WISeKey Announces H1 2022 Results; Reports Total Revenue of
Revenue Increase was Mainly due to Higher Demand on Semiconductors / IoT; WISeKey’s H1 2022 Semiconductor Revenue Increased 48% to
Reports Record Backlog of
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WISeKey’s strong financial position of
- Commercialization of the WISeSat PocketQube Satellite with 13 satellites now in orbit launched with Space X.
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. - Development of a new range of
Quantum Trust Services , that will take advantage of the latest developments in post-quantum encryption (PQE) to be applied in real-world applications of digital signatures and encryption using PKI and digital certificates, such as secure communication channels (TLS), enhanced Key Exchanges and email security (S/MIME). These services are currently based on standards that can be improved to be resilient to quantum attacks and offer backwards compatibility with existing counterparts. WISeKey’s implementation of PQE is made around the concept of “hybrid signatures” which combine in a single X.509 certificate, a conventional signature with a second signature using a PQE algorithm. This approach ensures backwards compatibility and opens a new horizon of cybersecurity services. - Launching of “Root of Trust” based in PQE algorithms promoted currently by the NIST as valid candidates, which will be the foundation of a new portfolio of
Trust Services and secure several IoT projects on whichWISeKey is already working. - Development of post-quantum resistant algorithms through its strategic R&D partnership with
MINES Saint-Etienne Research Institute . WISeKey’s R&D group has been working with several NIST’s candidates for the MS600X Common Criteria products, such as Crystals-Kyber and Crystals-Dilithium, aiming to develop a complete post-quantum cryptography toolbox to be combined with newPKI-related Trust Services delivered byWISeKey . These post-quantum cryptography initiatives will play a key role in controlling vulnerability and other risks related to quantum computers technologies which when used by hackers can give them the ability to crack cryptography algorithms, corrupt cybersecurity and compromise the global economy, by undermining the security foundations of the current financial and governmental services. These initiatives have received tremendous support from many government entities around the world through the sponsoring of public/private R&D projects. In particular,WISeKey is active in key initiatives promoted by theFrench Agency for Cybersecurity (ANSSI), and by theNational Cybersecurity Center of Excellence of the US NIST. TheWISeKey contributions to the projects will beTrust Services for credentials and secure semiconductors to keep the credentials secure. Specifically,WISeKey will offer INeS Certificate Management Service (CMS) for issuing credentials and VaultIC secure semiconductors to provide tamperproof key storage and cryptographic acceleration. - Use of WISeID as a Universal Communications Identifier (UCID), a unique identifier for an IoT device on a network; the blockchain, a distributed ledger shared with the nodes of a computer network to guarantee security; and Non-Fungible Tokens (NFTs), cryptographic assets on a blockchain that cannot be replicated. The combined practical application of these technologies — implementing UCID on the device, using NFTs, and putting them on the blockchain — ensures that the device itself is authenticated on a network that cannot be corrupted. This is a giant leap forward, and it is happening now, in
the United States government. - Full deployment of the WISe.ART platform. WISe.ART’s unique competitive edge comes from its platform which is secured by WISeKey’s various security technologies enabling the authentication of digital identity based NFTs, physical objects as well as digital assets, in a safe end-to-end process. The WISe.ART platform offers users full control of their WISeID NFT, while other NFTs must request access to identity information, and WISeID NFTs users then can decide by themselves what level of information they wish to share.The NFT tokenization uses the WISeKey registered patent application “System and Method for Providing Persistent Authenticatable NFT” in the USA. With this method, NFTs have increased in value and will hold their value for a long-term. For more information visit: https://www.wisekey.com/press/wisekey-files-patent-application-for-persistent-and-authenticatable-nfts/. Almost 130 artists have already joined the WISe.
ART NFT Marketplace with approximately 500 unique NFT products, adding a commercial NFT sales potential aggregate of$70 million worth of NFTs that increasingly see a future for tokens that upend the economics of content creation and influence on the internet.
