Revenue of $6.4 million;
EBITDA of $0.4 Million - Positive for
3rd Consecutive Quarter
TEL
AVIV, Israel, May 15, 2023
/PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of
secured solutions for the e-Government, IoT, and Cybersecurity
sectors, today reported results for the three months ended
March 31, 2023.
First Quarter Ended March 31,
2023, Financial Highlights (Compared to the First
Quarter of 2022)
- Revenue increased by 109% to $6.4
million from $3.05 million,
marking a third consecutive quarter of YoY revenue growth.
- Net Income in 2022 improved 35% to $1.5
million loss compared to $2.3
million Loss.
- Non-GAAP Net Income improved 79% to $0.3
million loss compared to $1.4
million Loss.
- Positive EBITDA improved to $0.4
million compared to -$0.3
million.
- Non-GAAP EPS improved to -$0.05
compared to -$0.36.
- Working Capital at end of quarter of $22.6 million.
Recent Business Highlights:
- The Company was awarded and launched a $33 Million national EM project in Romania. The first phase, valued at over
$8M, was completed successfully, and
a follow-on order worth $7.1M is
expected to be delivered in the first half of 2023. This project
includes deploying SuperCom's PureSecurity EM Suite for domestic
violence monitoring, GPS Tracking of offenders, and a home
detention monitoring program.
- SuperCom's subsidiary, LCA, won a $4.25
million contract to provide adult reentry services in a
Northern California county. The project began in Q1 2023, expanding
LCA's existing day reporting and electronic monitoring services to
include jail-based and community-based sites.
- The Company launched a $3.6M
national EM project in Finland
with the national government in Q1 2023. PureSecurity EM Suite will
be deployed, covering all EM offender programs in Finland for four years with at least 1,000
enrollees initially and potential for expansion.
- SuperCom has achieved two new significant R&D milestones:
the development and deployment of the PureProtect, a life-saving
domestic violence monitoring solution, and the launching of the
PureOne, an all-in-one GPS tracking ankle-bracelet monitoring
solution, expanding the Company's addressable market, and
facilitating its rapid expansion into the US.
- Raised $2.4 million in gross
proceeds in a registered direct offering in Q1 2023, providing
additional capital to execute the Company's business plan.
Management Commentary
"We are excited to report a strong start to the year, with
exceptional results in the first quarter of 2023. Our dedicated
efforts and successful execution of various projects in our
portfolio have propelled us forward, resulting in remarkable 109%
YoY quarterly revenue growth. Notably, our excellent execution of
the $33 million national electronic
monitoring project in Romania has
played a significant role in this achievement," commented
Ordan Trabelsi, President and CEO of
SuperCom.
"Furthermore, we are proud to share that we have achieved
positive EBITDA for the third consecutive quarter, a testament to
our strategic utilization of operating leverage and previous
investments in proprietary technology. This meaningful milestone
showcases our commitment to sustainable growth and profitability,"
Ordan continued.
"Another noteworthy aspect is the continued success of our
proprietary technology in competitive tenders, allowing us to
displace incumbent vendors in numerous countries worldwide. Our
electronic monitoring solutions have proven effective in addressing
the challenges of prison overcrowding, while simultaneously
delivering substantial cost savings and contributing to the
reduction of recidivism. By promoting public safety within
communities, we are making a tangible impact," Ordan added.
"Our investments in research and development, as well as sales
and marketing, have yielded positive outcomes. The growing interest
in our unique electronic monitoring products and solutions has
facilitated our expansion into new countries and states across
Europe and the USA. We remain committed to delivering
exceptional value to our clients and shareholders alike, and we are
confident that our ongoing efforts will help us achieve our
long-term strategic objectives," Ordan concluded.
Conference Call
The Company will hold a conference call today (May 15, 2023) at 10:00
a.m. Eastern time (5:00 p.m.
Israel time) to discuss these
results, followed by a question and answer session.
Conference Call Dial-In Information:
Date:
Monday, May
15, 2023
Time:
10:00 a.m. Eastern time (7:00 a.m. Pacific time) (5:00 p.m. Israel
time)
U.S. toll-free:
877-545-0532
Israel toll-free:
1-809-423-853
International:
973-528-0016
Access Code:
SuperCom
Link:
https://www.webcaster4.com/Webcast/Page/2259/48432
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization.
