SuperCom Secures First Contract in Alabama, Rapid US Expansion Continues

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has secured a new contract in Alabama to provide GPS tracking and domestic violence monitoring solutions, marking its 5th entry into a new US state since August 2024. This is part of a remarkable expansion where the company signed 10 new contracts in the USA within 60 days, including deals in Kentucky and South Dakota.

The contract includes deployment of PureSecurity GPS Tracking and PureProtect Domestic Violence Monitoring technologies, featuring real-time tracking and anti-tamper mechanisms. The agreement allows for scalability in monitored units and services. The company reports annual growth above 50% from European operations and is now targeting the US electronic monitoring market, projected to reach $1.8 billion by 2028.

SuperCom's US solution leverages cloud-based infrastructure, single-language system, and centralized operations, aimed at reducing costs and increasing operational efficiencies.

Positive

• Secured 10 new US contracts in just 60 days
• Achieved over 50% annual growth from European operations
• Expanded into 5 new US states since August 2024
• Contract includes scalability provisions for future growth
• Operating in growing market projected to reach $1.8B by 2028

Negative

• None.

Insights

Financial Analyst

The expansion into Alabama represents a strategic milestone in SuperCom's aggressive U.S. market penetration strategy. With 10 new contracts in 60 days and entry into 5 new states since August 2024, the company is executing an impressive growth trajectory. The U.S. electronic monitoring market, projected to reach $1.8 billion by 2028, presents substantial revenue potential compared to SuperCom's European operations.

The company's cloud-based infrastructure and centralized operations model for the U.S. market suggests improved operational efficiency and potentially higher profit margins compared to their European business model. The scalability provisions in the Alabama contract indicate potential for recurring revenue growth through unit expansion and service additions.

SuperCom's 50% annual growth in Europe, combined with this rapid U.S. expansion, signals strong market validation of their technology. However, investors should note that while contract wins are positive indicators, the monetary value and revenue impact of these contracts remains undisclosed.

Tech Industry Expert

SuperCom's technology stack demonstrates strategic positioning in the electronic monitoring space. Their PureSecurity GPS and PureProtect DV monitoring systems incorporate critical features like real-time tracking and anti-tamper mechanisms, essential for law enforcement applications. The cloud-based infrastructure specifically designed for the U.S. market represents a significant technical advantage, enabling:

• Reduced operational complexity through single-language implementation
• Enhanced scalability via centralized cloud operations
• Improved cost efficiency by eliminating subcontractor dependencies

The rapid adoption across multiple states validates the technical robustness and market fit of their solution. The standardized U.S. implementation model could accelerate deployment speeds and reduce technical support overhead compared to their European operations.

10 new contracts in the USA signed in just 60 days, reflecting record expansion speed

TEL AVIV, Israel, Jan. 6, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that it has secured a new contract to provide its advanced GPS tracking and domestic violence (DV) monitoring solutions to a government agency in Alabama. This achievement marks SuperCom's 5th entry into a new US state since August 2024 and its 10^th contract signed in the USA in just 60 days. These contracts, spanning Kentucky, South Dakota, and Alabama, reflect record expansion speed for the company and strong US market acceptance of SuperCom's advanced offender electronic monitoring technologies.

 

 

Under the contract, SuperCom will deploy its cutting-edge PureSecurity GPS Tracking and PureProtect Domestic Violence Monitoring technologies. These solutions include advanced features such as real-time location tracking, anti-tamper mechanisms, and secure communication channels. The program aims to enhance offender accountability and safeguard victims, providing Alabama law enforcement agencies with powerful tools to improve public safety and offender management. The contract also includes provisions for scalability, allowing for an increase in the number of monitored units and the addition of new services over time.

"We're thrilled to see rapid expansion as we enter the USA market with our advanced technologies, with a record 10 new contracts secured in just 60 days. After reaching impressive annual growth above 50% driven by our wins in Europe, we launched our new technology tailored for the US market, and based on our success thus far, it looks like we hit the nail on the head in terms of market fit," commented Ordan Trabelsi, President and CEO of SuperCom.

"The US electronic monitoring market, multiples larger than the European one and projected to reach $1.8 billion by 2028, offers unmatched growth opportunities. In addition, our U.S. solution benefits from key efficiencies, including a cloud-based infrastructure, a single-language system, centralized operations and logistics, and no reliance on subcontractors. These factors significantly reduce costs, increase operational efficiencies, and support higher margins. All of this along with our recent momentum is making us excited here at SuperCom about future prospects for the business as we continue expansion in the US in parallel to our ongoing European expansion," Ordan continued.

"Furthermore, we are happy to bring our innovative GPS tracking and domestic violence monitoring technologies to Alabama, marking our 5th new state entry in the U.S. since August 2024. This milestone underscores the growing demand for our advanced solutions and highlights the trust public safety agencies place in SuperCom. We are proud to contribute to Alabama's efforts to create safer communities and provide essential tools for offender monitoring and victim protection. This new partnership with Alabama not only strengthens our presence in the state but also aligns with our vision for sustained growth across the region," Ordan concluded.

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, worldwide. 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, and domestic violence prevention. For more information, please visit SuperCom's website: 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 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, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 22, 2024, 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.

Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg

SuperCom Investor Relations:

ir@supercom.com

View original content:https://www.prnewswire.com/news-releases/supercom-secures-first-contract-in-alabama-rapid-us-expansion-continues-302343033.html

SOURCE SuperCom

FAQ

How many new contracts has SuperCom (SPCB) secured in the US in the past 60 days?

SuperCom has secured 10 new contracts in the USA within a 60-day period, including contracts in Kentucky, South Dakota, and Alabama.

What is the projected size of the US electronic monitoring market that SPCB is targeting?

The US electronic monitoring market is projected to reach $1.8 billion by 2028.

How many new US states has SPCB entered since August 2024?

SuperCom has entered 5 new US states since August 2024, with Alabama being the latest addition.

What technologies will SuperCom (SPCB) deploy in Alabama?

SuperCom will deploy PureSecurity GPS Tracking and PureProtect Domestic Violence Monitoring technologies, featuring real-time location tracking and anti-tamper mechanisms.

What is SuperCom's (SPCB) current annual growth rate from European operations?

SuperCom reports achieving annual growth above 50% driven by their wins in Europe.