SuperCom Reports Organic Year-over-Year Growth of 45% in Revenue and 76% in EBITDA for the First Quarter of 2015

Revenue of $7.7 million; EBITDA of $3.1 million (40% margin) and Non-GAAP EPS of $0.23

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Jun 01, 2015, 08:41 ET

HERZLIYA, Israel and NEW YORK, June 1, 2015 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for e-Government, Public Safety, HealthCare, and Finance sectors, announced today its results for the quarter ended March 31, 2015.

Financial Highlights of the First Quarter of 2015 Compared to the First Quarter of 2014

Revenue increased by 45% to $7.7 million compared to $5.3 million
GAAP operating income increased by 91% to $ 2.6 million compared to $1.4 million
Non-GAAP operating income increased by 77% to $3.1 million compared to $1.8 million
EBITDA increased by 76% to $3.1 million (40% margin) compared to $1.8 million (33% margin)
Non-GAAP EPS increased by 77% to $0.23 compared to $0.13

"We executed well in the first quarter and maintained strong margins while growing the company according to our business plan," commented Arie Trabelsi, SuperCom's President and CEO. "In addition to generating strong year-over-year revenue and earnings growth, we continued to advance our long-term growth strategy, and made significant progress towards strengthening and expanding our solution offerings in our fast growing target markets."

"During the quarter, we have started to integrate our suite of secure payments solutions into existing e-ID contracts and continue to actively pursue large opportunities with organizations around the world," Mr. Trabelsi added.

"We are increasingly excited about our pipeline of opportunities, which continued to grow as we advanced a number of important tenders during the quarter. In the M2M(IoT) arena, more and more government agencies and organizations in the Americas, Europe, and Asia have selected and decided to adopt SuperCom's Electronic Monitoring solution, creating brand recognition and driving growth in our pipeline, " Mr. Trabelsi concluded.

2015 Outlook
The Q1 results are in-line with our 2015 guidance of revenue growth for the full year ended December 31, 2015 to exceed 40% or $41.6 million on a year-over-year basis. The Company anticipates non-GAAP EPS in 2015 to exceed $1.20 per share.

Results Conference Call
The Company will host a conference call today, Monday, June 1, 2015 at 11 a.m. ET. Management will host the call and will be available to answer investors' questions after presenting the results of the first quarter.

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

US:	1-888-663-2258	at 11 am Eastern Time
Israel:	1-80-925-8350	at 6 pm Israel Time
International:	1-913-312-1477

A live and archived webcast of the call will be available on the SuperCom investor relations website at http://www.supercom.com or http://www.supercom.com/index.asp?module=category&item_id=41.

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

Investor Relations Contacts:

Brett Maas / Rob Fink

Hayden IR

(646) 536.7331 / (646) 415.8972

[email protected] / [email protected]

Company Contact:

Ordan Trabelsi, President North America

Tel: 1 212 675 4606

[email protected]

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)

	March 31,	December 31,
	2015	2014
	Unaudited	Audited

CURRENT ASSETS
Cash and cash equivalents	4,232	4,789
Restricted bank deposits	4,478	5,195
Trade receivable, net	13,249	11,628
Deferred tax short term	3,452	3,958
Other accounts receivable and prepaid expenses	1,065	1,190
Inventories, net	1,276	1,614

Total current assets	27,752	28,374

LONG-TERM ASSETS
Severance pay funds	105	325
Deferred tax long term	259	301
Customer Contracts	4,358	4,587
Software and other IP	4,861	4,949
Goodwill	3,722	3,722
Property & equipment, net	819	616

Total Assets	41,876	42,874

CURRENT LIABILITIES
Trade payables	2,675	2,892
Employees and payroll accruals	1,004	944
Related parties	365	341
Accrued expenses and other liabilities	2,809	2,755
Advances from customers	-	2,864
Short-term liability for future earn-out	2,870	2,870

Total current liabilities	9,723	12,666

LONG-TERM LIABILITIES
Long-term liability for future earn-out	1,477	1,477
Accrued severance pay	130	425

Total long-term liabilities	1,607	1,902

SHAREHOLDERS' EQUITY:
Ordinary shares	937	937
Additional paid-in capital	58,388	58,210
Accumulated deficit	(28,779)	(30,841)

Total shareholders' equity	30,546	28,306

	41,876	42,874

SUPERCOM LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data)

	Three months ended March 31,
		2015	2014
	Unaudited		Unaudited

REVENUES		7,700	5,308
COST OF REVENUES		2,302	1,023

GROSS PROFIT		5,398	4,285

OPERATING EXPENSES:
Research and development		677	1,259
Selling and marketing		1,401	1,117
General and administrative		716	549

Total operating expenses		2,794	2,925

OPERATING INCOME		2,604	1,360
FINANCIAL EXPENSES (INCOME) , NET		(6)	25

INCOME BEFORE INCOME TAX		2,610	1,335
INCOME TAX EXPENSES		548	-

NET INCOME FOR THE PERIOD		2,062	1,335


Basic		0.15	0.10

Diluted		0.15	0.10

Weighted average number of ordinary shares used in computing basic income per share		13,742,586	13,307,259

Weighted average number of ordinary shares used in computing diluted income per share		13,875,938	13,379,183

SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income (U.S. dollars in thousands)

	Three months ended March 31,
		2015	2014
	Unaudited		Unaudited

GAAP gross profit		5,398	4,285
Amortization of Software and IP		89	155
Stock-based compensation expenses		37	-

Non-GAAP gross profit		5,524	4,440

GAAP operating income		2,604	1,360
Amortization of Software and IP		89	155
Amortization of Customer Contracts		230	240
Stock-based compensation expenses		175	-

Non-GAAP operating income		3,098	1,755

GAAP net income		2,062	1,335
Amortization of Software and IP		89	155
Amortization of Customer Contracts		230	240
Stock-based compensation expenses		175	0
Non Cash Income Tax Expenses		548	-

Non-GAAP net income		3,104	1,730

Non-GAAP EPS		0.23	0.13

NET INCOME FOR THE PERIOD		2,062	1,335
Income tax expenses		548	-
Financial expenses (income), net		(6)	25
Depreciation , amortization and stock-based compensation expenses		510	408

EBITDA *		3,114	1,768

* *EBITDA* is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization and stock-based compensation expenses.