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Q3 2024: Revenue $6.9 million; Free Cash Flows of $1.2 million; EBITDA $1.1 million
TEL AVIV, Israel, Nov. 14, 2024 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported financial and operating results for the three and nine months ended September 30, 2024.
First Nine Months Ended September 30, 2024, Financial Highlights (Compared to First Nine months of 2023)
Third Quarter Ended September 30, 2024, Financial Highlights (Compared to the Third Quarter of 2023)
Recent Business Highlights:
Management Commentary:
"We are pleased to announce another quarter of significant achievements, showcasing the continued strength and resilience of our business," commented Ordan Trabelsi, President and CEO of SuperCom. "Our financial results for the third quarter and the first nine months of 2024 reflect the successful execution of our strategic initiatives, which have been driving revenue growth, improving profitability, and enhancing cash flow. Year-to-date, revenue increased to $21.3 million, gross profit surged by 35% to $10.7 million, and our gross profit margin improved dramatically to 50.1% from 37.7% in the prior year period."
"This quarter was particularly exciting as we solidified our leadership position with key contract wins, including the prestigious National Israeli Electronic Monitoring project. We also expanded into new regions, including New York, West Virginia, and Maryland, further strengthening our footprint in the U.S. market. These wins not only reflect the exceptional value of our technology but also help position us for sustained expansion in the years ahead," Ordan continued.
"Our commitment to financial discipline, operational efficiencies, and technology innovation has translated into tangible results: an improvement in net income to $2.52 million for the nine-month period, compared to a net loss of $2.48 million in the prior year. Free cash flow generation of $1.2 million in this quarter and a cash balance of $6.23 million at the end of it underscore these tangible results along with an ability to support further potential growth opportunities," he added.
"Looking ahead, we remain focused on executing our strategy by delivering cutting-edge solutions, deepening relationships with existing clients, and entering new markets. With a pipeline of opportunities, continued technology advances, and a track record of operational excellence, we are well-positioned to drive shareholder value," Ordan concluded.
Conference Call
SuperCom will hold a conference call today (Thursday, November 14, 2024) at 10:00 a.m. Eastern time (7:00 a.m. Pacific time; 5:00 p.m. Israel time) to discuss the company's financial and operating results for the three and nine months ended September 30, 2024, followed by a question and answer session.
Conference Call Dial-In Information:
Date: Thursday, November 14, 2024
Time: 10 a.m. Eastern time (7 a.m. Pacific time)
U.S. toll-free: 888-506-0062
Israel toll-free: 1-809-423-853
International: 973-528-0011
Access Code: SuperCom
Link: https://www.webcaster4.com/Webcast/Page/2259/51654
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
About SuperCom
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, 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.
For more information, visit https://www.supercom.com/
SuperCom Investor Relations:
ir@supercom.com
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, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 22, 2024, 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.
Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods. SuperCom's independent registered accounting firm has not audited the financial data discussed in this press release. During the course of SuperCom's quarter- and fiscal year-end closing procedures and review process, SuperCom may identify items that would require it to make adjustments, which may be material, to the information presented in this press release. As a result, the estimate financial results constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to such results.
Use of Non-GAAP Financial Information
In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in the United States ("GAAP"), this release 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 SuperCom's ongoing 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. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.
Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares.
EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses.
[Tables to follow]
SUPERCOM LTD. | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(U.S. dollars in thousands) | |||||
As of | As of | ||||
September 30, | December 31, | ||||
Unaudited | Unaudited | ||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 6,229 | 5,206 | |||
Restricted bank deposits | 347 | 371 | |||
Trade receivable, net | 14,887 | 13,357 | |||
Patents | 5,283 | 5,283 | |||
Other accounts receivable and prepaid expenses | 2,257 | 1,742 | |||
Inventories, net | 2,725 | 2,503 | |||
Total current assets | 31,728 | 28,462 | |||
LONG-TERM ASSETS | |||||
Deferred tax long term | 919 | 501 | |||
Other intangible assets, net | 5,099 | 5,576 | |||
