SuperCom Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2013 Second quarter net income at $2.6 million; Gross margin increased to 87%; operating margin at 27%

HERZLIYA, Israel, Oct. 7, 2013 /PRNewswire/ -- SuperCom Ltd (NASDAQ: SPCB), a leading provider of e-ID, Security, HealthCare, Homecare, and Electronic Monitoring Solutions, today announced its results for the second quarter and first half of 2013. 

Financial Highlights of the first half of 2013 compared with the first half of 2012

  • Gross profit increased by 26% to $3.4 million, compared to $2.7 million last year;
  • Gross profit margin increased to 86%, compared to 69% last year;
  • R&D increased by 146% to $349,000, compared to $142,000 last year;
  • Operating income increased by 29% to $1.2 million, compared to $0.9 million last year;
  • Operating margin increased to 30% compared to 23% last year;
  • Net income increased to $4.1 million, compared to $2.8 million last year;

Financial Highlights of the second quarter of 2013 compared with the second quarter of 2012

  • Revenue increased by 7% to $1.87 million, compared to $1.75 million last year
  • Gross profit increased by 11% to $1.63 million, compared to $1.47 million last year;
  • Gross profit margin increased to 87%, compared to 84% last year;
  • R&D increased by almost 400% to $216,000, compared to $55,000 last year;
  • R&D increased to 12% of revenue, compared to 3% of revenue last year;
  • Net income was $2.65 million, at the same level as last year;

"We are pleased to announce solid second quarter and first half results, particularly the continued improvement in our profit margins, while quadrupling our investment in the research and development of new products and technologies for the fast growing public safety market," commented Arie Trabelsi, CEO of SuperCom. "We are planning to implement a similar cost structure and operations' effectiveness to the SmartID business of OTI upon closing of the acquisition, which, subject to the completion of the due diligence review, is scheduled to be completed this fall."

Investor Conference Call
SuperCom's management will host a conference tomorrow, Tuesday, October 8, 2013, starting at 9:00am Eastern Time. Arie Trabelsi, Chief Executive Officer, and Doron Ilan, Chief Financial Officer, will host the call and will be available to answer questions after presenting the results.

To participate, please call one of the following telephone numbers:

US:

1 888 668 9141

at 9:00 am Eastern Time

Israel:

03 918 0609

at 4:00 pm Israel Time

International:

+972 3 918 0609


For those unable to participate, the teleconference will be available for replay on SuperCom's website at http://www.supercom.com/ beginning 24 hours after the call.

About SuperCom
Since 1988, SuperCom has been a leading 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 secured 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.

SuperCom's website is http://www.supercom.com

Corporate Relations Contacts:

Rona Kandel

Tel: 972-9-889-0850

rona@supercom.com




Investor Relations Contacts:

Ehud Helft & Kenny Green

CCG Investor Relations

Tel: 1 646 201 9246

supercom@ccgisrael.com

Media Relations Contact:

Matthew Krieger

CCG Public Relations

Tel: 1 914 768 4219

matthew@ccgisrael.com

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 facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by the Company. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements arising from the annual audit by management and the Company's independent auditors. The Company undertakes no 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.

** Tables to Follow **

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEET

(U.S. dollars in thousands)








As of


As of



June 30,


December 31,



2013


2012



Unaudited


Audited






CURRENT ASSETS





   Cash and cash equivalents


368


225

Trade receivable, net


2,458


1,598

Deferred tax short term


3,080


516

Other accounts receivable and prepaid expenses


672


311

Inventories, net


329


280






Total current assets


6,907


2,930






LONG-TERM ASSETS





Deferred tax long term


963


517

Severance pay funds


210


203






PROPERTY & EQUIPMENT, NET


148


93






TOTAL ASSETS


8,228


3,743











CURRENT LIABILITIES





Short-term bank credit


81


101

Trade payables


1,776


1,780

Employees and payroll accruals


324


138

Accrued expenses and other liabilities


953


777






Total current liabilities


3,134


2,796






LONG-TERM LIABILITIES





Accrued severance pay


256


236

Total long-term liabilities


256


236






SHAREHOLDERS' EQUITY:





Ordinary shares


603


574

Additional paid-in capital


43,616


43,518

Payables for capital




127

Accumulated deficit


(39,381)


(43,508)






Total shareholders' equity


4,838


711






TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

8,228


3,743

 

SUPERCOM LTD.

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

 (U.S. dollars in thousands, except per share data)










Six

 months

Ended

June 30

Six

months

Ended

June 30


Three

months

Ended

June 30

Three

months

Ended

June 30



2013

2012


2013

2012



Unaudited








REVENUES


3,903

3,940


1,871

1,751

COST OF REVENUES


541

1,233


237

277








GROSS PROFIT


3,362

2,707


1,634

1,474








OPERATING EXPENSES:







   Research and development


349

142


216

55

   Selling and marketing


1,410

1,464


706

730

   General and administrative


435

491


197

178

   Other expenses (income)


-

(292)


-

(105)















Total operating expenses


2,194

1,805


1,119

858








OPERATING  INCOME


1,168

902


515

616

FINANCIAL (EXPENSES) INCOME, NET


(42)

1,869


(14)

2,045















INCOME BEFORE INCOME TAX


1,126

2,771


501

2,661

INCOME TAX BENEFIT (EXPENSES)


3,001

(13)


2,151

(8)















NET INCOME FOR THE PERIOD


4,127

2,758


2,652

2,653








 

SOURCE SuperCom



RELATED LINKS
http://www.supercom.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.