GENEVA - SEALSQ Corp (NASDAQ: LAES), a semiconductor and cybersecurity technology company, has announced progress in strategic initiatives, including the upcoming launch of Quantum-Resistant Secure Chips, despite experiencing a temporary slowdown in the first half of 2024. The company anticipates a stronger second half of the year and aims for a return to growth in 2025.
In the first half of 2024, SEALSQ faced a slowdown in traditional semiconductor demand, resulting in preliminary unaudited revenue of approximately $5 million. The company attributes this to excess component inventories at legacy customers and a decline in orders for legacy products. However, SEALSQ maintains a robust new business pipeline valued at $71 million, with new customers awaiting next-generation semiconductors expected to be available in 2025.
SEALSQ's cash position of $19 million is reported to be sufficient for development of its Post-Quantum chip (QUASARS) and support through the revenue slowdown. Debt to related parties has been reduced by $5 million during the first half of 2024, with proactive measures taken to ensure project development continues unabated.
The company is set to launch its Quantum (NASDAQ:QMCO) Resistant Secure Chips, including the QS7001 and QVault TPM, by the fourth quarter of 2024. These chips are designed to offer certified security optimized for quantum-resistant algorithms. SEALSQ is also engaging in strategic discussions to develop custom quantum-resistant chips with large electronic manufacturers.
SEALSQ is negotiating to establish a high-performance cybersecurity chip design and customization center in Spain and aims to develop an Outsourced Semiconductor Assembly and Test (OSAT) facility in the United States. These efforts align with government initiatives like the US CHIPS Act and the EU Chips Act to increase semiconductor supply chain resilience.
SEALSQ's Root Certificate Authority (CA) was approved in 2024 for Matter device attestation, enabling companies to access Device Attestation Certificates (DACs) through its managed PKI as a Service platform.
SEALSQ specializes in integrated solutions based on semiconductors, PKI, and provisioning services, while developing Post-Quantum technology hardware and software products.
InvestingPro Insights
In light of SEALSQ Corp's (NASDAQ: LAES) announcement on their strategic initiatives and the anticipated launch of Quantum-Resistant Secure Chips, it's important to consider the company's current financial health and market performance. According to InvestingPro data, SEALSQ has a market capitalization of $16.02 million, indicating a relatively small player in the semiconductor and cybersecurity industry.
InvestingPro Tips suggest that analysts are cautious about SEALSQ's immediate financial future. They anticipate a decline in sales and expect net income to drop in the current year. Moreover, the company is not expected to be profitable within this timeframe. This aligns with SEALSQ's own admission of a revenue slowdown, which may concern potential investors.
Despite the challenges, SEALSQ's liquid assets exceed its short-term obligations, which may provide some financial stability as it navigates through a tough market environment. Additionally, the stock is trading near its 52-week low, which could be seen as a potential entry point for investors who believe in the company's long-term prospects, especially with its focus on Quantum-Resistant Secure Chips.
For those interested in further details and additional InvestingPro Tips, there are 13 more tips available for SEALSQ at https://www.investing.com/pro/LAES. These tips could provide deeper insights into the company's financials and market expectations.
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