Financial Data and Key Metrics Changes - SealSQ 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 experienced a net loss of $21 million for the year, primarily due to the migration from traditional semiconductor products and reduced demand during the transition [18] - Cash reserves peaked at over $90 million as of January 6, 2025, up from approximately $85 million at the end of 2024, indicating a strong financial position [15] Business Line Data and Key Metrics Changes - The transition to post-quantum security technology involved a $5 million investment in 2024, with an additional $7.2 million planned for 2025 [6][18] - Combined bookings for the year reached $6.8 million, reflecting strong year-to-year growth, while the projected contract pipeline over the next three years stands at $93 million [9][30] Market Data and Key Metrics Changes - The post-quantum cybersecurity market is projected to grow from an estimated market size of $302.5 million in 2024 to $1.8 billion by 2025, with a CAGR of 44.2% [9][12] - The company is positioned to capitalize on the emerging opportunities in post-quantum security due to high entry-level barriers for competitors [10] Company Strategy and Development Direction - SealSQ's strategy includes the commercial launch of post-quantum chips, expansion of chip personalization services, and strategic acquisitions to enhance capabilities [33][34] - The company is focused on securing large-scale contracts with government and enterprise clients adopting post-quantum cryptographic solutions, including defense contracts in Europe [11][12] 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 integration of chip personalization services [9][11] - The company expects the full impact of growth initiatives to materialize in 2026, with the commercial launch of new products scheduled for Q4 2025 [20][21] Other Important Information - SealSQ is investing in startups engaged in quantum computing and AI initiatives, with a $20 million fund allocated for this purpose [22] - The company is in the process 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 are sitting on strong inventories of previous generation chips, there will be normalization as new customers emerge through the personalization center [41][42] Question: What is the meaningful portion of the 2025 R&D spending increase? - The increase in R&D spending is largely attributed to expensive certification processes and the need to recruit high-level expertise for integrating new technologies [51][52] Question: What is the historical win rate of 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 sticky nature of post-quantum chip contracts [63][67]

SEALSQ Corp (NASDAQ:LAES) Q4 2024 Earnings Conference Call March 24, 2025 10:00 AM ET Company Participants Carlos Moreira - CEO John O'Hara - CFO Conference Call Participants Matthew Galinko - Maxim Group Nehal Chokshi - Northland Capital Markets Operator Greetings, ladies and gentlemen, and welcome to the SealSQ Full Year 2024 Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertai ...

Core Insights - SEALSQ Corp has entered into a strategic agreement to acquire a 30% equity stake in WeCanGroup SA, aiming to enhance blockchain-based security solutions in the Web 3.0 ecosystem, focusing on post-quantum cryptography and IoT security [1][2]. Group 1: Partnership Objectives - The collaboration seeks to accelerate the adoption of blockchain security solutions, particularly in the financial sector and IoT, addressing vulnerabilities posed by quantum computing [1][2]. - SEALSQ and WeCanGroup will integrate their technologies to develop advanced KYC, KYB, and KYO solutions, ensuring long-term cybersecurity resilience [2][3]. Group 2: Financial Sector Security - The financial sector's reliance on digital identity verification and secure transactions necessitates the adoption of quantum-resistant cryptographic solutions to maintain trust and compliance [3]. - WeCanGroup's blockchain-based compliance solutions will incorporate SEALSQ's post-quantum encryption to protect financial institutions from quantum-based cyber threats [3][4]. Group 3: IoT Security Enhancements - The partnership aims to protect IoT ecosystems from quantum-enabled attacks by embedding post-quantum cryptographic algorithms into SEALSQ's secure semiconductors [5]. - Quantum-safe identity management for IoT devices will be established, ensuring data integrity across various applications, including smart cities and healthcare IoT [5][6]. Group 4: Web 3.0 Innovations - The integration of SEALSQ's post-quantum secure semiconductors with WeCanGroup's blockchain solutions will enhance trust and security in Web 3.0 ecosystems [7]. - Innovations will include decentralized identity management and secure tokenization of financial assets, ensuring regulatory compliance against quantum threats [8].

