WISeKey Announces H1 2022 Results; Reports Total Revenue of $12.6 Million, an Increase of Over 27% from H1 2021 and Net Income Attributable to WISeKey of $2.4 Million
Revenue Increase was Mainly due to Higher Demand on Semiconductors / IoT; WISeKey’s H1 2022 Semiconductor Revenue Increased 48% to $10.7 Million from $7.2 Million in H1 2021
Reports Record Backlog of $39 Million for IoT Semiconductors Products Stretching into 2023 and Pipeline of Opportunities Totals $75 million
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ZUG, Switzerland – September 15, 2022: Ad-Hoc bulletins pursuant to Art. 53 of SIX Listing Rules – WISeKey International Holding Ltd (NASDAQ: WKEY / SIX: WIHN) (“WISeKey” or the “Company”), a number one Swiss cybersecurity and IoT firm introduced as we speak its auditor-reviewed monetary outcomes for the six-month interval ended June 30, 2022 (“H1 2022”).
Carlos Moreira, WISeKey’s Founder and CEO, famous, “IoT, Semiconductors and NFT are entering a new cycle of growth driven by in-car electronics, smart routers, AI-IoT devices, cloud processing, automation, IoT Satellites, 5G and connectivity features that make the world safer, connected and contribute to sustainability. WISeKey’s business strategy continues to focus on developing cybersecurity IoT solutions and NFTs that enable our customers’ success and drive long-term growth despite the slowdown in delivery of components. To meet these strategic objectives and its goal of refocusing on the core business on Cybersecurity and IoT, in H1 2022 WISeKey completed the divestiture of arago GmbH (“arago”) which got here consequently of arago’s margins and whole efficiency being beneath expectations, regardless of important funding by WISeKey to streamline the business. Regardless, following the divestiture, WISeKey will preserve a partnership with arago to contemplate potential added worth introduced on by AI capabilities.”
WISeKey’s robust monetary place of $23 million money on the finish of H1 2022 permits the Company to assist investments in new merchandise, IP, and sooner rising IoT/cybersecurity markets. Since the start of 2022, WISeKey has made important investments in R&D and new microchips design, to be able to preserve its modern expertise place and the aggressive benefit of product choices. Specifically, WISeKey is engaged on the next initiatives:
- Commercialization of the WISeSat PocketQube Satellite with 13 satellites now in orbit launched with Space X. WISeKey is providing this IoT satellite tv for pc expertise to its IoT shoppers in a SaaS mannequin permitting each distant and redundant city IoT communications for firms in search of to securely join their property. WISeKey Trust and Security options provide distinctive integration into an end-to-end platform that communicates in real-time with the WISeSat Satellite by making certain the authenticity, confidentiality, and integrity of the units and objects.
- Development of a brand new vary of Quantum Trust Services, that may take benefit of the newest developments in post-quantum encryption (PQE) to be utilized in real-world functions of digital signatures and encryption utilizing PKI and digital certificates, equivalent to safe communication channels (TLS), enhanced Key Exchanges and e mail safety (S/MIME). These companies are at present based mostly on requirements that may be improved to be resilient to quantum assaults and provide backwards compatibility with present counterparts. WISeKey’s implementation of PQE is made across the idea of “hybrid signatures” which mix in a single X.509 certificates, a standard signature with a second signature utilizing a PQE algorithm. This method ensures backwards compatibility and opens a brand new horizon of cybersecurity companies.
- Launching of “Root of Trust” based mostly in PQE algorithms promoted at present by the NIST as legitimate candidates, which would be the basis of a brand new portfolio of Trust Services and safe a number of IoT initiatives on which WISeKey is already working.
