SuperCom Reports Third Quarter 2015 Financial Results

Revenue of $5.7 million; EBITDA of $1.1 million; Non-GAAP EPS of $0.06

Dec 22, 2015, 16:30 ET from SuperCom

HERZLIYA, Israel, Dec. 22, 2015 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, today announced its results for the third quarter and nine months ended September 30, 2015, completing the preliminarily-announced results on November 30th, 2015.

First Nine Months 2015 Financial Highlights Compared to the First Nine Months of 2014

  • Revenue was $21.2 million compared to $21.5 million
  • GAAP operating income was $ 4 million compared to $7.3 million
  • Non-GAAP operating income was $6.4 million compared to $8.6 million
  • EBITDA was $6.6 million compared to $8.7 million
  • Non-GAAP EPS was $0.43 compared to $0.63

Third Quarter Financial Highlights Compared to the Third Quarter of 2014

  • Revenue was $5.7 million compared to $9.1 million
  • GAAP operating income was $72,000 compared to $3735,000
  • Non-GAAP operating income was $1.0 million compared to $4.1 million
  • EBITDA was $1.1 million compared to $4.2 million
  • Non-GAAP EPS was $0.06 compared to $0.30

"As we already expressed on November 30th, 2015, we faced a number of challenges during the third quarter but the underlying fundamentals of our business remain strong," commented Arie Trabelsi, SuperCom's President and CEO. "Recent international events have put a renewed focus on the importance of global security, border control and secure verifiable identification. Countries around the globe are facing well-documented challenges related to border security which reinforce the need for more advanced identification around the world."

Mr. Trabelsi added, "Strong market demand, our growing array of innovative technology offerings and solutions, and our valuable pipeline of opportunities gives us confidence in implementing our business plan for 2016 and beyond. We continue to believe the company's shares remain undervalued, and we will continue opportunistically repurchasing shares under our current buy-back program," Mr. Trabelsi concluded.

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 advanced, secure mobile payments ranging from mobile wallet to mobile POS, using a set of components and platforms to enable secure mobile payments and financial services. SuperCom is a global provider of a unique all-in-one field-proven RFID & mobile PureSecurity advanced solutions 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' website is http://www.supercom.com  

Investor Relations Contacts:

Brett Maas / Rob Fink

Hayden IR

(646) 536.7331 / (646) 415.8972

brett@haydenir.com / rob@haydenir.com

Company Contact:

Ordan Trabelsi, President Americas

Tel: 1 212 675 4606

ordan@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.

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

December 31,

2015

2014

Unaudited

Audited

CURRENT ASSETS

   Cash and cash equivalents

30,014

4,789

Restricted bank deposits

3,043

5,195

Trade receivable, net

16,792

11,628

Deferred tax short term

3,495

3,958

Other accounts receivable and prepaid expenses

1,352

1,190

Inventories, net

2,393

1,614

Total current assets

57,089

28,374

LONG-TERM ASSETS

Severance pay funds

127

325

Deferred tax long term

134

301

Customer Contracts

3.898

4,587

Software and other IP

4,683

4,949

Goodwill

3,722

3,722

Property & equipment, net

1,981

616

Total Assets

71,634

42,874

CURRENT LIABILITIES

Trade payables

3,466

2,892

Employees and payroll accruals

1,408

944

Related parties

222

341

Accrued expenses and other liabilities

2,878

2,755

Advances from customers

-

2,864

Short-term liability for future earn-out

2,021

2,870

Total current liabilities

9,995

12,666

LONG-TERM LIABILITIES

Long-term liability for future earn-out

1,477

1,477

Accrued severance pay

187

425

Total long-term liabilities

1,664

1,902

SHAREHOLDERS' EQUITY:

Ordinary shares

1,100

937

Additional paid-in capital

86,502

58,210

Accumulated deficit

(27,627)

(30,841)

Total shareholders' equity

59,975

28,306

Total Liabilities and Shareholders' Equity

71,634

42,874

 

 

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months Ended September 30

Three months Ended

September 30

2015

2014

Unaudited

REVENUES

5,723

9,104

COST OF REVENUES

2,534

2,192

GROSS PROFIT

3,189

6,912

OPERATING EXPENSES:

   Research and development

466

949

   Selling and marketing

1,522

1,659

   General and administrative

715

569

   Other (expense) Income

414

-

Total operating expenses

3,117

3,177

OPERATING  INCOME

72

3,735

FINANCIAL EXPENSES,  NET

6

51

INCOME BEFORE INCOME TAX

66

3,684

INCOME TAX EXPENSES

-

-

NET INCOME FOR THE PERIOD

66

3,684

NET EARNINGS  PER SHARE:

 Basic

0.00

0.27

Diluted

0.00

0.27

Weighted average number of ordinary shares used in computing basic income per share

16,266,297

13,715,751

Weighted average number of ordinary shares used in computing diluted income per share

16,413,434

13,800,536

 

 

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Nine months Ended September 30

Nine months Ended

September 30

2015

2014

Unaudited

REVENUES

21,167

21,468

COST OF REVENUES

7,650

4,888

GROSS PROFIT

13,517

16,580

OPERATING EXPENSES:

   Research and development

1,976

2,751

   Selling and marketing

4,391

4,881

   General and administrative

2,775

1,663

   Other (expense) Income

414

-

Total operating expenses

9,556

9,295

OPERATING  INCOME

3,961

7,285

FINANCIAL EXPENSES,  NET

117

151

INCOME BEFORE INCOME TAX

3,884

7,134

INCOME TAX EXPENSES

630

-

NET INCOME FOR THE PERIOD

3,214

7,134

NET EARNINGS  PER SHARE:

Basic

0.23

0.53

Diluted

0.22

0.53

Weighted average number of ordinary shares used in computing basic income per share

14,675,702

13,500,867

Weighted average number of ordinary shares used in computing diluted income per share

14,850,061

13,585,651

 

 

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income

(U.S. dollars in thousands)

Three months ended

September 30,

2015

2014

Unaudited

Unaudited

GAAP gross profit

3,189

6,912

    Amortization of Software and IP

89

155

    Stock-based compensation expenses

58

-

Non-GAAP gross profit

3,336

7,067

GAAP operating income

72

3,735

    Amortization of Software and IP

89

155

    Amortization of Customer Contracts

230

240

    Stock-based compensation expenses

231

-

    Expense related transaction DD

414

-

Non-GAAP operating income

1,036

4,130

GAAP net income

66

3,684

    Amortization of Software and IP

89

155

    Amortization of Customer Contracts

230

240

    Stock-based compensation expenses

231

-

    Expense  related transaction DD

414

-

    Income Tax Expenses

-

-

1,030

4,079

Non-GAAP Basic EPS

0.06

0.30

GAAP net income for the period

66

3,684

    Income tax  Expenses

-

-

    Financial  expenses, net

6

51

    Depreciation, amortization and stock-based compensation expenses

615

428

    Expense  related transaction DD

414

-

EBITDA (*)

1,101

4,163

(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, onetime expenses, depreciation and amortization.  

 

 

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income

(U.S. dollars in thousands)

Nine months ended

September 30,

2015

2014

Unaudited

Unaudited

GAAP gross profit

13,517

16,580

    Amortization of Software and IP

266

155

    Stock-based compensation expenses

151

-

Non-GAAP gross profit

13,934

17,045

GAAP operating income

3,961

7,285

    Amortization of Software and IP

266

465

    Amortization of Customer Contracts

689

720

    Stock-based compensation expenses

1,109

17

    Expense related transaction DD

414

138

Non-GAAP operating income

6,439

8,625

GAAP net income

3,214

7,134

    Amortization of Software and IP

266

465

    Amortization of Customer Contracts

689

720

    Stock-based compensation expenses

1,109

17

    Expense  related transaction DD  

414

138

    Income Tax Expenses

630

-

6,322

8,474

Non-GAAP Basic EPS

0.43

0.63

GAAP net income for the period

3,214

7,134

    Income tax  Expenses

630

-

    Financial  expenses, net

117

151

    Depreciation, amortization and  stock-based compensation expenses

2,236

1,262

    Expense  related transaction DD

414

138

EBITDA (*)

6,611

8,685

(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, onetime expenses, depreciation and amortization.  

 

SOURCE SuperCom



RELATED LINKS

http://www.supercom.com