Core Viewpoint - WISeKey's subsidiary SEALCOIN and WeCanGroup are collaborating to enhance secure device-to-device transactions and identity verification within the WeCanGroup ecosystem, particularly for banking, government, and defense sectors [1][2][6] Group 1: Partnership Overview - The partnership integrates SEALCOIN's blockchain-based IoT and digital asset ecosystem with WeCanGroup's compliance and data security framework [1][2] - This collaboration aims to create a new standard for identity and transaction verification in highly regulated environments [6] Group 2: Technology and Solutions - SEALCOIN is designed to authenticate and facilitate secure transactions between IoT devices, making them trusted and autonomous within a decentralized economy [2] - WeCanGroup's solutions will expand to include Know Your Object (KYO), enhancing the verification and management of IoT devices [3] Group 3: Use Cases in Regulated Sectors - The integration will enable secure transactions in various sectors: - Banking & Finance: Trusted digital asset transactions and compliance-driven IoT payments [4] - Government & Public Services: Secure authentication for critical infrastructure and smart city applications [5] - Defense & Aerospace: Tamper-proof identity verification for defense IoT systems [5] Group 4: Future Steps - Initial focus will be on pilot programs with key partners in finance, government, and defense before expanding to broader industrial and smart infrastructure applications [7]

Geneva, Switzerland, March 20, 2025 (GLOBE NEWSWIRE) -- Schedules Conference Call and Webcast for Monday, March 24 at 10:00 am ET (3:00 pm CET) Ends the year with a strong cash position of approximately $85 million FY 2024 $11 million revenue reflects the industry-wide transition from traditional semiconductors to next-generation Quantum Resistant chipsExpects a return to growth in FY 2025 Continues R&D investments with $7.2 million allocated in 2025, up from $5 million in 2024Confirmed bookings of $6.8 mi ...

Industry Cyclicality and Competition - The semiconductor industry is highly cyclical, with significant downturns historically occurring in 1997/1998, 2001/2002, 2008/2009, early 2020, and 2022/2023, often linked to economic conditions and product life cycles [40]. - The company faces intense competition in the semiconductor industry, necessitating timely introduction of new technologies and products to maintain market position [43]. - The company faces intense competition from larger firms with greater resources, which may impact its market position and pricing strategies [75]. Revenue Dependence and Customer Risks - Demand for products is significantly influenced by customer end products, with revenue primarily derived from IT infrastructure and utilities distribution, making revenue predictability challenging [49]. - The company relies heavily on a limited number of significant customers for revenue, which poses risks if these customers reduce order levels or modify their purchasing behavior [49]. - The company derives over 70% of its revenue from its ten largest customers, indicating a high dependency on a limited customer base [79]. - One of the largest customers is CISCO Systems International, operating under a Master Purchase Agreement established in 2014 [80]. - The company is at risk of clients delaying or withdrawing purchase orders, which could materially affect business operations and financial condition [82]. Product Development and Market Readiness - Research and development efforts are critical, but there is no guarantee that these will yield successful products or enhancements that generate significant revenue [39]. - The company has a lengthy product development cycle of approximately 18 to 24 months, limiting the risk of holding excess finished goods stock [82]. - The company expects to release post-quantum cryptography products starting in Q4 2025, with substantial returns projected from full-scale deployment in 2026 [56]. - Delays in the qualification and certification processes for the quantum-resistant chip could result in a market availability delay of six to nine months [57]. - Management anticipates 2025 to be a transition year, with a shift in customer demand towards next-generation products [67]. Supply Chain and Operational Risks - The company is dependent on timely supply from subcontractors, and any delays could result in lower or lost revenues [39]. - The company relies on third-party suppliers for critical functions, and any failure to meet delivery schedules could result in lower revenues [97][99]. - The company relies on third-party foundries for IC production, which poses risks of supply delays and lost sales if capacity is not met [105]. - There are no long-term contracts with foundry service providers, leading to potential capacity allocation issues and increased costs [106]. - The global semiconductor supply shortage was alleviated in 2023, improving the company's ability to meet product demand [97]. Financial Performance and Economic Conditions - Fiscal year 2024 revenue was approximately $11 million, a decline from $30 million in fiscal year 2023, primarily due to customers shifting to next-generation post-quantum cryptography products [55]. - The company may require additional capital in the future, and its ability to obtain external financing is subject to uncertainties, including its financial condition and general market conditions [155]. - Global inflationary pressures have not materially affected the company’s gross margins as of the report date, but continued inflation could adversely impact its business [147]. - The company is currently facing economic uncertainty and capital market disruptions due to geopolitical tensions, including the ongoing military conflict between Russia and Ukraine, which may materially adversely affect its business and financial condition [137]. Cybersecurity and Regulatory Challenges - The increasing complexity of security threats and regulatory focus on hardware security adds challenges to product design and manufacturing, impacting future market predictability [45]. - The company faces risks related to cybersecurity incidents, which could disrupt services and damage reputation, leading to potential civil liabilities [119]. - The company must comply with evolving cryptographic standards, such as those set by NIST for post-quantum cryptography, to maintain government contract eligibility [93]. - Regulatory changes regarding data privacy could diminish service value and lead to customer loss, with potential fines up to 4% of annual global turnover in Europe [127]. Governance and Shareholder Issues - The company’s governance structure may deter certain institutional investors from purchasing or holding its shares, potentially affecting stock performance [42]. - The dual class share structure allows holders of Class F Shares to control 49.99% of the voting power, despite owning less than a majority of shares [209]. - The governance structure may deter institutional investors from purchasing or holding Ordinary Shares due to the low-voting nature of these shares [220]. - The Shareholders' Agreement requires all Class F Shares to be voted as one, consolidating control among Class F Shareholders [221]. - The company is classified as a "controlled company" under Nasdaq rules, allowing it to rely on exemptions from certain corporate governance requirements [186]. Legal and Compliance Risks - The company may face legal risks from various claims and investigations that could negatively impact operations and financial results [161]. - The company is subject to the reporting requirements of the Securities Exchange Act, which may create additional costs and require significant management attention [149]. - The company may incur additional costs if required to comply with economic substance requirements in the British Virgin Islands [175]. - Changes in tax laws or regulations in jurisdictions where the Company operates could lead to a higher effective tax rate, adversely affecting earnings and cash flows [179]. Strategic Investments and Market Position - The company has made substantial investments in its sales force to address growing demand driven by digital transformation and IoT [63]. - The company is exposed to risks associated with acquisitions and investments, including potential integration challenges and the impact on financial condition [153]. - The company does not have formal agreements with major suppliers, which poses risks if suppliers terminate relationships [104]. - The company collaborates with a limited number of third parties for IC packaging and testing, exposing it to risks of delays and quality control issues [109].

