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
FY 2023: 5-year-record Revenues
Q4 2023: Revenues
Financial Highlights for Twelve-Months Ended
- 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
- 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 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 establishedCalifornia services provider in the judicial sector, displacing an incumbent competitor. -
SuperCom won new project inCanada with a renowned Canadian industry partner in the tracking solutions sector. -
SuperCom received a third order of$3.4 million fromRomania'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 inCalifornia through its wholly-owned subsidiary, LCA. This contract is expected to extend till 2026. -
SuperCom has expanded its footprint inFinland by securing and launching a national program for the Electronic Monitoring of Domestic Violence offenders. This program leveragesSuperCom's cutting-edge PureSecurity Suite to empower Finnish authorities to enhance citizen safety. -
SuperCom launched a$3.6M national EM project inFinland with the national government in Q1 2023. ByMay 2023 , the PureSecurity EM Suite was fully deployed inFinland , covering all EM offender programs – house arrest, GPS, and inmate monitoring. -
SuperCom launched a$4.25 million contract to provide adult re-entry services inNorthern 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 inIceland , 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
"Our expansion efforts globally yielded remarkable results, with annual revenue growth of 51% to a 5-year-record
"2023 also marked a year of pivotal technological evolution and innovation at
"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
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Date: |
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Time: |
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888-506-0062 |
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1-809-423-853 |
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Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
About
Since 1988,
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
Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods.
Use of Non-GAAP Financial Information
In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in
Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of
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 Investor Relations:
ir@supercom.com
-Tables Follow-
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|||||
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As of |
|||
|
|
2023 |
|
2022 |
|
|
|
Unaudited |
|
Audited |
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash equivalents |
|
5,206 |
|
4,042 |
|
Restricted bank deposits |
|
371 |
|
463 |
|
Trade receivable, net |
|
13,357 |
|
10,852 |
|
Patents |
|
5,283 |
|
5,283 |
|
Other accounts receivable and prepaid expenses |
|
1,742 |
|
2,239 |
|
Inventories, net |
|
2,503 |
|
3,411 |
|
|
|
|
|
|
|
Total current assets |
|
28,462 |
|
26,290 |
|
|
|
|
|
|
|
LONG-TERM ASSETS |
|
|
|
|
|
Severance pay funds |
|
- |
|
482 |
|
Deferred tax long term |
|
501 |
|
501 |
|
Property and equipment, net |
|
2,701 |
|
1,640 |
|
Other intangible assts, net |
|
5,576 |
|
5,617 |
|
Operating lease right-of-use assets |
|
487 |
|
484 |
|
|
|
7,026 |
|
7,026 |
|
|
|
|
|
|
|
Total long-term assets |
