SEALSQ Announces Unaudited First Half 2024 Financial Results and Updates on Strategic Business Initiatives
SEALSQ Corp (NASDAQ: LAES) reported unaudited financial results for H1 2024, with revenue at $4.8 million, reflecting an expected slowdown in traditional semiconductor demand. Despite this, the company anticipates improved performance in H2 2024 and a return to growth in 2025. Key highlights include:
1. $2.4 million invested in R&D initiatives
2. Strong cash position of $18.9 million as of June 30, 2024
3. Robust pipeline of opportunities valued at $71 million
4. Progress on quantum-resistant secure chips, with engineering samples expected by Q4 2024
5. Strategic partnerships and global expansion efforts
6. Approval as a Product Attestation Authority (PAA) for Matter device attestation
SEALSQ remains focused on innovation in cybersecurity and semiconductors, positioning itself for long-term growth in the evolving market landscape.
SEALSQ Corp (NASDAQ: LAES) ha riportato risultati finanziari non verificati per il primo semestre del 2024, con un fatturato di 4,8 milioni di dollari, riflettendo un rallentamento previsto nella domanda di semiconduttori tradizionali. Nonostante ciò, l'azienda prevede un miglioramento delle performance nel secondo semestre del 2024 e un ritorno alla crescita nel 2025. I punti salienti includono:
1. 2,4 milioni di dollari investiti in iniziative di R&S
2. Posizione di liquidità solida di 18,9 milioni di dollari al 30 giugno 2024
3. Un robusto portafoglio di opportunità valutato 71 milioni di dollari
4. Progressi nella realizzazione di chip sicuri resistenti al quantum, con campioni ingegneristici previsti per il quarto trimestre del 2024
5. Partnership strategiche e sforzi di espansione globale
6. Approvazione come Autorità di Attestazione dei Prodotti (PAA) per l'attestazione dei dispositivi Matter
SEALSQ rimane concentrata sull'innovazione nella cybersicurezza e nei semiconduttori, posizionandosi per una crescita a lungo termine in un mercato in evoluzione.
SEALSQ Corp (NASDAQ: LAES) informó resultados financieros no auditados para el primer semestre de 2024, con ingresos de 4,8 millones de dólares, reflejando una desaceleración esperada en la demanda de semiconductores tradicionales. A pesar de esto, la compañía anticipa un mejor desempeño en el segundo semestre de 2024 y un retorno al crecimiento en 2025. Los aspectos destacados incluyen:
1. 2,4 millones de dólares invertidos en iniciativas de I+D
2. Posición de efectivo sólida de 18,9 millones de dólares al 30 de junio de 2024
3. Un robusto portafolio de oportunidades valorado en 71 millones de dólares
4. Progresos en chips seguros resistentes a la computación cuántica, con muestras de ingeniería esperadas para el cuarto trimestre de 2024
5. Asociaciones estratégicas y esfuerzos de expansión global
6. Aprobación como Autoridad de Atestación de Productos (PAA) para la atestación de dispositivos Matter
SEALSQ sigue centrada en la innovación en ciberseguridad y semiconductores, posicionándose para un crecimiento a largo plazo en un mercado en evolución.
SEALSQ Corp (NASDAQ: LAES)는 2024년 상반기 비감사 재무 결과를 보고했으며, 수익은 480만 달러로, 기존 반도체 수요의 예상되는 감소를 반영하고 있습니다. 그럼에도 불구하고 회사는 2024년 하반기에 성과가 개선되고 2025년에는 성장으로 돌아갈 것으로 예상하고 있습니다. 주요 내용은 다음과 같습니다:
1. R&D 이니셔티브에 240만 달러 투자
2. 2024년 6월 30일 현재 1890만 달러의 강력한 현금 보유
3. 7100만 달러로 평가된 견고한 기회 파이프라인
4. 2024년 4분기에 엔지니어링 샘플이 예상되는 양자 저항 안전 칩의 진전
5. 전략적 파트너십 및 글로벌 확장 노력
6. Matter 장치 인증을 위한 제품 인증 기관(PAA)으로 승인됨
SEALSQ는 사이버 보안 및 반도체 혁신에 집중하고 있으며, 변화하는 시장 환경에서 장기적인 성장을 위한 입지를 다지고 있습니다.
