Original report October 2023 – Updated 01/10/2024.
LAES and WKEY are finally breaking out following our October report on these under-the-radar micro-cap growth stocks.
SEALSQ Corp (NASDAQ: LAES) News Out Today…
SEALSQ Announces FY 2023 Preliminary Unaudited Revenue of $30 Million, Marking a 29% Increase Over FY 2022
Growth Driven by High Demand for Advanced Secure Semiconductors and Matter Certification Services
January 10, 2024 09:00 ET
Source: SEALSQ
Tortola, British Virgin Islands , Jan. 10, 2024 (GLOBE NEWSWIRE) —
SEALSQ Corp (“SEALSQ” or “Company”) (NASDAQ: LAES), a leader in the development and sales of semiconductors, PKI, and post-quantum technology hardware and software products, today proudly announced the achievement of a significant milestone with a revenue of $30 million, marking a 29% increase from FY 2022 and surpassing our Q3 outlook of growth in excess of 20%.
Carlos Moreira, CEO of SEALSQ, expressed enthusiasm about the company’s performance: “This year’s revenue growth is a testament to the strong market demand for our Secure Elements and Matter-related products. Our innovative approaches in integrating semiconductors with cutting-edge technologies like IoT security, identity protection and cloud services have significantly contributed to this success. We aim to continue this innovation through the use of the latest emerging technologies such as post-quantum computing and AI in the coming years. Our increasing market share reflects the trust our customers place in our products and services.”
Looking ahead, Mr. Moreira noted, “2024 is poised to be a transitional year for SEALSQ. While we anticipate a temporary slowdown in revenue growth due to the market’s shift towards emerging semiconductor technologies, we expect to begin generating revenue from new and developing sources including new cyber trust mark standards and further growth in Matter certification. Furthermore, the WISeSat picosatellite constellation focused on enhancing satellite-IoT device connections, particularly in low-connectivity areas, will open additional new revenue streams by leveraging our semiconductor expertise. Finally, our investments in post-quantum resistant technology research and development are projected to yield strong returns from 2025 onwards.”
Discussing SEALSQ’s innovative project, SEALCOIN, Mr. Moreira added, “As previously announced, SEALCOIN is set to introduce a transformative new technology to the Machine-to-Machine (M2M) economy, enabling billions of IoT devices to conduct seamless data and currency exchanges. This novel protocol will not only facilitate IoT interactions across various companies but also expand beyond traditional currency exchange to a comprehensive network of IoT-enabled transactions and services.”
SEALSQ’s strategic pillars for sustained growth include:
Investing in Next-Generation Semiconductor Technology: Investment in the development of the Quasar Post-Quantum semiconductors, along with the integration of Matter PAA, positions SEALSQ at the forefront of the market. The company’s recent CSA accreditation to issue Matter device and node attestation certificates highlights its status as a leading provider in this space.
Expanding Presence in the U.S. Market: SEALSQ has strategically increased its footprint in the U.S. through a dual strategy: expanding the sales team for better local presence and securing four major sales distribution agreements to boost market share.
Enhancing Production and Supply Chain Efficiency: SEALSQ has significantly expanded its production capacity and streamlined its supply chain to meet the growing demand, particularly from long-standing customers in the IT network infrastructure sector.
Securing New Business Opportunities: The MS600X secure platform has enabled SEALSQ to capture significant new business ventures, especially in remote logical access control, thus reinforcing its market dominance.
Developing Trust Services: The evolving Trust Services division, focusing on semiconductor provisioning and managed PKI, is becoming a stable source of recurring revenue, indicative of a promising growth trajectory.
