Q2 2023: 5-Year-Record Revenue of $7.7 million, Non-GAAP EPS of $0.07, & EBITDA of $0.9 million; Trailing-Twelve-Month-Period: Revenue of $25.5 million & EBITDA of $2.5 million
TEL AVIV, Israel, July 31, 2023 /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 six months ended June 30, 2023.
Second Quarter Ended June 30, 2023, Financial Highlights (Compared to the Second Quarter of 2022)
Trailing-Twelve-Month Period Ended June 30, 2023, Financial Highlights (Compared to the prior twelve month period)
First Half Ended June 30, 2023, Financial Highlights (Compared to the First Half of 2022)
Recent Business Highlights:
Management Commentary:
"We are excited to announce breakthrough performance for Q2 2023, where we outperformed expectations on multiple fronts. Our efforts have catapulted us to new heights, realizing a substantial 141% YoY revenue growth, as well as record breaking quarterly revenue of $7.7 million and non-GAAP EPS of $0.07. Furthermore, this quarter closes an exceptional trailing-twelve-month period boasting $25.5 million in revenue and $2.5 million in EBITDA, underscoring our focus on sustained growth and profitability," commented Ordan Trabelsi, President and CEO of SuperCom.
"Our achievements are a testament to the unwavering dedication of our global multidisciplinary team in pursuing and executing groundbreaking public safety projects. Notably, the first national electronic monitoring project in Romania, valued at $33 million, and other lucrative recent new projects in Sweden, Finland, Croatia and California have contributed significantly to our success. When combined with a high recurring revenue base, a rapidly-growing track record of excellence, and our state-of-the-art proprietary technology suite, these accomplishments reinforce the positive trends driving our business," continued Ordan.
"SuperCom's proprietary technology has been a game-changer in competitive tenders worldwide, enabling us to displace incumbent vendors and make a significant impact on public safety around the globe. Our steadfast commitment to technology superiority is evident in our recent incorporation of AI capabilities into our products, along with the continuous launch of innovations such as the recent PureProtect and PureOne solutions. These efforts propel our business growth and solidify our path towards industry leadership. Our astute investments in research & development and sales & marketing have paved the way for global opportunities, enabling us to deliver exceptional value to our clients as we charge ahead resolutely towards our long-term strategic objectives," Ordan concluded.
Conference Call
SuperCom will hold a conference call today (July 31, 2023) at 8:30 a.m. Eastern time (3:30 p.m. Israel time) to discuss the company's financial and operating results for its quarter ended June 30, 2023, followed by a question and answer session.
Conference Call Dial-In Information:
Date: Monday, July 31, 2023
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
Link: https://www.webcaster4.com/Webcast/Page/2259/48786
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:
[email protected]
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.
*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.
SUPERCOM LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) | ||||
As of June 30, | As of December 31, | |||
2023 | 2022 | |||
Unaudited | Audited | |||
CURRENT ASSETS | ||||
Cash and cash equivalents | 1,139 | 4,042 | ||
Restricted bank deposits | 382 | 463 | ||
Trade receivable, net | 12,431 | 10,852 | ||
Patents | 5,283 | 5,283 | ||
Other accounts receivable and prepaid expenses | 2,353 | 2,239 | ||
Inventories, net | 3,059 | 3,411 | ||
Total current assets | 24,647 | 26,290 | ||
LONG-TERM ASSETS | ||||
Severance pay funds | 459 | 482 | ||
Deferred tax long term | 201 | 501 | ||
Property and equipment, net | 2,397 | 1,640 | ||
Other intangible assets, net | 5,504 | 5,617 | ||
Operating lease right-of-use assets | 260 | 484 | ||
Goodwill | 7,026 | 7,026 | ||
Total long-term assets | 15,847 | 15,750 | ||
Total Assets | 40,494 | 42,040 | ||
CURRENT LIABILITIES | ||||
Trade payables and other credit | 1,149 | 2,167 | ||
Employees and payroll accruals | 1,075 | 1,339 | ||
Related parties | 142 | 168 | ||
Accrued expenses and other liabilities | 283 | 469 | ||
