SuperCom Reports 141% YoY Revenue Growth and 5-Year-Record Revenue for the Second Quarter 2023
- SuperCom achieved a 141% increase in revenue to $7.7 million in Q2 2023, marking a fourth consecutive quarter of high year-over-year growth.
- The company reported a positive EBITDA of $0.9 million in Q2 2023, an improvement compared to the same period last year.
- SuperCom's non-GAAP EPS improved to $0.07 in Q2 2023, compared to a negative EPS in the previous year.
- For the trailing twelve-month period, SuperCom's revenue increased by 106% to $25.5 million, demonstrating strong growth.
- EBITDA for the trailing twelve-month period reached $2.5 million, a significant improvement compared to the previous year.
- SuperCom's recent business highlights include the implementation of a $33 million national electronic monitoring project in Romania and the launch of new projects in Finland and Iceland.
- The company's management is optimistic about the sustained growth and profitability of SuperCom.
- None.
Q2 2023: 5-Year-Record Revenue of
Second Quarter Ended June 30, 2023, Financial Highlights (Compared to the Second Quarter of 2022)
- Revenue increased by
141% to from$7.7 million , marking a fourth consecutive quarter of high year-over-year ("YoY") revenue growth.$3.2 million - Gross profit increased by
77% to from$2.3 million .$1.3 million - Positive EBITDA* improved to
compared to -$0.9 million ( .$0.7) million - Net Income improved by
63% to a loss compared to a$1.1 million loss.$2.8 million - Non-GAAP Net Income* improved to a
profit compared to a$0.3 million loss.$1.9 million - Non-GAAP EPS* improved to
compared to -($0.07 ).$0.50 - Working Capital at end of quarter was
.$21.2 million
Trailing-Twelve-Month Period Ended June 30, 2023, Financial Highlights (Compared to the prior twelve month period)
- Revenue increased by
106% to from$25.5 million .$12.4 million - EBITDA* increased to
from -$2.5 million ( .$0.25) million - Net Income increased to –(
$4.9) million from -( .$13.0) million
First Half Ended June 30, 2023, Financial Highlights (Compared to the First Half of 2022)
- Revenue increased by
126% to from$14.1 million .$6.3 million - Gross profit increased by
47% to from$3.9 million .$2.6 million - Net Income improved by
50% to a loss compared to a$2.6 million loss$5.2 million - Non-GAAP Net Income* improved to
profit compared to$0.1 million ( loss.$3.4) million - EBITDA* improved to
profit compared to a$1.3 million ( loss.$1.0) million - Non-GAAP EPS* improved to positive
compared to negative Non-GAAP EPS of ($0.02 ).$0.70
Recent Business Highlights:
- SuperCom is well on track with the implementation of the recently awarded
national electronic monitoring ("EM") project in$33 Million Romania . SuperCom's PureSecurity EM Suite was deployed for domestic violence monitoring, GPS Tracking of offenders, and a home detention monitoring program. As the project continues to progress, the company expects to see an upward trend in gross margins on subsequent orders for this project. - SuperCom's wholly owned subsidiary, LCA, won a
contract to provide adult reentry services in a$4.25 million Northern California, USA 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 project is actively servicing clients and generating recurring revenues. - SuperCom launched a
national EM project in$3.6M Finland with the national government in Q1 2023. By May 2023, the PureSecurity EM Suite was fully deployed inFinland , covering all EM offender programs – house arrest, GPS, and inmate monitoring. - SuperCom launched a new project in
Iceland , upgrading the company's deployed system to support secured issuance of National ID cards and passports. - SuperCom announced the integration of advanced AI technologies into its PureSecurity platform, enhancing data analysis, automation, and predictive monitoring capabilities. These innovations aim to optimize decision-making, improve operational efficiency, and redefine industry standards in electronic monitoring for the criminal justice sector.
- SuperCom reached a significant milestone by completing the development and multiple successful deployments of PureProtect, a life-saving domestic violence monitoring solution. This innovative solution addresses domestic violence issues and further enhances the company's portfolio of products and services.