Mr. Moreira concluded, “Our unwavering focus is on driving innovation, securing and nurturing valuable business opportunities, and delivering exceptional products and services to our clients. We are committed to strengthening our market position and ensuring sustainable growth.” Full PR
New From the AI-Assisted Research Desk: (NASDAQ: WKEY) and Semiconductor Subsidiary SEALSQ Corp (NASDAQ: LAES)
Nano Satellites, Semiconductors (LAES), Internet of Things (IoT), Blockchain Cybersecurity Technology
17 of an 80-Satellite Constellation Launched via SpaceX
About WISeKey:
WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a global leader in cybersecurity, digital identity, and IoT solutions platform. It operates as a Swiss-based holding company through several operational subsidiaries, each dedicated to specific aspects of its technology portfolio. The subsidiaries include (i) SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI, and post-quantum technology products, (ii) WISeKey SA which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, (iii) WISeSat AG which focuses on space technology for secure satellite communication, specifically for IoT applications, and (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions.
Each subsidiary contributes to WISeKey’s mission of securing the internet while focusing on their respective areas of research and expertise. Their technologies seamlessly integrate into the comprehensive WISeKey platform. WISeKey secures digital identity ecosystems for individuals and objects using Blockchain, AI, and IoT technologies. With over 1.6 billion microchips deployed across various IoT sectors, WISeKey plays a vital role in securing the Internet of Everything. The company’s semiconductors generate valuable Big Data that, when analyzed with AI, enable predictive equipment failure prevention. Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey provides secure authentication and identification for IoT, Blockchain, and AI applications. The WISeKey Root of Trust ensures the integrity of online transactions between objects and people. For more information on WISeKey’s strategic direction and its subsidiary companies, please visit www.wisekey.com.
About SEALSQ
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.
Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks.
For more information please visit www.sealsq.com.
LAES Share Count, Cash Position and Runway
WKEY Share Count, Cash Position and Runway
Source: dilutiontracker
NOTE*** Stats, report, and information based on (WKEY) unless specified as (LAES).
I. Financial Overview
Fiscal Year and Quarterly Details:
Fiscal Year End: Dec 31, 2022
Most Recent Quarter: Jun 30, 2023
Profitability Metrics:
Profit Margin: -131.33%
Operating Margin (ttm): -39.15%
Revenue (ttm): 28.08M, translating to a Revenue Per Share of 5.28
Quarterly Revenue Growth (yoy): 39.40%
EBITDA: -10.43M
Net Income Avi to Common (ttm): -10.05M
Diluted EPS (ttm): -2.0000
Balance Sheet Indicators:
Total Cash (mrq): 14.07M
Total Debt (mrq): 9.12M with a Debt/Equity ratio of 42.90%
Current Ratio (mrq): 1.49
Book Value Per Share (mrq): 3.63
Stock Performance:
52-Week Change: -67.37%
Stock Range: Peaked at 10.4500 and hit a low of 1.3500 over 52 weeks.
Moving Averages: 50-Day stands at 2.8497, and the 200-Day is at 4.8551.
Average Trading Volume: 30.18k (3-month) and 27.23k (10-day)
Shares: 6.1M outstanding, with a float of 4.1M (source: Market Beat)
Short Interest: 7.33k as of Sep 15, 2023, a decrease from 17.82k in Aug 15, 2023.
source: Yahoo Finance
II. H1 2023 Financial Insights
Revenue surged by 39% to $15.1M, up from $10.8M in H1 2022.
Gross profit marked a significant 69% boost, amounting to $8.1M in H1 2023.
The operating loss showed an 11% improvement, standing at $5.9M, in spite of increased G&A expenditures related to SEALSQ Corps.’ Nasdaq listing.
III. Forecast & Strategy
2023 Expectations:
H2 2023 revenue is expected to parallel H1 2023’s performance, projecting a total annual increase exceeding 20% from 2022.
Strategic Initiatives:
WISeKey aims to bolster its revenue and net results through several measures:
Device Attestation Certificates (DACs) will be made more accessible to companies.
WISeSaT PocketQube Satellite constellation deployment.
Strengthening of the sales and marketing arm via new partnerships.
Investment in the WISe.ART platform for secured NFT transactions.
Advancements in the QUASARS project for next-gen semiconductors.
Allocation of funds towards new equipment to augment semiconductor production.
2024 & Beyond:
2024 is envisioned as a transition year. The customer demand focus will likely shift to next-gen semiconductor products, which might temporarily hinder WISeKey’s growth.