About SuperCom
Since 1988, SuperCom has been a
global provider of traditional and digital identity solutions,
providing advanced safety, identification and security solutions to
governments and organizations, both private and public, throughout
the world. Through its proprietary e-government platforms and
innovative solutions for traditional and biometrics enrollment,
personalization, issuance and border control services, SuperCom has
inspired governments and national agencies to design and issue
secure Multi-ID documents and robust digital identity solutions to
its citizens and visitors. SuperCom offers a unique all-in-one
field-proven RFID & mobile technology and product suite,
accompanied by advanced complementary services for various
industries including healthcare and homecare, security and safety,
community public safety, law enforcement, electronic monitoring,
livestock monitoring, and building and access automation. For more
information, visit www.supercom.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements preceded or followed by or that
otherwise include the words "believes", "expects", "anticipates",
"intends", "projects", "estimates", "plans", and similar
expressions or future or conditional verbs such as "will",
"should", "would", "may" and "could" are generally forward-looking
in nature and not historical or current facts. These
forward-looking statements are subject to risks and uncertainties
that could cause our actual results to differ materially from the
statements made. Examples of these statements include, but are not
limited to, statements regarding business and economic trends, the
anticipated effects of the COVID-19 outbreak on travel and physical
locations, the levels of consumer, business and economic confidence
generally, the duration of the COVID-19 outbreak and severity of
such outbreak, the pace of recovery following the COVID-19
outbreak, the effect on our supply chain, our ability to implement
cost containment and business recovery strategies and resulting
anticipated impact of such outbreak on our business, financial
condition and results of operations, the adverse effects of the
COVID-19 outbreak on our business or the market price of our
ordinary shares, and other risks and uncertainties described in the
forward looking statements and in the section captioned "Risk
Factors" in our Annual Report on Form 20-F for the year ended
December 31, 2022, filed with the
U.S. Securities and Exchange Commission (the "SEC") on April 20, 2023, our reports on Form 6-K filed
from time to time with the SEC and our other filings with the SEC.
Except as required by law, we not undertake any obligation to
update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise, after the
date of this press release.
Results presented in this press release are based on
management's estimated unaudited analysis of financial results for
the presented periods. SuperCom's independent registered accounting
firm has not audited the financial data discussed in this press
release. During the course of SuperCom's quarter- and fiscal
year-end closing procedures and review process, SuperCom may
identify items that would require it to make adjustments, which may
be material, to the information presented in this press release. As
a result, the estimate financial results constitute forward-looking
information and are subject to risks and uncertainties, including
possible adjustments to such results.
Use of Non-GAAP Financial Information
In addition to disclosing financial results calculated in
accordance with United States
generally accepted accounting principles (GAAP), this release of
operating results also contains non-GAAP financial measures, which
SuperCom believes are the principal indicators of the operating and
financial performance of its business. Management believes the
non-GAAP financial measures provided are useful to investors'
understanding and assessment of the Company's ongoing core
operations and prospects for the future, as the charges eliminated
are not part of the day-to-day business or reflective of the core
operational activities of the Company. Management uses these
non-GAAP financial measures as a basis for strategic decisions,
forecasting future results and evaluating the Company's current
performance. However, such measures should not be considered in
isolation or as substitutes for results prepared in accordance with
GAAP. Reconciliation of the non-GAAP measures to the most
comparable GAAP measures are provided in the schedules attached to
this release.
