SuperCom Reports First Quarter 2016 Financial Results

HERZLIYA, Israel, July 6, 2016 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, announced today its results for the quarter ended March 31, 2016.

First Quarter 2016 Financial Highlights Compared to the First Quarter of 2015  

• Revenue of $5.9 million compared to $7.7 million
• GAAP EPS of $0.01 compared to $0.15
• Non-GAAP EPS of $0.01 compared to $0.15
• GAAP Net Income of $0.1 million compared to $2.1 million
• Non-GAAP Net Income of $0.2 compared to $2.6 million
• Total Assets of $64 million ($4.3 per share) compared to $42 million ($3 per share).
• Working Capital of $28 million compared to $18 million.

"As we have previously reported, our first quarter results were impacted by delays associated with macro-economic conditions in certain emerging markets where we are deploying large long-term government systems, which were mostly resolved in the second quarter, as well as a significant increase in the consolidated operating expenses caused by our recent acquisitions, which we are in the process of optimizing as we have done historically," commented Arie Trabelsi, SuperCom's President and CEO. "Despite these factors, we are encouraged by both our near- and long-term opportunities and are making progress with customers and potential customers. In addition, we expect our broader product lines and expanded global customer base to provide us with a more robust sales opportunities pipeline in the future, which is less sensitive to macro-economic conditions in specific countries or regions."

First Quarter and YTD Operational Highlights

• M2M(IoT) division completed the acquisition of Leaders in Community Alternatives (LCA), adding more than 25 years of electronic monitoring experience and an established base of customers, within the U.S.
• Since the closing of the LCA acquisition, we have integrated SuperCom's PureSecurity technology solutions into LCA's existing customer base and have monitored over 200 offenders in California using SuperCom's proprietary technology
• SuperCom acquired Safend, a Cyber and data security company, giving SuperCom a more established cybersecurity presence with thousands of valuable customers and leading product offerings in their space, and it has since the acquisition reached an annual run-rate of recurring bookings from existing customers of over $2 million
• Subsequent to the end of the quarter, the Secured Payment Solution division acquired PowaPOS, a market-leading point-of-sale platform purpose-built to meet market demand for mobile and tablet-based payments, with potential deployments in more than 20 countries, and it has reached over $1 million in orders in the first month post-acquisition
•  Subsequent to the end of the quarter, SuperCom acquired Alvarion, a provider of autonomous Wi-Fi networks with a proven record of reliability and performance in over 25,000 sites in more than 95 countries.
• Since last year, SuperCom grew its experience and relationships with a customer base consisting primarily of over 20 governments to currently over 30,000 customers including governments and banks, telecom providers, retail chains and other enterprises in over 100 countries.

Mr. Trabelsi added, "We continue to advance our stated growth strategy of providing a more integrated offering to customers through complementary and interconnected products and solutions. We believe there is significant opportunity to sell these expanded solutions to both government and enterprise customers using our existing sales channels. These new capabilities and offerings are complementary to, and interconnected with, our core business and should provide us with opportunities to increase our operating leverage."

Mr. Trabelsi concluded, "Subsequent to the end of the first quarter, we have made significant progress to integrate our recent acquisitions and are beginning to leverage a number of synergies which we believe will pave the way for improved financial results in the quarters to come."

Results Conference Call

The Company will host a conference call, today, Wednesday July 6, 2016, at 10:00 a.m. Eastern time to review the Company's financial results and business outlook.

To participate, interested investors should call one of the following telephone numbers. It is recommended that participants dial in at least five minutes before the start of the call:

A live and archived webcast of the call will be available on the SuperCom investor relations website at http://www.supercom.com.

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 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.

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. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 20-F filed with the SEC on May 16, 2016. 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.

(U.S. dollars in thousands)

Investor Relations Contacts:
Brett Maas / Rob Fink
Hayden IR
+1-(646)-536.7331 / +1-(646)-415-8972
[email protected] / [email protected]

Company Contact:
Ordan Trabelsi, President Americas
Tel: +1-212-675-4606
[email protected] 

SOURCE SuperCom Ltd

Related Links

http://www.supercom.com