SEALSQ Corp (NASDAQ: LAES) a annoncé des résultats financiers non audités pour le premier semestre 2024, avec des revenus s'élevant à 4,8 millions de dollars, reflétant un ralentissement attendu de la demande traditionnelle de semi-conducteurs. Malgré cela, la société anticipe une meilleure performance au second semestre 2024 et un retour à la croissance en 2025. Les points clés incluent :
1. 2,4 millions de dollars investis dans des initiatives de R&D
2. Position de liquidité solide de 18,9 millions de dollars au 30 juin 2024
3. Un large éventail d'opportunités évaluées à 71 millions de dollars
4. Progrès dans le développement de puces sécurisées résistantes aux quantiques, avec des échantillons d'ingénierie attendus pour le quatrième trimestre 2024
5. Partenariats stratégiques et efforts d'expansion mondiale
6. Approbation en tant qu'Autorité de certification de produits (PAA) pour l'attestation des dispositifs Matter
SEALSQ reste concentrée sur l'innovation en cybersécurité et en semi-conducteurs, se positionnant pour une croissance à long terme dans un marché en évolution.
SEALSQ Corp (NASDAQ: LAES) hat nicht geprüfte finanzielle Ergebnisse für das erste Halbjahr 2024 veröffentlicht, mit einem Umsatz von 4,8 Millionen Dollar, was auf eine erwartete Verlangsamung der Nachfrage nach traditionellen Halbleitern hinweist. Trotz dessen erwartet das Unternehmen eine Verbesserung der Performance im zweiten Halbjahr 2024 und eine Rückkehr zum Wachstum im Jahr 2025. Zu den wichtigsten Punkten gehören:
1. 2,4 Millionen Dollar in F&E-Initiativen investiert
2. Starke Liquiditätsposition von 18,9 Millionen Dollar zum 30. Juni 2024
3. Robustes Portfolio an Möglichkeiten mit einem Wert von 71 Millionen Dollar
4. Fortschritte bei quantensicheren Chips, mit Ingenieurmuster, die für das vierte Quartal 2024 erwartet werden
5. Strategische Partnerschaften und globale Expansionsbemühungen
6. Genehmigung als Produktzertifizierungsstelle (PAA) für die Zertifizierung von Matter-Geräten
SEALSQ bleibt auf Innovationen in der Cybersicherheit und Halbleitern fokussiert und positioniert sich für ein langfristiges Wachstum im sich entwickelnden Markt.
- Strong cash position of $18.9 million, up $12 million since December 31, 2023
- Robust pipeline of business opportunities valued at $71 million
- $2.4 million invested in research and development initiatives
- On track to launch Quantum-Resistant Secure Chips by Q4 2024
- Expansion of global partnerships and establishment of OSAT Chip Design and Customization Centers
- Approval as a Product Attestation Authority (PAA) for Matter device attestation
- Revenue decline to $4.8 million in H1 2024 due to slowdown in traditional semiconductor demand
- Net loss of $10.758 million for H1 2024
- Operating loss of $8.890 million for H1 2024
- Increase in total operating expenses to $9.823 million in H1 2024
Insights
SEALSQ's H1 2024 results reflect a challenging period, with revenue dropping to
- Robust
$18.9 million cash position, up from$6.9 million at end of 2023 $2.4 million invested in R&D during H1 2024$71 million pipeline of business opportunities- Quantum-resistant chip samples expected by Q4 2024
The company's focus on quantum-resistant technology and strategic partnerships positions it well for future growth. However, the current financial performance and high operating expenses (
SEALSQ's strategic focus on quantum-resistant secure chips is a forward-thinking move in the cybersecurity landscape. The QS7001 and QVault TPM chips, built on RISC-V architecture with quantum-resistant algorithms, position the company at the forefront of post-quantum cryptography. Key technological advancements include:
- RISC-V Quantum Resistant and CCEAL5+ hardware platform
- Support for Kyber and Dilithium quantum-resistant algorithms
- FIPS 140-3 and TCG-certified Trusted Platform Module stack
The company's expansion into OSAT facilities and semiconductor personalization centers demonstrates a commitment to vertically integrated solutions. Partnerships with module and electronic board designers further enhance SEALSQ's ecosystem. The focus on IoT security standards like Matter and compliance with regulations such as the US Cyber Trust Mark and EU Cyber Resilience Act aligns well with emerging market needs.
Geneva, Switzerland, Sept. 25, 2024 (GLOBE NEWSWIRE) --
Schedules Conference Call and Webcast for Thursday, September 26 at 9:00 am ET (3:00 pm CET)
- Strategic initiatives include launch of Quantum-Resistant Secure Chips and partnerships to establish several OSAT Chip Design and Customization Centers.
- Despite temporary slowdown in H1 2024, SEALSQ expects an improved performance in H2 2024 and return to growth in 2025.