Full production of the next-generation semiconductor products is anticipated around 2025/2026.
IV. Strategic Business Units & Future Vision
WISeKey’s diversified portfolio comprises four primary subsidiaries: SEALSQ Corp, WISeKey SA, WISeSat.Space, and WISe.ART. These entities individually contribute to the technological prowess of the conglomerate, each operating in distinct tech arenas.
Key Subsidiary Highlights:
SEALSQ: Currently, it’s the most significant revenue contributor. Listed on the Nasdaq in May 2023 under “LAES”, SEALSQ focuses on the rising semiconductor market. A recent $10M financing will support the production of quantum-ready semiconductors.
WISeSat.Space: Concentrating on space tech, this subsidiary aims to transform satellite communication services, mainly leveraging picosatellites. It has recently signed a strategic pact with the Swiss Army PLD Space and Fossa Systems.
WISe.ART: This branch is venturing into the burgeoning NFT market, providing a secured platform for NFT transactions, offering potential revenue diversification and a broader clientele.
Recent News and Developments
WISeKey Recent News Highlights
WISeSat.Space Partners with PLD Space for the Launch of Next-Gen Ultra Secure Satellites
Date: September 14, 2023
WISeKey, a global frontrunner in cybersecurity, AI, Blockchain, and IoT, has announced a collaboration with Spain’s premier rocket company, PLD Space. This strategic alliance between WISeSat.Space, which already has 17 satellites in orbit, and PLD Space aims to redefine the launch of ultra-secure picosatellites for Quantum-Ready IoT communications. These satellites are equipped to deliver global real-time IoT connectivity, boasting an impressive data latency of just 10 hours. The partnership further seeks to incorporate post-quantum solutions into the forthcoming generation of satellites. The significant milestone of this alliance is marked by PLD Space’s MIURA 1 suborbital launcher, soon to become the first private rocket launch in Europe.
Parrot Collaborates with WISeKey and SEALSQ to Enhance Drone Security
Date: September 20, 2023
Parrot, Europe’s leading commercial drone group, has announced a collaboration with WISeKey and its subsidiary SEALSQ. The focus of this partnership is to augment the security and connectivity of Parrot drones, utilizing WISeKey’s satellite network. With the commercial drone market poised for explosive growth, this partnership will bolster drone coverage, enabling pilots to operate drones irrespective of distance. The integration of WISeKey’s IoT satellite network and SEALSQ Secure Element is seen as an innovative response to the growing challenges faced by drone operators.
WISeKey Joins Hands with WISeSAT, FOSSA Systems, and BA Lab for Satellite Track & Trace Solution in Logistics
Date: October 2, 2023
WISeKey has announced a strategic partnership with WISeSAT, FOSSA Systems, and BA Lab to present a groundbreaking track & trace solution tailored for the logistics sector. This collaborative endeavor aims to provide a trusted, secure, and comprehensive value proposition for smart containers, ensuring a seamless monitoring experience throughout the supply chain. The combined expertise of these companies will result in a holistic solution that offers trust, security, efficiency, transparency, and sustainability, setting new industry standards for logistics operations.
The CEOs of the involved companies jointly expressed their enthusiasm for the venture’s potential to redefine the logistics domain, underlining their dedication to ushering in a new era for the industry.
WISeSat’s Innovative Approach: Revolutionizing IoT through Satellites
Date: October 4, 2023
WISeKey’s subsidiary, WISeSat AG, is making strides in leveraging space technology for secure satellite communication, particularly catering to IoT applications. Their unique model focuses on providing reliable and encrypted communication strategies for connected devices through their advanced constellation of ultra-secure picosatellites. As the New Space era unfolds, the necessity for fortified space systems has intensified. WISeSat’s advancements with the FEROX satellite series offers capabilities similar to larger satellites but at a fraction of their size and cost.
WISeSat’s notable achievements and activities over the past year include:
Investment in Fossa: Demonstrating its dedication to the space industry, WISeSat significantly invested in Fossa.
