New Alcohol Monitoring Contract with Recurring Revenue and an Initial 3-year Term
OAKLAND, Calif., Aug. 16, 2023 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that, through its fully-owned subsidiary Leaders in Community Alternatives (LCA), it has secured a new contract to provide Alcohol Monitoring technologies and services in California. This contract builds on the Company's continued success in delivering high-quality services and cutting-edge monitoring solutions to government agencies. Also, it further solidifies the Company's strong position in the electronic monitoring industry.
The new alcohol monitoring contract is already in effect and scheduled to run until 2026, including an initial 3-year period and the potential for future extensions. This contract win marks another milestone for SuperCom's expansion into the US market. Moreover, it further solidifies SuperCom's rapport with a prominent long-term partner in the criminal justice sector.
The customer is billed at a per-unit daily rate for alcohol monitoring services and steady-state recurring revenue is generated accordingly. Based on expected usage estimates, the contract is valued at up to USD 3 million over the initial 3-year term. However, revenues recognized by SuperCom will depend on actual usage.
"Our reputation for providing reliable and high-quality electronic monitoring services was pivotal in securing the contract," commended Ordan Trabelsi, CEO and President of SuperCom. "This contract marks another strong achievement, building on our track record of securing numerous new electronic monitoring contracts in the United States and Europe. We are proud to have been chosen once again to support California's criminal justice system. Our long-standing relationships with county customers and law enforcement underscores their trust in our technology and services," Ordan continued.
"As we move forward, we remain committed to fostering strong partnerships, driving technological advancements, and delivering top-tier solutions that address the unique challenges faced by the criminal justice system. With a focus on technology innovation and global expansion, SuperCom is well-positioned to help lead the electronic monitoring industry into the future," Ordan concluded.
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, worldwide. 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.
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 levels of consumer, business and economic confidence generally, the adverse effects of these risks 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, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 20, 2023, 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.
SuperCom Investor Relations: