WISeKey Announces First Half 2024 Unaudited Financial Results and Updates on Strategic Business Initiatives
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 $(M2M.AU)$ 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") $(LAES)$ 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.
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