WISeKey Semiconductors “SEALSQ Corp” Announces FY 2022 Audited
Financial Results: Reports Net Sales of $23.2 Million, Net Income
of $5.8 Million and EBITDA of $3.0 Million
WISeKey Semiconductors “SEALSQ
Corp” Announces FY 2022 Audited
Financial Results: Reports Net
Sales of $23.2
Million, Net Income of
$5.8 Million
and EBITDA of
$3.0 Million
Semiconductors order growth
accelerates; backlog of $36 million for IoT
products stretches into
2024 and pipeline of opportunities totals $100 million.
Zurich and
BVI – April
21,
2023: Ad-Hoc announcement pursuant to
Article 53 of SIX Listing Rules – WISeKey
International Holding Ltd (NASDAQ: WKEY / SIX: WIHN) (“WISeKey” or
the “Company”), a leading Swiss cybersecurity and IoT company
announces the FY 2022 audited consolidated financial results for
its wholly owned semiconductors subsidiary WISeKey Semiconductors
SAS which is SEALSQ Corp. predecessor (“SEALSQ”) (www.sealsq.com).
For FY 2022, SEALSQ reported solid revenue of over $23.2 million,
an increase of more than 36% compared to FY 2021, and EBITDA of
$3.0 million, due to steady semiconductors demand and an ambitious
roadmap to develop the next generation of post-quantum chips.
FY 2022 Financial Highlights vs. FY
2021
- Revenue increased by 36% to $23.2
million, as compared to $17.0 million.
- Gross profit increased by 38% to
$9.8 million, as compared to $7.1 million.
- Net income was $5.8 million (or
$3.92 per basic and diluted share), as compared to a loss of $4.8
million.
- EBITDA (non-GAAP) was $3.0 million
as compared to a loss of $3.5 million.
Carlos Moreira, WISeKey’s Founder and CEO,
noted: “Although 2022 was a challenging year, our semiconductors
business set new records for product orders, which resulted in
higher revenues and net income for the year. Our investments in
innovation, strong customer demand, and execution excellence put us
in a position of strength for the future. We continue to see solid
demand for our semiconductors and the next generation post-quantum
chips roadmap SEALSQ and are making substantial progress in the
implementation of our post-quantum algorithms in Secure
Semiconductors MS6001/MS6003. During the last two years, we have
made considerable advancements in developing post-quantum resistant
algorithms by establishing strategic R&D partnerships with
MINES Saint-Etienne Research Institute (“MINES Saint-Etienne”),
aiming to help the international community find cryptography
algorithms that will resist future quantum computing based
cyber-attacks. SEALSQ’s on-chip or cloud-based is also now
provisioning services with the Matter Root-of-Trust PAA will help
our customers save time and money in achieving Matter security
compliance.”
“We expect our WISeKey Semiconductors SEALSQ
revenue to continue to grow in 2023. Currently, we expect FY 2023
revenue to grow by approximately 25% as compared to FY 2022, to
approximately $30 million. We believe that due to our large
backlog of $36 million, our $100 million pipeline of opportunities,
and the significant investments we have made into expanding our
salesforce, we are well positioned to continue to gain market share
and expand our geographic footprint,” concluded Mr. Moreira.
In 2022, WISeKey Semiconductors SEALSQ achieved
major milestones with the Post-Quantum engineering team being able
to carry both Kyber and Dilithium CRYSTAL quantum-resistant NIST
selected algorithms and the appropriate APIs on the MS6003, a
WISeKey Common Criteria EAL5+ Certified secure hardware platform
powered by an ARMSC300 core and featuring an USB interface, thus
creating the first Quantum-Resistant USB Token demonstrator. This
demonstrator marks a significant milestone for the QUASARS (QUAntum
resistant Secure ARchitectureS) project and takes us one step
closer to achieving our goal of building a Post-Quantum Hardware
Security Module and Root-of-Trust.
