SuperCom Launches $3.6 Million National Electronic Monitoring Project in Finland

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has initiated a $3.6 million electronic monitoring project in Finland, aimed at enhancing public safety while reducing prison overcrowding and recidivism. Following a competitive bidding process involving six companies, SuperCom successfully launched its PureSecurity Electronic Monitoring Suite, expected to support over 1,000 offenders simultaneously for four years. Revenue will depend on actual usage, primarily from leasing equipment and maintenance. The project reflects a growing demand for advanced monitoring solutions, with deployment expected to generate recurring revenue soon.

Positive

• Successful launch of a $3.6 million project in Finland to enhance public safety.
• Contract awarded after competitive bidding, indicating strong market position.
• Potential to create recurring revenue through leasing EM systems.

Negative

• Revenue recognition will depend on actual usage, introducing uncertainty.
• Ongoing project may not meet immediate financial expectations.

Project Deployment and Recurring Revenue Generation Expected to Start in the Near Future

TEL AVIV, Israel, March 1, 2023 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced it has launched a $3.6 million project with the national government of Finland to deploy its PureSecurity Electronic Monitoring (EM) Suite. This launch follows the progression of the competitive tender win in Finland previously announced, the successful completion of an appeal process, contract negotiations, and contract execution.

The goal of this project is to help Finland improve its public safety while reducing prison overcrowding and lowering recidivism using SuperCom's innovative and proven technology and services. The nationwide project is planned to cover all EM offender programs in Finland for four years and include at least 1,000 enrollees simultaneously, with the potential for expansions. The project will consist of the following PureSecurity offerings: Prison inmate monitoring, GPS tracking of offenders, RF monitoring for house arrest, and officer and offender mobile solutions. This project is expected to integrate traditional EM with inmate monitoring seamlessly and provide continuous monitoring of offenders while incarcerated and during short-term releases away from the facilities.

The project was won through a formal government-led bid process in which six companies participated, including the long-term prior incumbent EM vendor for Finland. Under the terms of the award, the contract is valued at approximately $3.6 million. However, revenues recognized by SuperCom will depend on actual usage. The budget consists mainly of costs for leasing EM systems and equipment and recurring maintenance charges. SuperCom expects to complete deployment and generate recurring revenues in the near future.

"We are proud to announce another successful project launch in Europe. The growing number of countries opting for advanced EM solutions highlights the increasing need for exceptional technology in this industry. We take pride in the fact that our innovative and proven technology is chosen repeatedly, allowing us to continue revolutionizing the EM industry as we enter new European countries," commented Ordan Trabelsi, President and CEO of SuperCom.

SuperCom's PureSecurity Suite is a best-of-breed electronic monitoring and tracking platform, which contains a comprehensive set of innovative features, including smart phone integration, secure communication, advanced security, anti-tamper mechanisms, fingerprint biometrics, voice communication, unique touch screens and extended battery life.

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, status of contractual awards and related commitments and contingencies, 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, 2021, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 4, 2022, 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.

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SuperCom Investor Relations:
ir@supercom.com

Kirin Smith
PCG Advisory
ksmith@pcgadvisory.com

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SOURCE SuperCom

FAQ

What is the value of SuperCom's project in Finland?

The project is valued at $3.6 million.

How many offenders will SuperCom's project monitor in Finland?

The project plans to cover at least 1,000 offenders simultaneously.

When is SuperCom expected to generate revenue from the Finland project?

SuperCom expects to complete deployment and generate recurring revenues in the near future.

What technology does SuperCom's PureSecurity Suite offer?

The PureSecurity Suite includes features like GPS tracking, RF monitoring for house arrest, and mobile solutions for officers and offenders.

What was the competitive environment for SuperCom's project in Finland?

The project was won through a formal government-led bid process involving six companies.