- Development of post-quantum resistant algorithms by way of its strategic R&D partnership with MINES Saint-Etienne Research Institute. WISeKey’s R&D group has been working with a number of NIST’s candidates for the MS600X Common Criteria merchandise, equivalent to Crystals-Kyber and Crystals-Dilithium, aiming to develop a whole post-quantum cryptography toolbox to be mixed with new PKI-related Trust Services delivered by WISeKey. These post-quantum cryptography initiatives will play a key function in controlling vulnerability and different dangers associated to quantum computer systems applied sciences which when utilized by hackers may give them the flexibility to crack cryptography algorithms, corrupt cybersecurity and compromise the worldwide economy, by undermining the safety foundations of the present monetary and governmental companies. These initiatives have obtained great assist from many authorities entities around the globe by way of the sponsoring of public/personal R&D initiatives. In explicit, WISeKey is lively in key initiatives promoted by the French Agency for Cybersecurity (ANSSI), and by the National Cybersecurity Center of Excellence of the US NIST. The WISeKey contributions to the initiatives will probably be Trust Services for credentials and safe semiconductors to maintain the credentials safe. Specifically, WISeKey will provide INeS Certificate Management Service (CMS) for issuing credentials and VaultIC safe semiconductors to supply tamperproof key storage and cryptographic acceleration.
- Use of WISeID as a Universal Communications Identifier (UCID), a singular identifier for an IoT system on a community; the blockchain, a distributed ledger shared with the nodes of a pc community to ensure safety; and Non-Fungible Tokens (NFTs), cryptographic property on a blockchain that can’t be replicated. The mixed sensible software of these applied sciences — implementing UCID on the system, utilizing NFTs, and placing them on the blockchain — ensures that the system itself is authenticated on a community that can’t be corrupted. This is a huge leap ahead, and it’s taking place now, within the United States authorities.
- Full deployment of the WISe.ART platform. WISe.ART’s distinctive aggressive edge comes from its platform which is secured by WISeKey’s varied safety applied sciences enabling the authentication of digital identification based mostly NFTs, bodily objects in addition to digital property, in a secure end-to-end course of. The WISe.ART platform provides customers full management of their WISeID NFT, whereas different NFTs should request entry to identification data, and WISeID NFTs customers then can determine by themselves what stage of data they want to share.The NFT tokenization makes use of the WISeKey registered patent software “System and Method for Providing Persistent Authenticatable NFT” within the USA. With this methodology, NFTs have elevated in worth and can maintain their worth for a long-term. For extra data go to: https://www.wisekey.com/press/wisekey-files-patent-application-for-persistent-and-authenticatable-nfts/. Almost 130 artists have already joined the WISe.ART NFT Marketplace with roughly 500 distinctive NFT merchandise, including a business NFT gross sales potential mixture of $70 million price of NFTs that more and more see a future for tokens that upend the economics of content material creation and affect on the web.
ADDITIONAL FINANCIAL & OPERATIONAL DATA
H1 FY 2022 Key Financials – WISeKey Group
| (Million US$) | 6 months ended June 30, | |
| US GAAP | 2022 | 2021 |
| Operating loss as reported | (6.6) | (8.3) |
| Net revenue attributable to WISeKey as reported | 2.4 | (4.3) |
| Non-GAAP | 2021 | 2020 |
| Total income | 12.6 | 9.9 |
| Total gross revenue | 5.6 | 3.6 |
| EBITDA | (6.5) | (7.7) |
| Adjusted EBITDA | (5.5) | (7.1) |
| As at June 30, 2022 |
As at December 31, 2021 |
|
| Total Cash and restricted money | 22.9 | 34.3 |
Consolidated Statements of Comprehensive Income/(Loss) [as reported]
| 6 months ended June 30, | 6 months ended June 30, | ||
| USD’000 | 2022 (unaudited) | 2021 (unaudited) | |
| Net gross sales | 10,840 | 7,802 | |
| Cost of gross sales | (6,305) | (4,304) | |
| Depreciation of manufacturing property | 240 | (390) | |
