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WISeKey Reports its FY2016 Consolidated Financial Results

  • 2016 was a transformative year for WISeKey, laying the foundation for substantial growth in its Vertical Platform and related business verticals, Root of Trust/Cybersecurity, PKI/Digital Certification and Internet of Things / Blockchain
  • FY2016 financial results for WISeKey show consolidated revenues of USD11.6 million and a consolidated net “cash” loss (excluding the impact of stock-based transactions leading to a book loss under US GAAP) of USD10.9 million, together with a cash balance of USD5.2 million as of 31 December 2016
  • FY2016 pro forma combined consolidated historic 12-month revenues for WISeKey, Vault IC and QuoVadis amount to USD52 million
  • Consolidated Q1 FY2017 preliminary financial results for WISeKey (ex. Quovadis yet) show revenues of approximately USD8 million

Zug, Switzerland, 5 May 2017, WISeKey International Holding Ltd “WISeKey” or the “Company”) (SIX: WIHN) announced today its full year financial results for the period ending December 31, 2016. The 2016 Annual Report, including the consolidated and standalone financial statements for financial year 2016 and the compensation report, will be downloadable from the start of trading of WISeKey’s Class B Shares on SIX Swiss Exchange on May 8, 2017.

The year 2016 was a transformative year for WISeKey, as it involved a substantial re-organization in preparation for the successful listing of the Company’s Class B Shares on the SIX Swiss Exchange on 31 March, 2016. Since then, WISeKey has achieved significant milestones on the implementation of its vision and strategy to become a global leading Vertical Cybersecurity Platform company by integrating Root of Trust, eIDS, IoT and Blockchain to provide end-to-end services to its clients.

On 20 September 2016, WISeKey closed the previously announced acquisition of Vault IC, the semiconductor activities of INSIDE Secure, a market leader in semiconductors. The FY2016 financial results of WISeKey reflect approximately one quarter of the Vault IC acquisition. In sum, WISeKey showed FY2016 consolidated revenues of USD11.6 million which compares to combined consolidated revenues of USD2.3 million for FY2015. Reported consolidated net loss for FY2016 was USD37.2 million, impacted by non-cash, accounting book losses of USD24.8 million arising from the corporate reorganization of the WISeKey Group, which was completed in March 2016 prior to the listing of its Class B Shares on SIX Swiss Exchange Ltd, and the issuance of options and warrants in Q1 2016 prior to the listing with a strike below the then hypothetical market price for the WISeKey Shares of between CHF10.00 and CHF15.00. This consolidated net loss for FY2016 compares to consolidated net loss for FY2015 of USD6.5 million. As of 31 December 2016, the cash balance of WISeKey was USD5.2 million. Other than the mandatory convertible loan note with a principal amount of USD11.0 million, which was issued to Inside Secure as part of the purchase price consideration for the acquisition of Vault IC and which is formally accounted for as “financial debt” under US GAAP, WISeKey had no financial debt outstanding as of 31 December 2016.

Recent Developments & Outlook

WISeKey completed a debt raising transaction on 3 April, 2017 whereby it obtained a USD16.4 million secured line of credit facility for acquisition financing with maturity up to 18 months from ExWorks Capital, a U.S. private debt fund specializing in international trade and working capital financing.
This ExWorks credit facility allowed WISeKey to complete on 3 April, 2017 the acquisition of 85% of the issued and outstanding equity interest of Quovadis Holdings Limited, the holding company of the Quovadis Group, in a transaction. The acquisition of QuoVadis represents a further key milestone in WISeKey’s growth strategy to consolidate the European Cybersecurity & IoT industry sector. WISeKey is on its path to becoming the leading Cybersecurity Vertical Platform whilst addressing the fast growing IoT Cybersecurity and Blockchain space. WISeKey is leveraging opportunities arising from efforts to consolidate the highly fragmented cybersecurity industry, which is in the midst of a deals boom, by focusing on cash-generating companies and smaller start-ups with innovative technologies on Cybersecurity, IoT, Blockchain and Artificial Intelligence (“AI”).

The pro forma combined consolidated 12-months revenues for FY2016 of WISeKey, Vault IC and including QuoVadis are approximately USD52 million, whilst pro forma combined consolidated EBITDA for FY2016 for WISeKey, Vault IC and Quovadis (excluding accounting non-cash book loss under US GAAP from issuance of employee options) was approximately minus USD3 million.
In November 2016, WISeKey established a Joint Venture company, together with leading Indian entrepreneurs, in order to serve the Indian market. This Joint Venture company raised an initial USD1.3 million, with a commitment from the Indian partners to generate USD20 million of revenues for the Joint Venture in India during the period 2017-2019, and the possibility of a further equity investment of USD20 million by new investors. The Joint Venture was established to deploy WISeKey IoT and Cybersecurity Platform to the Indian market. Under this agreement, the Joint Venture will localize WISeKey’s Cybersecurity Platform and provide Indian customers – both individuals and organizations – trusted identities for the Internet of Things (IoT) objects and mobiles, enabling them to complete secure online transactions with confidence, trust the identities of others, and the identities of the IoT infrastructure. These transactions will run via localized Root of Trust (“RoT”), serve the Indian Ecosystem, and will benefit sectors such as telecom, manufacturing, retail, and e-commerce.

Also in November 2016, WISeKey announced that it has reached an agreement with leading Argentinian investors to roll out its Joint Venture model in Argentina. Further to such announcement, WISeKey signed in April 2017 a cooperation agreement with Argentina’s National Investment & Trade Promotion Agency to establish a Blockchain Center of Excellence in Buenos Aires and position the country as a major hub of the Fourth Industrial Revolution.

WISeKey’s strategy to consolidate the European Cybersecurity and Blockchain market implies a constant evaluation of potential add-on acquisitions. Thus, WISeKey continuously explores the possibility of potential additional strategic acquisitions, especially in high growth cybersecurity markets such as China and the USA. In addition, following the establishment of a Joint Venture in India and the announcement of a Joint Venture in Argentina, WISeKey is considering the establishment of additional WISeKey Joint Ventures in selected markets to operate under WISeKey’s National Root of Trust.

Mr. Moreira Chairman and CEO of WISeKey commented: “2016 was a transformational year for WISeKey. In March 2016, WISeKey went public on SIX Swiss Exchange. In September 2016, we completed the acquisition of VaultIC, the IoT integrated circuits and semiconductor business of INSIDE Secure, and created the first ever comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). The Vault IC acquisition alone, is expected to add over USD30 million into our top line for FY2017. Together with QuoVadis, the acquisition we closed at the end of March 2017, these two businesses are expected to add more than USD50 million (pro forma combi
ned) to our top line in FY2017, whilst new business generated from cross-selling opportunities, e.g. Joint Venture Agreements we already signed in 2016 in India and Argentina and others currently discussed for other jurisdictions, as well as revenues generated from WISeKey’s existing clientele, are expected to bring significant additional revenues in FY2017. While we started 2017 on a strong note, will continue to take steps to further expand our business in the U.S. and internationally, having as an ultimate goal the increase of shareholder value. We look forward to announcing our progress as we hit new milestones.”

About WISeKey

WISeKey (SIX Swiss Exchange: WIHN) 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 on-line transactions among objects and between objects and people. For more information, visit

Press and investor contacts

WISeKey International Holding Ltd

Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000


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 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.