WISeKey Shares Fall As Pandemic Hits FY20 Earnings

Cybersecurity and IoT company WISeKey International Holding Ltd WKEY reported an FY20 revenue decline of 34.8% year-on-year to $14.8 million.
The pandemic induced global supply chain disruption, and political and trading tensions between the U.S. and China led to the decline.
North American revenue of $8.26 million fell 14.7% Y/Y, rest of EMEA’s revenue of $4.32 million decreased 46.2% Y/Y.
Asia Pacific revenue of $1.53 million fell 39% Y/Y, and Switzerland’s revenue of $0.59 million had a notable decline of 72.3% Y/Y.
The company made a significant investment in R&D to enhance its Artificial Intelligence capabilities and expanded its product portfolio, CEO Carlos Moreira said.
The company also built up its sales force in the U.S., Europe, and Asia, to tap the higher demand for strong security, authentication, brand protection, and anti-counterfeiting services for segments such as connected devices, connected cars, luxury products, pharmaceuticals, and banking/financial sector, added Moreira.
The acquisition of a controlling interest in Arago has provided the company with a new, higher-margin revenue source for AI-based Knowledge Automation, said Moreira.
A 33% increase in the cost of sales led to a gross profit decline of 42% to $5.5 million. The margin contracted 477 basis points to 37%.
Operating expenses declined 20%, leading to a 10% operating loss decline at $18.5 million.
Net loss amounted to $28.9 million.
The company held $21.8 million in cash and equivalents. It used up $12.6 million in operating cash flow.
Price action: WKEY shares are trading lower by 6.15% at $9.15 in the premarket session on the last check Friday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga