SuperCom Reports Record Profit for 4Q and FY 2012 Financial Results
Net Income increased to $4.8m; GP margins increased to 82%; Operating Margin increased to 22.4%
HERZLIYA, Israel, March 19, 2013 /PRNewswire/ --
SuperCom Ltd (OTC: SPCBF), a leading provider of e-ID, Security, HealthCare, Homecare, and Electronic Monitoring Solutions, today announced its results for the fourth quarter and FY 2011 ended December 31, 2012.
Financial Highlights for the FY 2012vs. FY 2011
- Revenues increased 13% to $8.94 million, compared to $7.92 million;
- Gross Profit increased 59% to $7.3 million, compared to $4.6 million;
- Gross Profit Margin increased to 82%, compared to 58%;
- Operating expenses increased 14% to $5.3 million, compared to $4.6 million;
- Operating income increased substantially to $2 million, compared to $54 thousand;
- Net Income increased by over 4 times, to $4.8 million, compared to $1 million;
Financial Highlights for the 4Q 2012vs. 4Q 2011
- Revenues increased 65% to $3.2 million, compared to $1.9 million;
- Gross Profit increased 280% to $3.2 million, compared to $1.1 million;
- Operating expenses increased 36% to $2.6 million, compared to $1.9 million;
- Operating income increased to $580 thousand, compared to a loss of $727 thousand;
- Net Income increased 55% to $1.55 million, compared to $1 million;
"We are very pleased with our performance in 2012, which was a fantastic turnaround year for us, our growth in revenue, our strong and steady profitability approaching 23% Operating Margin with operating income of $2.0 million , was a key milestone for SuperCom." commented Arie Trabelsi , CEO of SuperCom. "We are optimistic with our ability to continually build on this progress within four of the most dynamic industries in the world, as we focus on delivering value for our customers, employees and shareholders."
"In comparison to last year, we successfully expanded our gross profit margin and significantly reduced our operating expenses by implementing our restructuring plan," Mr. Trabelsi added. "These efforts positions us well to complete our process to increase our financial strength, putting us on the right path to achieve our business goals in becoming a key global player in the rapidly growing national e-ID, Electronic Monitoring for law enforcement, homecare, and healthcare arena."
Operational Highlights for 2012
- The Company has broadened its activities. It is now providing solutions for the national electronic-ID market, electronic monitoring for law enforcement, and homecare and healthcare markets, using its proprietary RFID and Mobile technology platform;
- Increased activities in the national electronic-ID market, while populating the e-ID division with outstanding e-ID, System Architects, Sales & Marketing Experts - putting together hundreds of man-years of national ID and e-ID experience into one superior e-ID Team;
- Expanded its activities into the Community Electronics Monitoring market, creating an AM Team with outstanding and experienced executives in Law Enforcement AM, System Architecture, Mobile, Software and Sales & Marketing;
- Expanded the Company's R&D capabilities with world-class R&D experts in the area of Digital, RF, Mobile, Embedded, GUI, and Web - developing the cutting edge products and technologies;
- Enriched and expanded the capabilities of the company's PureRF™ Suite- an RFID and Mobile hardware-software hybrid tracking and monitoring platform;
"I am proud to launch the new Supercom, our new streamlined and focused structure allows us to better target lucrative and growing vertical markets", Mr. Trabelsi added. "We have also brought on board many new and highly experienced executives and market experts to support our broadening activity. Supercom today is in the strongest position it has ever been, and we look forward to continuing to unleash our potential in 2013. "
The Company will host a conference call today at 11:00 am EDT. To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call:
US: +1-888-668-9141 at 11:00 am Eastern Time
Israel: 03-918-0685 at 5:00 pm Israel Time
International: +972 3 918 0685
A replay will be available on the Company's website on the day following the call.
Since 1988, SuperCom has been a leading global provider of traditional & digital identity solutions, providing advanced safety, identification and security products and solutions, to Governments, private and public organizations throughout the world. SuperCom has been inspiring governments and national agencies, to design and issue secured Multi-ID documents and robust digital identity solutions to its citizen and visitors, using SuperCom e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services. SuperCom features a unique all-in-one field-proven RFID & mobile technology and products, accompanied with advanced complementary services for the healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, building and access automation and more.