| Gross revenue | 4,775 | 3,108 | |
| Other working revenue | 33 | 114 | |
| Research & improvement bills | (1,699) | (2,128) | |
| Selling & advertising and marketing bills | (3,556) | (3,227) | |
| General & administrative bills | (6,156) | (6,174) | |
| Total working bills | (11,378) | (11,415) | |
| Operating loss | (6,603) | (8,307) | |
| Non-operating revenue | 2,795 | 6,781 | |
| Debt conversion expense | (603) | – | |
| Interest and amortization of debt low cost | (134) | (455) | |
| Non-operating bills | (2,083) | (877) | |
| Loss earlier than revenue tax expense | (6,628) | (2,858) | |
| Income tax revenue / (expense) | (1) | (1) | |
| Loss from persevering with operations, web | (6,629) | (2,859) | |
|
Discontinued operations: |
|||
| Net gross sales from discontinued operations | 1,805 | 2,142 | |
| Cost of gross sales from discontinued operations | (978) | (1,679) | |
| Total working and non-operating bills from discontinued operations | (5,274) | (3,769) | |
| Income tax restoration from discontinued operations | 25 | 57 | |
| Gain on disposal of a business, web of tax on disposal | 11,801 | – | |
| Income / (loss) on discontinued operations | 7,379 | (3,249) | |
| Net revenue / (loss) | 750 | (6,108) | |
| Less: Net revenue / (loss) attributable to noncontrolling pursuits | (1,685) | (1,767) | |
| Net revenue / (loss) attributable to WISeKey International Holding AG | 2,435 | (4,341) | |
| Earnings per share from persevering with operations | |||
| Basic | (0.07) | (0.04) | |
| Diluted | (0.07) | (0.04) | |
| Earnings per share from discontinued operations | |||
| Basic | 0.07 | (0.05) | |
| Diluted | 0.07 | (0.05) | |
| Earning per share attributable to WISeKey International Holding AG | |||
| Basic | 0.02 | (0.07) | |
| Diluted | 0.02 | (0.07) | |
| Other complete revenue / (loss), web of tax: | |||
| Foreign foreign money translation changes | (3,218) | (777) | |
| Change in unrealized features associated to available-for-sale debt securities | – | (5,564) | |
| Reclassifications out of the OCI arising throughout interval | 1,156 | – | |
| Defined profit pension plans: | |||
| Net achieve (loss) arising throughout interval | 90 | 140 | |
| Other complete revenue / (loss) | (1,972) | (6,201) | |
| Comprehensive revenue / (loss) | (1,222) | (12,309) | |
| Other complete revenue / (loss) attributable to noncontrolling pursuits | (969) | 80 | |
| Other complete revenue / (loss) attributable to WISeKey International Holding AG | (1,002) | (6,281) | |
| Comprehensive revenue / (loss) attributable to noncontrolling pursuits | (2,655) | (1,687) | |
| Comprehensive revenue / (loss) attributable to WISeKey International Holding AG |
1,433 | (10,622) |
The notes are an integral half of our consolidated monetary statements.
Consolidated Balance Sheets [as reported]
| As at June 30, | As at December 31, | ||
| USD’000 | 2022 (unaudited) | 2021 | |
| ASSETS | |||
| Current property | |||
| Cash and money equivalents | 22,818 | 34,201 | |
| Restricted money, present | 105 | 110 | |
| Accounts receivable, web of allowance for uncertain accounts | 30,344 | 2,979 | |
| Notes receivable from workers and associated events | 66 | 68 | |
| Inventories | 4,189 | 2,710 | |
| Prepaid bills | 792 | 1,198 | |
| Current property held on the market | – | 689 | |
| Other present property | 927 | 555 | |
| Total present property | 59,241 | 42,510 | |
| Noncurrent property | |||
| Notes receivable, noncurrent | 182 | 190 | |
| Deferred revenue tax property | 1 | 1 | |
| Deferred tax credit | 1,073 | 848 | |
| Property, plant and gear web of accrued depreciation | 743 | 573 | |
| Intangible property, web of accrued amortization | 103 | 105 | |
| Finance lease right-of-use property | 130 | 171 | |
| Operating lease right-of-use property | 2,661 | 2,941 | |
| Goodwill | 8,317 | 8,317 | |
| Equity securities, at price | 460 | 501 | |
| Equity securities, at truthful worth | 1 | 1 | |
| Noncurrent property held on the market | – | 32,391 | |
| Other noncurrent property | 241 | 256 | |
| Total noncurrent property | 13,912 | 46,295 | |
| TOTAL ASSETS | 73,153 | 88,805 | |
| LIABILITIES | |||
| Current Liabilities | |||
| Accounts payable | 13,482 | 14,786 | |
| Notes payable | 4,193 | 4,206 | |
| Convertible be aware payable, present | 800 | – | |
