Core Insights - WISeKey International Holding Ltd. reported its unaudited financial results for H1 2025, indicating a strategic shift towards next-generation technologies and a focus on its Convergence strategy [1][2][3] Financial Performance - Revenues for H1 2025 increased slightly by $0.1 million to $5.3 million, aligning with expectations amid a transition towards post-quantum and IoT-driven technologies [3] - The company anticipates full-year revenues to range between $18.0 million and $21.0 million, driven by growth in SEALSQ's traditional products and the acquisition of IC'ALPS [3] - Operating losses rose by $13.2 million to $27.3 million, primarily due to a one-off stock-based compensation charge of $10.1 million and increased R&D investments [3][20] - The net loss for the period was $22.3 million, an increase of $6.8 million compared to the same period last year [3][20] Strategic Developments - The Convergence strategy integrates semiconductors, trust services, satellites, blockchain, and digital identity into a unified ecosystem, enhancing revenue potential and reducing dependency on single business lines [2][4] - Investments in R&D totaled $5.8 million, focusing on SEALSQ's quantum-resistant chips and the SEALCOIN transactional IoT platform [3][20] - The company is preparing for the commercial launch of SEALSQ's QVault-TPM in Q4 2025, which is expected to drive significant growth in 2026 and beyond [7] Ecosystem and Revenue Model - SEALSQ, controlled by WISeKey with 52% voting rights, develops post-quantum secure chips that will generate both hardware sales and recurring revenues through chip personalization services [4][11] - The integration of SEALSQ chips with WISeSat's satellite communications is expected to create multiple revenue streams, including chip sales, personalization services, and satellite communication subscriptions [4][5] - The ecosystem also includes SEALCOIN, which aims to facilitate autonomous transactions in the IoT economy, and WISe.ART, which focuses on authenticated trading of digital and physical assets [11][21] Balance Sheet and Cash Position - As of June 30, 2025, WISeKey reported a cash balance of $124.6 million, enabling the company to accelerate technological development and strategic investments [3][20] - The total assets amounted to $154.99 million, with total liabilities at $28.43 million, indicating a strong balance sheet position [23][24]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new product launches [17][18] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [18] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [19] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][6] - The number of customers for TPM engagement more than doubled from 35 at the end of 2024 to 82 by mid-2025, indicating strong demand for the company's offerings [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distributors in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, positioning itself uniquely to meet regulatory compliance and resilience against emerging threats [4][5] - The acquisition of IC'ALPS, a French ASIC design specialist, is expected to enhance the company's capabilities in post-quantum ASIC technology [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and momentum entering the second half of 2025, with a clear vision to lead in quantum resilience and cybersecurity [23] - The outlook for 2025 anticipates revenues between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [20][15] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of over $7 million for the year, up from $5 million in the prior year [19][13] - The company is also investing in space technologies, with plans to expand its secure quantum-ready satellite constellation to 102 satellites by 2027 [12] Q&A Session Summary Question: Clarification on full-year R&D budget - Management confirmed that the first half included a one-off expense for stock-based compensation, which would not repeat in the second half [25][26] Question: Annual R&D run rate estimation - The estimated run rate for R&D, excluding the one-time expense, would be around $500,000 to $550,000 per month [38] Question: Pipeline estimate process - The pipeline estimate of $170 million includes opportunities identified over the next three years, with a standard process of evaluating and applying success percentages at various stages [39][40]

Core Insights - SEALSQ Corp has successfully completed the cryptographic toolbox validation stage for its QS7001 post-quantum hardware platform, which is expected to be available in Q4 2025 for early customers [1][2] - The QS7001 platform implements NIST-standardized post-quantum cryptographic algorithms, including Kyber and Dilithium, and is designed for low-latency, high-throughput encryption [2][6] - The company is also developing the QVault TPM, which integrates a TPM 2.0 stack on the QS7001 platform, targeting the PC, laptop, and IoT devices market, with a planned launch in H1 2026 [7] Product Features and Benefits - The QS7001 is a RISC-V-based secure hardware platform that provides quantum-resistant security and is optimized for energy-efficient operation in IoT and edge devices [3][6] - Key features include tamper-resistant security, scalable integration for various applications, and regulatory compliance with the EU Cyber Resilience Act [6][7] - The platform aims to protect sensitive data across multiple sectors, including automotive, healthcare, and critical infrastructure, ensuring long-term data integrity against quantum attacks [6][9] Market Position and Strategy - SEALSQ positions itself as a leader in post-quantum technology, focusing on developing state-of-the-art quantum-resistant cryptography and semiconductors to address security challenges posed by quantum computing [8][9] - The company emphasizes the importance of its products in safeguarding critical systems and enhancing resilience across diverse industries, thereby maintaining a competitive edge in the market [9]