- Expected growth supported by
$2.4 million investments made during H1 2024 in research and development initiatives. - With a strong cash position of
$18.9 million at June 30, 2024, SEALSQ is well-equipped to weather the current slowdown and continue funding its strategic initiatives. - Release of engineering samples of SEALSQ’s QS7001 Quantum-Resistant Secure Chips is expected before the end of 2024.
- Robust pipeline of current and new business opportunities valued at
$71 million as of September 20, 2024 is driven by the launch of the next generation of semiconductors, which SEALSQ expects to release in 2025.
SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI and Post-Quantum technology hardware and software products, today announces its unaudited financial results for the six month period ending June 30, 2024 (H1 2024) and provides updates on strategic business initiatives highlighting its continued commitment to innovation, including the launch of quantum-resistant secure chips set to position the Company for future growth in the cybersecurity industry.
H1 2024 FINANCIAL AND OPERATIONAL HIGHLIGHTS
As anticipated, 2024 has been a transitional year for SEALSQ. Revenue for H1 2024 was
Despite this temporary downturn, SEALSQ expects improved financial and operational performance in H2 2024, subject to the finalization of previously announced projects and partnerships, and a return to growth in 2025. Of note, the Company’s robust pipeline of current and new business opportunities valued at
Carlos Moreira, CEO of SEALSQ noted, “During the first half of the year, we took several steps to bolster our position in the markets we operate on a global scale. We invested
Expectations are supported by several key growth factors including the expansion of Matter certification, global adoption of new IoT security standards such as the US Cyber Trust Mark or the EU Cyber Resilience Act, and SEALSQ’s strong value proposition on the PKI market for both IoT device makers segment and GSMA eUICC manufacturers and service providers. This has been reflected by new agreements signed in H1 2024, both with existing clients in the healthcare industry in the US and new customers in Asia (D-Link, HOSIDEN) and Europe (In Lite), mostly around smart home applications.
PROGRESS ON STRATEGIC INITIATIVES
Launch of Quantum-Resistant Secure Chips
SEALSQ remains on track to launch its range of Quantum-Resistant Secure Chips, including the QS7001 and QVault TPM, by Q4 2024. Engineering samples of the QS7001 are expected to be available for order by Q4 2024, with the TPM version ready by year-end. These chips are built on a RISC-V Quantum Resistant and CCEAL5+ hardware platform, designed for Kyber and Dilithium quantum-resistant algorithms. The QS7001 will allow customers to develop their own firmware, while the QVault TPM will feature a pre-provisioned, FIPS 140-3 and TCG-certified Trusted Platform Module stack.
Strategic Partnerships and Custom Solutions
SEALSQ is actively pursuing strategic partnerships with major electronics manufacturers to develop custom quantum-resistant chips based on the QS7001. These partnerships are key to SEALSQ’s broader industrial strategy and are expected to create new business opportunities and revenue streams. The Company’s efforts to establish Semiconductor Design and Personalization Centers will further support its customization activities.
In parallel, SEALSQ is developing a channel strategy by partnering with module and electronic board designers and manufacturers, like Hosiden in Japan and Bharat Pi in India. These companies have integrated SEALSQ VaultIC Secure Element into their semi-finished electronic products used by IoT device manufacturers to build consumer products like smart home appliances compatible with Matter standard. Each of these partnerships is expected to significantly contribute to generating new opportunities and accelerating growth in the coming months.
Global Expansion and OSAT Developments
SEALSQ is in final negotiations with the Spanish government to establish a Semiconductor Design and Personalization Center in Murcia. This collaboration supports Spain's Strategic Project for Economic Recovery and Transformation of Microelectronics and Semiconductors (PERTE Chip), which aims to mobilize
In the United States, SEALSQ has incorporated SEALSQ USA Ltd as part of its plan to develop an Outsourced Semiconductor Assembly and Test (OSAT) facility. This facility would offer advanced testing and assembly services and would focus on post-quantum cryptography and artificial intelligence. SEALSQ is also exploring funding opportunities under government incentive schemes, including those provided by the US CHIPS Act of 2022.
Additionally, SEALSQ is in negotiations for two significant projects in the Middle East and Far East to establish Semiconductor Personalization Centers through Public-Private Partnerships (PPP).
Root Certificate Authority Approval and PKI Services
By leveraging the WISeKey Root Certificate Authority, which attained GSMA Root CI accreditation in Q1 2024, SEALSQ PKI can now enable eUICC and Subscription Management entities to identify and authenticate within the GSMA remote provisioning Consumer ecosystem, facilitating security and interoperability.