| Deferred income, present | 199 | 92 | |
| Current portion of obligations beneath finance lease liabilities | 4 | 55 | |
| Current portion of obligations beneath working lease liabilities | 567 | 595 | |
| Income tax payable | 7 | 11 | |
| Current liabilities held on the market | – | 4,567 | |
| Other present liabilities | 331 | 439 | |
| Total present liabilities | 19,583 | 24,751 | |
| Noncurrent liabilities | |||
| Bonds, mortgages and different long-term debt | 393 | 458 | |
| Convertible be aware payable, noncurrent | 31 | 9,049 | |
| Deferred income, noncurrent | 37 | 100 | |
| Operating lease liabilities, noncurrent | 2,197 | 2,468 | |
| Employee profit plan obligation | 4,669 | 4,769 | |
| Other deferred tax liabilities | 59 | 62 | |
| Noncurrent liabilities held on the market | – | 5,712 | |
| Other noncurrent liabilities | 3 | 57 | |
| Total noncurrent liabilities | 7,389 | 22,675 | |
| TOTAL LIABILITIES | 26,972 | 47,426 | |
| Commitments and contingent liabilities | |||
| SHAREHOLDERS’ EQUITY | |||
| Common inventory – Class A | 400 | 400 | |
| CHF 0.01 par worth | |||
| Authorized – 40,021,988 and 40,021,988 shares | |||
| Issued and excellent – 40,021,988 and 40,021,988 shares | |||
| Common inventory – Class B | 5,334 | 4,685 | |
| CHF 0.05 par worth | |||
| Authorized – 144,589,261 and 138,058,468 | |||
| Issued – 100,294,518 and 88,120,054 | |||
| Outstanding – 99,837,254 and 80,918,390 | |||
| Treasury inventory, at price (457,264 and seven,201,664 shares held) | (371) | (636) | |
| Additional paid-in capital | 277,376 | 268,199 | |
| Accumulated different complete revenue / (loss) | 1,312 | 1,407 | |
| Accumulated deficit | (235,724) | (238,160) | |
| Total shareholders’ fairness attributable to WISeKey shareholders | 48,327 | 35,895 | |
| Noncontrolling pursuits in consolidated subsidiaries | (2,146) | 5,484 | |
| Total shareholders’ fairness | 46,181 | 41,379 | |
| TOTAL LIABILITIES AND EQUITY | 73,153 | 88,805 |
The notes are an integral half of our consolidated monetary statements.
Non-GAAP Financial Measures
In managing WISeKey’s business on a consolidated foundation, WISeKey administration develops an annual working plan, which is accredited by our Board of Directors, utilizing non-GAAP monetary measures. In measuring efficiency in opposition to this plan, administration considers the precise or potential impacts on these non-GAAP monetary measures from actions taken to cut back prices with the purpose of rising our gross margin and working margin and when assessing applicable ranges of analysis and improvement efforts. In addition, administration depends upon these non-GAAP monetary measures when making choices about product spending, administrative budgets, and different working bills. We consider that these non-GAAP monetary measures, when coupled with the GAAP outcomes and the reconciliations to corresponding GAAP monetary measures, present a extra full understanding of the Company’s outcomes of operations and the components and developments affecting WISeKey’s business. We consider that they permit buyers to carry out extra comparisons of our working outcomes, to evaluate our liquidity and capital place and to investigate monetary efficiency excluding the impact of bills unrelated to operations, sure non-cash bills associated to acquisitions and share-based compensation expense, which can obscure developments in WISeKey’s underlying efficiency. This data additionally permits buyers to check monetary outcomes between intervals the place sure gadgets could range unbiased of business efficiency and permits for better transparency with respect to key metrics utilized by administration.
These non-GAAP monetary measures are offered along with, and never as an alternative to, or superior to, measures of monetary efficiency ready in accordance with GAAP. The presentation of these and different comparable gadgets in WISeKey’s non-GAAP monetary outcomes shouldn’t be interpreted as implying that these things are non-recurring, rare, or uncommon. Reconciliations of these non-GAAP measures to probably the most comparable measures calculated in accordance with GAAP are offered within the monetary statements portion of this launch in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).”
