WISeKey issues letter from CEO to shareholders
WISeKey issues letter from CEO to shareholders
Zug, Switzerland – August 17, 2021: A d-Announcement Hoc in accordance with art. 53 of the SIX listing rules – WISeKey International Holding Ltd (NASDAQ: WKEY / SIX: WIHN) (“WISeKey” or the “Company”), a leading cybersecurity and IoT company, today issued a letter to shareholders of Carlos Moreira, Founder and CEO of WISeKey.
I am happy to take this opportunity to summarize our recent business developments and significant achievements during the first half of the year (“H1 2021”). Although the COVID-19 pandemic has profoundly impacted our end markets by disrupting supply chains and creating significant shortages in the semiconductor industry, we have been able to overcome most of these challenges. For the first half of 2021, we achieved better than expected results with rincome of $ 9.9 million, at the top by 24% compared to sales of $ 8.0 million in the first half of 2020. In addition, we are on Track To generate $ 2 income2 mmillions for the full year 2021 which would represent an increase of more than 45% compared to our turnover for the year 2020, as the Company diversified its IoT and IA revenues.
Beginning of 2021, WISeKey vscompletion of the acquisition of a majority stake in arago GmbH (“Arago”), leading to a combination of the activities of WISeKey and arago and the consolidation of arago’s revenues from February 2021. arago provides AI solutions to corporate clients worldwide through automation knowledge. The HIRO ™ knowledge and data automation platform, developed by arago, takes a unique approach to process automation using AI to autonomously and independently determine how to perform and then automate end-to-end tasks. bout on the real-time contextual database. This acquisition created a new source of revenue for the company and the opportunity to enter the artificial intelligence of objects (“AIoT”) market by combining its cybersecurity / authentication and AI knowledge automation offerings. . Since February 2021, WISeKey has invested an additional $ 4.3 million in cash in arago operations, bringing our total investment to $ 9.8 million (since the initial investment made in late 2020).
WISeKey maintains a strong balance sheet with cash and cash equivalents increasing to $38.5 million in june 30, 2021, thanks to new financing agreements signed with global institutional investors at the end of June 2021, compared to cash and cash equivalents as well as restricted cash of $ 17.4 million at June 30, 2020 and $ 21.8 million dollars as of December 31, 2020. This improved financial situation allows us to significant investments in R&D to finance our growth initiatives in AIoT, and new design of electronic chips in order to maintain our leading technological position and the competitive advantage of our product offerings. At the same time, we continue to manage our costs, capital expenditures and working capital to maintain a positive free cash flow position. As part of this strategy, following the acquisition of arago, we has taken urgent and decisive action to reduce arago’s operating costs and streamline their processes with significant reductions in general and administrative costs.
Since the start of the year, WISeKey has achieved several major wins for its chip semiconductor-based IoT technology, anti-counterfeiting, brand protection, EMV payment card and access products. secure in the US market with leading providers of networking equipment, medical devices, smart building solutions and financial services.
The US IoT revenue generated by the WISeKey Semiconductors division located in the south of France, should be considered as strategic premium revenue, especially following the semiconductor manufacturing shortage in the United States, which has become a strategic reference market for the Company. Because semiconductors are a crucial component of the 4th industrial revolution, strategic technologies (from smart cities, renewable energies and artificial intelligence to robots and cybersecurity), their design and manufacture have become an issue. geopolitics. In the 20th century, oil was the supreme global resource, but shortages accelerated by the COVID-19 pandemic have sparked a 21st century slogan among policymakers and diplomats … “semiconductors are the new oil”.
We are also anticipating the future by investing in technological innovations such as the development of our NFT platform and the expansion of our AI automation capabilities. WISeKey’s WISe.ART NFT platform was developed following a series of market tests, selling high-value NFTs and testing the appetite of the arts and collectors community, an exclusive and volume market. raised. Following the needs of buyers and sellers of high-value goods, the WISe.ART platform is a fully-fledged marketplace with its own digital currency and offers the ability to include curators and multipliers, white label options and a special NFT design.
As expected, cybersecurity companies like WISeKey with strong tech and IP assets are recovering much faster from the current crisis due to the ability to diversify sales from semiconductors into cybersecurity and / or AI / automation. Overall, the continued adoption of IoT technologies connected to secure clouds, AI, and ultimately 5G, will be huge catalysts for cybersecurity companies given the associated adoption risk. Our goal is to create a truly representative European Internet platform through the vertical integration of WISeKey’s unique Root of Trust and Identity technology with VaultIC’s hardware, software and trusted services. This strategy gradually positions WISeKey as the very first European comprehensive and reliable end-to-end cybersecurity platform for people and things (IoT).
We are sensitive to the fact that our stock price is currently underperforming and that there is a significant level of short interest in our stock. We firmly believe that the measures we have taken since the start of the year will generate shareholder value as we achieve our goals for the year 2021. In addition, once the integration plan with arago arrives at maturity, it should translate into the realization of additional revenue streams through a diverse portfolio of clients.
Thanks to our team’s experience, cutting-edge technology and our dedication to the cybersecurity industry, we have emerged from the pandemic stronger than ever.
Additionally, due to our strong cybersecurity / IoT revenue pipeline of over $ 250 million (for the period 2022-2027) and a growth strategy that includes additional investment and increased marketing efforts, we believe that we have positioned WISeKey well to take advantage of several opportunities, create new revenue streams and continue to grow organically and through acquisitions.
Founder and CEO
WISeKey International Holdings
WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large-scale digital identity ecosystems for people and things using blockchain, AI and IoT while respecting humans as the backbone of the Internet. WISeKey microprocessors secure the ubiquitous computing that shapes 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, smart lighting, servers, computers, cell phones, cryptographic tokens, etc.). WISeKey is uniquely positioned to be at the forefront of IoT because our semiconductors produce an enormous amount of big data which, when analyzed with artificial intelligence (AI), can help industrial applications predict failure. of their equipment before it happens.
Our technology is trusted by OISTE / WISeKey’s Switzerland-based Cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in physical and virtual environments, for Internet of Things, blockchain and l ‘artificial intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions between 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 and CEO
Phone. : +41 22 594 3000
|WISeKey Investor Relations (United States)
Contact: Léna Cati
The Equity Group Inc.
Phone. : +1 212 836-9611
This communication expressly or impliedly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its activities. Such statements involve certain risks, uncertainties and other known and unknown 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 these 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, securities, and it does not constitute an offer 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 SIX Swiss Exchange listing regulations. Investors should rely on their own assessment of WISeKey and its securities, including the merits and risks involved. Nothing herein is, or should be considered, a promise or representation as to the future performance of WISeKey.