WISeKey, through SEALSQ, has taken affirmative
steps to implement its QUASARS project. The QUASARS project, is a
radically innovative solution, based upon the new WISeKey Secure
RISC V platform that is paving the way for the Post Quantum
Cryptography era, offering hybrid solutions compliant with ANSSI’s
(“Agence nationale de la sécurité des systèmes d’information,” the
National Cybersecurity Agency of France) recommendations. Of note,
SEALSQ has received strong support from the French SCS (Secured
Communicating Solutions) Cluster for its QUASARS project. This
project is expected to generate new revenue streams in the medium
term.
SEALSQ is using AI capabilities to increase the performance of
post-quantum semiconductors by assisting in the design and
optimization of these materials. AI can be used to simulate and
model the behavior of these semiconductors, which can help
researchers to identify the most promising materials for use in
quantum devices.
Several revenue streams which are reaching
maturity should contribute to our expected revenue growth for 2023,
driven by our large backlog
of
$36 million and our $100
million pipeline
of opportunities. These include:
-
SEALSQ enables companies
to quickly and easily get access
to Device Attestation Certificates
(DACs). The service is provided by INeS, our managed
“PKI as a Service” platform without the necessity to invest and to
deploy any hardware infrastructure. Each manufacturer using the
platform can manage the security lifecycle of certificates and
devices in their own dedicated, cloud-based application. SEALSQ
will also be offering its complete range of FIPS Certified Secure
Elements with pre-provisioning of keys and DACs ready for
authentication under Matter Protocol. This strong value proposition
will enable smart home device manufacturers to achieve faster time
to market through cost effective and simplified design processes
when designing Matter compliant smart home products. Matter
participants may gain the following benefits by partnering with
SEALSQ:
- Accelerate time to
market in achieving Matter compliance.
-
Save money by avoiding the costs of technology, maintenance,
staffing and ongoing compliance.
- Enjoy flexible
deployment options, including on-premises, hosted or batch
issuance.
- Simplify management
of device attestation certificates and product attestation
intermediates through SEALSQ’s INeS CMS Platform for IoT.
- Gain
efficiencies using a scalable platform to sign and secure device
updates.Satellite-related activities: We have
started the commercialization of the
WISeSat PocketQube satellite with 13 satellites now
in orbit, launched with Space X. Our strong partnership with
the Swiss Army to cooperate in the development of
Space related activities
using WISeSAT/Fossa low orbit PicoSatellites technology aims
to establish the foundation for the development of new capacities
in the field of data security. WISeKey is offering this IoT
satellite technology to its IoT clients in a SaaS model, allowing
both remote and redundant urban IoT communications for companies
seeking to securely connect their assets. WISeKey Trust and
Security solutions offer unique integration into an end-to-end
platform that communicates in real-time with the WISeSat Satellite
by ensuring the authenticity, confidentiality, and integrity of the
devices and objects.
The full FY 2022 annual report of WISeKey
Semiconductors SAS, SEALSQ Corp. predecessor, is available to
download at https://www.sealsq.com/about/about-us under “Financial
Reports”.