Non-GAAP to GAAP Reconciliations
| Financial Reconciliation of GAAP to non-GAAP Results (unaudited) | 6 months to June 30, | 6 months to June 30, |
| (Million US$) | 2022 | 2021 |
| Net gross sales as reported | 10.8 | 7.8 |
| Net gross sales from discontinued operations as reported | 1.8 | 2.1 |
| Total income | 12.6 | 9.9 |
| Gross revenue as reported | 4.8 | 3.1 |
| Gross revenue from discontinued operations as reported | 0.8 | 0.5 |
| Total gross revenue | 5.6 | 3.6 |
| Operating loss as reported | (6.6) | (8.3) |
| Non-GAAP changes from persevering with operations: | ||
| Depreciation expense | 0.1 | 0.5 |
| Amortization expense on intangibles | – | 0.1 |
| EBITDA | (6.5) | (7.7) |
| Non-GAAP changes from persevering with operations: | ||
| Expenses settled in fairness | 0.1 | – |
| M&A-related authorized charges | 0.8 | 0.6 |
| M&A-related skilled charges | 0.1 | – |
| Adjusted EBITDA | (5.5) | (7.1) |
| GAAP to Non-GAAP Cash and Cash Equivalents | ||
| (Million US$) | As at June 30, 2022 |
As at December 31, 2021 |
| Cash and money equivalents as reported | 22.8 | 34.2 |
| Restricted money, present as reported | 0.1 | 0.1 |
| Total Cash and restricted money | 22.9 | 34.3 |
| * Rounded up | ||
About WISeKey:
WISeKey (NASDAQ: WKEY / SIX Swiss Exchange: WIHN) is a number one world cybersecurity platform firm at present deploying massive scale digital identification ecosystems for folks and objects respecting the Human because the Fulcrum of the Internet. The WISeKey IoT expertise stack features a vary of applied sciences equivalent to Semiconductors, eIDs, Blockchain, NFTs, Post Quantum, Pico Satellites and Trust performing seamlessly as a platform which secures the easy connection of objects to the Internet to probably the most complicated functions that use these related objects, the information they collect and talk and the totally different steps wanted to energy these functions.
The WISeKey Semiconductors Secures the pervasive computing shaping as we speak’s Internet of Everything. WISeKey IoT has an put in base of over 1.5 billion microchips in just about all IoT sectors (related automobiles, good cities, drones, agricultural sensors, anti-counterfeiting, NFTs, good lighting, servers, computer systems, cell phones, crypto tokens and many others.)
Our expertise is Trusted by the OISTE/WISeKey’s Swiss based mostly cryptographic Root of Trust (“RoT”) gives safe authentication and identification, in each bodily and digital environments, for the Internet of Things. The WISeKey RoT serves as a typical belief anchor to make sure the integrity of on-line transactions amongst objects and between objects and other people. For extra data, go to www.wisekey.com.
Press and investor contacts:
| WISeKey International Holding Ltd Company Contact: Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 [email protected] |
WISeKey Investor Relations (US) Contact: Lena Cati The Equity Group Inc. Tel: +1 212 836-9611 [email protected] |
Disclaimer:
This communication expressly or implicitly accommodates sure forward-looking statements regarding WISeKey International Holding Ltd and its business. Such statements contain sure identified and unknown dangers, uncertainties and different components, which might trigger the precise outcomes, monetary situation, efficiency or achievements of WISeKey International Holding Ltd to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is offering this communication as of this date and doesn’t undertake to replace any forward-looking statements contained herein consequently of new data, future occasions or in any other case.
This press launch doesn’t represent a proposal to promote, or a solicitation of a proposal to purchase, any securities, and it doesn’t represent an providing prospectus throughout the which means of article 652a or article 1156 of the Swiss Code of Obligations or an inventory prospectus throughout the which means of the itemizing guidelines of the SIX Swiss Exchange. Investors should depend on their very own analysis of WISeKey and its securities, together with the deserves and dangers concerned. Nothing contained herein is, or shall be relied on as, a promise or illustration as to the long run efficiency of WISeKey.
