WISeKey International Holding Ltd (WKEY) (H1 2024) Earnings Call Transcript Highlights: ...

In This Article:

  • Revenue: $5.2 million for the first half of 2024, down from $15.1 million in the first half of 2023.

  • Semiconductor Revenue: $4.8 million in H1 2024, compared to $14.8 million in H1 2023.

  • Gross Profit Margin: Decreased to 21.5% in H1 2024 from 53.6% in H1 2023.

  • R&D Expenses: $2.9 million in H1 2024, representing 19% of total operating expenses.

  • G&A Expenses: $8.3 million in H1 2024, an increase of $0.4 million from H1 2023.

  • Net Loss: $15.5 million in H1 2024, compared to a net loss of $7.1 million in H1 2023.

  • Cash and Cash Equivalents: $26.3 million as of June 30, 2024, up from $15.3 million at December 31, 2023.

  • Funding: $20 million from share purchase agreements with L1 Capital and Anson Investor Fund.

  • North America Sales: 60% of net sales in H1 2024.

  • EMEA Sales: 23% of net sales in H1 2024.

  • Asia Pacific Sales: 17% of net sales in H1 2024.

Release Date: October 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • WISeKey International Holding Ltd (NASDAQ:WKEY) is undergoing a strategic restructuring to become a compute infrastructure company, focusing on cybersecurity, digital identity, blockchain, IoT solutions, and post-quantum semiconductors.

  • The company has diversified its operations into specialized subsidiaries, such as CLSQ for semiconductor technologies and WISeSat.Space for space technology, enhancing its focus and potential for growth.

  • WISeKey is investing in high-growth potential ventures like WISeSat.Space, which is expected to become a significant revenue generator by 2025.

  • The company secured $20 million in additional funding for its semiconductor business, CLSQ, to expand production facilities and develop post-quantum semiconductors.

  • WISeKey maintains a strong cash position with $26.3 million in cash and cash equivalents as of June 30, 2024, indicating financial stability and the ability to fund strategic initiatives.

Negative Points

  • WISeKey's revenue for the first half of 2024 was $5.2 million, a significant decrease from $15.1 million in the same period in 2023, primarily due to a decline in semiconductor demand.

  • The company's gross profit margin decreased from 53.6% in H1 2023 to 21.5% in H1 2024, attributed to high inventory costs and fixed expenses.

  • WISeKey reported a net loss of $15.5 million for the first half of 2024, compared to a net loss of $7.1 million in H1 2023.

  • The semiconductor vertical, CLSQ, experienced a revenue decline from $14.8 million in H1 2023 to $4.8 million in H1 2024, due to decreased demand and high customer inventory levels.

  • The company is facing delays in satellite launches with SpaceX, impacting the timeline for its WISeSat.Space projects.