SuperCom Reports 8x Year-on-Year Growth in EBITDA and Record Financial Results for the Third Quarter of 2014

HERZLIYA, Israel, Nov. 3, 2014 /PRNewswire/ -- SuperCom Ltd (NASDAQ: SPCB), a leading provider of Electronic Intelligence Solutions for e-Government, Public Safety, and HealthCare, today announced its results for the third quarter of 2014. 

Financial Highlights of the third quarter of 2014 compared to the third quarter of 2013

• Revenue increased by 352% to $9.1 million compared to $2.0 million last year
• GAAP operating income increased by 672% to $3.7 million compared to $0.5 million last year
• Non-GAAP operating income was $4.1 million compared to $0.5 million last year
• EBITDA was $4.2 million (46% margin) compared to $0.5 million (25% margin) last year
• Non-GAAP earnings per share of $0.30 compared to $0.05 last year

Sequential Quarterly Financial Highlights (U.S. dollars in thousands)

Net Cash provided by operation activities in the third quarter – $3.8 million

"We are very pleased to report three consecutive quarters of strong growth in our revenues and EBITDA. Keeping tight control over our cost structure while growing revenues has allowed us to not only increase our operating margins, but also invest more in R&D. This, along with growing market demand, an increasing number of ongoing contracts around the world and an expanding pipeline gives us confidence in implementing our business plan for 2015 and beyond," commented Mr. Arie Trabelsi, President and CEO of SuperCom.

Operational Highlights to-date in 2014

• New contracts totaling $57 million in size
• Seamless integration of the SmartID division into SuperCom;
• Introduction of the enhanced PureSecurity Electronic Monitoring Suite, giving SuperCom a strong position in the M2M and IOT (Internet of Things) space;
• Introduction of the new mobile payments suite, m-Pay, including the SuperPOS, PureMoney, SuperPay, and SafeMoney solutions;
• New implementation of Biometric e-Visa, e-Gate, e-Passport, and Resident Identification Systems to enhance national security while stimulating economic growth;
• Strategic hires for the management team that are increasing our international capabilities;

Continued Mr. Trabelsi, "I am very proud of the performance of our growing R&D and sales teams, which are developing innovative next generation product lines and deploying them effectively into the growing e-Government, M2M, IOT, and payments markets. Our operations and support teams have also continued to  perform exceptionally by increasing operational efficiencies while strengthening our relationships and improving customer satisfaction."

Results Conference Call

The Company will host a conference call today, Monday, November 3, 2014 at 11:00 am ET. Company management will host the call and will be available to answer investors' questions after presenting the results of the third quarter.

To participate, please call one of the following telephone numbers a few minutes before the start of 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: 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.

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.

SOURCE SuperCom Ltd

Related Links

http://www.supercom.com