WISeKey International Holding AG Q1 FY2023 earnings call

• The company operates as a holding company with 4 subsidiaries, each with distinct business models. - In 2022, revenue and gross profit increased. The sales and marketing team was strengthened. Investments were made in semiconductor production capacity and R&D. - 2023 focus includes strengthening the sales force, leveraging a strong semiconductor backlog over $100M, expanding satellite business with partnerships like with the Swiss Army, and focusing on post-quantum chips and AI integration.

The company has 4 segments. WISeKey SA is focused on cybersecurity, public infrastructure, and digital identity with WISeID. CLSQ (formerly semiconductor) is profitable and in the process of listing on Nasdaq. isatpace is a space technology picosatellite company with 13 picosatellites in low orbit. WISe.ART is a trusted blockchain NFT platform. Revenue in 2022 grew 35% to $23.8 million, with gross profit growing 35% to $10.1 million.

• Expect continued revenue growth in 2023 with visibility between $25M and $30M so far. - Strong semiconductor backlog over $100M provides a foundation. - Plan to gradually IPO subsidiaries once they reach maturity, with focus on post-quantum chips, satellite expansion, and NFT platform growth.

• $25M owed from the arago sale, with legal process ongoing and potential integration of IP if not paid. - Impact of market conditions, geopolitical issues, and supply chain disruptions on revenue and partnerships. - Intense competition in the cybersecurity and semiconductor markets.

Q: How quickly expect post-quantum chips to displace pre-quantum?

A: Quantum is inevitable. WISeKey is focused on post-quantum technology, already working with clients and has been developing chips with cryptographic capabilities.

Q: Satellite business model?

A: Partner with FOSSA, launch picosatellites, sell as a service. Can send satellites in 4 weeks for $250,000, with potential spin-off of WISeSaT.

Q: Arago $25M owed?

A: Legal process ongoing. Worst-case scenario is integrating the IP into WISeKey's operations if not paid.