ADDITIONAL FINANCIAL & OPERATIONAL DATA
FY 2022 Key Consolidated
Financials – WISeKey
Semiconductors
SAS, SEALSQ Corp. predecessor
(Million
US$) |
|
US GAAP |
2022 |
2021 |
Net sales |
23.2 |
17.0 |
Gross
profit |
9.8 |
7.1 |
Operating
income (loss) as reported |
2.6 |
(5.0) |
Net income
(loss) attributable to SEALSQ as reported |
5.8 |
(4.8) |
|
|
|
Non-GAAP |
2022 |
2021 |
EBITDA |
3.0 |
(3.5) |
Consolidated Statements of Comprehensive
Income/(Loss) – WISeKey Semiconductors SAS, SEALSQ
Corp. predecessor [as reported]
|
12 months ended December 31, |
USD'000 |
2022 |
|
2021 |
|
|
|
|
Net sales |
23,198 |
|
16,995 |
Cost of
sales |
(13,267) |
|
(9,547) |
Depreciation of
production assets |
(132) |
|
(301) |
Gross
profit |
9,799 |
|
7,147 |
|
|
|
|
Other operating
income |
2,007 |
|
91 |
Research &
development expenses |
(2,308) |
|
(3,050) |
Selling &
marketing expenses |
(3,824) |
|
(4,245) |
General &
administrative expenses |
(3,091) |
|
(4,984) |
Total
operating expenses |
(7,216) |
|
(12,188) |
Operating income / (loss) |
2,583 |
|
(5,041) |
|
|
|
|
Non-operating
income |
935 |
|
483 |
Interest and
amortization of debt discount |
(355) |
|
(167) |
Non-operating
expenses |
(638) |
|
(96) |
Income
/ (loss) before income tax expense |
2,525 |
|
(4,821) |
|
|
|
|
Income tax
income (expense) |
3,245 |
|
(6) |
|
|
|
|
Net
income / (loss) |
5,770 |
|
(4,827) |
|
|
|
|
Earnings per share (USD) |
|
|
|
Basic |
3.92 |
|
(3.72) |
Diluted |
3.92 |
|
(3.72) |
|
|
|
|
Other
comprehensive income / (loss), net of tax: |
|
|
|
Foreign
currency translation adjustments |
(15) |
|
(8) |
Defined benefit
pension plans: |
|
|
|
Net gain (loss)
arising during period |
170 |
|
142 |
Other
comprehensive income / (loss) |
155 |
|
134 |
Comprehensive income / (loss) |
5,925 |
|
(4,693) |
The notes are an integral part of our consolidated financial
statements.
Consolidated Balance Sheets
– WISeKey Semiconductors SAS, SEALSQ Corp.
predecessor [as reported]
|
As of December
31, |
|
As of December
31, |
|
USD'000, "except par value" |
2022 |
|
2021 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash
equivalents |
4,057 |
|
2,064 |
|
Accounts
receivable, net of allowance for doubtful accounts |
2,219 |
|
2,606 |
|
Inventories |
7,510 |
|
2,710 |
|
Prepaid
expenses |
394 |
|
454 |
|
Other current
assets |
1,252 |
|
414 |
|
Total
current assets |
15,432 |
|
8,248 |
|
|
|
|
|
|
Noncurrent assets |
|
|
|
|
Deferred
income tax assets |
3,296 |
|
- |
|
Deferred tax
credits |
692 |
|
847 |
|
Property,
plant and equipment net of accumulated depreciation |
782 |
|
886 |
|
Intangible
assets, net of accumulated amortization |
1 |
|
5 |
|
Operating
lease right-of-use assets |
1,379 |
|
1,776 |
|
Other
noncurrent assets |
77 |
|
82 |
|
Total
noncurrent assets |
6,227 |
|
3,596 |
|
TOTAL
ASSETS |
21,659 |
|
11,844 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts
payable |
6,735 |
|
7,256 |
|
Indebtedness
to related parties, current |
3,374 |
|
- |
|
Current
portion of obligations under operating lease liabilities |
324 |
|
320 |
|
Income tax
payable |
47 |
|
3 |
|
Other current
liabilities |
148 |
|
180 |
|
Total
current liabilities |
10,628 |
|
7,759 |
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
Bonds,
mortgages and other long-term debt |
1,489 |
|
- |
|
Operating
lease liabilities, noncurrent |
988 |
|
1,456 |
|
Indebtedness
to related parties, noncurrent |
7,946 |
|
15,617 |
|
Employee
benefit plan obligation |
396 |
|
575 |
|
Total
noncurrent liabilities |
10,819 |
|
17,648 |
|
TOTAL
LIABILITIES |
21,447 |
|
25,407 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Common
stock |
1,955 |
|
1,772 |
|
EUR 1 par
value |
|
|
|
|
Authorized -
1,473,162 and 1,298,162 shares |
|
|
|
|
Issued and outstanding - 1,473,162 and 1,298,162 shares |
|
|
Additional
paid-in capital |
14,926 |
|
7,258 |
|
Accumulated
other comprehensive income / (loss) |
775 |
|
621 |
|
Accumulated
deficit |
(17,444) |
|
(23,214) |
|
Total
shareholders' equity |
212 |
|
(13,563) |
|
TOTAL
LIABILITIES AND EQUITY |
21,659 |
|
11,844 |
|
The notes are an integral part of our consolidated financial
statements.
