WISeKey Announces Audited Consolidated Financial Results for FY 2017 and Q1 2018 Preliminary Revenue
(Source: cnbc.com)

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(Original link: cnbc.com)

Record revenue driven by strong growth from the Cybersecurity, IoT and Semiconductor business segments
Reaffirms its FY 2018 revenue guidance of US$60 million
The Company will host a conference call on Tuesday, April 17 th at 3:00 pm CET (9:00am ET)
ZUG, Switzerland- April 16, 2018 - WISeKey International Holding Ltd (" WISeKey " or the " Company ") (SIX: WIHN) a leading Swiss cybersecurity and IoT company announced today its audited consolidated financial results for FY 2017.
2017 was an important building year for WISeKey. During the year, not only did we significantly increase our revenue and improve our financial position, we also expanded our product offerings, increased our geographical footprint, enlarged our customer base and set the stage for continued growth in 2018 and beyond.
FY 2017 Financial and Operational Highlights
Reported record FY 2017 revenue of $43.1 million, up 292% as compared to FY 2016 revenue of $11.0 million. Growth reflects the successful integration of the Cybersecurity, IoT and Semiconductor business segments and was driven by higher demand for strong security in industries such as smart cars, luxury products, pharmaceuticals and financial technology and also IoT chips as WISeKey reached 1 billion chips production milestone. WISeKey adopted US GAAP Topic 606 "Revenue from Contracts with Customers" as of January 1, 2017 with the objective of providing enhanced financial transparency on the deferred revenue component in the balance sheet. Reduced FY 2017 losses by 35% to $24.3 million, as compared to losses of $35.9 million for the same period of last year. Of note, the majority of losses reported in 2017 were related to QuoVadis' acquisition cost, paid in cash and shares. The Non-US GAAP adjusted operational losses for FY 2017 were reduced from $6.9 million to $5.0 million.
(Million US$) 2017 2016 Net Revenues 43.1 11.0 Gross Profit 20.7 4.4 Operating Loss, as reported (13.5) (36.2) Net Loss attributable to WISeKey, as reported (24.3) (35.9)
(Million US$)
2016 Adjusted Operating Loss (5.0) (6.9) Adjusted Net Loss attributable to WISeKey (3.2) (4.9) Achieved strong liquidity and financial position; cash of $12.2 million at December 31, 2017, compared to $5.2 million at December 31, 2016. Increased its R&D effort with $7.4 million spent during the year to develop new IP, patents and products to create business opportunities in cybersecurity, IoT, Microprocessors, Blockchain an AI. Aggregated over 39 patent families (more than 200 patents in total) to its patent portfolio, some of them on critical sectors such as Microchip designs and Cybersecurity algorithms. As part of its M&A strategy, acquired 85% of QuoVadis from private equity firm ABRY and One Communications Ltd. (formerly known as KeyTech) for $15.0 million cash plus 1,110,000 newly issued Class B Shares of WISeKey (issued from its existing authorized capital). WISeKey has the right to purchase and QuoVadis' minority shareholders have the right to sell, the remaining 15% stake in QuoVadis in May 2018 (based on QuoVadis' performance in FY 2017, and at the election of WISeKey this can be completed either in cash or against new Class B Shares, which would be capped at 946,000 Class B Shares).
Strong Growth Expected to Continue in 2018
We started 2018 on a very strong note due to the new razor and blade cybersecurity business model which is accelerating the commercialization of our semiconductor products with embedded security. WISeKey's razor and blade business model uses a strategy that involves selling highly secure and tamperproof microchips (or "razor" products) at very competitive rates, enabling the inclusion and promotion of the higher margin cybersecurity products and services (or "blade" services) thus bundling a very attractive combination of core security components. Thus, for FY 2018, we expect revenue to continue to increase and reach approximately $60 million (under the new accounting approach), which represents an increase of approximately 39% as compared to FY 2017.
Q1 2018 preliminary non-audited revenue increased by 100% to $14.0 million, as compared to $7.0 million in Q1 2017. FY 2018 revenue are expected to be $60.0 million, an increase of approximately 39% as compared to FY 2017. Recently WISeKey introduced WISeCoin, a Cryptocurrency platform for Connected Object crypto payment, secured by WISeKey Microprocessor and Digital Identities, which represent a new revenue segment for the company. WISeKey's PKI technology continues to be in high demand by companies, helping them to facilitate compliance with the new European General Data Protection Regulation (GDPR) and ePrivacy laws.
Carlos Moreira, CEO of WISeKey, commented, "2017 was a year of significant growth for WISeKey and our performance is an indication of the successful integration of Quovadis and VaultIC businesses into WISeKey's platform. Our combined portfolios allowed us to focus on the development of a vertical platfor...