SuperCom Reports 51% Annual Revenue Growth, Non-GAAP EPS of $0.47 and 5-Year-Record EBITDA of $4.8 million for Full Year 2023
PR Newswire
TEL AVIV, Israel, April 22, 2024
FY 2023: 5-year-record Revenues $26.6 million; EBITDA Growth of 2350%
Q4 2023: Revenues $5.7 million; EBITDA $1.1 million; Non-GAAP EPS of $0.15
TEL AVIV, Israel , April 22, 2024 /PRNewswire/ -- SuperCom $(SPCB)$, a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the twelve months and fourth quarter, ended December 31, 2023.
Financial Highlights for Twelve-Months Ended December 31, 2023 (Compared to the Prior Year Period)
-- Annual Revenue increased by 51% to $26.6 million from $17.6 million,
marking a third consecutive year of revenue growth
-- Revenue from European countries increased by 85% to $17.7 million from
$9.6 million
-- IoT Segment Revenue increased by 52% to $23.8 million from $15.6 million
-- Gross profit increased by 60% to $10.2 million from $6.4 million
-- Net Loss in 2023 improved to a ($4.0) million loss from a ($7.5) million
Net Loss
-- Non-GAAP Net Profit in 2023 improved to a $3.2 million profit compared to
a ($2.3) million Net Loss
-- EBITDA increased 2350% to $4.8 million from $0.2 million
-- Non-GAAP EPS improved to $0.47 compared to $(0.61)
-- Cash, and cash equivalents and restricted cash, at end of 2023 increased
to $5.6 million from $4.5 million
Financial Highlights for Fourth Quarter 2023 Ended December 31, 2023 (Compared to the Fourth Quarter of 2022)
-- Revenue increased 11% to $5.7 million from $5.1 million
-- Gross profit increased 44% to $2.3 million from $1.6 million
-- Gross margin increased to 41.4% from 32%.
-- Net Loss of ($1.6) million loss from ($0.1) million Loss
-- EBITDA increased 43% to $1.1 million from $0.8 million
-- Working Capital at end of 2023 increased to $23.1 million from $21.1
million
Business Highlights:
-- SuperCom, through its wholly owned subsidiary, LCA, won new project in
California valued at up to $2.0 million to provide a comprehensive
jail-based program focusing on re-entry services for adult inmates.
-- LCA secured new EM contract in California with an established California
services provider in the judicial sector, displacing an incumbent
competitor.
-- SuperCom won new project in Canada with a renowned Canadian industry
partner in the tracking solutions sector.
-- SuperCom received a third order of $3.4 million from Romania's Ministry
of Interior, which was delivered in the fourth quarter of 2023.
-- SuperCom won and launched a $3 million contract to deliver Alcohol
Monitoring technologies in California through its wholly-owned subsidiary,
LCA. This contract is expected to extend till 2026.
-- SuperCom has expanded its footprint in Finland by securing and launching
a national program for the Electronic Monitoring of Domestic Violence
offenders. This program leverages SuperCom's cutting-edge PureSecurity
Suite to empower Finnish authorities to enhance citizen safety.
-- SuperCom launched a $3.6M national EM project in Finland with the
national government in Q1 2023. By May 2023, the PureSecurity EM Suite
was fully deployed in Finland, covering all EM offender programs -- house
arrest, GPS, and inmate monitoring.
-- SuperCom launched a $4.25 million contract to provide adult re-entry
services in Northern California through its wholly-owned subsidiary, LCA.
The project began in 2023, expanding LCA's existing day reporting and
electronic monitoring services to include jail-based and community-based
sites.
-- SuperCom launched a new project in Iceland, upgrading the company's
deployed system to support secured issuance of National ID cards and
passports.
-- SuperCom has significantly upgraded its technological suite, rolling out
PureProtect for domestic violence monitoring alongside the comprehensive
PureOne GPS tracking solution. The company has completed designs for
advanced AI integration into the PureSecurity platform, and
implementation is underway.
Management Commentary:
"We are immensely proud of our performance in 2023, surpassing expectations and delivering record-breaking growth and profitability. Our relentless pursuit of excellence and strategic initiatives propelled us to new heights, cementing our position as a frontrunner in the electronic monitoring industry," commented Ordan Trabelsi, President and CEO of SuperCom.
"Our expansion efforts globally yielded remarkable results, with annual revenue growth of 51% to a 5-year-record $26.6 million in annual revenues. We have not only sustained our growth trajectory but also accelerated it compared to the prior year, and in both years, outpaced the average industry growth by several multiples. We also achieved astonishing growth in EBITDA to a 5-year-record level of $4.8 million, reflecting operating leverage and cost optimizations. This growth is a testament to our competitive edge and ability to secure significant contracts, such as the $33 million national domestic violence project and other multiple high-value projects in Europe and California, reflecting our commitment to excellence and our ability to meet the diverse needs of our international clientele," continued Ordan.
"2023 also marked a year of pivotal technological evolution and innovation at SuperCom. We have designed advanced AI capabilities that are set to be integrated into our PureSecurity platform. Moreover, we significantly upgraded our technological suite and rolled out new solutions like PureProtect for domestic violence monitoring and PureOne for the North American market. These enhancements have allowed us to stay at the forefront of the electronic monitoring of offenders industry, consistently delivering solutions that meet and exceed the high standards our clients expect from us," continued Ordan.
"Looking ahead to 2024, we are focused on sustaining our momentum and leveraging our technological advancements to further penetrate existing markets and enter new ones. With a robust pipeline of projects and opportunities, coupled with our strong track record and recurring customer base, we are poised for continued expansion in the years to come. We remain committed to delivering superior value to our shareholders and enhancing the safety and security of the communities we serve," Ordan concluded.
Conference Call
The Company will hold a conference call on April 22, 2024, at 8:30 a.m. Eastern Time (3:30 p.m. Israel time) to discuss the fourth quarter and year end 2023 results, followed by a question and answer session.
Conference Call Dial-In Information: Date: Monday, April 22, 2024 Time: 8:30 a.m. Eastern Time / 5:30 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
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 www.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, 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.
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