Non-GAAP Financial Measures
In managing WISeKey's business on a consolidated
basis, WISeKey management develops an annual operating plan, which
is approved by our Board of Directors, using non-GAAP financial
measures. In measuring performance against this plan, management
considers the actual or potential impacts on these non-GAAP
financial measures from actions taken to reduce costs with the goal
of increasing our gross margin and operating margin and when
assessing appropriate levels of research and development efforts.
In addition, management relies upon these non-GAAP financial
measures when making decisions about product spending,
administrative budgets, and other operating expenses. We believe
that these non-GAAP financial measures, when coupled with the GAAP
results and the reconciliations to corresponding GAAP financial
measures, provide a more complete understanding of the Company’s
results of operations and the factors and trends affecting
WISeKey’s business. We believe that they enable investors to
perform additional comparisons of our operating results, to assess
our liquidity and capital position and to analyze financial
performance excluding the effect of expenses unrelated to
operations, certain non-cash expenses related to acquisitions and
share-based compensation expense, which may obscure trends in
WISeKey's underlying performance. This information also enables
investors to compare financial results between periods where
certain items may vary independent of business performance and
allows for greater transparency with respect to key metrics used by
management.
These non-GAAP financial measures are provided
in addition to, and not as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP.
The presentation of these and other similar items in WISeKey’s
non-GAAP financial results should not be interpreted as implying
that these items are non-recurring, infrequent, or unusual.
Reconciliations of these non-GAAP measures to the most comparable
measures calculated in accordance with GAAP are provided in the
financial statements portion of this release in a schedule entitled
“Financial Reconciliation of GAAP to non-GAAP Results
(unaudited).”
Non-GAAP to GAAP
Reconciliations - WISeKey
Semiconductors SAS, SEALSQ Corp. predecessor
Financial
Reconciliation of GAAP to non-GAAP Results
(unaudited) |
12 months to December 31, |
|
(Million US$) |
2022 |
2021 |
Operating income
(loss) as
reported |
2.6 |
(5.0) |
Non-GAAP
adjustments: |
|
|
Depreciation
expense |
0.4 |
1.5 |
EBITDA |
3.0 |
(3.5) |
About WISeKey
WISeKey (NASDAQ: WKEY / 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 Microprocessors Secures the pervasive computing
shaping today’s Internet of Everything. WISeKey IoT has an install
base of over 1.6 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 produce 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 is 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.
About SEALSQ
SEALSQ is a wholly owned subsidiary of the WISeKey Group that
focuses on developing and selling Semiconductors, PKI and
Post-Quantum technology hardware and software products. Our
Post-Quantum solutions include Post-Quantum microchips and devices
that can be used in a variety of applications, from Multi-Factor
Authentication devices, Home Automation, and IT Network
Infrastructure, to Automotive, Industrial Automation and Control
Systems.
Post-Quantum Cryptography (PQC) refers to cryptographic methods
that are secure against an attack by a quantum computer. As quantum
computers become more powerful, they may be able to break many of
the cryptographic methods that are currently used to protect
sensitive information, such as RSA and Elliptic Curve Cryptography
(ECC). PQC aims to develop new cryptographic methods that are
secure against quantum attacks. For more information,
visit www.sealsq.com
Press and investor contacts:
WISeKey
International Holding LtdCompany Contact: Carlos
MoreiraChairman & CEOTel: +41 22 594 3000info@wisekey.com |
WISeKey
Investor Relations (US)Contact: Lena CatiThe Equity Group
Inc.Tel: +1 212 836-9611lcati@equityny.com |
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 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.
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