WISeKey International (WKEY) - 2025 H1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the first half of 2025, revenues grew slightly by $0.1 million to $5.3 million, reflecting a continued transition period ahead of expected growth in the second half [19] - Operating losses increased by $13.2 million to $27.3 million, largely due to a one-off stock-based compensation charge and increased investments in R&D and infrastructure [20] - Net loss for the six months ended June 2025 was $22.3 million, an increase of $6.8 million compared to the same period last year [21] - The company has a strong balance sheet with a cash balance of $124.6 million as of June 30, 2025, allowing for accelerated technological development [21] Business Line Data and Key Metrics Changes - The company is focusing on next-generation quantum-resistant chips, the SealCoin transactional IoT platform, and the WISe.ART expansion [21] - The backlog of booked orders for 2026 is approximately 300% higher than at the end of 2025, indicating strong demand for CLSQ's products [19] Market Data and Key Metrics Changes - The company expects full-year revenues to be in the range of $18 to $21 million, driven by demand for CLSQ's semiconductor products and the consolidated revenue of IC'ALPS [22] - A robust pipeline of revenue opportunities amounting to $170 million for the period 2026 to 2028 has been established [17] Company Strategy and Development Direction - WISeKey is executing a quantum convergence strategy that combines traditional identity security methods with emerging quantum-safe technologies [6][7] - The company is building a decentralized value model through strategic partnerships, such as the QuantumX security initiative in Spain, which has secured €25 million in committed revenue over three years [13] - The focus is on scaling execution and expanding the WISe.ART constellation to increase coverage and open new subscriptions [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong growth in the second half of 2025, with expectations of increased demand for quantum-resistant solutions due to regulatory pressures [22][36] - The company is positioning itself to shape the future of digital trust and security, emphasizing the importance of quantum resilience in critical infrastructures [17][36] Other Important Information - The Quantum Shield QS7001 chip, set to launch in November 2025, aims to secure critical applications against quantum computing threats [8][9] - The company is also developing a Trusted Platform Model version of the QVAULT TPM, which is expected to enhance security and efficiency [10] Q&A Session Summary Question: Contribution from Quantix and margins on project revenue - The project is expected to contribute $25 million over three years, with varying margins depending on the type of revenue recognized [24] - Product revenues are anticipated even before the personalization center is fully operational [25] Question: Breakdown of the $170 million pipeline - The pipeline includes contributions from the Quantum Shield QS7001 chip, Trusted Platform Model chips, and revenue from personalization centers [33][37] Question: Path to commercializing WISe.ART and expectations for 2026 - WISe.ART aims to create digital twins of secured objects, with SealCoin as the payment method for transactions between devices [40][42] - The company is working on bringing SealCoin to a top exchange, which will diversify revenue streams [42]