WISeKey Reports 39% Increase in H1 2023 Unaudited Revenue
GENEVA – July 24, 2023 – Ad-Hoc announcement pursuant to Art. 53 of SIX Listing Rules– WISeKey International Holding Ltd. (“WISeKey”) (SIX: WIHN, NASDAQ: WKEY), a leader in cybersecurity, digital identity, and Internet of Things (IoT) solutions operating as a holding company, today announced its unaudited first half 2023 (H1 2023) revenue.
For H1 2023 total unaudited revenue was $15.1 million, marking a 39% increase from H1 2022. The semiconductor revenue saw a 38% increase to $14.8 million from $10.7 million in H1 2022.
WISeKey operates as a holding company with four subsidiaries: SEALSQ Corp (“SEALSQ”) (Nasdaq: LAES), WISeKey SA, WISeSat.Space, and WISe.ART, each dedicated to a unique aspect of its expansive technology portfolio, is also reporting a pipeline of opportunities for IoT semiconductors products totaling $60 million.
WISeKey plans to further invest to mature each subsidiary and IPO each independent subsidiary upon reaching maturity, maintaining its focus on the core mission of securing the internet. This diversified business structure aims to capitalize on opportunities in the dynamic cybersecurity market, as it is involved in various sectors, such as digital identity, semiconductors, quantum computing, blockchain technology, space satellites, and NFT platforms. WISeKey’s multi-sector involvement and diversified approach positions it well for sustained growth and continued relevance amidst the challenges of the Fourth Industrial Revolution.
WISeKey’s subsidiary SEALSQ recently listed its ordinary shares on the Nasdaq Global Market. WISeKey has retained 80% ownership of SEALSQ, which also closed an initial $10 million tranche of a possible $20 million private placement. The proceeds are intended to fund enhancements of production facilities and the development of a new generation of quantum-ready semiconductors.
Semiconductor revenue growth in H1 2023, was largely due to higher demand for semiconductors/IoT products, signaling that WISeKey is capitalizing on this growing market.
Post-quantum cryptography is a part of quantum computing that deals with systems that could be resistant to quantum-based attacks, making it a critical area of research and development given the growth in quantum computing technology. Key growth drivers in the semiconductor segment are:
- Increasing Threat of Quantum Computing: Quantum computing has the potential to crack many of today’s encryption algorithms. This has increased the demand for post-quantum semiconductors that can provide security against potential quantum-based attacks.
- Technological Advancements: Advances in semiconductor technology, such as the development of quantum-ready semiconductors, are paving the way for the expansion of the post-quantum market.
- Government Support: Many governments around the world are investing in post-quantum cryptography research to prepare their infrastructure for the quantum era, driving further growth in this market.
WISeKey’s position in this market, and the growth in semiconductor revenue, suggests that it’s well-placed to take advantage of these trends and continue to grow.
WISeSat.Space subsidiary focuses on space technology and aims to securely connect assets via satellite communication using picosatellites. The demand for satellite technology and services has been increasing rapidly, driven by the growth of IoT, telecommunications, navigation systems, and earth observation systems. As this market continues to grow, WISeSat.Space is likely to see a rise in demand for its products and services.
WISeSat.Space’s use of picosatellites is a cost-effective approach to satellite deployment. Picosatellites are smaller and lighter than traditional satellites, leading to lower launch costs. This competitive advantage can help the company attract more customers, driving revenue growth. The satellite communication services provided by WISeSat.Space can be integrated with WISeKey’s other offerings, such as cybersecurity and digital identification. This integration can provide added value to customers and could lead to higher sales for the company. Satellites can collect vast amounts of data from across the globe. WISeSat.Space can monetize this data by selling it to businesses in a range of sectors, including agriculture, logistics, and environmental monitoring.
Governments and private companies worldwide require satellite services for a range of applications, including communications, defense, and research. WISeSat.Space could secure lucrative contracts with these entities, leading to significant revenue.
WISeSat.Space will adopt new business models, such as ‘Space-as-a-Service’, where it could lease satellite connectivity to businesses on a subscription basis. This could provide a steady, recurring revenue stream. WISeID’s focus on providing secure digital identity solutions could generate substantial revenue as we move forwarded, given the growing concerns about cybersecurity, privacy issues in AI, IoT expansion, need for regulatory compliance, and the rise in remote work. With the surge in online activities across industries and AI’s increasing role in various applications, the demand for secure digital identities is growing to protect sensitive information from security breaches and cyber attacks. WISeID, with its secure authentication and identification solutions, can cater to this demand, leading to increased revenue.
AI technologies often rely on large amounts of data, some of which can be personally identifiable information (PII). With increasing concerns about data privacy and compliance with regulations such as GDPR, the need for secure digital identities is paramount. WISeID’s solutions can provide a secure way to authenticate and protect this data, leading to increased demand for its services.
WISeKey SA subsidiary offers advanced cybersecurity solutions that protect digital communications and transactions, secure digital identities, and maintain the trustworthiness of electronic systems. Their key activities revolve around the secure provision of cryptographic root keys, management of a robust Public Key Infrastructure (PKI), and the generation and management of trusted digital identities.
WISe.ART subsidiary is focused on the thriving NFT market, and provides a secure platform for NFT transactions. Its integration with cybersecurity and blockchain technologies offers a secure environment for NFT creation, sale, and exchange, thereby positioning WISeKey to tap into a lucrative and rapidly growing market.
Entering the NFT market allows WISeKey to diversify its revenue streams and broaden its client base to include artists, collectors, and investors. WISe.ART can monetize its platform through transaction fees, authentication and verification services, and premium subscriptions.
WISeKey’s foray into the NFT market can bolster its brand as a leader in innovative digital solutions. This could enhance its appeal across other business sectors, potentially attracting more clients and driving higher revenue. Additionally, WISe.ART could act as a gateway for users to explore WISeKey’s other offerings, leading to greater adoption of its cybersecurity solutions and contributing further to its revenue diversification.
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.Space AG which focuses on space technology for secure satellite communication, specifically for IoT applications, and (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions.
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.
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 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.