WISeKey to Host a Conference Call to Discuss First Half 2018 Results on Monday, September 17, at 3:00 pm CET / 9:00 am ET
WISeKey to Host a Conference Call to Discuss First Half 2018 Results on Monday, September 17, at 3:00 pm CET / 9:00 am ET
ZUG, Switzerland- September 14, 2018– WISeKey International Holding Ltd (SIX: WIHN, OTCQX: WIKYY) (“WISeKey” or the “Company”), a leading Swiss cybersecurity and IoT company announced today it will hold a conference call to discuss its audited financial results for the six-month period ended June 30, 2018 (“H1 2018”), recent business developments and growth initiatives on Monday, September 17, 2018, at 3:00 pm CET / 9:00 am ET. A Q&A session will follow the prepared remarks.
Interested parties may participate in the call by dialing:
| United States & Canada | 877-445-9755 |
| United Kingdom (fixed): | 0 800 756 3429 |
| Germany (fixed) / (mobile): | 0 800 182 0040 / 0 800 184 4713 |
| France (fixed) /excl. Monaco: | 0 800 912 848 |
| Switzerland (fixed) / (mobile): | 0 800 835 525 / 0 800 891 374 |
| Spain (fixed) / (mobile): | 900 834 236 / 900 834 876 |
To access the call, please dial-in approximately five minutes before the start time. The call will also be simultaneously webcast over the Internet via the following link http://www.investorcalendar.com/event/37549 and such link will also be made available in the “Investor Relations” section of WISeKey’s website http://wisekey.com/investors/.
Key Highlights
| US GAAP (Million US$) |
H1 2018 | H1 2017 |
| Net revenue | 25.9 | 19.2 |
| Gross profit | 12.9 | 8.4 |
| Operating loss as reported | (7.3) | (3.7) |
| Net loss attributable to WISeKey as reported | (10.7)* | (7.3) |
| Non-US GAAP (Million US$) |
H1 2018 | H1 2017 |
| Adjusted operating loss | (2.5) | (0.8) |
| Adjusted net loss attributable to WISeKey | (4.4)* | (0.6) |
Of note, during the first half of 2018, we expanded our R&D and marketing efforts and substantially increased our sales force to keep pace with the high demand for both our segments: Semiconductors and Cybersecurity applications. Thus, for H1 2018, R&D and Selling & Marketing expenses increased by 24% and 72%, respectively, to a total of $8.2 million, as compared to a total of $5.7 million in the same period of last year. Additionally, our H1 2018 G&A expenses increased by 56%, or $4.4 million, to $12.3 million, mainly due to the fact that in H1 2017 QuoVadis operating expenses were only consolidated for the period April 03 to June 30, 2017 (i.e. from the acquisition date), whereas in H1 2018 they were consolidated for the full 6 months. G&A expenses for QuoVadis in the period January 01 to April 02, 2017 amounted to $3.1 million. Moreover, H1 2018 operating expenses have been adversely impacted by a $1.4 million one-off release in H1 2017 of an onerous contract provision, whilst other operating income was only $0.2 million in H1 2018. As a result, our net loss for the H1 2018 increased to $10.7* million as compared to $7.3 million in the same period of last year.
H1 2018 Report
Investors may download the H1 2018 Report from the Investor Relations section of WISeKey’s website at https://www.wisekey.com/investors/reports/financial-reports/.
| GAAP to Non-GAAP reconciliation | ||
| Non-US GAAP (Million US$) |
H1 2018 | H1 2017 |
| Operating loss as reported | (7.3) | (3.7) |
| Non-GAAP adjustments: | ||
| Stock-based compensation | 1.1 | 0.3 |
| Depreciation expense | 0.7 | 0.5 |
| Amortization expense on intangibles | 1.3 | 1.1 |
| PPA amortization expense | 1.2 | 0.3 |
| Fair Value adjustment to marketable securities | 0.2 | – |
| M&A-related legal fees | 0.2 | 0.3 |
| M&A-related professional fees | 0.1 | 0.4 |
| Adjusted Operating loss | (2.5) | (0.8) |
| Net loss attributable to WISeKey as reported | (10.7)* | (7.3) |
| Non-GAAP adjustments: | ||
| Stock-based compensation | 1.1 | 2.5 |
| Depreciation expense | 0.7 | 0.5 |
| Amortization expense on intangibles | 1.3 | 1.1 |
| PPA amortization expense | 1.1 | 0.3 |
| Fair Value adjustment to marketable securities | 0.2 | – |
| M&A-related legal fees | 0.2 | 0.3 |
| M&A-related professional fees | 0.1 | 0.4 |
| Gain from the liquidation of subsidiary | (0.2) | – |
| Debt discount amortization | 0.5 | 1.6 |
| Deferred tax impact | 1.3 | – |
| Adjusted Net loss attributable to WISeKey | (4.4)* | (0.6) |
* We note that the press release dated September 13, 2018 included an incorrect reference to the figures in the interim financial statement of WISeKey International Holding AG. The figures noted in the present press release are those included in the interim financial statement of WISeKey International Holding AG.
Non-GAAP Financial Measures
In managing WISeKey’s business on a consolidated basis, WISeKey management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting WISeKey’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, certain non-cash expenses related to acquisitions and share-based compensation expense, which may obscure trends in WISeKey’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in WISeKey’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).”
About WISeKey:
WISeKey (SIX: WIHN, OTCQX: WIKYY) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.
To receive WISeKey’s latest news, visit the WISeKey Investors Corner.
Press and investor contacts:
| WISeKey International Holding Ltd Company Contact: Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@wisekey.com |
WISeKey Investor Relations (US) Contact: Lena Cati The Equity Group Inc. Tel: +1 212 836-9611 lcati@equityny.com |
Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd 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.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.