EX-99.1 2 v427653_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

SuperCom Reports Third Quarter 2015 Financial Results

 

Revenue of $5.7 million; EBITDA of $1.1 million; Non-GAAP EPS of $0.06

 

 

Herzliya, Israel, December 22, 2015 – SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, today announced its results for the third quarter and nine months ended September 30, 2015, completing the preliminarily-announced results on November 30th, 2015.

 

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

 

·Revenue was $21.2 million compared to $21.5 million
·GAAP operating income was $ 4 million compared to $7.3 million
·Non-GAAP operating income was $6.4 million compared to $8.6 million
·EBITDA was $6.6 million compared to $8.7 million
·Non-GAAP EPS was $0.43 compared to $0.63

 

Third Quarter Financial Highlights Compared to the Third Quarter of 2014

 

·Revenue was $5.7 million compared to $9.1 million
·GAAP operating income was $72,000 compared to $3735,000
·Non-GAAP operating income was $1.0 million compared to $4.1 million
·EBITDA was $1.1 million compared to $4.2 million
·Non-GAAP EPS was $0.06 compared to $0.30

 

“As we already expressed on November 30th, 2015, we faced a number of challenges during the third quarter but the underlying fundamentals of our business remain strong,” commented Arie Trabelsi, SuperCom’s President and CEO. “Recent international events have put a renewed focus on the importance of global security, border control and secure verifiable identification. Countries around the globe are facing well-documented challenges related to border security which reinforce the need for more advanced identification around the world.”

 

Mr. Trabelsi added, “Strong market demand, our growing array of innovative technology offerings and solutions, and our valuable pipeline of opportunities gives us confidence in implementing our business plan for 2016 and beyond. We continue to believe the company's shares remain undervalued, and we will continue opportunistically repurchasing shares under our current buy-back program,” Mr. Trabelsi concluded.

 

  

 

  

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 advanced, secure mobile payments ranging from mobile wallet to mobile POS, using a set of components and platforms to enable secure mobile payments and financial services. SuperCom is a global provider of a unique all-in-one field-proven RFID & mobile PureSecurity advanced solutions 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’ 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)

 

 

   September 30,   December 31, 
   2015   2014 
   Unaudited   Audited 
         
CURRENT ASSETS          
Cash and cash equivalents   30,014    4,789 
Restricted bank deposits   3,043    5,195 
Trade receivable, net   16,792    11,628 
Deferred tax short term   3,495    3,958 
Other accounts receivable and prepaid expenses   1,352    1,190 
Inventories, net   2,393    1,614 
           
Total current assets   57,089    28,374 
           
LONG-TERM ASSETS          
Severance pay funds   127    325 
Deferred tax long term   134    301 
Customer Contracts   3.898    4,587 
Software and other IP   4,683    4,949 
Goodwill   3,722    3,722 
Property & equipment, net   1,981    616 
           
Total Assets   71,634    42,874 
           
CURRENT LIABILITIES          
Trade payables   3,466    2,892 
Employees and payroll accruals   1,408    944 
Related parties   222    341 
Accrued expenses and other liabilities   2,878    2,755 
Advances from customers   -    2,864 
Short-term liability for future earn-out   2,021    2,870 
           
Total current liabilities   9,995    12,666 
           
LONG-TERM LIABILITIES          
Long-term liability for future earn-out   1,477    1,477 
Accrued severance pay   187    425 
           
Total long-term liabilities   1,664    1,902 
           
SHAREHOLDERS' EQUITY:          
Ordinary shares   1,100    937 
Additional paid-in capital   86,502    58,210 
Accumulated deficit   (27,627)   (30,841)
           
Total shareholders' equity   59,975    28,306 
           
Total Liabilities and Shareholders' Equity   71,634    42,874 

 

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SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

   Three months Ended
September 30		  

Three months Ended

September 30

 
   2015   2014 
   Unaudited 
         
REVENUES   5,723    9,104 
COST OF REVENUES   2,534    2,192 
           
GROSS PROFIT   3,189    6,912 
           
OPERATING EXPENSES:          
   Research and development   466    949 
   Selling and marketing   1,522    1,659 
   General and administrative   715    569 
   Other (expense) Income   414    - 
           
