In This Article:
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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WISeKey International Holding Ltd (NASDAQ:WKEY) ended the year with a strong cash position, exceeding $90 million, which supports future growth and investment opportunities.
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The company has made significant progress in developing post-quantum secure chips, with plans for commercial launch in Q4 2025.
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WISeKey International Holding Ltd (NASDAQ:WKEY) has established strategic partnerships, including with the Swiss Army, to enhance secure communication and satellite technology.
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The company is focusing on a convergence strategy, integrating semiconductors, satellites, blockchain, and digital identity into a unified ecosystem.
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WISeKey International Holding Ltd (NASDAQ:WKEY) has a robust pipeline of secured and pending business opportunities exceeding $115 million for the period 2026 to 2028.
Negative Points
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WISeKey International Holding Ltd (NASDAQ:WKEY) reported a significant decline in revenue for 2024, down to $11.9 million from $30.1 million in 2023.
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The company is facing challenges with excess inventory accumulation from 2023, impacting current financial performance.
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There is uncertainty regarding the timing of client decisions and demand for the new post-quantum chips, which may affect future revenue projections.
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The acquisition of IC Alps is pending government approval, which could delay integration and potential revenue contributions.
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WISeKey International Holding Ltd (NASDAQ:WKEY) is still in the early stages of development and proof of concept for several projects, which may delay revenue realization.
Q & A Highlights
Q: Can you provide more details about the pipeline number as of April 15th, and how competitive do you think it will be? A: The pipeline is valued based on the estimated size of client opportunities, which evolves over time. We take a conservative approach, categorizing opportunities from speculative to design win stages. The TPM and post-quantum markets have significant barriers to entry, with few competitors. We aim to capture 10-20% of the TPM market over the next 3-5 years, and we believe we are competitive on price and flexibility. - John O'Hara, CFO
Q: When do you expect to have visibility into the volumes for post-quantum capable chips? A: We are in active discussions with clients and expect to have visibility into demand by the end of the year, particularly after announcing our half-year results. Some clients may wait for certification, which depends on authorities like NIT. We expect to have a good indication of demand for the first half of 2026 by the end of Q3. - John O'Hara, CFO