Operating lease right-of-use assets | 923 | 487 | |||
Goodwill | 7,026 | 7,026 | |||
Property and equipment, net | 3,071 | 2,701 | |||
Total long-term assets | 17,038 | 16,291 | |||
Total Assets | 48,766 | 44,753 | |||
CURRENT LIABILITIES | |||||
Short-term loans and credit | 765 | 792 | |||
Trade payables | 1,990 | 1,883 | |||
Employees and payroll accruals | 1,131 | 1,015 | |||
Related parties | - | 100 | |||
Accrued expenses and other liabilities | 333 | 485 | |||
Operating lease liabilities | 877 | 401 | |||
Deferred revenues ST | 576 | 726 | |||
Total current liabilities | 5,672 | 5,403 | |||
LONG-TERM LIABILITIES | |||||
Long-term loan | 29,530 | 33,952 | |||
Deferred tax liability | 170 | 170 | |||
Deferred revenues | 49 | 305 | |||
Long-term operating lease liabilities | - | 108 | |||
Total long-term liabilities | 29,749 | 34,535 | |||
SHAREHOLDERS' EQUITY: | |||||
Ordinary shares | 21,970 | 9,094 | |||
Additional paid-in capital | 95,803 | 102,670 | |||
Accumulated deficit | (104,428) | (106,948) | |||
Total shareholders' equity | 13,345 | 4,816 | |||
Total liabilities and equity | 48,766 | 44,754 | |||
SUPERCOM LTD. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(U.S. dollars in thousands) | |||||||
Three months ended | |||||||
September 30, | September 30, | ||||||
Unaudited Unaudited | |||||||
REVENUES | 6,911 | 6,778 | |||||
COST OF REVENUES | (3,758) | (2,751) | |||||
GROSS PROFIT | 3,153 | 4,027 | |||||
OPERATING EXPENSES: | |||||||
Research and development | 933 | 774 | |||||
Selling and marketing | 625 | 531 | |||||
General and administrative | 1,474 | 1,093 | |||||
Other expenses | 90 | 793 | |||||
Total operating expenses | 3,122 | 3,191 | |||||
OPERATING PROFIT | 31 | 836 | |||||
FINANCIAL EXPENSES, NET | (474) | (690) | |||||
PROFIT (LOSS) BEFORE INCOME TAX | (443) | 146 | |||||
INCOME TAX EXPENSE | - | - | |||||
NET PROFIT (LOSS) FOR THE PERIOD | (443) | 146 | |||||
SUPERCOM LTD. | ||||
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income | ||||
(U.S. dollars in thousands) | ||||
Three months ended | ||||
September 30, 2024 | September 30, 2023 | |||
Unaudited | Unaudited | |||
GAAP gross profit | 3,153 | 4,027 | ||
Amortization of intangible assets | 88 | 88 | ||
Non-GAAP gross profit | 3,241 | 4,115 | ||
GAAP Operating profit | 31 | 836 | ||
Amortization of intangible assets | 540 | 446 | ||
Foreign currency loss | 159 | 111 | ||
One-time expense | 90 | 899 | ||
Non-GAAP operating profit | 820 | 2,292 | ||
GAAP net profit (loss) | (443) | 146 | ||
Amortization of intangible assets | 540 | 446 | ||
One-time expense | 90 | 899 | ||
Foreign currency loss | 159 | 111 | ||
Non-GAAP net profit | 346 | 1,602 | ||
Non-GAAP EPS | 0.17 | 4.8 | ||
Net profit (loss) for the period | (443) | 146 | ||
Financial expenses, net | 474 | 690 | ||
Depreciation and Amortization | 797 | 822 | ||
One-time expense | 90 | 899 | ||
Foreign currency loss | 159 | 111 | ||
EBITDA * | 1,077 | 2,668 | ||
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization and |
SUPERCOM LTD. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(U.S. dollars in thousands) | ||||||||
Nine months ended | ||||||||
September 30, 2024 | September 30, 2023 | |||||||
Unaudited | Unaudited | |||||||
REVENUES | 21,308 | 20,902 | ||||||
COST OF REVENUES | (10,625) | (13,027) | ||||||
GROSS PROFIT | 10,683 | 7,875 | ||||||
OPERATING EXPENSES: | ||||||||
Research and development | 2,833 | 2,436 | ||||||
Selling and marketing | 1,835 | 1,659 | ||||||
General and administrative | 4,222 | 3,467 | ||||||
Other expenses, net | 660 | 1,198 | ||||||
Total operating expenses | 9,550 | 8,760 | ||||||
OPERATING PROFIT (LOSS) | 1,133 | (885) | ||||||
FINANCIAL EXPENSES, NET | (969) | (1,559) | ||||||
PROFIT (LOSS) BEFORE INCOME TAX | 2,112 | (2,444) | ||||||
INCOME TAX BENEFIT | 418 | - | ||||||
NET PROFIT(Loss) FOR THE PERIOD | 2,520 | (2,444) | ||||||
SUPERCOM LTD. | ||||
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income | ||||
(U.S. dollars in thousands) | ||||
Nine months ended | ||||
September 30, 2024 | September 30, 2023 | |||
Unaudited | Unaudited | |||
GAAP gross profit | 10,683 | 7,875 | ||
Amortization of intangible assets | 265 | 265 | ||
Non-GAAP gross profit | 10,948 | 8,140 | ||
GAAP Operating Profit (Loss) | 1,133 | (885) | ||
Amortization of intangible assets | 1,604 | 1,429 | ||
One-time expenses | 660 | 1,687 | ||
Foreign currency loss | 512 | 1,009 | ||
Non-GAAP operating profit | 3,909 | 3,240 | ||
GAAP net Profit (Loss) | 2,520 | (2,444) | ||
Amortization of intangible assets | 1,604 | 1,429 | ||
One-time expenses | 660 | 1,687 | ||
Foreign currency loss | 512 | 1,009 | ||
Income Tax Benefit | (418) | - | ||
Non-GAAP net profit | 4,878 | 1,681 | ||
Non-GAAP EPS | 3.05 | 6.2 | ||
Net Profit (Loss) for the period | 2,520 | (2,444) | ||
Financial expenses (income), net | (969) | 1,559 | ||
Income Tax Benefit | (418) | - | ||
Depreciation and Amortization | 2,293 | 2,129 | ||
One-time expenses | 512 | 1,687 | ||
Foreign currency loss | 660 | 1,009 | ||
EBITDA * | 4,598 | 3,940 | ||
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and |
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SOURCE SuperCom