Of note, in 2023, SEALSQ’s Root Certificate Authority was approved by the CSA for Matter device attestation, positioning the Company as a Product Attestation Authority (PAA). SEALSQ offers Device Attestation Certificates (DACs) through its INeS managed “PKI as a Service” platform, enabling businesses to authenticate devices without investing in costly hardware infrastructure.
BALANCE SHEET HIGHLIGHTS
The balance sheet reflects a strong cash position of
As of June 30, 2024, through conversions into Ordinary Shares, the first tranche was fully repaid , while the second tranche was almost
The Company’s balance sheet is now in a much stronger position as a result of the reduction in the Company’s net debt position when considering the cash and cash equivalents held, offset by the Convertible Note liabilities and Indebtedness towards Related Parties.
The Company does note that the current price of its Ordinary Shares means that any conversions made by the Investors related to the outstanding balance of the third tranche, as per the terms and conditions of the Agreements, would be below the floor price. The Agreements set the floor price at
MOVING FORWARD
Market Outlook and Growth Projections
SEALSQ is well-positioned to capitalize on evolving cybersecurity requirements globally. The Company expects its post-quantum chips to play a crucial role in securing IoT devices, smart homes, autonomous vehicles, and industrial applications in the future.
Key growth areas for SEALSQ over the next five years include:
- VaultIC chip sales to Consumer IoT, Smart Grid and Automotive Charging device makers and operators.
- PKI and RoT Services: Recurring revenue is expected from device attestation and certificate lifecycle management services as well as from the GSMA eUICC manufacturers and service providers.
- Quantum-Resistant Semiconductor Sales: SEALSQ anticipates significant sales growth starting in 2025 as new chips enter full production.
- ASICS & custom solutions: Strategic partnerships for custom quantum-resistant chips will generate revenue through development contracts and licensing fees.
SEALSQ’s continued focus on innovation and security ensures it remains a leader in the cybersecurity and semiconductor industries, driving long-term growth and value for shareholders.
CONFERENCE CALL
The company will host a conference call to review its results on Thursday, September 26, at 9:00 am ET (3:00 pm CET). If you wish to join the conference call, please use the dial-in information below:
- Toll-Free Dial-In Number: 877-445-9755
- International Dial-In Number: 201-493-6744
A simultaneous webcast of the call may be accessed online via the Investors section of the company’s website, https://www.sealsq.com/investors/events.
The archived call will also be available on the Investors section of the company's website, https://www.sealsq.com/investors/events.
FILING OF HALF YEAR REPORT ON FORM 6-K
SEALSQ filed its Condensed Consolidated Financial Statements in the Form 6-K for the six-month period ended June 30, 2024, with the U.S. Securities and Exchange Commission on September 25, 2024. The Form 6-K can be accessed by visiting the Company’s website at www.sealsq.com.
In addition, the Company's stockholders may receive a hard copy of the Form 6-K, which includes complete unaudited financial statements, free of charge by contacting its Investor Relations Representative at lcati@equityny.com or +1 212 836-9611.
ADDITIONAL FINANCIAL & OPERATIONAL DATA
Consolidated Statements of Comprehensive Income/(Loss) [as reported]
| Unaudited 6 months ended June 30, | |||||
| USD'000, except earnings per share | 2024 | 2023 | |||
| Net sales | 4,828 | 14,751 | |||
| Cost of sales | (3,667 | ) | (6,760 | ) | |
| Depreciation of production assets | (228 | ) | (201 | ) | |
| Gross profit | 933 | 7,790 | |||
| Other operating income | - | 9 | |||
| Research & development expenses | (2,393 | ) | (1,492 | ) | |
| Selling & marketing expenses | (2,653 | ) | (2,441 | ) | |
| General & administrative expenses | (4,777 | ) | (4,145 | ) | |
| Total operating expenses | (9,823 | ) | (8,069 | ) | |
| Operating loss | (8,890 | ) | (279 | ) | |
| Non-operating income | 465 | 180 | |||
| Gain / (loss) on debt extinguishment | (100 | ) | - | ||
| Interest and amortization of debt discount | (557 | ) | (143 | ) | |
| Non-operating expenses | (372 | ) | (313 | ) | |
| Loss before income tax expense | (9,454 | ) | (555 | ) | |
| Income tax (expense) / income | (1,304 | ) | (320 | ) | |
| Net loss | (10,758 | ) | (875 | ) | |
| Earnings per ordinary share (USD) | |||||
| Basic | (0.37 | ) | (0.06 | ) | |
| Diluted | (0.37 | ) | (0.06 | ) | |
| Earnings per F share (USD) | |||||
| Basic | (1.87 | ) | (0.29 | ) | |
| Diluted | (1.87 | ) | (0.29 | ) | |
| Other comprehensive income / (loss), net of tax: | |||||
| Foreign currency translation adjustments | (8 | ) | (4 | ) | |
| Other comprehensive loss | (8 | ) | (4 | ) | |
| Comprehensive loss | (10,766 | ) | (879 | ) | |
The notes are an integral part of our consolidated financial statements.
Consolidated Balance Sheets [as reported]
| As at June 30, | As at December 31, | ||
| USD'000, except par value | 2024 (unaudited) | 2023 (unaudited) | |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 18,858 | 6,895 | |
| Accounts receivable, net of allowance for credit losses | 1,565 | 5,053 | |
| Inventories | 2,772 | 5,231 | |
| Prepaid expenses | 471 | 605 | |
| Government assistance | 1,826 | 1,718 | |
| Other current assets | 625 | 765 | |
| Total current assets | 26,117 | 20,267 | |
| Noncurrent assets | |||
| Deferred income tax assets | 1,775 | 3,077 | |
| Deferred tax credits | 63 | - | |
| Property, plant and equipment, net of accumulated depreciation | 3,013 | 3,230 | |
| Intangible assets, net of accumulated amortization | - | - | |
| Operating lease right-of-use assets | 1,181 | 1,278 | |
| Other noncurrent assets | 85 | 83 | |
| Total noncurrent assets | 6,117 | 7,668 | |
| TOTAL ASSETS | 32,234 | 27,935 | |
| LIABILITIES | |||
| Current Liabilities | |||
| Accounts payable | 6,904 | 6,963 | |
| Indebtedness to related parties, current | - | 1,278 | |
| Deferred revenue, current | 2 | - | |
| Current portion of obligations under operating lease liabilities | 355 | 336 | |
| Income tax payable | - | 2 | |
| Other current liabilities | 34 | 138 | |
| Total current liabilities | 7,295 | 8,717 | |
| Noncurrent liabilities | |||
| Bonds, mortgages and other long-term debt | 1,734 | 1,654 | |
| Convertible note payable, noncurrent | 9,313 | 1,519 | |
| Indebtedness to related parties, noncurrent | 7,478 | 9,695 | |
| Operating lease liabilities, noncurrent | 754 | 893 | |
| Employee benefit plan obligation | 436 | 426 | |
| Total noncurrent liabilities | 19,715 | 14,187 | |
| TOTAL LIABILITIES | 27,010 | 22,904 |
| Commitments and contingent liabilities | |||||
| SHAREHOLDERS' EQUITY | |||||
| Common stock - Ordinary Shares | 227 | 154 | |||
| Par value - USD 0.01 | |||||
| Authorized - 200,000,000 and 200,000,000 | |||||
| Issued and outstanding - 22,734,630 and 15,446,807 | |||||
| Common stock - F Shares | 75 | 75 | |||
| Par value - USD 0.05 | |||||
| Authorized - 10,000,000 and 10,000,000 | |||||
| Issued and outstanding - 1,499,700 and 1,499,700 | |||||
| Additional paid-in capital | 35,616 | 24,730 | |||
| Accumulated other comprehensive income / (loss) | 776 | 784 | |||
| Accumulated deficit | (31,470 | ) | (20,712 | ) | |
| Total shareholders' equity | 5,224 | 5,031 | |||
| TOTAL LIABILITIES AND EQUITY | 32,234 | 27,935 | |||
The notes are an integral part of our consolidated financial statements.
About SEALSQ
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, Medical and Healthcare and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.
Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks. For more information, please visit www.sealsq.com.
Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the expected success of our technology strategy and solutions for IoMT Security for Medical and Healthcare sectors, SEALSQ's ability to implement its growth strategies, SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.
SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
Press and Investor Contacts
| SEALSQ Corp. Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@sealsq.com | SEALSQ Investor Relations (US) The Equity Group Inc. Lena Cati Tel: +1 212 836-9611 / lcati@equityny.com Katie Murphy Tel: +212 836-9612 / kmurphy@equityny.com |
FAQ
What was SEALSQ's (LAES) revenue for H1 2024?
When does SEALSQ (LAES) expect to release engineering samples of its QS7001 Quantum-Resistant Secure Chips?
What is the value of SEALSQ's (LAES) current pipeline of business opportunities as of September 20, 2024?
How much did SEALSQ (LAES) invest in research and development during H1 2024?
