WISeKey Announces Full Year 2017 Preliminary Results and Early Adoption of Topic 606 Accounting Method

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WISeKey outpaces market with record 2017 CyberSecurity and IoT revenue, up 395% from previous year; IoT Cybersecurity Adoption Soaring due to WISeKey's Semiconductor products with embedded security which are immune to hardware bugs such as Meltdown and Spectre.

Customer adoption for IoT Cybersecurity services continued to accelerate in 2017, reaching more than 3,500 customers across all regions at the end of 2017 (more than doubling year-over-year), mainly due to our integrated vertical trusted platform which combines a range of chips with software applications that cater to our customers' security and business needs.  Our software application offerings include proprietary technology developed by the Company such as RoT and Public Key Infrastructure ("PKI"), which are offered as standalone products, as well as part of our fully integrated Vertical Trusted Platform that enables WISeKey's clients to manage their digital identity, information, and communications through a seamless process.  We enable our clients to easily adapt to a continuously changing landscape of services designed specifically for their needs, without compromising their digital security. The rapid growth and proliferation of internet based devices, as well as people's dependence on them for personal and business needs, precipitated the connectivity of digital devices.  However, such connectivity creates numerous opportunities to alter or manipulate digital footprints.  We believe that our integrated products provide the most comprehensive solution to fill these gaps in cybersecurity and data protection. The core of WISeKey's Vertical Trusted Platform is based on our Cybersecurity SaaS business, also known as managed PKI services, and on our Semiconductor chips.

WISeKey ISTANA PKI platform allowed WISeKey to enter the Connected Car industry in 2017 by offering manufacturers a secure way to validate the authenticity of different vehicle components.  Certificate-based security also protects onboard communication between vehicle components and enables secure over-the-air software updates.  Additionally, authentication certificates can be used by employees, dealers and suppliers to access car components to diagnose mechanical/technical issues and update software, from any location.  Finally, the ISTANA PKI platform allows users to securely interact with a car's smart features using smartphones and other devices.  Currently, WISeKey is working with several smart car manufacturers and its ISTANA PKI platform is already active in several large-scale projects.   A recent example is a strategic contract signed with a leading European automobile manufacturer, cementing its role in the Connected Car industry.   WISeKey's total identifiable 5-year ISTANA revenues from the car manufacturing industry are expected to be in excess of $30 million, of which approximately $7.0 million are expected to be realized in 2018.

WISeKey has adopted Topic 606 "Revenue from Contracts with Customers" as of January 1, 2017 with the objective of providing enhanced financial transparency ahead of 2018 ADR II program on the NASDAQ.

Under the previous accounting approach Wisekey's pro-forma 2017 revenue (including Quovadis as of January 1st, 2017) would have reached approximately USD 54.3 million, up 395% from 2016.

"WISeKey delivered exceptional historical results for the 2017, with revenue of $43 million under the new accounting approach, an increase of over 261% year-over-year reflecting the successful integration of the IoT and Cybersecurity assets into the Company," said Carlos Moreira, WISeKey's Founder and Chief Executive Officer. "We have noticed a strong demand across the combined product portfolio as the market for IoT - MicroChips associated with PKI and Cybersecurity, is increasing globally. Not only are WISeKey's products immune to attacks by Meltdown and Spectre and similar hardware bugs, but our security solutions are designed precisely to make these kinds of attacks ineffective.  We believe that the phenomenon of the two side-channel attacks wouldn't exist if our embedded security solutions were implemented from the start in the CPU system of these devices."  Following the Meltdown and Spectre attacks, to minimize the effect of these incursions, operating system developers are offering emergency patches for download. As per the United States Computer Emergency Readiness Team (US-CERT), due to the fact that the vulnerability exists in the CPU architecture rather than in the software, emergency patches offered by operating system developers may not fully address these vulnerabilities. Moreover, CPU performance may be diminished by up to 30 percent after a patch is installed. ().

We experienced substantial revenue growth with the combination of our IoT and Cybersecurity technology on new markets such as the smart automobile with our Secure Connected car technology. The WISeKey connected car solutions allow manufacturers to authenticate legitimate car components and enable owners to securely interact with the car's smart features.

"In summary, our 2017 results are a validation of our vision and business strategy, and the successful integration of Vault-IC and QuoVadis along with the extension of the WISeKey Vertical Platform for Blockchain and AI. We continue to see strong adoption of products across our portfolio, with cybersecurity clients now acquiring chips and chip clients acquiring cybersecurity. This is a very encouraging indicative trend for WISeKey's long term growth outlook as we expand the Company's revenue models to fully capitalize on Blockchain and AI due to the enormous amount of data generated by these devices," said Mr. Moreira.

WISeKey technology is now used by major players integrating our IoT and Cybersecurity on their platforms with Microsoft and IBM already deploying large scale projects with our company. 

"Our 2017 revenue results reflect a period of strong execution, as we continue to demonstrate further expansion due to our synergy capture efforts. Over $6.5 million additional cash was generated in the period, with an ending cash balance of approximately $12.0 million, emphasizing the robust nature of the performance" said Peter Ward, WISeKey's Chief Financial Officer.

WISeKey (SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. 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 

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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.

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Globe Newswire: 06:00 GMT Friday 12th January 2018

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