July 13, 2018
WISeKey Releases CEO Letter to Shareholders
GENEVA & ZUG, Switzerland - WISeKey International Holding Ltd ("WISeKey", SIX: WIHN; OTCQX: WIKYY), a leading cybersecurity and IoT company, today released a letter to shareholders from Carlos Moreira, Founder and CEO.
As CEO of WISeKey, I would like to take this opportunity to summarize the significant milestones we achieved in 2017, discuss recent business developments, and our growth strategy going forward.
FY 2017 was a record year for WISeKey in terms of revenue. Our FY 2017 revenue grew to $43.1 million, a 292% increase vs. FY 2016.
This growth reflects the successful integration of the Cybersecurity, IoT and Semiconductor business segments and was driven by higher demand for strong security in industries such as smart cars, luxury products, pharmaceuticals and financial technology.
The strong growth in 2017, was followed by 36% revenue growth in H1 2018, vs. H1 2017. For FY 2018 we expect our revenue to be approximately $60 million.
We recently completed the integration of VaultIC and Quovadis, delivering increased commercial opportunities and solution platforms combining secure chips, digital identities and services for the fast-growing Internet of Things market.
Our performance is an indication of the successful integration of Quovadis and VaultIC businesses into WISeKey's platform. Our combined portfolios allowed us to focus on the development of a vertical platform and expand our customer base, while our global go-to-market strategy provided us with significant cost synergies to enhance our profitability. Revenue acquisition activities have strengthened in geographic markets in which we have a strong presence already, while we continue our go-to-market efforts in new geographic markets.
BUSINESS ACHIEVEMENTS IN H1 2018
- WISeKey received one of the first French National Cybersecurity Agency's security Visa Labels (June 2018).
- WISeKey Semiconductor selected by Proton Technologies AG as its security partner for its innovative secure email offering. Based in Switzerland, ProtonMail, an industry reference, provides secure email services using end-to-end encryption to protect emails and user data (May 2018).
- WISeKey's secure chips are immune from hardware bugs that affect the vast majority of Central Processing Units (CPU) because its technology is based on a different architecture and approach. Of note, in early 2018, practically every computer device, server, laptop, tablet and smartphone in the market was affected by two major flaws in the design of the device's CPU, allowing hackers to steal data.
- WISeKey extended its contract with a leading automobile manufacturer to secure connected cars using trusted cybersecurity IoT technologies (March 2018).
- WISeKey introduced INeS, a Security Broker Solution, designed to secure devices, cloud & IOT applications, integrated with IBM's new Watson IoT platform (March 2018).
- WISeKey and Japanese Toppan Printing, a leader in security printing and anti-counterfeiting, signed a collaboration agreement to securely connect inert objects to the Internet (March 2018).
WISeCoin and cryptocurrencies:
- WISeKey defined its ICO for WISeCoin Cryptocurrency for the IoT industry (April 2018).
- Signed a partnership with Highscreen International SA to develop WISePhone - the first ever secure Blockchain phone with cryptocurrency payment capabilities (May 2018).
STOCK PRICE EVOLUTION
Our operating and financial performance has substantially improved, and we continue to execute against a series of initiatives that we believe will, over time, further position WISeKey to deliver the value that our shareholders deserve. That said, we believe our stock price was negatively impacted by a number of factors, that include:
- an overhang created by the acquisitions of VaultIC and QuoVadis - which were partially paid in shares;
- certain financing operations through SEDA transactions (Standby Equity Distribution Agreement) which allows to obtain cash against the issuance of shares;
- the acquisition of the remaining 15% of QuoVadis and WISeKey SA;
- the payment of Exworks interest rates in shares; and,
- low trading volume on the Swiss Stock Exchange for our category of stock.
THE ROAD AHEAD
We are very proud of our accomplishments to date. More than a year after our last acquisition, not only have we fully integrated both VaultIC and QuoVadis into WISeKey but most importantly we have shown our ability to generate strong organic growth.
Our outlook for H2 2018 and beyond remains strong. We expect our financial and operational performance to continue to improve due to:
- increased demand for our existing products and solutions;
- significant untapped potential in sales synergies generated by our acquisitions;
- new innovative products and solutions we are developing thanks to the combination of our marketing and R&D teams; and,
- larger geographical footprint as we enter new territories with agreements in India and MOUs in China and Saudi Arabia.
We have also announced our intention to list on the NASDAQ through an ADR Level 3 program, in order to:
- broaden our shareholder base and elevate our profile amongst US based investors
- accelerate expansion and take advantage of substantial business opportunities in the US
On behalf of our entire management team and board of directors, I would like to thank our shareholders for their ongoing support.
Founder and CEO
WISeKey International Holding Ltd
WISeKey (SIX: WIHN; OTCQX: WIKYY) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. 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.
Press and investor contacts:
| WISeKey International Holding Ltd |
Company Contact: Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
| WISeKey Investor Relations (US) |
Contact: Lena Cati
The Equity Group Inc.
Tel: +1 212 836-9611
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 letter 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.