Short-term Operating lease liabilities | 295 | 381 | ||
Deferred revenues ST | 507 | 715 | ||
Total current liabilities | 3,451 | 5,239 | ||
LONG-TERM LIABILITIES | ||||
Long-term loan | 32,909 | 32,600 | ||
Deferred revenues | - | 269 | ||
Deferred tax liability LT | 170 | 170 | ||
Accrued severance pay | 497 | 523 | ||
Long-term Operating lease liabilities | - | 108 | ||
Total long-term liabilities | 33,576 | 33,670 | ||
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares | 4,910 | 3,057 | ||
Additional paid-in capital | 104,073 | 103,000 | ||
Accumulated deficit | (105,516) | (102,926) | ||
Total shareholders' equity | 3,467 | 3,131 | ||
Total liabilities and equity | 40,494 | 42,040 |
SUPERCOM LTD. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(U.S. dollars in thousands) | |||
Three months ended | |||
June 30, 2023 | June 30, 2022 | ||
Unaudited | Unaudited | ||
REVENUES | 7,748 | 3,218 | |
COST OF REVENUES | (5,482) | (1,936) | |
GROSS PROFIT | 2,266 | 1,282 | |
OPERATING EXPENSES: | |||
Research and development | 849 | 933 | |
Selling and marketing | 556 | 762 | |
General and administrative | 1,290 | 1,346 | |
Other expense (income), net | 229 | - | |
Total operating expenses | 2,924 | 3,041 | |
OPERATING LOSS | (658) | (1,759) | |
FINANCIAL EXPENSES, NET | (397) | (1,055) | |
LOSS BEFORE INCOME TAX | (1,055) | (2,814) | |
INCOME TAX EXPENSE | - | - | |
NET LOSS FOR THE PERIOD | (1,055) | (2,814) | |
Net Loss Per Share: | |||
Basic and Diluted | (0.21) | (0.77) | |
Weighted average number of ordinary shares | 5,042,117 | 3,651,285 |
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, 2023 | June 30, 2022 | |||
Unaudited | Unaudited | |||
GAAP gross profit | 2,266 | 1,282 | ||
Amortization of intangible assets | 89 | 89 | ||
Non-GAAP gross profit | 2,355 | 1,371 | ||
GAAP Operating Loss | (658) | (1,759) | ||
Amortization of intangible assets | 452 | 472 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
Non-GAAP operating profit | 731 | (892) | ||
GAAP net Loss | (1,055) | (2,814) | ||
Amortization of intangible assets | 452 | 472 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
Non-GAAP net Loss | 334 | (1,947) | ||
Non-GAAP E.P.S | 0.07 | (0.5) | ||
Net loss for the period | (1,055) | (2,814) | ||
Financial expenses (income), net | 397 | 1,055 | ||
Depreciation and Amortization | 609 | 643 | ||
Foreign Currency Loss | 378 | 395 | ||
Non-cash or one-time expenses | 559 | - | ||
EBITDA * | 888 | (721) | ||
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, tax, depreciation
|
SUPERCOM LTD. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(U.S. dollars in thousands) | |||
Six months ended | |||
June 30, 2023 | June 30, 2022 | ||
Unaudited | Unaudited | ||
REVENUES | 14,124 | 6,264 | |
COST OF REVENUES | (10,276) | (3,648) | |
GROSS PROFIT | 3,848 | 2,616 | |
OPERATING EXPENSES: | |||
Research and development | 1,662 | 1,792 | |
Selling and marketing | 1,128 | 1,463 | |
General and administrative | 2,374 | 2,488 | |
Other expense (income), net | 405 | - | |
Total operating expenses | 5,569 | 5,743 | |
OPERATING LOSS | (1,721) | (3,127) | |
FINANCIAL EXPENSES, NET | (869) | (2,032) | |
LOSS BEFORE INCOME TAX | (2,590) | (5,159) | |
INCOME TAX EXPENSE | - | - | |
NET LOSS FOR THE PERIOD | (2,590) | (5,159) |
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, 2023 | June 30, 2022 | |
Unaudited | Unaudited | |
GAAP gross profit | 3,848 | 2,616 |
Amortization of intangible assets | 177 | 177 |
Non-GAAP gross profit | 4,025 | 2,793 |
GAAP Operating Loss | (1,721) | (3,127) |
Amortization of intangible assets | 983 | 927 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
Non-GAAP operating profit | 948 | (1,316) |
GAAP net Loss | (2,590) | (5,159) |
Amortization of intangible assets | 983 | 927 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
Non-GAAP net Loss | 79 | (3,348) |
Non-GAAP E.P.S | 0.02 | (1.01) |
Net loss for the period | (2,590) | (5,159) |
Financial expenses (income), net | 869 | 2,032 |
Depreciation and Amortization | 1,307 | 1,263 |
Foreign Currency Loss | 898 | 884 |
Non-cash or one-time expenses | 788 | - |
EBITDA * | 1,272 | (980) |
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, tax, depreciation and |
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SOURCE SuperCom
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