- SuperCom successfully launched PureOne, its best-of-breed all-in-one GPS tracking ankle-bracelet monitoring solution. This product not only expands the Company's addressable market but also may facilitate its rapid expansion into the US market.
- The company is strategically prioritizing the expansion of PureOne into new markets and geographies. It has already received high praise during its introduction into various regions of the
USA , where PureOne has been successfully deployed and is actively utilized to monitor live offenders. Moreover, sales activities for PureOne have commenced in promising new markets outsideEurope andNorth America .
Management Commentary:
"We are excited to announce breakthrough performance for Q2 2023, where we outperformed expectations on multiple fronts. Our efforts have catapulted us to new heights, realizing a substantial
"Our achievements are a testament to the unwavering dedication of our global multidisciplinary team in pursuing and executing groundbreaking public safety projects. Notably, the first national electronic monitoring project in
"SuperCom's proprietary technology has been a game-changer in competitive tenders worldwide, enabling us to displace incumbent vendors and make a significant impact on public safety around the globe. Our steadfast commitment to technology superiority is evident in our recent incorporation of AI capabilities into our products, along with the continuous launch of innovations such as the recent PureProtect and PureOne solutions. These efforts propel our business growth and solidify our path towards industry leadership. Our astute investments in research & development and sales & marketing have paved the way for global opportunities, enabling us to deliver exceptional value to our clients as we charge ahead resolutely towards our long-term strategic objectives," Ordan concluded.
Conference Call
SuperCom will hold a conference call today (July 31, 2023) at 8:30 a.m. Eastern time (3:30 p.m.
Conference Call Dial-In Information:
Date: Monday, July 31, 2023
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
International: 973-528-0011
Link: https://www.webcaster4.com/Webcast/Page/2259/48786
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 https://www.supercom.com/
SuperCom Investor Relations:
ir@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 levels of consumer, business and economic confidence generally, the adverse effects of these risks 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
*Use of Non-GAAP Financial Information
In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in
Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of SuperCom'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. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.
Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares.
EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses.
SUPERCOM LTD. CONSOLIDATED BALANCE SHEETS ( | ||||
As of June 30, | As of December 31, | |||
2023 | 2022 | |||
Unaudited | Audited | |||
CURRENT ASSETS | ||||
Cash and cash equivalents | 1,139 | 4,042 | ||
Restricted bank deposits | 382 | 463 | ||
Trade receivable, net | 12,431 | 10,852 | ||
Patents | 5,283 | 5,283 | ||
Other accounts receivable and prepaid expenses | 2,353 | 2,239 | ||
Inventories, net | 3,059 | 3,411 | ||
Total current assets | 24,647 | 26,290 | ||
LONG-TERM ASSETS | ||||
Severance pay funds | 459 | 482 | ||
Deferred tax long term | 201 | 501 | ||
Property and equipment, net | 2,397 | 1,640 | ||
Other intangible assets, net | 5,504 | 5,617 | ||
Operating lease right-of-use assets | 260 | 484 | ||
Goodwill | 7,026 | 7,026 | ||
Total long-term assets | 15,847 | 15,750 | ||
Total Assets | 40,494 | 42,040 | ||
CURRENT LIABILITIES | ||||
Trade payables and other credit | 1,149 | 2,167 | ||
Employees and payroll accruals | 1,075 | 1,339 | ||
Related parties | 142 | 168 | ||
Accrued expenses and other liabilities | 283 | 469 | ||
Short-term Operating lease liabilities | 295 | 381 | ||
Deferred revenues ST | 507 | 715 | ||
Total current liabilities | 3,451 | 5,239 | ||
LONG-TERM LIABILITIES | ||||