|
16,291 |
|
15,750 |
|
|
|
|
|
|
|
Total Assets |
|
44,753 |
|
42,040 |
CURRENT LIABILITIES |
|
|
|
|
Short-term credit |
|
792 |
|
900 |
Trade payables |
|
1,883 |
|
1,267 |
Employees and payroll accruals |
|
1,015 |
|
1,339 |
Related parties |
|
100 |
|
168 |
Accrued expenses and other liabilities |
|
485 |
|
469 |
Short-term Operating lease liabilities |
|
401 |
|
381 |
Deferred revenues ST |
|
726 |
|
715 |
|
|
|
|
|
Total current liabilities |
|
5,403 |
|
5,239 |
|
|
|
|
|
LONG-TERM LIABILITIES |
|
|
|
|
|
|
|
|
|
Long-term loan |
|
33,952 |
|
32,600 |
Deferred revenues |
|
305 |
|
269 |
Deferred tax liability LT |
|
170 |
|
170 |
Accrued severance pay |
|
- |
|
523 |
Long-term Operating lease liabilities |
|
108 |
|
108 |
|
|
|
|
|
Total long-term liabilities |
|
34,535 |
|
33,670 |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
Ordinary shares |
|
9,094 |
|
3,057 |
Additional paid-in capital |
|
102,670 |
|
103,000 |
Accumulated deficit |
|
(106,948) |
|
(102,926) |
|
|
|
|
|
Total shareholders' equity |
|
4,816 |
|
3,131 |
|
|
|
|
|
Total liabilities and equity |
44,754 |
|
42,040 |
CONSOLIDATED STATEMENTS OF OPERATIONS (
|
|||||
|
|
Year ended |
|||
|
|
|
2023 |
|
2022 |
|
|
Unaudited |
Audited |
||
|
|
|
|
|
|
REVENUES |
|
|
26,570 |
|
17,649 |
COST OF REVENUES |
|
|
(16,347) |
(11,261) |
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
10,223 |
6,388 |
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
Research and development |
|
|
3,110 |
|
3,412 |
Selling and marketing |
|
|
2,200 |
|
2,657 |
General and administrative |
|
|
5,460 |
|
5,186 |
Other expense (income), net |
|
|
2,812 |
|
1,138 |
|
|
|
|
|
|
Total operating expenses |
|
|
13,582 |
|
12,393 |
|
|
|
|
|
|
OPERATING LOSS |
|
|
(3,359) |
|
(6,005) |
FINANCIAL EXPENSES, NET |
|
|
(663) |
|
(1,751) |
|
|
|
|
|
|
LOSS BEFORE INCOME TAX |
|
|
(4,022) |
|
(7,756) |
INCOME TAX EXPENSE |
|
|
- |
|
299 |
|
|
|
|
|
|
NET LOSS FOR THE PERIOD |
|
|
(4,022) |
|
(7,457) |
|
||||
|
|
|
||
|
|
Year ended |
||
|
|
|
2023 |
2022 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
|
GAAP gross profit |
|
|
10,223 |
6,388 |
Amortization of intangible assets |
|
|
354 |
354 |
One-time inventory write-off |
|
|
180 |
138 |
Stock-based compensation expenses |
|
|
13 |
17 |
Non-GAAP gross profit |
|
|
10,770 |
6,897 |
|
|
|
|
|
GAAP Operating Loss |
|
|
(3,359) |
(6,005) |
Amortization of intangible assets |
|
|
2,144 |
1,960 |
Stock-based compensation expenses |
|
|
243 |
138 |
One-time inventory write-off |
|
|
180 |
138 |
Foreign Currency Loss |
|
|
1,247 |
2,086 |
One-time reorganization expenses |
|
|
1,967 |
180 |
Allowance for doubtful debt in legacy business |
|
|
1,457 |
1,000 |
Non-GAAP operating profit |
|
|
3,849 |
(503) |
GAAP net Loss |
|
|
(4,022) |
(7,457) |
Amortization of intangible assets |
|
|
2,114 |
1,960 |
Stock-based compensation expenses |
|
|
243 |
138 |
One-time inventory write-off |
|
|
180 |
138 |
Foreign Currency Loss |
|
|
1,247 |
2,086 |
Income tax expense |
|
|
- |
(299) |
One-time reorganization expenses |
|
|
1,967 |
180 |
Allowance for doubtful debt in legacy business |
|
|
1,457 |
1,000 |
Non-GAAP net Profit (Loss) |
|
|
3,186 |
(2,254) |
Non-GAAP E.P.S |
|
|
0.47 |
(0.61) |
|
|
|
|
|
Net loss for the period |
|
|
(4,022) |
(7,457) |
Income tax expense |
|
|
- |
(299) |
Financial expenses (income), net |
|
|
663 |
