EX-99.1 2 v420374_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

 

SuperCom Reports Second Quarter 2015 Financial Results

 

Revenue of $7.75 million; EBITDA of $2.4 million; EBITDA Margin of 31%; Non-GAAP EPS of $0.16

 

 

Herzliya, Israel, September 16, 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 and six months ended June 30, 2015.

 

First Six Months 2015 Financial Highlights Compared to the First Six Months of 2014

 

·Revenue increased by 24% to $15.4 million compared to $12.4 million
·GAAP operating income increased by 8% to $ 3.9 million compared to $3.6 million
·Non-GAAP operating income increased by 20% to $5.4 million compared to $4.5 million
·EBITDA increased by 22% to $5.5 million (36% margin) compared to $4.5 million (37% margin)
·Non-GAAP EPS increased by 15% to $0.38 compared to $0.33

 

Second Quarter Financial Highlights Compared to the Second Quarter of 2014

 

·Revenue increased by 10% to $7.75 million compared to $7.06 million
·GAAP operating income was $1.3 million compared to $2.2 million
·Non-GAAP operating income was $2.3 million compared to $2.7 million
·EBITDA was $2.4 million (31% margin) compared to $2.7 million (39% margin)
·Non-GAAP EPS was $0.16 compared to $0.20

 

“We executed according to plan in the second quarter, achieving revenue growth and strong margins while dramatically broadening our new business pipeline and solution offerings in our fast growing target markets,” commented Arie Trabelsi, SuperCom’s President and CEO. “In parallel to the complex implementation of large government e-ID contracts, we executed on a number of strategic and operational initiatives including securing more than $7 million in follow on orders from existing e-ID customers, winning a highly strategic electronic offender monitoring tender with a new European government customer and strengthening our balance sheet by raising approximately $27 million net proceeds from a successful public offering. We also recognized nearly $2 million of high-margin revenues that we expected to recognize in late June, during the first weeks of July, shortly after the quarter closed.”

 

“We made significant progress to strengthen and expand our e-ID and M2M businesses, while further developing our secure mobile payment offering and strengthening our market position,” Mr. Trabelsi added. “The number, quality, stage and size of opportunities in our pipeline are increasingly encouraging. Based on the number of open proposals we have around the globe in various stages and in light of our strengthened balance sheet following the successful offering, we believe we are well positioned to win additional new contracts this year.”

 

Mr. Trabelsi concluded, “I’m increasingly excited to see that more and more organization and governments around the world select SuperCom and its innovative secure solutions for their e-ID, M2M, and Secure Payment needs. With a growing base of recurring revenues and increasing demand for our solutions, I believe we will meet the guidance previously issued, adjusted to the increased new share count as a result of the successful public offering we completed in June.”

 

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Results Conference Call

 

The Company will host a conference call today, Wednesday, September 16, 2015 at 11 a.m. ET. (8 a.m. PT / 6 p.m. IL time) to review the company's financial results and business outlook.

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

 

US: 1-888-708-5692 at 11 am Eastern Time
Israel: 1-80-925-8350 at 6 pm Israel Time
International: 1-913-981-5507  

 

A live and archived webcast of the call will be available on the SuperCom investor relations website at http://www.supercom.com.

 

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 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.

 

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 Americas

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)

 

   June 30,   December 31, 
   2015   2014 
   Unaudited   Audited 
         
CURRENT ASSETS        
Cash and cash equivalents   32,393    4,789 
Restricted bank deposits   3,043    5,195 
Trade receivable, net   15,901    11,628 
Deferred tax short term   3,495    3,958 
Other accounts receivable and prepaid expenses   1,242    1,190 
Inventories, net   1,818    1,614 
           
Total current assets   57,892    28,374 
           
LONG-TERM ASSETS          
Severance pay funds   102    325 
Deferred tax long term   134    301 
Customer Contracts   4,128    4,587 
Software and other IP   4,772    4,949 
Goodwill   3,722    3,722 
Property & equipment, net   855    616 
           
Total Assets   71,605    42,874 

 

CURRENT LIABILITIES          
Trade payables   2,783    2,892 
Employees and payroll accruals   1,668    944 
Related parties   401    341 
Accrued expenses and other liabilities   2,981    2,755 
Advances from customers   -    2,864 
Short-term liability for future earn-out   2,482    2,870 
           
Total current liabilities   10,315    12,666 
           
LONG-TERM LIABILITIES          
Long-term liability for future earn-out   1,477    1,477 
Accrued severance pay   147    425 
           
Total long-term liabilities   1,624    1,902 
           
SHAREHOLDERS' EQUITY:          
Ordinary shares   1,100    937 
Additional paid-in capital   86,259    58,210 
Accumulated deficit   (27,693)   (30,841)
           
Total shareholders' equity   59,666    28,306 
           
Total Liabilities and Shareholders' Equity   71,605    42,874 

 