ADDITIONAL FINANCIAL & OPERATIONAL DATA
H1 FY 2022 Key Financials -
(Million US$) | 6 months ended | |
US GAAP | 2022 | 2021 |
Operating loss as reported | (6.6) | (8.3) |
Net income attributable to | 2.4 | (4.3) |
Non-GAAP | 2021 | 2020 |
Total revenue | 12.6 | 9.9 |
Total gross profit | 5.6 | 3.6 |
EBITDA | (6.5) | (7.7) |
Adjusted EBITDA | (5.5) | (7.1) |
As at 2022 | As at 2021 | |
Total Cash and restricted cash | 22.9 | 34.3 |
Consolidated Statements of Comprehensive Income/(Loss) [as reported]
6 months ended | 6 months ended | ||
USD'000 | 2022 (unaudited) | 2021 (unaudited) | |
Net sales | 10,840 | 7,802 | |
Cost of sales | (6,305) | (4,304) | |
Depreciation of production assets | 240 | (390) | |
Gross profit | 4,775 | 3,108 | |
Other operating income | 33 | 114 | |
Research & development expenses | (1,699) | (2,128) | |
Selling & marketing expenses | (3,556) | (3,227) | |
General & administrative expenses | (6,156) | (6,174) | |
Total operating expenses | (11,378) | (11,415) | |
Operating loss | (6,603) | (8,307) | |
Non-operating income | 2,795 | 6,781 | |
Debt conversion expense | (603) | - | |
Interest and amortization of debt discount | (134) | (455) | |
Non-operating expenses | (2,083) | (877) | |
Loss before income tax expense | (6,628) | (2,858) | |
Income tax income / (expense) | (1) | (1) | |
Loss from continuing operations, net | (6,629) | (2,859) | |
Discontinued operations: | |||
Net sales from discontinued operations | 1,805 | 2,142 | |
Cost of sales from discontinued operations | (978) | (1,679) | |
Total operating and non-operating expenses from discontinued operations | (5,274) | (3,769) | |
Income tax recovery from discontinued operations | 25 | 57 | |
Gain on disposal of a business, net of tax on disposal | 11,801 | - | |
Income / (loss) on discontinued operations | 7,379 | (3,249) | |
Net income / (loss) | 750 | (6,108) | |
Less: Net income / (loss) attributable to noncontrolling interests | (1,685) | (1,767) | |
Net income / (loss) attributable to | 2,435 | (4,341) | |
Earnings per share from continuing operations | |||
Basic | (0.07) | (0.04) | |
Diluted | (0.07) | (0.04) | |
Earnings per share from discontinued operations | |||
Basic | 0.07 | (0.05) | |
Diluted | 0.07 | (0.05) | |
Earning per share attributable to | |||
Basic | 0.02 | (0.07) | |
Diluted | 0.02 | (0.07) | |
Other comprehensive income / (loss), net of tax: | |||
Foreign currency translation adjustments | (3,218) | (777) | |
Change in unrealized gains related to available-for-sale debt securities | - | (5,564) | |
Reclassifications out of the OCI arising during period | 1,156 | - | |
Defined benefit pension plans: | |||
Net gain (loss) arising during period | 90 | 140 | |
Other comprehensive income / (loss) | (1,972) | (6,201) | |
Comprehensive income / (loss) | (1,222) | (12,309) | |
Other comprehensive income / (loss) attributable to noncontrolling interests | (969) | 80 | |
Other comprehensive income / (loss) attributable to | (1,002) | (6,281) | |
Comprehensive income / (loss) attributable to noncontrolling interests | (2,655) | (1,687) | |
Comprehensive income / (loss) attributable to | 1,433 | (10,622) |
The notes are an integral part of our consolidated financial statements.
