WISeKey Reports Record Full Year 2018 Preliminary Revenue of $53 Million, an Increase of 23%, From $43.1 Million Reported for FY 2017
2019 expected to be a year of strong operational performance
$45 million cash proceeds from the sale of QuoVadis SSL and PKI businesses to substantially improve the Company’s financial position and pave the way for significant investments in growth initiatives
ZUG, Switzerland, January 17, 2019 – WISeKey International Holding Ltd (“WISeKey” or the “Company”) (SIX: WIHN), a leading Swiss cybersecurity and IoT company, announced today its preliminary financial results for full year (FY) 2018 (year ended December 31, 2018). All 2018 figures in this release are unaudited and estimated due to the preliminary nature of the announcement. Audited figures will be reported on March 31, 2019.
FY 2018 Financial & Operational Milestones:
Record full-year 2018 preliminary unaudited Cybersecurity and IoT revenue of $53.0 million, up 23% from FY 2017.
Growth was driven by higher revenues from both the Cybersecurity and IoT businesses for new sectors requiring strong security such as Connected Car, Blockchain, illicit trade, luxury industry and industrial IoT. Particularly, we noticed higher adoption of WISeKey’s Semiconductor products for IoT with embedded security which are immune to recent cybersecurity attacks.
Cash of $11.0 million at December 31, 2018, compared to $12.2 million at December 31, 2017, with the small decline due to the settlement of certain commitments related to the sale of QuoVadis SSL and PKI businesses.
Customer adoption for IoT Cybersecurity services continued to accelerate in 2018, reaching more than 4,500 customers across all regions at the end of 2018, mainly due to our integrated vertical trusted platform which combines a range of chips with software applications that cater to our customers’ security and business needs.
Our software application offerings include proprietary technology developed by the Company such as Root of Trust (RoT) and Public Key Infrastructure (“PKI”), which are offered as standalone products, as well as part of our fully integrated Vertical Trusted Platform that enables WISeKey’s clients to manage their digital identity, information, and communications through a seamless process. We enable our clients to easily adapt to a continuously changing landscape of services designed specifically for their needs, without compromising their digital security.
WISeKey ISTANA PKI platform allowed WISeKey to enter the Connected Car industry by offering manufacturers a secure way to validate the authenticity of different vehicle components. Certificate-based security also protects onboard communication between vehicle components and enables secure over-the-air software updates. Additionally, authentication certificates can be used by employees, dealers and suppliers to access car components that diagnose mechanical/technical issues and update software, from any location. Finally, the ISTANA PKI platform allows users to securely interact with a car’s smart features using smartphones and other devices. Currently, WISeKey is working with several smart car manufacturers and its ISTANA PKI platform is active in several large-scale projects. A recent example is a strategic contract signed with a leading European automobile manufacturer, cementing its role in the Connected Car industry.
During 2018, WISeKey developed the new NanoSeal Semiconductors product family and architecture for consumer products authentication and traceability. Built around a robust proprietary cryptographic algorithm for data protection and digital signature, a 2kbit long life secure EEPROM non-volatile memory with multiple independent security areas and contact or NFC based communication interfaces, this versatile architecture can be attached to any product to be protected and tracked including sports apparel, drone battery packs, e-cigarettes refills, parcels, medicines and high-tech accessories creating a total new market for the company.
The rapid growth and proliferation of internet-based devices, as well as people’s dependence on them for personal and business needs, precipitated the connectivity of digital devices. However, such connectivity creates numerous opportunities to alter or manipulate digital footprints. We believe that our integrated products provide the most comprehensive solution to fill these gaps in cybersecurity and data protection. The core of WISeKey’s Vertical Trusted Platform is based on our Cybersecurity SaaS business, also known as managed PKI services, and on our Semiconductor chips.
Our outlook for 2019 and beyond remains strong. We expect 2019 to be another year of strong financial and operational performance across our Cybersecurity and IoT businesses due to:
Higher revenue from the ISTANA platform with already strategic revenue wins in the German and Chinese markets.
Larger market share and accelerated sales in the US and China markets where we already have a strong presence.
Larger geographical footprint as we continue to enter new territories via MOUs in China and in Saudi Arabia through Joint Ventures.
Monetization of the WISeKey Blockchain Platform and related services.
Higher revenues from the new Anti-Illicit Trade Technology WISeAuthentic, now expanding from luxury products to other sectors.
Untapped potential synergies with global organizations thanks to a partnership agreement with DigiCert to explore common opportunities in the IoT market, using their combined products to enhance mutual offerings.
Additionally, during 2019 we plan to further invest in:
Significantly expanding our sales force to take advantage of the higher demand for strong security, authentication, brand protection and anti-counterfeiting services as Cybersecurity / IoT becomes more pervasive for segments such as connected devices, connected cars, luxury products, pharmaceuticals and banking/financial sector.
Further developing the WISeKey Foresight platform that will use APIs and keys generated on VaultIC IoT chip sets as the basis for Cybersecurity IoT services unlocking new features of the silicon. what the WISeKey calls Chip as a Service.
Reinvesting in our core IoT business with new innovative products and solutions to further reinforce our position as a major player offering secured and trusted Blockchain architectures. These new products and offerings include:
WISeCoin’s STO as a method of identification and payment between connected objects, allowing these cars to pay for electricity, gas and parking through the integration of WISeCoin crypto wallets at the Secure Element Chip level. WISeCoin provides additional highly secured solutions such as biometrics-driven hardware wallets, integrated exchange platforms, microchips Blockchain enabled semiconductors, and NFC-based contactless payment solutions.
WISePhone Block (April 2019), the first ever Blockchain mobile phone.
WISeTrustBoot (January 2019), a versatile platform independent solution to provide trust in IoT devices through verifying the authenticity of the boot sequence and firmware, built on a combination of the strength of our tamper resistant secure elements, state-of-the-art crypto libraries and strong digital signatures.
Of note, these initiatives together with ISTANA are expected to gradually offset the revenue impact associated with the sale of QuoVadis SSL and PKI businesses which generated revenue of approximately $20 million for FY 2018.
We plan to provide FY 2019 revenue guidance after the issuance of our 2018 Annual Report, in April 2019.
Through the Cybersecurity/IoT/Blockchain integration, we have sharpened our focus around consumers’ expectations by prioritizing innovation, speed, and strategic partnerships. 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.
In addition, as we continue to pursue our goal to list on the NASDAQ during 2019, we believe such listing will broaden our shareholder base, elevate our profile amongst existing and potential investors and provide liquidity.
Finally, we will continue to consider potential acquisitions to support the group’s strategy and expansion into existing or new areas, such as AI Artificial Intelligence to reinforce WISeAI which fully integrates the Root of Trust and IoT embedded devices with problem-solving Artificial Intelligence (“AI”) solutions into WISeKey’s Vertical Platform.
WISeKey (SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey Semiconductors secure the pervasive computing shaping today’s Internet of Everything. WISeKey has an installed base of over 1 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.). WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors secure a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.
Our technology, trusted by the OISTE/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 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.