Geneva, Switzerland, March 19, 2025 (GLOBE NEWSWIRE) -- Public Event to be Held on May 13, at Hotel La Fregate, France 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 announced that it will hold the third edition of Quantum Tech Days, on May 12-13, 2025, at Hotel La Fregate, France. Building on the success of Quantum Tech Day events in Davos and NYC earlier this year, ...

Geneva, Switzerland, March 19, 2025 (GLOBE NEWSWIRE) -- Public Event to be Held on May 13, at Hotel La Fregate, France 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 announced that it will hold the third edition of Quantum Tech Days, on May 12-13, 2025, at Hotel La Fregate, France. Building on the success of Quantum Tech Day events in Davos and NYC earlier this year, t ...

Core Insights - SEALSQ Corp has secured 1.75 billion devices globally with its microprocessors, highlighting its leadership in digital security as quantum computing approaches commercial viability [2][5] - The company has embedded the WISeKey Root of Trust in over 6 billion devices, ensuring strong authentication and encrypted communications in a zero-trust environment [6] Company Overview - SEALSQ focuses on developing semiconductors, PKI, and post-quantum technology hardware and software products [2][9] - The company is pioneering post-quantum semiconductors designed to protect sensitive data across various applications, including healthcare, automotive, and industrial automation [10] Industry Context - The urgency for post-quantum cryptography is increasing as traditional cryptographic methods like RSA and ECC become vulnerable to quantum computing [4][8] - SEALSQ's hybrid cryptographic model allows for a seamless transition from classical encryption to post-quantum security, ensuring backward compatibility and future-proofing digital ecosystems [7] Technological Advancements - SEALSQ has implemented NIST-approved post-quantum cryptographic standards, such as CRYSTALS-Kyber and CRYSTALS-Dilithium, into its semiconductor designs [4] - The company is advancing quantum key distribution (QKD) technologies to create tamper-proof encryption keys [7]

Geneva, Switzerland, March 14, 2025 (GLOBE NEWSWIRE) -- 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 announced that it has made substantial progress after launching last month SEALQUANTUM.com, an ambitious investment and acquisitions strategy aimed at accelerating its quantum computing and AI initiatives. As part of this initiative, SEALSQ has allocated up to $20 mill ...