SuperCom's website is http://www.supercom.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.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, 2012 2011 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 225 $ 215 Trade receivables (net of allowance for doubtful accounts of $ 1,686 and $ 134 as of December 31, 2012 and 2011, respectively) 1,598 1,542 Deferred tax short term 516 - Other accounts receivable and prepaid expenses 311 105 Inventories, net 280 269 Total current assets 2,930 2,131 SEVERANCE PAY FUND 203 228 Deferred tax long term 517 - PROPERTY AND EQUIPMENT, NET 93 96 Total assets $ 3,743 $ 2,455
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share data
December 31, 2012 2011 LIABILITIES AND SHAREHOLDERS' CURRENT LIABILITIES: Short-term bank credit $ 101 $ 112 Trade payables 1,780 2,439 Employees and payroll accruals 138 139 Accrued expenses and other liabilities 777 2,164 Convertible bonds - 2,519 Short-term loan and others - 456 Total current liabilities 2,796 7,829 LONG-TERM LIABILITIES: Accrued severance pay 236 227 Total long-term liabilities 236 227 COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS': Share capital: Ordinary shares of NIS 0.0588235 par value - Authorized 52,000,000 shares as of December 31, 2012; Issued and outstanding: 36,769,757 and 12,035,272 shares as of December 31, 2012 and 2011, respectively 574 192 Additional paid-in capital 43,518 41,713 Amount of liability extinguished on account of shares 127 819 Accumulated deficit (43,508) (48,325) Total shareholders' equity (deficiency) 711 (5,601) Total liabilities and shareholders' $ 3,743 $ 2,455
Year ended December 31, 2012 2011 2010 Revenues $ 8,940 $ 7,922 $ 7,389 Cost of revenues 1,619 3,306 2,057 Gross profit 7,321 4,616 5,332 Operating expenses: Research and development 313 462 386 Selling and marketing 3,060 3,505 4,405 General and administrative 857 732 1,985 Other (income) expenses 1,085 (137) (396) Total operating expenses 5,315 4,562 6,380 Operating (loss) income 2,006 54 (1,048) Financial (expenses) income, net 1,805 990 (678) Income (loss) before income tax 3,811 1,044 (1,726) Income tax 1,006 (25) (50) Net income (loss) from continuing operations 4,817 1,019 (1,776) Loss from discontinued operations - - (189) Net income (loss) $ 4,817 $ 1,019 $ (1,965) Earnings (loss) per share from continuing operations: Basic $ 0.18 $ 0.11 $ (0.29) Diluted $ 0.13 $ 0.09 $ (0.29) Loss per share from discontinued operations basic and diluted: - - $ (0.03) Net earnings (loss) per share: Basic $ 0.18 $ 0.11 $ (0.32) Diluted $ 0.13 $ 0.09 $ (0.32) Weighted average number of ordinary shares used in computing basic earnings (loss) per share 27,475,448 9,126,327 6,177,862 Weighted average number of ordinary shares used in computing diluted earnings (loss) per share 34,664,459 11,710,254 6,177,862
3 months ended 3 months ended Dec-31 Sep-30 2012 2011 2012 2011 U.S. dollars in thousands, except share data REVENUES 3,214 1,942 1,786 1,942 COST OF REVENUES (2) 800 489 735 GROSS PROFIT 3,216 1,142 1,297 1,207 OPERATING EXPENSES: Research and development 98 90 73 92 Selling and marketing 1,073 884 523 907 General and administrative 193 111 173 170 Other (income) expense 1,272 784 - - Total operating expenses 2,636 1,869 769 1,169 OPERATING (LOSS) INCOME 580 (727) 528 38 FINANCIAL (EXPENSES) INCOME , NET (54) 1,734 (13) (259) INCOME BEFORE INCOME TAX 526 1,007 515 (221) INCOME TAX 1,024 (2) (5) (9) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 1,550 1,005 510 (230) LOSS FROM DISCONTINUED OPERATIONS - - - - NET INCOME (LOSS) FOR THE PERIOD 1,550 1,005 510 (230) NET INCOME (LOSS) PER SHARE: Basic 0.04 0.08 0.02 (0.02) Diluted 0.04 0.07 0.02 (0.02) Weighted average number of ordinary shares used in computing basic income (loss) per share 35,932,478 12,027,005 22,265,685 9,807,753 Weighted average number of ordinary shares used in computing diluted income (loss) per share 40,703,682 15,300,482 26,299,289 9,807,753
Corporate relations Contacts:
Corporate Relations, SuperCom Ltd.
Investor Relations Contacts:
Ehud Helft & Kenny Green
CCG Investor Relations
SOURCE SuperCom Ltd.
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