
(5,937) |
|
(204) |
|
Comprehensive loss attributable to WISeKey
International Holding AG |
(9,996) |
|
(8,007) |
| |
|
|
|
The notes are an integral part of our
consolidated financial statements.
Consolidated Balance Sheets [as
reported]
|
|
As at June 30, |
|
As at December 31, |
|
USD'000 |
2024 (unaudited) |
|
2023 (unaudited) |
| |
|
|
|
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
| Cash and cash
equivalents |
26,293 |
|
15,311 |
| Restricted
cash, current |
111 |
|
- |
| Accounts
receivable, net of allowance for credit losses |
2,041 |
|
5,471 |
| Notes
receivable from employees and related parties |
53 |
|
63 |
|
Inventories |
2,772 |
|
5,230 |
| Prepaid
expenses |
1,669 |
|
1,290 |
| Government
assistance |
1,826 |
|
1,718 |
| Other current
assets |
759 |
|
1,008 |
| Total
current assets |
35,524 |
|
30,091 |
|
|
|
|
|
|
Noncurrent assets |
|
|
|
| Deferred
income tax assets |
1,775 |
|
3,077 |
| Deferred tax
credits |
104 |
|
15 |
| Property,
plant and equipment net of accumulated depreciation |
3,115 |
|
3,392 |
| Intangible
assets, net of accumulated amortization |
94 |
|
96 |
| Operating
lease right-of-use assets |
1,781 |
|
2,052 |
| Goodwill |
8,317 |
|
8,317 |
| Equity
securities, at cost |
471 |
|
486 |
| Other
noncurrent assets |
263 |
|
275 |
| Total
noncurrent assets |
15,920 |
|
17,710 |
| TOTAL
ASSETS |
51,444 |
|
47,801 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current Liabilities |
|
|
|
| Accounts
payable |
12,492 |
|
12,863 |
| Notes
payable |
4,160 |
|
4,164 |
| Convertible
note payable, current |
49 |
|
190 |
| Deferred
revenue, current |
100 |
|
217 |
| Current
portion of obligations under operating lease liabilities |
630 |
|
638 |
| Income tax
payable |
- |
|
4 |
| Other current
liabilities |
698 |
|
832 |
| Total
current liabilities |
18,129 |
|
18,908 |
| |
|
|
|
|
Noncurrent liabilities |
|
|
|
| Bonds,
mortgages and other long-term debt |
1,863 |
|
1,820 |
| Convertible
note payable, noncurrent |
9,313 |
|
1,519 |
| Deferred
revenue, noncurrent |
22 |
|
24 |
| Operating
lease liabilities, noncurrent |
1,138 |
|
1,443 |
| Employee
benefit plan obligation |
2,963 |
|
3,001 |
| Other
noncurrent liabilities |
3 |
|
2 |
| Total
noncurrent liabilities |
15,302 |
|
7,809 |
| TOTAL
LIABILITIES |
33,431 |
|
26,717 |
| |
|
|
|
|
Commitments and contingent liabilities |
|
|
|
| |
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
| Common stock -
Class A |
16 |
|
400 |
| Par value: CHF
0.01 and CHF 0.25 |
|
|
|
| Authorized -
2,000,880 and 2,000,880 shares |
|
|
|
| Issued and
outstanding - 1,600,880 and 1,600,880 shares |
|
|
|
| Common stock -
Class B |
359 |
|
8,170 |
| Par value: CHF
0.10 and CHF 2.50 |
|
|
|
| Authorized -
6,194,267 and 6,194,267 |
|
|
|
| Issued -
3,365,560 and 3,076,150 |
|
|
|
| Outstanding -
3,292,180 and 2,954,097 |
|
|
|
| Treasury
stock, at cost (73,380 and 122,053 shares held) |
(548) |
|
(691) |
| Additional
paid-in capital |
323,973 |
|
295,716 |
| Accumulated
other comprehensive income / (loss) |
3,515 |
|
4,041 |
| Accumulated
deficit |
(290,431) |
|
(280,961) |
| Total
shareholders' equity attributable to WISeKey
shareholders |
36,884 |
|
26,675 |
| Noncontrolling
interests in consolidated subsidiaries |
(18,871) |
|
(5,591) |
| Total
shareholders' equity |
18,013 |
|
21,084 |
| TOTAL
LIABILITIES AND EQUITY |
51,444 |
|
47,801 |
| |
|
|
|
The notes are an integral part of our
consolidated financial statements.
DisclaimerThis communication
expressly or implicitly contains certain forward-looking statements
concerning WISeKey International Holding Ltd and its business. Such
statements involve certain known and unknown risks, uncertainties
and other factors, which could cause the actual results, financial
condition, performance or achievements of WISeKey International
Holding Ltd to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. WISeKey International Holding Ltd is
providing this communication as of this date and does not undertake
to update any forward-looking statements contained herein as a
result of new information, future events or otherwise.
This press release does not constitute an offer
to sell, or a solicitation of an offer to buy, any securities, and
it does not constitute an offering prospectus within the meaning of
the Swiss Financial Services Act (“FinSA”), the FinSa's predecessor
legislation or advertising within the meaning of the FinSA.
Investors must rely on their own evaluation of WISeKey and its
securities, including the merits and risks involved. Nothing
contained herein is, or shall be relied on as, a promise or
representation as to the future performance of
WISeKey.Press and Investor
Contacts
|
WISeKey International Holding LtdCompany
Contact: Carlos MoreiraChairman & CEOTel: +41 22 594
3000info@wisekey.com |
WISeKey Investor Relations (US) The Equity
Group Inc.Lena CatiTel: +1 212 836-9611 / lcati@equityny.comKatie
MurphyTel: +1 212 836-9612 / kmurphy@equityny.com |
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