SEALSQ Announces Substantially Improved H1 2023 Financial Results as Compared to H1 2022: Reports 38% Growth in Revenue and 63% Higher Gross Profit
Tortola, British Virgin Islands , Sept. 11, 2023 (GLOBE NEWSWIRE) -- SEALSQ Announces Substantially Improved H1 2023 Financial Results as Compared to H1 2022: Reports 38% Growth in Revenue and 63% Higher Gross Profit
Schedules Conference Call for Wednesday, September 13 at 9:00am ET
Mr. Moreira continued, “We remain committed to innovation and meeting the needs of our customers in this rapidly evolving landscape. Due to our continued investments in R&D and the introduction of the next generation of products, we see that many of our customers are already looking into the future and are moving towards our latest generation of products. We believe that our focus on the development of QUASARS project, post-quantum resistant technologies, launch of the WISeSat picosatellites constellation and Matter compliant smart home products/services, will provide new high revenue streams for SEALSQ.”
H1 2023 Key Financial Milestones
Key Financial Metrics
With the supply chain returning to normal, we expect competitiveness to increase in the semiconductors industry as customers are no longer limited by supply shortages and can diversify their product sources.
While we anticipate our revenue growth to continue in the second half of the year, and FY 2023 to increase by over 20% as compared to FY 2022, we have seen our customers focus on our new next-generation products which might temporarily slow our growth in 2024.
Revenue by region
Our revenue by geographic region for the six months ended June 30, 2023 and 2022 is set forth in the following table:
Strong demand for our IoT products in 2023
SEALSQ’s R&D investment in post-quantum resistant technology is also expected to generate new revenue from next-generation semiconductors starting in 2025/2026.
However, management expects 2024 to be a transition year where the focus of customer demand will shift to the next generation of products, which is likely to impair SEALSQ’s growth temporarily in 2024 before full production of the next generation products starts in 2025/2026.
However, with the semiconductors supply chain back to full capacity, we expect competitiveness to increase and our gross margin to stabilize to pre-Covid levels as customers will no longer be willing to pay a premium to secure their order and circumvent any shortages.
Operating Results and EBITDA
SEALSQ reported a breakeven EBITDA in H1 2023 compared with a negative EBITDA of $0.2 million in H1 2022.
We expect that our operating expenses to increase in future periods as our strategy includes:
Net loss of $0.9 million for H1 2023 is largely related to non-cash and/or one-off factors including listing-related expenses of $0.4 million, deferred tax utilization of $0.3 million and a depreciation expense of $0.3 million.
Excluding some of these factors, SEALSQ has maintained an adjusted net loss of $0.2 million for H1 2023 and H1 2022, close to breakeven.
Liquidity and Capital Resources
Consolidated Income Statement of SEALSQ Corp.
Outlook for the full year 2023 and beyond
SEALSQ has taken several initiatives to continue growing revenue and strengthen net results.
These initiatives include:
However, management expects 2024 to be a transition year where the focus of customer demand will shift to the next generation of products, which is likely to temporarily impair SEALSQ’s growth in 2024 before full production of the next generation products starts in 2025/2026.
Non-GAAP Financial Measures
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 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).”
EBITDA is defined as Operating income/(loss) for the reporting period before depreciation and amortization for the same reporting period.
Non-GAAP to GAAP Reconciliations - SEALSQ Corp.
Key Growth Drivers:
With the global boom in IoT, Post Quantum and AI sectors, SEALSQ’s specialization becomes increasingly vital. "Our unique positioning in the secure semiconductor sector ensures that as more devices connect securely online, SEALSQ’s prowess serves as a cornerstone," said Mr. Moreira.
As SEALSQ looks to the future, our commitment to pushing boundaries is evident. Our Quantum-Resistant USB Token demonstrator underscores the ambition to be frontrunners in Post-Quantum Hardware Security and Root-of-Trust domains.
The company will host a conference call to review its results on Wednesday, September 13, at 9:00 am ET (3:00 pm CET). If you wish to join the conference call, please use the dial-in information below:
Conference ID #: 5306656
A simultaneous webcast of the call may be accessed online via the Investors section of the company’s website, https://investors.sealsq.com/.
The archived call will also be available on the Investors section of the company's website, https://investors.sealsq.com/.
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.
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