1,751 |
Depreciation and Amortization |
|
|
3,104 |
2,660 |
One-time inventory write-off |
|
|
180 |
138 |
Stock-based compensation expenses |
|
|
243 |
138 |
Foreign Currency Loss |
|
|
1,247 |
2,086 |
Allowance for doubtful debt in legacy business |
|
|
1,457 |
1,000 |
One-time reorganization expenses |
|
|
1,967 |
180 |
EBITDA * |
|
|
4,839 |
197 |
* EBITDA is a non-GAAP financial measure generally defined as earnings before |
|
||||
|
|
|
||
|
|
Three months ended |
||
|
|
|
|
|
|
|
|
2023 |
2022 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
|
REVENUES |
|
|
5,668 |
5,122 |
COST OF REVENUES |
|
|
(3,320) |
(3,481) |
|
|
|
|
|
GROSS PROFIT |
|
|
2,348 |
1,641 |
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
Research and development |
|
|
651 |
662 |
Selling and marketing |
|
|
541 |
542 |
General and administrative |
|
|
1,993 |
1,328 |
Other expense, net |
|
|
1,614 |
1,138 |
|
|
|
|
|
Total operating expenses |
|
|
4,799 |
3,670 |
|
|
|
|
|
OPERATING LOSS |
|
|
(2,451) |
(2,029) |
FINANCIAL EXPENSES, NET |
|
|
896 |
1,627 |
|
|
|
|
|
LOSS BEFORE INCOME TAX |
|
|
(1,555) |
(402) |
INCOME TAX EXPENSE |
|
|
- |
299 |
|
|
|
|
|
NET LOSS FOR THE PERIOD |
|
|
(1,555) |
(103) |
|
|
||||||
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to net Income |
|
||||||
( |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|||
|
|
|
|||||
|
|
|
2023 |
2022 |
|
||
|
|
|
Unaudited |
Unaudited |
|
||
|
|
|
|
|
|
||
GAAP gross profit |
|
|
2,348 |
1,641 |
|
||
Amortization of intangible assets |
|
|
89 |
89 |
|
||
One-time inventory write-off |
|
|
180 |
138 |
|
||
Stock-based compensation expenses |
|
|
13 |
17 |
|
||
Non-GAAP gross profit |
|
|
2,630 |
1,885 |
|
||
|
|
|
|
|
|
||
GAAP Operating Loss |
|
|
(2,451) |
(2,029) |
|
||
Amortization of intangible assets |
|
|
685 |
549 |
|
||
Stock-based compensation expenses |
|
|
243 |
138 |
|
||
One-time inventory write-off |
|
|
180 |
138 |
|
||
Foreign Currency Loss |
|
|
238 |
607 |
|
||
One-time reorganization expenses |
|
|
451 |
180 |
|
||
Allowance for doubtful debt in legacy business |
|
|
1,457 |
1,000 |
|
||
Non-GAAP operating profit |
|
|
803 |
583 |
|
||
|
|
|
|
|
|
|
|
GAAP net Loss |
|
|
|
(1,555) |
(103) |
|
|
Amortization of intangible assets |
|
|
|
685 |
549 |
|
|
Stock-based compensation expenses |
|
|
|
243 |
138 |
|
|
One-time inventory write-off |
|
|
|
180 |
138 |
|
|
Foreign Currency Loss |
|
|
|
238 |
607 |
|
|
Income tax expense |
|
|
|
- |
(299) |
|
|
One-time reorganization expenses |
|
|
|
451 |
180 |
|
|
Allowance for doubtful debt |
|
|
|
1,457 |
1,000 |
|
|
Non-GAAP net Profit |
|
|
|
1,699 |
2,210 |
|
|
Non-GAAP E.P.S |
|
|
|
0.15 |
0.53 |
|
|
|
|
|
|
|
|
|
|
Net loss for the period |
|
|
|
(1,555) |
(103) |
|
|
Income tax expense |
|
|
|
- |
(299) |
|
|
Financial expenses (income), net |
|
|
|
(896) |
(1,627) |
|
|
Depreciation and Amortization |
|
|
|
975 |
732 |
|
|
One-time inventory write-off |
|
|
|
180 |
138 |
|
|
Stock-based compensation expenses |
|
|
|
243 |
138 |
|
|
Foreign Currency Loss |
|
|
|
238 |
607 |
|
|
Allowance for doubtful debt in legacy business |
|
|
|
1,457 |
1,000 |
|
|
One-time reorganization expenses |
|
|
|
451 |
180 |
|
|
EBITDA * |
|
|
|
1,093 |
766 |
|
|
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization and other non-cash or one-time expenses |
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