Core Viewpoint - SEALSQ Corp is positioned as a leader in post-quantum semiconductor and cryptographic security technologies, emphasizing the urgent need for quantum-safe technologies to protect critical infrastructure and sensitive data in light of the launch of the "Year of Quantum Security 2026" [1][3][6] Group 1: Company Initiatives - The launch of "Year of Quantum Security 2026" in Washington, D.C. highlights the need for coordinated global strategies to address risks from quantum computing [1][6] - SEALSQ has been preparing for the need to secure long-lived data and critical infrastructure against quantum-enabled threats [2][6] - The company has partnered with Trusted Semiconductor Solutions to supply post-quantum-ready semiconductor platforms to U.S. government and enterprise customers [4][5] Group 2: Technology and Products - SEALSQ's products include secure microcontrollers and chips with quantum-resistant cryptographic algorithms, designed to protect against harvest-now-decrypt-later attacks [4][9] - The company is expanding its roadmap to include next-generation quantum-enabled infrastructure, focusing on the protection of quantum processors and secure provisioning of quantum networks [5][9] - SEALSQ's technology integrates semiconductors, PKI, and provisioning services, addressing security challenges posed by quantum computing [8][9] Group 3: Industry Context - The launch of YQS2026 underscores the risks of fragmented national approaches and delayed planning in quantum-safe migration, which is a multi-year journey [6][7] - As global governments and industries transition from awareness to action, SEALSQ is prepared to support partners with technologies that secure critical infrastructure and digital identity [7][8]

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 [18][19] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [19] - 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 [20] 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][7] - 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 distribution 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 to capitalize on the growing demand for post-quantum technologies [3][4] - The acquisition of IC'ALPS has strengthened the company's ASIC capabilities, particularly in the medical, automobile, and IoT industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and financial resources, anticipating a critical year in 2026 for the quantum industry, particularly with regulatory frameworks favoring PQC adoption [22][23] - The company expects revenues for 2025 to be between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [21][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 $7.2 million for the year, up from $5 million in the prior year [13][20] - The company is also investing in space technologies, deploying a secure quantum-ready satellite constellation, with plans to scale to 102 satellites by 2027 [11][12] Q&A Session Summary Question: Clarification on full-year R&D budget - The CFO clarified that the first half included a one-off expense for stock-based compensation under R&D, which would not repeat in the second half [27] Question: Annual R&D run rate estimate - The CFO estimated the underlying business R&D run rate to be around $500,000 to $550,000 per month after adjusting for the one-time expense [36] Question: Pipeline estimate process - The CFO explained that the pipeline estimate of $170 million includes identified opportunities evaluated with a low success percentage initially, moving through stages of qualification and design-in before reaching design win [39][40]