Consolidated Balance Sheets [as reported]
As at | As at | ||
USD'000 | 2022 (unaudited) | 2021 | |
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 22,818 | 34,201 | |
Restricted cash, current | 105 | 110 | |
Accounts receivable, net of allowance for doubtful accounts | 30,344 | 2,979 | |
Notes receivable from employees and related parties | 66 | 68 | |
Inventories | 4,189 | 2,710 | |
Prepaid expenses | 792 | 1,198 | |
Current assets held for sale | - | 689 | |
Other current assets | 927 | 555 | |
Total current assets | 59,241 | 42,510 | |
Noncurrent assets | |||
Notes receivable, noncurrent | 182 | 190 | |
Deferred income tax assets | 1 | 1 | |
Deferred tax credits | 1,073 | 848 | |
Property, plant and equipment net of accumulated depreciation | 743 | 573 | |
Intangible assets, net of accumulated amortization | 103 | 105 | |
Finance lease right-of-use assets | 130 | 171 | |
Operating lease right-of-use assets | 2,661 | 2,941 | |
8,317 | 8,317 | ||
Equity securities, at cost | 460 | 501 | |
Equity securities, at fair value | 1 | 1 | |
Noncurrent assets held for sale | - | 32,391 | |
Other noncurrent assets | 241 | 256 | |
Total noncurrent assets | 13,912 | 46,295 | |
TOTAL ASSETS | 73,153 | 88,805 | |
LIABILITIES | |||
Current Liabilities | |||
Accounts payable | 13,482 | 14,786 | |
Notes payable | 4,193 | 4,206 | |
Convertible note payable, current | 800 | - | |
Deferred revenue, current | 199 | 92 | |
Current portion of obligations under finance lease liabilities | 4 | 55 | |
Current portion of obligations under operating lease liabilities | 567 | 595 | |
Income tax payable | 7 | 11 | |
Current liabilities held for sale | - | 4,567 | |
Other current liabilities | 331 | 439 | |
Total current liabilities | 19,583 | 24,751 | |
Noncurrent liabilities | |||
Bonds, mortgages and other long-term debt | 393 | 458 | |
Convertible note payable, noncurrent | 31 | 9,049 | |
Deferred revenue, noncurrent | 37 | 100 | |
Operating lease liabilities, noncurrent | 2,197 | 2,468 | |
Employee benefit plan obligation | 4,669 | 4,769 | |
Other deferred tax liabilities | 59 | 62 | |
Noncurrent liabilities held for sale | - | 5,712 | |
Other noncurrent liabilities | 3 | 57 | |
Total noncurrent liabilities | 7,389 | 22,675 | |
TOTAL LIABILITIES | 26,972 | 47,426 | |
Commitments and contingent liabilities | |||
SHAREHOLDERS' EQUITY | |||
Common stock - Class A | 400 | 400 | |
Authorized - 40,021,988 and 40,021,988 shares | |||
Issued and outstanding - 40,021,988 and 40,021,988 shares | |||
Common stock - Class B | 5,334 | 4,685 | |
Authorized - 144,589,261 and 138,058,468 | |||
Issued - 100,294,518 and 88,120,054 | |||
Outstanding - 99,837,254 and 80,918,390 | |||
(371) | (636) | ||
Additional paid-in capital | 277,376 | 268,199 | |
Accumulated other comprehensive income / (loss) | 1,312 | 1,407 | |
Accumulated deficit | (235,724) | (238,160) | |
Total shareholders' equity attributable to | 48,327 | 35,895 | |
Noncontrolling interests in consolidated subsidiaries | (2,146) | 5,484 | |
Total shareholders' equity | 46,181 | 41,379 | |
TOTAL LIABILITIES AND EQUITY | 73,153 | 88,805 |
The notes are an integral part of our consolidated financial statements.
Non-GAAP Financial Measures
In managing
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
Financial Reconciliation of GAAP to non-GAAP Results (unaudited) | 6 months to | 6 months to |
(Million US$) | 2022 | 2021 |
Net sales as reported | 10.8 | 7.8 |
Net sales from discontinued operations as reported | 1.8 | 2.1 |
Total revenue | 12.6 | 9.9 |
Gross profit as reported | 4.8 | 3.1 |
Gross profit from discontinued operations as reported | 0.8 | 0.5 |
Total gross profit | 5.6 | 3.6 |
Operating loss as reported | (6.6) | (8.3) |
Non-GAAP adjustments from continuing operations: | ||
Depreciation expense | 0.1 | 0.5 |
Amortization expense on intangibles | - | 0.1 |
EBITDA | (6.5) | (7.7) |
Non-GAAP adjustments from continuing operations: | ||
Expenses settled in equity | 0.1 | - |
M&A-related legal fees | 0.8 | 0.6 |
M&A-related professional fees | 0.1 | - |
Adjusted EBITDA | (5.5) | (7.1) |
GAAP to Non-GAAP Cash and Cash Equivalents | ||
(Million US$) | As at 2022 | As at 2021 |
Cash and cash equivalents as reported | 22.8 | 34.2 |
Restricted cash, current as reported | 0.1 | 0.1 |
Total Cash and restricted cash | 22.9 | 34.3 |
* Rounded up |
About
The WISeKey Semiconductors Secures the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an installed base of over 1.5 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, NFTs, smart lighting, servers, computers, mobile phones, crypto tokens etc.)
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. 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:
Company Contact: Chairman & CEO Tel: +41 22 594 3000 info@wisekey.com | WISeKey Investor Relations (US) Contact: Tel: +1 212 836-9611 lcati@equityny.com |
Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning
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
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