Long-term loan | 32,909 | 32,600 | ||
Deferred revenues | - | 269 | ||
Deferred tax liability LT | 170 | 170 | ||
Accrued severance pay | 497 | 523 | ||
Long-term Operating lease liabilities | - | 108 | ||
Total long-term liabilities | 33,576 | 33,670 | ||
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares | 4,910 | 3,057 | ||
Additional paid-in capital | 104,073 | 103,000 | ||
Accumulated deficit | (105,516) | (102,926) | ||
Total shareholders' equity | 3,467 | 3,131 | ||
Total liabilities and equity | 40,494 | 42,040 |
SUPERCOM LTD. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
( | |||
Three months ended | |||
June 30, 2023 | June 30, 2022 | ||
Unaudited | Unaudited | ||
REVENUES | 7,748 | 3,218 | |
COST OF REVENUES | (5,482) | (1,936) | |
GROSS PROFIT | 2,266 | 1,282 | |
OPERATING EXPENSES: | |||
Research and development | 849 | 933 | |
Selling and marketing | 556 | 762 | |
General and administrative | 1,290 | 1,346 | |
Other expense (income), net | 229 | - | |
Total operating expenses | 2,924 | 3,041 | |
OPERATING LOSS | (658) | (1,759) | |
FINANCIAL EXPENSES, NET | (397) | (1,055) | |
LOSS BEFORE INCOME TAX | (1,055) | (2,814) | |
INCOME TAX EXPENSE | - | - | |
NET LOSS FOR THE PERIOD | (1,055) | (2,814) | |
Net Loss Per Share: | |||
Basic and Diluted | (0.21) | (0.77) | |
Weighted average number of ordinary shares | 5,042,117 | 3,651,285 |
SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income ( | ||||
Three months ended | ||||
June 30, 2023 | June 30, 2022 | |||
Unaudited | Unaudited | |||
GAAP gross profit | 2,266 | 1,282 | ||
Amortization of intangible assets | 89 | 89 | ||
Non-GAAP gross profit | 2,355 | 1,371 | ||
GAAP Operating Loss | (658) | (1,759) | ||
Amortization of intangible assets | 452 | 472 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
Non-GAAP operating profit | 731 | (892) | ||
GAAP net Loss | (1,055) | (2,814) | ||
Amortization of intangible assets | 452 | 472 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
Non-GAAP net Loss | 334 | (1,947) | ||
Non-GAAP E.P.S | 0.07 | (0.5) | ||
Net loss for the period | (1,055) | (2,814) | ||
Financial expenses (income), net | 397 | 1,055 | ||
Depreciation and Amortization | 609 | 643 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
EBITDA * | 888 | (721) | ||
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, tax, depreciation
|
SUPERCOM LTD. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
( | |||
Six months ended | |||
June 30, 2023 | June 30, 2022 | ||
Unaudited | Unaudited | ||
REVENUES | 14,124 | 6,264 | |
COST OF REVENUES | (10,276) | (3,648) | |
GROSS PROFIT | 3,848 | 2,616 | |
OPERATING EXPENSES: | |||
Research and development | 1,662 | 1,792 | |
Selling and marketing | 1,128 | 1,463 | |
General and administrative | 2,374 | 2,488 | |
Other expense (income), net | 405 | - | |
Total operating expenses | 5,569 | 5,743 | |
OPERATING LOSS | (1,721) | (3,127) | |
FINANCIAL EXPENSES, NET | (869) | (2,032) | |
LOSS BEFORE INCOME TAX | (2,590) | (5,159) | |
INCOME TAX EXPENSE | - | - | |
NET LOSS FOR THE PERIOD | (2,590) | (5,159) |
SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income (
| ||
Six months ended | ||
June 30, 2023 | June 30, 2022 | |
Unaudited | Unaudited | |
GAAP gross profit | 3,848 | 2,616 |
Amortization of intangible assets | 177 | 177 |
Non-GAAP gross profit | 4,025 | 2,793 |
GAAP Operating Loss | (1,721) | (3,127) |
Amortization of intangible assets | 983 | 927 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
Non-GAAP operating profit | 948 | (1,316) |
GAAP net Loss | (2,590) | (5,159) |
Amortization of intangible assets | 983 | 927 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
Non-GAAP net Loss | 79 | (3,348) |
Non-GAAP E.P.S | 0.02 | (1.01) |
Net loss for the period | (2,590) | (5,159) |
Financial expenses (income), net | 869 | 2,032 |
Depreciation and Amortization | 1,307 | 1,263 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
EBITDA * | 1,272 | (980) |
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, tax, depreciation and |
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