SuperCom Reports First Quarter 2021 Financial Results

TEL AVIV, Israel, May 27, 2021 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT and Cybersecurity sectors, today reported results for the three months ended March 31, 2021. 

Three-Months Ended March 31, 2021 Financial Highlights

• Cash and cash equivalents and restricted cash at the end of Q1-21 increased to $9 million from $4m at end of 2020.
• Working Capital increased to $12.7 million at end of Q1-21 from $5.3 million at end of 2020.
• Revenue in Q1-2021 was $3.0 million.
• Gross margin in Q1-2021 increased to 55.3% from 47.5% in 2020.
• EBITDA in the first quarter of $652,000.

Recent Business Highlights:

• Company won new project in California valued at up to $4 million, highlighting continued growth in demand for the offerings in our IoT Tracking segment.
• Company won a tender with the Israeli government for its PureHealth Coronavirus (COVID-19) Quarantine Compliance Solution. This was won following a successful pilot of the solution in Israel.
• In response to the Covid-19 pandemic, the company underwent significant cost optimizations leading to improvement in margins and profitability in parallel to Covid-19 related revenue declines.
• In response to the Covid-19 pandemic, the company launched a new solution, PureHealth for quarantine compliance, to help fight the spread of infectious diseases. Pilots have been initiated in various regions around the world, with global demand for additional evaluations continuing into 2021.
• The company has adjusted its manufacturing capacity to enable more flexibility and to scale production capacity in response to increased demand for its IoT products.  The company has also made its global supply chain more resilient by reducing dependencies on specific suppliers and geographies.
• Maintained strong relationships with existing customers across all 3 business segments reflecting high customer retention and demand for company solutions even during unexpected environments such as the global Covid-19 pandemic.

"Following my February appointment to CEO, one of my first priorities was to improve our reporting capabilities and enable us to report financial results on a quarterly basis.  I am pleased to announce our first quarter earnings results, which is the first time that we have reported financial results on a quarterly basis since the first half of 2019," stated Ordan Trabelsi, CEO of SuperCom.  "We have worked hard to improve our financial processes to enable us to report on a timely basis.  Our work is ongoing, and we plan to continue improving the quality of our financial reporting capabilities."

"We continue to work hard also to capitalize on the trend that we are seeing with correctional institutions increasingly shifting their policy to enable more inmates to serve time under home confinement and utilizing GPS monitoring solutions. Given the strong fundamental drivers behind this industry growth, including prison overcrowding, advancements in the underlying mobile and location-based technologies and the clear financial benefits of reducing facility populations, we believe this is just a small part of a longer-term trend," added Ordan.

"With this attractive market opportunity and our standing in the competitive landscape, another priority of ours in the upcoming years is to increase our investments in sales and marketing to drive revenue growth, while maintaining our investments in research and development to stay ahead of our competition with our proprietary technology offerings. We have won many new projects in recent years and plan to continue to expand our global footprint," concluded Ordan.

Conference Call

The company will hold a conference call today (May 27, 2021) at 8:30 a.m. Eastern time (3:30 p.m. Israel time) to discuss these results and financial outlook.

SuperCom management will host the call, followed by a questions and answers period.

Date: Thursday, May 27, 2021
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
U.S. toll-free: 877-407-8133
Israel toll-free: 1-809-406-247
International: 201-689-8040

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

SuperCom Investor Relations:
[email protected]

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, 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 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, livestock monitoring, and building and access automation. For more information, visit 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 anticipated effects of the COVID-19 outbreak on travel and physical locations, the levels of consumer, business and economic confidence generally, the duration of the COVID-19 outbreak and severity of such outbreak, the pace of recovery following the COVID-19 outbreak, the effect on our supply chain, our ability to implement cost containment and business recovery strategies and resulting anticipated impact of such outbreak on our business, financial condition and results of operations; the adverse effects of the COVID-19 outbreak 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, 2020, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 30, 2021, 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

Use of Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this release of operating results also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business. Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the Company. Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance. However, such measures should not be considered in isolation or as substitutes for results prepared in accordance with GAAP. Reconciliation of the non-GAAP measures to the most comparable GAAP measures are provided in the schedules attached to this release.

[Tables to follow]

 

SOURCE SuperCom Ltd

Related Links

www.supercom.com