Launch with SpaceX: WISeSat, in collaboration with Fossa, has successfully launched 17 state-of-the-art satellites with SpaceX’s assistance.
Partnership with Swiss Army: Emphasizing the reliability of WISeSat’s technology, they’ve entered a collaboration with the Swiss Army, further solidifying their position in defense and national security sectors.
Introduction of Smart Containers with BA Labs: Aiming to revolutionize container tracking, WISeSat and BA Labs unveiled innovative space-trackable smart containers.
Prototyping WISeSat SEALSQ Semiconductors: WISeSat’s development of the prototype for WISeSat SEALSQ semiconductors ensures its tech remains cutting-edge, especially in a post-quantum computing age.
Collaboration with Space Innovation: This partnership aims to foster revolutionary advancements in space communication, enhancing global connectivity.
Agreement with PLD Space: WISeSat’s collaboration with PLD Space highlights its ambition to expand launch capabilities, with the joint launch of the Miura rocket set for 2024.
By joining Space Innovation, WISeSAT AG adds a wealth of expertise in space-centric IoT communication to a consortium renowned for its pioneering advancements in space technology.
The continuous technological advancements from WISeKey and its subsidiaries position the company as a pioneer in the integration of cybersecurity and space technology, aiming to securely revolutionize IoT and its applications in various sectors.
Analyst Ratings and Price Targets
Based on analyst ratings, WISeKey International Holding’s 12-month average price target is $15.00. What is WKEY’s upside potential, based on the analysts’ average price target? WISeKey International Holding has 614.29% upside potential, based on the analysts’ average price target. (source: Google.com)
source: Market Beat
WKEY Daily Chart
LAES Daily Chart
V. Conclusion
WISeKey International Holding AG (WKEY), with its diversified business model and strong emphasis on R&D, appears to be strategically positioning itself for significant growth in the coming years. While financial challenges persist, the company’s forward-looking approach in cybersecurity, IoT, space satellite technology, and the NFT market shows promise for future profitability and relevance in the evolving tech landscape. Start your research on WKEY and LAES now. LAES and WKEY will remain on our growth stock watchlist for the foreseeable future.
Risk Factors for WISeKey International Holding Ltd (WKEY) and SEALSQ Corp (LAES)
Market Competition and Innovation Pace: The semiconductor, IoT, and cybersecurity industries are highly competitive and rapidly evolving. WISeKey and SEALSQ must continually innovate to stay relevant, which involves significant R&D expenditure and technological risk.
Dependence on Key Contracts and Partnerships: The company’s growth heavily relies on strategic partnerships and contracts, like those with PLD Space and Parrot. Any disruptions in these relationships could significantly impact operations and revenue.
Regulatory and Compliance Risks: As a player in cybersecurity, IoT, and space technology, WISeKey faces complex and evolving global regulatory landscapes, which could affect its operational and financial performance.
Financial Performance and Liquidity Concerns: With a reported net loss and negative operating margins, WISeKey’s financial sustainability is a concern. Access to capital and cash flow management are crucial for its continued operation and growth.
Technological and Operational Risks: The success of its semiconductor and satellite projects, including the deployment of nano satellites and development of next-gen semiconductors, involves high operational and technological risks.
Market Acceptance and Adoption Rate: The adoption rate of its products and technologies, particularly in new ventures like the NFT market and space-based IoT solutions, is uncertain and could impact revenue projections.
Global Economic and Political Climate: Being a global entity, WISeKey’s operations and financials are susceptible to international economic conditions, trade policies, and geopolitical tensions, which could impact its business strategies and outcomes.
Investors should carefully consider these risk factors alongside the company’s strategic initiatives and market potential when evaluating WISeKey and SEALSQ as investment opportunities.
Your friend,
Steve Macalbry
Senior editor, Bestgrowthstocks.com
Disclaimer: The author is not a licensed financial advisor and the content provided is for informational purposes only. Always consult with a certified financial advisor before making investment decisions. Best Growth Stocks and its affiliates have not been compensated in any way for the mention of WKEY & LAES and we do not hold any form of equity in WKEY & LAES as of 01/10/2024.