The need for wireless communication systems has increased rapidly in the past few years and wireless communication has become more convenient in business and society. However, the air interface is vulnerable to eavesdropping, hence encryption in wireless communication systems is a necessity to keep sensitive information confidential and to prevent fraud. Furthermore, wireless devices such as Bluetooth devices and mobile phones require an encryption algorithm that is secure, fast and simple to implement. There are several cryptosystems for stream cipher applications such as A5/x used in GSM mobile communications. However, A5/x are vulnerable to cryptanalytic attacks. In this paper, a new clockcontrolled cryptosystem intended for hardware implementation is proposed. The design has attractive properties such as simplicity and scalability. The cryptographical properties including period, balancedness, linear complexity and probability distribution are analyzed. The design provides the basic security requirements, and is resistant to known cryptanalytic attacks. It is shown that the irregular clocking introduced provides a certain level of strengthened security against several cryptanalytic attacks. These properties enhance its use as a suitable cryptosystem for stream cipher applications.