WISeKey International Holding AG Q4 FY2024 earnings call

• 2024 was a pivotal year for WISeKey with a strong balance sheet, strategic technology milestones, and a roadmap for new opportunities.
• 2025 is the Year of WISeKey Convergence, combining semiconductors, satellites, blockchain, and digital identity into a unified ecosystem.
• SEALSQ's priorities include commercial launch of post-quantum chips, targeted acquisitions/investments/joint ventures, R&D in post-quantum security, and expansion of trust services.
• WISeSat plans to deploy up to 88 new generation satellites, partnering with Hedera network for blockchain in space, and testing secure communication with the Swiss Army.
• SEALCOIN and WISe.ART made progress in decentralized identity solutions and digital asset platforms, respectively.
• WISeID's digital identity platform introduced biometric authentication and post-quantum protocols, with the SEALPhone in testing mode.

WISeKey has several subsidiaries contributing to its ecosystem. SEALSQ, listed on NASDAQ in May 2023, focuses on advanced semiconductor technology and post-quantum cryptography. WISeID offers Root of Trust and PKI services for digital identity and encryption. WISeSat is in space technology with picosatellites for secure communication. WISe.ART is the blockchain and NFT segment providing secure digital asset solutions. SEALCOIN AG develops the SEALCOIN platform for decentralized physical Internet. In terms of revenue contribution, SEALSQ's semiconductor revenue was a main contributor in 2024, and the new quantum-resistant chip is expected to drive growth starting 2026.

• Expect improved performance in 2025 compared to 2024, supported by strong cash position and robust pipeline.
• New quantum-resistant chip expected to launch in Q4 2025 with substantial returns from 2026.
• Pipeline of secured and pending business opportunities over $150 million from 2026-2028.
• Development of semiconductor personalization centers in Spain, pending government approval.
• Potential ICL acquisition to boost SEALSQ's product portfolio and client base.
• WISeSat plans six more launches in 2025-2026, starting with June 2025.
• SEALCOIN working on TIoT commercial launch and Quantum-as-a-Service with ColibriTD.

• Regulatory approvals for acquisitions (e.g., ICL acquisition) may face delays.
• Competition in the TPM market with significant barriers to entry.
• Delays in certification processes for post-quantum chips (e.g., NIST/FIPS certifications) could impact product launch timelines.

Q: Can you talk about the pipeline number offered as of April 15, how it's qualified and competitive?

A: The pipeline is based on estimated client opportunities, conservative in estimation, split into speculative to design-win stages. Competitive in TPM and post-quantum markets with barriers to entry, WISeKey is competitive on price and flexible to client needs, targeting 10%-20% of TPM market.

Q: When will we have visibility into volumes for post-quantum chips?

A: Active discussions with clients, expecting good insight into demand by end of 2024, with more clarity by half-year results.

Q: How will revenue flow from the Swiss Army contract?

A: Development contract is live, but revenue is small currently, more to come in 2026 and beyond as it's in research and development phase.

Q: What's the expected revenue contribution and timeline for IC'ALPS acquisition?

A: Revenue guidance will be clear on closing, target to close by government approval, taking 2-4 months, with IC'ALPS bringing full ASIC design capabilities in-house.

Q: How does SEALCOIN work in a practical sense?

A: Example of electric car charging against solar panels with automated token exchange, scalable to smart city concepts across borders.