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SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

 

   Three months Ended June 30  

Three months Ended June 30

 
   2015   2014 
   Unaudited 
         
REVENUES   7,744    7,056 
COST OF REVENUES   2,814    1,673 
           
GROSS PROFIT   4,930    5,383 
           
OPERATING EXPENSES:          
   Research and development   833    543 
   Selling and marketing   1,468    2,105 
   General and administrative   1,344    545 
           
Total operating expenses   3,645    3,193 
           
OPERATING  INCOME   1,285    2,190 
FINANCIAL EXPENSES,  NET   117    75 
           
INCOME BEFORE INCOME TAX   1,168    2,115 
INCOME TAX EXPENSES   82    - 
           
NET INCOME FOR THE PERIOD   1,086    2,115 
NET EARNINGS  PER SHARE:          

 

Basic   0.08    0.16 
           
Diluted   0.08    0.16 
           
Weighted average number of ordinary shares  used in computing basic income per share   13,980,235    13,472,973 
           
Weighted average number of ordinary shares  used in computing diluted income per share   14,164,381    13,553,224 
           

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SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

  

   Six months Ended June 30  

Six months Ended June 30

 
   2015   2014 
   Unaudited 
         
REVENUES   15,444    12,364 
COST OF REVENUES   5,116    2,696 
           
GROSS PROFIT   10,328    9,668 
           
OPERATING EXPENSES:          
   Research and development   1,510    1,802 
   Selling and marketing   2,869    3,222 
   General and administrative   2,060    1,094 
           
Total operating expenses   6,439    6,118 
           
OPERATING  INCOME   3,889    3,550 
FINANCIAL EXPENSES,  NET   111    100 
           
INCOME BEFORE INCOME TAX   3,778    3,450 
INCOME TAX EXPENSES   630    - 
           
NET INCOME FOR THE PERIOD   3,148    3,450 
NET EARNINGS  PER SHARE:          

 

Basic   0.23    0.26 
           
Diluted   0.22    0.26 
           
Weighted average number of ordinary shares  used in computing basic income per share   13,862,731    13,391,037 
           
Weighted average number of ordinary shares  used in computing diluted income per share   14,048,570    13,471,288 
           

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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 June 30,

 
   2015   2014 
   Unaudited   Unaudited 
         
GAAP gross profit   4,930    5,383 
    Amortization of Software and IP   88    155 
    Stock-based compensation expenses   56    - 
           
Non-GAAP gross profit   5,074    5,538 
           
GAAP operating income   1,285    2,190 
    Amortization of Software and IP   88    155 
    Amortization of Customer Contracts   229    240 
    Stock-based compensation expenses   703    8 
    Expense for doubtful debt associated with old project from 2009   -    138 
           
Non-GAAP operating income   2,305    2,731 
           
GAAP net income   1,086    2,115 
    Amortization of Software and IP   88    155 
    Amortization of Customer Contracts   229    240 
    Stock-based compensation expenses   703    8 
    Expense for doubtful debt associated with old project from 2009   -    138 
    Income Tax Expenses   82    - 
    2,188    2,656 
           
Non-GAAP Basic EPS   0.16    0.20 
           
           
GAAP net income for the period   1,086    2,115 
    Income tax  Expenses   82    - 
    Financial  expenses, net   117    75 
    Depreciation ,amortization and  stock-based compensation expenses   1,111    418 
    Expense for doubtful debt associated with old project from 2009   -    138 
EBITDA (*)   2,396    2,746 

 

(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization.

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SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income

(U.S. dollars in thousands) 

     
  

Six months ended June 30,

 
   2015   2014 
   Unaudited   Unaudited 
         
GAAP gross profit   10,328    9,668 
    Amortization of Software and IP   177    310 
    Stock-based compensation expenses   93    - 
           
Non-GAAP gross profit   10,598    9,978 
           
GAAP operating income   3,889    3,550 
    Amortization of Software and IP   177    310 
    Amortization of Customer Contracts   459    480 
    Stock-based compensation expenses   878    17 
    Expense for doubtful debt associated with old project from 2009   -    138 
           
Non-GAAP operating income   5,403    4,495 
           
GAAP net income   3,148    3,450 
    Amortization of Software and IP   177    310 
    Amortization of Customer Contracts   459    480 
    Stock-based compensation expenses   878    17 
    Expense for doubtful debt associated with old project from 2009   -    138 
    Income Tax Expenses   630    - 
    5,292    4,395 
           
Non-GAAP Basic EPS   0.38    0.33 
           
           
GAAP net income for the period   3,148    3,450 
    Income tax  Expenses   630    - 
    Financial  expenses, net   111    100 
    Depreciation ,amortization and  stock-based compensation expenses   1,621    834 
    Expense for doubtful debt associated with old project from 2009   -    138 
EBITDA (*)   5,510    4,522 

 

(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization.                

 

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