SuperCom Reports Record Financial Results for the First Quarter of 2014 - kotanow.com- Scottsbluff Area News, Sports, and Weather

SuperCom Reports Record Financial Results for the First Quarter of 2014

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE SuperCom Ltd.

Revenues of $5.3 million; EBITDA of $1.8 million; EBITDA margin of 33%

HERZLIYA, Israel, June 9, 2014 /PRNewswire/ -- SuperCom Ltd. (NASDAQ: SPCB), a leading provider of Electronic Intelligence Solutions for National ID, Public Safety and HealthCare, today announced its results for the first quarter of 2014. 

Financial Highlights of the first quarter of 2014 compared with the first quarter of 2013

  • Revenue was $5.3 million compared to $2.0 million last year;
  • Gross profit was $4.3 million compared to $1.7 million last year;
  • Operating income was $1.4 million compared to $0.7 million last year;
  • Non-GAAP operating income was $1.8 million (33% operating margin) compared to $0.7 million (32% operating margin) last year;
  • EBITDA was $1.8 million compared to $0.7 million last year;

"We are off to a great start in 2014 based on our financial results of the first quarter, the first full quarter since the acquisition of the SmartID division," commented Arie Trabelsi, CEO of SuperCom. "We achieved strong profitability with an EBITDA margin of 33%, which starts to demonstrate the significant cost synergies of our recent acquisition."

As was previously announced, during the first quarter, SuperCom was awarded over $29 million dollars in new contracts, the majority of which will be recognized during the last three quarters of 2014.

Continued Mr. Trabelsi, "Our revenues in the quarter were primarily recurring revenue. This, in combination with our newly awarded contracts, underlies our expectations of strong revenue growth and high levels of profitability in the coming quarters. In addition, in the coming months we hope to unleash further revenue potential from our fast growing pipeline of bids and proposals." 

Concluded Mr. Trabelsi, "We will continue to work hard to grow our company and execute on the substantial opportunities we see in our markets with the goal of maximizing value for all our shareholders."

Results Conference Call

The Company will host a conference call tomorrow, Tuesday, June 10, 2014 at 10:00 am ET. Company management will host the call and will be available to answer investors' questions after presenting the results of the first quarter of the combined business with the acquired SmartID division.

To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call:

US:     

1 888 668 9141      

at 10:00 am Eastern Time

Israel:

03 918 0609            

at 5:00 pm Israel Time

International:             

+972 3 918 0609             


For those unable to participate, the teleconference will be available for replay on SuperCom's website at http://www.supercom.com/ beginning 24 hours after the call.

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:    
Ehud Helft & Kenny Green
GK Investor Relations
Tel: 1 646 201 9246
supercom@gkir.com

Company Contact:
Ordan Trabelsi, VP US Operations   
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.

Use of Non-GAAP Financial Information
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this release of operating results 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 the Company's on-going 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.  However, such measures should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.  Reconciliation of the non-GAAP measures to the most comparable GAAP measures are provided in the schedules attached to this release.

** Tables to Follow **

 

 

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)








March 31,


December 31,



2014


2013



Unaudited


Audited






CURRENT ASSETS





   Cash and cash equivalents


1,375


2,673

Restricted bank deposits


577


85

Trade receivable, net


5,439


3,096

Deferred tax short term


2,013


2,183

Other accounts receivable and prepaid expenses


1,395


3,365

Inventories, net


982


707






Total current assets


11,781


12,109






LONG-TERM ASSETS





Severance pay funds


293


294

Deferred tax long term


4,100


3,930

Customer Contracts


7,860


8,100

Software and other IP


6,055


6,210

Goodwill


889


889

Property & equipment, net


287


176






Total Assets


31,265


31,708

CURRENT LIABILITIES





Short-term bank credit


1


1

Trade payables


1,640


1,689

Employees and payroll accruals


564


419

Related parties


337


434

Accrued expenses and other liabilities


1,805


3,636

Short-term liability for future earn-out


1,978


1,978






Total current liabilities


6,325


8,157






LONG-TERM LIABILITIES





Long-term liability for future earn-out


3,760


3,760

Accrued severance pay


476


399






Total long-term liabilities


4,236


4,159






SHAREHOLDERS' EQUITY:





Ordinary shares


906


904

Additional paid-in capital


55,504


55,530

Amount of liability extinguished on account of shares


-


-

Accumulated deficit


(35,706)


(37,042)






Total shareholders' equity


20,704


19,392







31,265


31,708

 


SUPERCOM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)









Three months ended
March 31,




2014

2013




Unaudited

Unaudited






REVENUES



5,308

2,032

COST OF REVENUES



1,023

304






GROSS PROFIT



4,285

1,728






OPERATING EXPENSES:





   Research and development



1,259

133

   Selling and marketing



1,117

704

   General and administrative



549

238






Total operating expenses



2,925

1,075






OPERATING  INCOME



1,360

653

FINANCIAL EXPENSES, NET



25

28






INCOME BEFORE INCOME TAX



1,335

625

INCOME TAX BENEFIT



-

850






NET INCOME FOR THE PERIOD



1,335

1,475











Basic



0.10

0.17






Diluted



0.10

0.15






Weighted average number of ordinary shares

 used in computing basic income per share



13,307,259

8,700,551






Weighted average number of ordinary shares

 used in computing diluted income per share



13,379,183

9,565,140

 

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,



2014

2013



Unaudited

Unaudited





GAAP gross profit


4,285

1,728

    Amortization of Software and IP


155

-





Non-GAAP gross profit


4,440

1,728





GAAP operating income


1,360

1,075

    Amortization of Software and IP


155

-

    Amortization of Customer Contracts


240

-





Non-GAAP operating income


1,755

1,075





GAAP net income


1,335

1,475

    Amortization of Software and IP


155

-

    Amortization of Customer Contracts


240

-

    Income Tax Benefit


-

(850)





Non-GAAP net income


1,730

625





Non-GAAP EPS


0.13

0.07





NET INCOME FOR THE PERIOD


1,335

1,475

    Income tax benefit


-

(850)

    Financial  expenses, net


25

28

    Depreciation and amortization


408

11





EBITDA *


1,768

664










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

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KDUH. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.