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H1 2017 WISeKey Revenue Increased by over 1,500% to $21.2 Million; Reduced Losses by 80% and is on the Path to ProfitabilityH1 2017 WISeKey Revenue Increased by over 1,500% to $ 21.2 Million; Reduced Losses by 80% and is on the Path to Profitability ZUG, Switzerland--September 19, 2017--WISeKey International Holding Ltd ("WISeKey" or the "Company") (SIX: WIHN) a leading Swiss cybersecurity and IoT company announced today its H1 financial results for the period ending June 30, 2017. The H1 2017 Annual Report, will be downloadable from https://www.wisekey.com/investors/reports/annual-reports/ before the start of trading of WISeKey's Class B Shares on SIX Swiss Exchange on 19th September 2017. H1 2017 FINANCIAL AND OPERATIONAL HIGHLIGHTS
KEY FIGURES H1 2017
"WISeKey delivered exceptional seasonal results for the first half of 2017, with revenue of $ 21.2 million, an increase of over 1,500% year-over-year reflecting the successful inegration of the IoT and Cyberscurity assets into the Company," said Carlos Moreira, WISeKey's Chief Executive Officer. "We have noticed a strong demand across the combined product portfolio as the market for IoT - MicroChips associated with PKI and Cybersecurity, is increasing globally. We experienced substantial revenue growth with the combination of our IoT and Cybersecurity technology on new markets such as the smart automobile with our Secure Connected car technology. The WISeKey connected car solutions allow manufacturers to authenticate legitimate car components and enable owners to securely interact with the car's smart features. "Revenue generated by our IoT and Semiconductor group, for the H1 2017 was approximately $15.0 million. Lastly, in our managed Cybersecurity and Secure Identification Solutions group, H1 2017 revenue was approximately $6.2 million, due to the successful integration of QuoVadis Managed cybersecurity services into the WISeKey Vertical platform and to over 3,000 new clients," added Mr. Moreira. "In summary, our H1 2017 results are a validation of our vision and business strategy, and the successful integration of Vault-IC and QuoVadis along with the extension of the WISeKey Vertical Platform for Blockchain and AI. We continue to see strong adoption of products across our portfolio, with cybersecurity clients now acquiring chips and chip clients acquiring cybersecurity. This is a very encouraging indicative trend for WISeKey's long term growth outlook as we expand the Company's revenue models to fully capitalize on Blockchain and AI due to the enormous amount of data generated by these devices," said Moreira. "Our H1 2017 results reflect a period of strong execution, as we continue to demonstrate revenue expansion due to our synergy capture efforts. Gross profit for the current period was $10.4 million, with a gross margin of 49%, compared to $0.7 million in the H1 2016. We substantially improved our bottom line in H1 2017 as compared to the same period in 2016, with approximately 53% of our net loss for the current period being non-cash items, compared with 72% in 2016. The Company's shareholder's equity increased from $33.4 million to $63.6 million or 89%. Over $1 million additional cash was generated in the period, with an ending cash balance of $6.2 million," said Peter Ward, WISeKey's Chief Financial Officer. H1 Milestones
WISeKey's strategy to evolve into a market leader in the IoT, Cybersecurity, AI and Blockchain market, implies a constant evaluation of potential add-on acquisitions, development of new IP and patents. In just one year, WISeKey has aggregated over 39 patent families (more than 200 patents in total) to its portfolio (https://www.wisekey.com/patents/) required to integrate the OISTE/WISeKey Root of Trust into IoT embedded devices with problem-solving Artificial Intelligence ("AI") solutions. For WISeKey, adding to its patent portfolio and intellectual property is key to ensuring that the company will remain a major player in the "DeepTech" sectors for years to come. Its patent portfolio allows WISeKey to distinguish itself from other companies that use commonly available technology; WISeKey focuses on integrating unique technology that is differentiated, protected and hard to reproduce due to tangible scientific discoveries and/or engineering innovations. The new patents cover a range of technologies for IoT and semiconductors, particularly those that help make enterprise-level computing services more trusted, reliable and secure. The most notable patent acquisition by WISeKey on IoT and semiconductors happened in 2016 when the company purchased 17 new IoT patents from Inside Secure, which at the time allowed WISeKey to create the first ever comprehensive trusted end-to-end cybersecurity platform for people and objects (IoT). Following this acquisition, WISeKey's cybersecurity offerings includes certified hardware & software, system certification, provisioning and up to management of cybersecurity services. A focus area of investment and the fastest growing segment for WISeKey this year is the IoT and Industrial Internet of Things (IIoT). Revenues generated by this segment continues to increase due to the new generation of IoT Chips, sensor-based identification, authentication and data and creating AI for analytically rich data sets. What has emerged during the first half of 2017, is only a glimpse into how the IoT and IIoT technology used in solving complex logistics, manufacturing, services and supply chain problems, can deliver the most value for WISeKey.
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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. |