Monday, August 28, 2023

SuperCom Ltd. (NASDAQ: SPCB) Announces ‘Breakthrough Performance’ with Q2 and H1 2023 Results

 

  • SuperCom recently released its second quarter and first half 2023 results for the period ended June 30, 2023
  • Financial highlights included a 141% YoY increase in quarterly revenue and a 126% YoY increase in half-year revenue to $7.7 million and $14.1 million, respectively
  • The company reported a 106% increase in trailing-twelve-month revenue to $25.5 million from $12.4 million
  • SuperCom provided business highlights, documenting its recently awarded contracts and projects in Europe (Romania, Finland, and Iceland) as well as in the US
  • President and CEO Ordan Trabelsi credits the company’s investments in research and development as well as sales and marketing for its ability to land global opportunities and displace incumbents

SuperCom (NASDAQ: SPCB), a global provider of traditional and digital identity solutions, providing advanced safety, identification, Internet of Things (“IoT”), connectivity, and security solutions to governments and private and public organizations globally, recently released its financial and operating results for the three and six months ended June 30, 2023, as well as financial highlights for the trailing-twelve-month period (https://ibn.fm/7seN6).

“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 141% year-over-year (“YoY”) revenue growth, as well as record-breaking quarterly revenue of $7.7 million and non-GAAP earnings per share (“EPS”) of $0.07. Furthermore, this quarter closes an exceptional trailing twelve-month period boasting $25.5 million in revenue and $2.5 million in EBITDA, underscoring our focus on sustained growth and profitability,” said SuperCom President and CEO Ordan Trabelsi.

SuperCom celebrated a fourth consecutive quarter of high YoY revenue growth, reporting a 141% increase in revenue to a five-year record of $7.7 million, up from $3.2 million recorded in Q2 2022. Its gross profit for this reporting period grew 77% to $2.3 million from $1.3 million. The company also ended the quarter with working capital of $21.2 million. Furthermore, results from the just-ended quarter contributed to half-year revenue of $14.1 million for the first half of fiscal 2023, a 126% YoY increase from $6.3 million, as well as a gross profit of $3.9 million, representing an increase YoY of 47% from $2.6 million.

Other notable highlights included a 106% YoY increase in trailing twelve-month revenue to $25.5 million from $12.4 million. In his address to shareholders during a conference call held July 31, 2023, Trabelsi attributed this growth to the IoT division, the company’s “primary growth engine” (https://ibn.fm/3QY0O). Putting things into perspective, Trabelsi said, “While the global electronic monitoring market grows at approximately 11% per year, SuperCom’s IoT revenue achieved over 100% growth in the past twelve months, outpacing the global market growth by over a multiple of 10x. This growth is a testament to the fact that the market prefers our solution over alternatives.”

SuperCom also provided business updates, discussing the recently awarded contracts and projects worldwide. The company, the press release stated, is well on track with the implementation of a $33 million national electronic monitoring (“EM”) project in Romania, which covers domestic violence protection, GPS tracking of offenders, and home detection monitoring and uses the company’s PureSecurity EM Suite. 

In Europe, the company has deployed the PureSecurity EM Suite in Finland as part of a national project with the national government, covering programs such as GPS tracking, house arrest, and inmate monitoring. The project, launched in Q1 2023, is valued at $3.6 million. SuperCom has also launched a new project in Iceland.

Moreover, the company’s wholly-owned subsidiary, LCA, won a $4.25 million contract to provide adult reentry services in a county in Northern California, US. The project, which began in Q1 2023 and expanded LCA’s existing EM and day reporting services to include community-based and jail-based sites, is actively servicing clients and generating recurring revenue, according to the company.

SuperCom also celebrated other milestones, including the completion of the development and multiple successful deployments of PureProtect, its life-saving domestic violence monitoring solution, and the launch in various regions of the US of PureOne, its best-in-class all-in-one GPS tracking ankle-bracelet monitoring solution. SuperCom is prioritizing the expansion of PureOne into new markets and geographies.

“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 toward industry leadership,” Trabelsi explained.

According to Trabelsi, the company’s investments in research and development as well as sales and marketing have paved the way for global opportunities, enabling it to deliver exceptional value to its growing list of clients while turbocharging its resolve to meet its long-term objectives.

For more information, visit the company’s website at www.SuperCom.com.

NOTE TO INVESTORS: The latest news and updates relating to SPCB are available in the company’s newsroom at http://ibn.fm/SPCB

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