Total operating expenses   3,117    3,177 
           
OPERATING  INCOME   72    3,735 
FINANCIAL EXPENSES,  NET   6    51 
           
INCOME BEFORE INCOME TAX   66    3,684 
INCOME TAX EXPENSES   -    - 
           
NET INCOME FOR THE PERIOD   66    3,684 
NET EARNINGS  PER SHARE:          
           
 Basic   0.00    0.27 
           
Diluted   0.00    0.27 
           
Weighted average number of ordinary shares  used in computing basic income per share   16,266,297    13,715,751 
           
Weighted average number of ordinary shares  used in computing diluted income per share   16,413,434    13,800,536 
           

  

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SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

   Nine months Ended  
September 30		  

Nine months Ended

September 30

 
   2015   2014 
   Unaudited 
         
REVENUES   21,167    21,468 
COST OF REVENUES   7,650    4,888 
           
GROSS PROFIT   13,517    16,580 
           
OPERATING EXPENSES:          
   Research and development   1,976    2,751 
   Selling and marketing   4,391    4,881 
   General and administrative   2,775    1,663 
   Other (expense) Income   414    - 
           
Total operating expenses   9,556    9,295 
           
OPERATING  INCOME   3,961    7,285 
FINANCIAL EXPENSES,  NET   117    151 
           
INCOME BEFORE INCOME TAX   3,884    7,134 
INCOME TAX EXPENSES   630    - 
           
NET INCOME FOR THE PERIOD   3,214    7,134 
NET EARNINGS  PER SHARE:          
           
Basic   0.23    0.53 
           
Diluted   0.22    0.53 
           
Weighted average number of ordinary shares  used in computing basic income per share   14,675,702    13,500,867 
           
Weighted average number of ordinary shares  used in computing diluted income per share   14,850,061    13,585,651 
           

 

 

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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

September 30,

 
   2015   2014 
   Unaudited   Unaudited 
         
GAAP gross profit   3,189    6,912 
    Amortization of Software and IP   89    155 
    Stock-based compensation expenses   58    - 
           
Non-GAAP gross profit   3,336    7,067 
           
GAAP operating income   72    3,735 
    Amortization of Software and IP   89    155 
    Amortization of Customer Contracts   230    240 
    Stock-based compensation expenses   231    - 
    Expense related transaction DD   414    - 
           
Non-GAAP operating income   1,036    4,130 
           
GAAP net income   66    3,684 
    Amortization of Software and IP   89    155 
    Amortization of Customer Contracts   230    240 
    Stock-based compensation expenses   231    - 
    Expense  related transaction DD   414    - 
    Income Tax Expenses   -    - 
    1,030    4,079 
           
Non-GAAP Basic EPS   0.06    0.30 
           
           
GAAP net income for the period   66    3,684 
    Income tax  Expenses   -    - 
    Financial  expenses, net   6    51 
    Depreciation ,amortization and  stock-based compensation expenses   615    428 
    Expense  related transaction DD   414    - 
EBITDA (*)   1,101    4,163 
           
(*) 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)

 

 

     
  

Nine months ended

Septembere 30,

 
   2015   2014 
   Unaudited   Unaudited 
         
GAAP gross profit   13,517    16,580 
    Amortization of Software and IP   266    155 
    Stock-based compensation expenses   151    - 
           
Non-GAAP gross profit   13,934    17,045 
           
GAAP operating income   3,961    7,285 
    Amortization of Software and IP   266    465 
    Amortization of Customer Contracts   689    720 
    Stock-based compensation expenses   1,109    17 
    Expense related transaction DD   414    138 
           
Non-GAAP operating income   6,439    8,625 
           
GAAP net income   3,214    7,134 
    Amortization of Software and IP   266    465 
    Amortization of Customer Contracts   689    720 
    Stock-based compensation expenses   1,109    17 
    Expense  related transaction DD    414    138 
    Income Tax Expenses   630    - 
    6,322    8,474 
           
Non-GAAP Basic EPS   0.43    0.63 
           
           
GAAP net income for the period   3,214    7,134 
    Income tax  Expenses   630    - 
    Financial  expenses, net   117    151 
    Depreciation ,amortization and  stock-based compensation expenses   2,236    1,262 
    Expense  related transaction DD   414    138 
EBITDA (*)   6,611    8,685 
           
(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization. 

 

 

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