SuperCom Secures New Contract in Maryland with Baltimore-Based Service Provider

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has secured a new contract with a Baltimore-based service provider in Maryland, launched in June 2024. The contract is expected to generate an annual recurring revenue (ARR) of approximately $250,000. SuperCom has deployed its advanced GPS technology and 24/7 monitoring center services to enhance the provider's ability to monitor and manage offenders effectively.

This partnership expands SuperCom's presence in Maryland and strengthens its footprint in the U.S. market. The company has been successfully expanding into new territories across North America over the past year, reflecting its commitment to providing innovative solutions for evolving customer needs.

Positive

• Secured new contract with Baltimore-based service provider in Maryland
• Expected annual recurring revenue (ARR) of approximately $250,000
• Expansion into new territory (Maryland) in the U.S. market
• Successful expansion into new territories across North America over the past year

Negative

• None.

Financial Analyst

SuperCom's new contract in Maryland represents a modest but positive development for the company. The $250,000 annual recurring revenue (ARR) is relatively small, contributing approximately 2.5% to SuperCom's trailing twelve-month revenue of about $10 million. While not transformative, it does indicate continued business development efforts and market expansion.

The contract's recurring nature provides a stable revenue stream, which is valuable for a small-cap company like SuperCom. However, investors should note that the company's financial position remains challenging, with ongoing losses and a need for additional funding. This contract alone is unlikely to significantly alter SuperCom's financial trajectory, but it does demonstrate the company's ability to win new business in a competitive market.

Tech Expert

SuperCom's deployment of GPS technology and 24/7 monitoring services in Maryland showcases the company's technological capabilities in the e-Government and IoT sectors. The implementation of these solutions for offender monitoring highlights SuperCom's niche in the public safety and electronic monitoring market.

While the technology itself isn't groundbreaking, the integration of GPS tracking with round-the-clock monitoring services offers a comprehensive solution that can be attractive to government agencies and service providers. This contract may serve as a reference point for potential future deals, especially as more jurisdictions seek to modernize their offender monitoring systems. However, investors should be aware that this market is becoming increasingly competitive, with larger players also vying for contracts.

Market Research Analyst

SuperCom's expansion into Maryland aligns with its stated North American growth strategy. This move into a new state market demonstrates the company's ability to execute on its expansion plans, albeit on a small scale. The U.S. electronic monitoring market is projected to grow, driven by efforts to reduce prison populations and cut costs associated with incarceration.

However, SuperCom faces significant competition from both established players and new entrants in this space. The company's ability to secure larger contracts and scale its operations will be important for long-term success. While this $250,000 ARR contract is a positive step, investors should look for evidence of larger deals and accelerating revenue growth in future quarters to gauge SuperCom's competitive position and market traction.

TEL AVIV, Israel, Aug. 29, 2024 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that it has successfully secured a new contract with a leading Baltimore-based service provider in Maryland. The contract, which was launched in June 2024, is estimated to generate an annual recurring revenue (ARR) of approximately $250,000.

 

Through this new partnership, SuperCom has deployed its advanced GPS technology, along with its 24/7 monitoring center services. These solutions are designed to significantly enhance the service provider's ability to monitor and manage offenders effectively, ensuring continuous and reliable oversight.

"We are thrilled to expand our presence into Maryland through this partnership with a prominent Baltimore-based service provider. Our GPS technology and 24/7 monitoring center services are perfectly aligned to meet the needs of their clients and operations, providing robust and reliable solutions to support their mission. This contract not only strengthens our footprint in the U.S. market but also reaffirms our commitment to delivering top-tier technology and services that empower our partners and clients to achieve their goals," commented Ordan Trabelsi, President and CEO of SuperCom.

"Over the past year, SuperCom has successfully expanded into new territories across North America, establishing a strong presence in key markets. This growth reflects our ongoing dedication to providing innovative solutions that meet the evolving needs of our customers. Our entry into Maryland is another important milestone in our North American expansion strategy, and we are excited about the opportunities it brings," Ordan Trabelsi 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.

SuperCom Investor Relations:
ir@supercom.com

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

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SOURCE SuperCom

FAQ

What is the value of SuperCom's (SPCB) new contract in Maryland?

The new contract SuperCom (SPCB) secured in Maryland is estimated to generate an annual recurring revenue (ARR) of approximately $250,000.

When was SuperCom's (SPCB) new contract in Maryland launched?

SuperCom's (SPCB) new contract in Maryland was launched in June 2024.

What services is SuperCom (SPCB) providing in its new Maryland contract?

SuperCom (SPCB) is providing advanced GPS technology and 24/7 monitoring center services to enhance the service provider's ability to monitor and manage offenders effectively.

How does the new Maryland contract fit into SuperCom's (SPCB) expansion strategy?

The new Maryland contract is part of SuperCom's (SPCB) North American expansion strategy, strengthening its footprint in the U.S. market and expanding its presence into new territories.