WISeKey Releases CEO Letter to Shareholders
Expects to Report Record 2018 Revenue due to Strong Demand for Existing Products and Larger Geographic Footprint; Well Positioned to Continue Growth in 2019 and Beyond
Geneva, Switzerland – December 18, 2018: WISeKey International Holding Ltd (WIHN.SW, OTCQX: WIKYY) (“WISeKey”), a Swiss based cybersecurity and IoT company, today released a letter from Carlos Moreira, Founder and CEO.
Dear WISeKey Shareholders:
As we are approaching 2018 year-end, I am pleased to take this opportunity to update our existing and potential shareholders on the significant milestones we achieved in 2018, progress made on several significant business developments we recently announced, other opportunities and growth initiatives we are pursuing and our goals for continued growth in 2019 and beyond.
Technology: In 2018, we made significant progress on many fronts and continued our quest to become a global leader in the delivery of integrated security products for the Internet of Things (“IoT”) and digital identity ecosystems. Our fully integrated platform, which is applicable across a broad range of industries, has positioned us well to take advantage of significant opportunities arising from the rapidly growing IoT and cybersecurity market.
We are proud to say that we have carved out a unique space in the IoT security market by delivering the highest level of secured chips, digital identities, and trusted services under one roof – thus we are able to win contracts for designs from the chip to the cloud.
Revenue Guidance: 2018 is expected to be another record year in terms of revenue. For FY 2018 we expect our revenue to be approximately $53 million, an increase of 23%, from $43.1 million reported for FY 2017. Of note, this guidance does not include approximately $5 million to $7 million in revenue for the Secure Token Offering (STO) of WISeCoin and WISePhone Block, which have been postponed to Q1 2019 due the delay in receiving the Non Action Letter from FINMA required to launch the STO.
Revenue growth was due to strong demand for our products and solutions from current and new customers in existing markets and efforts to expand our geographic footprint. Currently we serve over 3,500 clients in a wide range of market verticals. Approximately 60% of our revenue comes from European-based clients and approximately 35% from US-based clients.
Sale of QuoVadis SSL and PKI businesses: We are in process of finalizing the previously announced transaction to sell QuoVadis SSL and PKI businesses to DigiCert, the world’s leading provider of TLS/SSL, IoT and other PKI solutions. Closing of the transaction is anticipated before 2018 year-end, subject to receipt of all regulatory approvals and satisfaction of closing conditions customary for a transaction of this nature. Subject to completing the transaction, WISeKey and DigiCert intend to enter into a partnership to explore common opportunities in the IoT market, using their combined products to enhance mutual offerings.
The sale of the QuoVadis SSL and PKI businesses will allow us to reinvest in our core IoT business and expand the WISeCoin and WISephone Blockchain portfolio to further reinforce our position as a major player offering secured and trusted blockchain architectures. Additionally, we plan to significantly expand our sales force to take advantage of the higher demand for strong security, authentication, brand protection and anti-counterfeiting services for segments such as connected devices, smart cars, luxury products, pharmaceuticals and banking/financial sector.
We also intend to use the proceeds from the sale of QuoVadis SSL and PKI businesses to repay our indebtedness to ExWorks Capital.
Our outlook for 2019 and beyond remains strong. We expect our financial and operational performance to further improve due to:
- increased demand for our existing products and solutions
- new innovative products and solutions we are developing thanks to close collaboration between our marketing and R&D teams
- larger geographical footprint as we entered new territories via JVs in India and MOUs in China and Saudi Arabia
- launch of WISePhone, the first ever Blockchain mobile phone
- untapped potential synergies generated by partnerships with other leading companies in the space (see partnership opportunities with DigiCert)
- potential future acquisitions in the area of AI and IoT
We reaffirm our intention to list on the NASDAQ, ADR Level II, in Q1 2019 in order to:
- broaden our shareholder base and elevate our profile amongst US based investors
- accelerate expansion and take advantage of substantial business opportunities in the US
- provide liquidity to our existing shareholders
Through the Cybersecurity/IoT/Blockchain integration, we have sharpened our focus around consumers’ expectations by prioritizing innovation, speed, and strategic partnerships. We expect to end 2018 with a strong performance across our IoT businesses. Our talented teams of IT engineers, sales and marketing professionals are working hard to build on that momentum and take advantage of many significant opportunities ahead.
Every idea we have.every service we develop.and every innovation platform we create all stem from the same source: protecting the individual on the internet.
To serve today’s consumer requirements of privacy and security, we’re combining the agility of a local business via strategic JVs with the scale of the WISeKey international brand.
On behalf of our entire management team and board of directors, I would like to thank our shareholders for their ongoing support.
Founder and CEO
WISeKey International Holding Ltd
WISeKey (SIX: WIHN; OTCQX: WIKYY) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.
Press and investor contacts:
| WISeKey International Holding Ltd |
Company Contact: Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
| WISeKey Investor Relations (US) |
Contact: Lena Cati
The Equity Group Inc.
Tel: +1 212 836-9611
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 letter 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 article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. 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.