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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 InitiativesSubstantial R&D investments aimed at securing a competitive edge in the fast-approaching era of post-quantum computingSchedules 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:...
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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.

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:

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:

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:

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 WISeKey
WISeKey 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]

The notes are an integral part of our consolidated financial statements.

Consolidated Balance Sheets [as reported]

The notes are an integral part of our consolidated financial statements.

Disclaimer
This 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.

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