SuperCom Reports Full Year 2013 Financial Results

HERZLIYA, Israel, March 27, 2014 /PRNewswire/ -- SuperCom Ltd (NASDAQ: SPCB), a leading provider of Electronic Intelligence Solutions for National ID, Public Safety and HealthCare, today announced its results for the full year of 2013.

The acquisition of the SmartID division from On Track Innovations (NASDAQ: OTIV) was completed in December 2013 and therefore SuperCom's consolidated balance sheet for December 31, 2013 includes the assets and liabilities of the acquired division. The operations of the SmartID division will significantly contribute to SuperCom's results starting from the first quarter of 2014.

Financial Highlights

• Full year revenue of $8.8 million;
• Full year gross margin of 79%;
• Full year net income of $6.5 million;
• Full year EPS at $0.71;
• Year end shareholders' equity of $19.4 million.

"2013 has been an important year from both a business and strategic perspective," commented Arie Trabelsi, CEO of SuperCom. "In the fourth quarter, we invested substantial resources and funds to acquire and merge the operations of the SmartID division. We have worked hard to consolidate our operations in order to unlock the untapped potential and realize the true value of the combined business. In 2014, we have already received new orders and won new business which will positively contribute to our results."

Continued Mr. Trabelsi, "From a financial perspective, 2013 was also a good year. We ended the year raising money through a secondary offering which increased our working capital, strengthened our balance sheet and financed the acquisition. We continued to present strong business results across all parameters, at a time when management was also focused on completing a major acquisition and public offering, indicating the strength and stability of our operations."   

Concluded Mr. Trabelsi, "I look forward to an exciting year in 2014 as we continue to work hard increasing shareholder value by leveraging our outstanding team, along with our technologies and solutions geared to our fast growing applicable markets."

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 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.

** Tables to Follow **

SOURCE SuperCom