Core Viewpoint - The partnership between WISeKey and EnduroSat aims to develop quantum-resilient secure IoT nanosatellite infrastructure, enhancing security and resilience in satellite communications for IoT applications [2][8]. Group 1: Partnership Details - WISeKey's subsidiary WISeSat.Space and EnduroSat signed a Memorandum of Understanding (MoU) to establish a strategic partnership for developing ultra-secure nanosatellite systems [2]. - The collaboration focuses on integrating SEALSQ secure elements into satellite payloads and ground-level endpoints, ensuring strong hardware-based security and digital identity protection [3][5]. Group 2: Technological Integration - The project will implement post-quantum cryptographic (PQC) algorithms, including CRYSTALS-Kyber and CRYSTALS-Dilithium, to protect against future quantum computing threats [4]. - EnduroSat will lead the physical integration of secure components into next-generation satellite buses, while WISeSat will provide cryptographic integration support [5][6]. Group 3: Project Goals and Applications - The resulting architecture will offer scalable, tamper-proof IoT connectivity services from Low Earth Orbit (LEO), which is critical for logistics, critical infrastructure, defense, and environmental monitoring [7]. - The partnership aims to accelerate the introduction of stronger encryption capabilities into the satellite industry, enhancing the security of data and infrastructure in the quantum era [8]. Group 4: Company Backgrounds - WISeKey is a global leader in cybersecurity, digital identity, and IoT solutions, with over 1.6 billion microchips deployed across various IoT sectors [10][11]. - EnduroSat is a space infrastructure builder that serves over 360 customers globally and specializes in streamlining space missions [12].

Financial Data and Key Metrics Changes - The company reported a revenue of $11 million for FY 2024, a significant decrease from $30 million in 2023, reflecting a transition from traditional semiconductors to next-generation quantum-resistant chips [4][16] - The company ended FY 2024 with cash reserves exceeding $90 million, up from approximately $85 million at the end of 2023, indicating a strong financial position [15] - A net loss of $21 million was recorded for the year, primarily due to the shift from traditional semiconductor products to post-quantum technologies [18] Business Line Data and Key Metrics Changes - The transition to next-generation quantum-resistant chips has resulted in lower order volumes as customers utilize existing stock before committing to new purchases [5][16] - Research and development expenditure increased by $1 million year-on-year, a 26% rise against 2023, highlighting the strategic importance of developing quantum-resistant technology [17] Market Data and Key Metrics Changes - The post-quantum cybersecurity market is projected to grow significantly, with an estimated market size of $302.5 million in 2024, expected to reach $1.8 billion by 2025 at a CAGR of 44.2% [9] - The company has confirmed bookings of $6.8 million for 2025, reflecting strong year-to-year growth, with a projected contract pipeline of over $93 million for the next three years [30][31] Company Strategy and Development Direction - The company is focused on scaling post-quantum security technology, executing strategic acquisitions, and expanding into high-growth markets [7][8] - Key priorities for 2025 include the commercial launch of post-quantum chips, expanding chip fabrication partnerships, and continuing R&D investments [33][34] Management's Comments on Operating Environment and Future Outlook - Management anticipates a significant revenue increase in 2025 compared to 2024, driven by new sources of chip revenue and the expansion of chip personalization services [9][11] - The company is well-positioned to capitalize on emerging opportunities in post-quantum security, with a strong cash position and no bank debt [8][15] Other Important Information - The company plans to invest $20 million in startups engaged in quantum computing and AI initiatives to accelerate deployment [22] - The company is in the final stages of acquiring IC'ALPS, a leading ASIC design company, which will enhance its capabilities in chip design [25][35] Q&A Session Summary Question: Will 2025 revenue growth come from new sources of chip revenue and chip personalization services? - Management indicated that while some customers will return, many are currently utilizing existing inventory, and new customers will emerge through personalization centers [41][42] Question: What is the breakdown of the increase in R&D spending for 2025? - The increase in R&D spending is largely attributed to certification costs and the integration of technology from acquired startups [51][52] Question: What is the historical win rate for the $93 million pipeline? - Management noted that the pipeline includes clients at various stages, with a tendency for clients to become long-term due to the nature of post-quantum chip adoption [63][67]