SuperCom Investor Relations:
ir@supercom.com
Kirin Smith
PCG Advisory
ksmith@pcgadvisory.com
SUPERCOM
LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
As of
March 31,
|
|
As of
December 31,
|
|
|
2023
|
|
|
2022
|
|
|
Unaudited
|
|
|
Audited
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and
cash equivalents
|
|
3,524
|
|
|
4,042
|
Restricted bank
deposits
|
|
367
|
|
|
463
|
Trade receivable,
net
|
|
11,854
|
|
|
10,852
|
Patents
|
|
5,283
|
|
|
5,283
|
Other accounts
receivable and prepaid expenses
|
|
1,897
|
|
|
2,239
|
Inventories,
net
|
|
3,525
|
|
|
3,411
|
|
|
|
|
|
|
Total current
assets
|
|
26,450
|
|
|
26,290
|
|
|
|
|
|
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Severance pay
funds
|
|
474
|
|
|
482
|
Deferred tax long
term
|
|
207
|
|
|
501
|
Property and
equipment, net
|
|
1,592
|
|
|
1,640
|
Other intangible
assets, net
|
|
5,375
|
|
|
5,617
|
Operating lease
right-of-use assets
|
|
346
|
|
|
484
|
Goodwill
|
|
7,026
|
|
|
7,026
|
|
|
|
|
|
|
Total long-term
assets
|
|
15,020
|
|
|
15,750
|
|
|
|
|
|
|
Total Assets
|
|
41,470
|
|
|
42,040
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade payables and
other credit
|
|
1,109
|
|
|
2,167
|
Employees and payroll
accruals
|
|
1,332
|
|
|
1,339
|
Related
parties
|
|
152
|
|
|
168
|
Accrued expenses and
other liabilities
|
|
402
|
|
|
469
|
Short-term Operating
lease liabilities
|
|
389
|
|
|
381
|
Deferred revenues
ST
|
|
516
|
|
|
715
|
|
|
|
|
|
|
Total current
liabilities
|
|
3,900
|
|
|
5,239
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
loan
|
|
32,588
|
|
|
32,600
|
Deferred
revenues
|
|
-
|
|
|
269
|
Deferred tax liability
LT
|
|
170
|
|
|
170
|
Accrued severance
pay
|
|
514
|
|
|
523
|
Long-term Operating
lease liabilities
|
|
-
|
|
|
108
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
33,272
|
|
|
33,670
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary
shares
|
|
4,759
|
|
|
3,057
|
Additional paid-in
capital
|
|
104,000
|
|
|
103,000
|
Accumulated
deficit
|
|
(104,461)
|
|
|
(102,926)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
4,298
|
|
|
3,131
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
41,470
|
|
|
42,040
|
|
|
|
|
|
|
|
SUPERCOM
LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands)
|
|
|
|
Three months ended
|
|
|
|
March 31,
2023
|
March 31,
2022
|
|
|
Unaudited
|
Unaudited
|
|
|
|
|
|
REVENUES
|
|
|
6,376
|
3,046
|
COST OF REVENUES
|
|
|
(4,794)
|
(1,712)
|
|
|
|
|
|
GROSS PROFIT
|
|
|
1,582
|
1,334
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
Research
and development
|
|
|
813
|
859
|
Selling
and marketing
|
|
|
572
|
701
|
General
and administrative
|
|
|
1,084
|
1,142
|
Other
expense (income), net
|
|
|
176
|
-
|
|
|
|
|
|
Total operating
expenses
|
|
|
2,645
|
2,702
|
|
|
|
|
|
OPERATING LOSS
|
|
|
(1,063)
|
(1,368)
|
FINANCIAL EXPENSES, NET
|
|
|
(472)
|
(977)
|
|
|
|
|
|
LOSS BEFORE INCOME TAX
|
|
|
(1,535)
|
(2,345)
|
INCOME TAX EXPENSE
|
|
|
-
|
-
|
|
|
|
|
|
NET LOSS FOR THE PERIOD
|
|
|
(1,535)
|
(2,345)
|
SUPERCOM
LTD.
|
Reconciliation Table
of GAAP to Non-GAAP Figures and EBITDA to Net Income
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
Three months ended
|
|
|
March 31,
2023
|
March 31,
2022
|
|
|
Unaudited
|
Unaudited
|
|
|
|
|
GAAP gross profit
|
|
1,582
|
1,334
|
Amortization of
intangible assets
|
|
88
|
88
|
Non-GAAP gross profit
|
|
1,670
|
1,422
|
|
|
|
|
GAAP Operating Loss
|
|
(1,063)
|
(1,368)
|
Amortization of
intangible assets
|
|
530
|
455
|
Foreign Currency
Loss
|
|
520
|
489
|
One-time
reorganization expenses
|
|
229
|
-
|
Non-GAAP operating profit
|
|
216
|
(425)
|
|
|
|
|
GAAP net Loss
|
|
(1,535)
|
(2,345)
|
Amortization of
intangible assets
|
|
530
|
455
|
Foreign Currency
Loss
|
|
520
|
489
|
One-time
reorganization expenses
|
|
229
|
-
|
Non-GAAP net Loss
|
|
(256)
|
(1,401)
|
Non-GAAP E.P.S
|
|
(0.05)
|
(0.36)
|
|
|
|
|
Net loss for the period
|
|
(1,535)
|
(2,345)
|
Financial
expenses (income), net
|
|
472
|
977
|
Depreciation and
Amortization
|
|
697
|
620
|
Foreign Currency
Loss
|
|
520
|
489
|
One-time
reorganization expenses
|
|
229
|
-
|
EBITDA *
|
|
383
|
(259)
|
* EBITDA is a non-GAAP financial measure
generally defined as earnings before interest, depreciation and
amortization and other non-cash or one-time expenses
.
|
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