EX-99.1 2 v412159_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

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

 

Herzliya, Israel & New York, NY, June 1, 2015 – 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.

 

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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

brett@haydenir.com / rob@haydenir.com

 

Company Contact:

Ordan Trabelsi, President North America

Tel: 1 212 675 4606

ordan@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.

 

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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 

 

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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 

 

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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.

 

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