SuperCom Announces Availability of its Annual Report on Form 20-F
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HERZLIYA, Israel and NEW YORK, May 18, 2016 /PRNewswire/ --
SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, announced today that it has filed its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission. This report contains, among other information, audited financial results for the twelve months ended December 31, 2015, which may be found in summary at the bottom of this release and supersede any previously released financial information provided by the Company.
In addition, this report provides disclosure on the conclusion of the Company's negotiations with On Track Innovations Ltd. ("OTI"), with respect to the earn-out liability and other claims, and it entering into a settlement agreement with OTI. As part of this agreement, the remaining earn-out related to SuperCom's acquisition of OTI's SmartID division which closed on December 23, 2013 was reduced from the remaining maximum contractual amount of $10.7 million to a maximum of $3.55 million, out of which an amount of up to $2.05 million was paid at the beginning of May 2016, and the remaining amount of $1.5 million will be subject to the original earn-out mechanism.
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 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.
SuperCom's website is http://www.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.
SUPERCOM LTD .
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
Year ended December 31,
2015 2014
Audited Audited
CURRENT ASSETS
Cash and cash equivalents 22,246 4,789
Restricted bank deposits 3,274 5,195
Trade receivable, net 15,122 11,628
Deferred tax short term 2,639 3,958
Other accounts receivable and prepaid expenses 1,199 1,190
Inventories, net 3,602 1,614
Total current assets 48,082 28,374
LONG-TERM ASSETS
Severance pay funds 216 325
Deferred tax long term 1,433 301
Property & equipment, net 888 616
Customer Contracts 4,052 4,587
Software and other IP 4,595 4,949
Other Intangible assets 1,988 -
Goodwill 4,688 3,722
Total Assets 65,942 42,874
CURRENT LIABILITIES
Trade payables 3,705 2,892
Employees and payroll accruals 1,488 944
Related parties 77 341
Accrued expenses and other liabilities 2,917 2,755
Advances from customers - 2,864
Short-term liability for future earn-out 2,051 2,870
Total current liabilities 10,238 12,666
LONG-TERM LIABILITIES
Long-term liability for future earn-out 931 1,477
Accrued severance pay 341 425
Total long-term liabilities 1,272 1,902
SHAREHOLDERS' EQUITY:
Ordinary shares 1,053 937
Additional paid-in capital 83,201 58,210
Accumulated deficit (29,822) (30,841)
Total shareholders' equity 54,432 28,306
65,942 42,874
SUPERCOM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Year ended December 31,
2015 2014
Audited Audited
Revenues 28,340 29,703
Cost of revenues 10,446 7,301
Gross profit 17,894 22,402
Operating expenses:
Research and development 3,669 3,359
Selling and marketing 6,611 7,036
General and administrative 3,947 2,773
Other expenses 2,174[1] 1,225
Total operating expenses 16,401 14,393
Operating income 1,493 8,009
Financial expenses, net (277) (133)
Income before income tax 1,216 7,876
Income tax expense (197) (1,675)
Net income 1,019 6,201
Net earnings per share:
Basic 0.07 $ 0.46
Diluted 0.07 $ 0.45
Weighted average number of
ordinary shares used
in computing basic earnings per share 15,047,496 13,560,490
Weighted average number of
ordinary shares used in
computing diluted earnings per
share 15,202,303 13,662,151
- Other expenses increased to $2.174m, primarily resulting from a conversion of total outstanding receivables from a certain customer, which amount to approximately $1.6m, to doubtful debt. The Company is in ongoing contact with the customer and will continue to make efforts to collect this full amount.
SUPERCOM LTD.
Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income
(U.S. dollars in thousands)
Twelve months Ended
December 31 December 31
2015 2014
GAAP gross profit 17,894 22,402
Amortization of Software and IP 354 354
Stock-based compensation expenses 309 -
Non-GAAP gross profit 18,557 22,756
GAAP operating income 1,493 8,009
Expenses related to doubtful debts 1,576 1,225
Amortization of Software and IP 354 354
Stock-based compensation expenses 1,528 -
Amortization of Customer Contracts 917 1,158
Expense related transaction DD 598 -
Non-GAAP operating income 6,446 10,746
GAAP net income 1,019 6,201
Expenses related to doubtful debts 1,576 1,225
Amortization of Software and IP 354 354
Stock-based compensation expenses 1,528 -
Amortization of Customer Contracts 917 1,158
Income tax expense 197 1,675
Expense related transaction DD 598 -
Non-GAAP net income 6,189 10,613
Non-GAAP Basic EPS 0.41 0.81
GAAP net income for the period 1,019 6,201
Income tax expense 197 1,675
Financial expenses, net 277 133
Expenses related to doubtful debts 1,576 1,225
Depreciation and amortization 3,201 1,788
Expense related transaction DD 598 -
EBITDA * 6,868 11,022
*EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes,
depreciation and amortization and other unrelated expense.
Investor Relations Contacts:
Brett Maas / Rob Fink
Hayden IR
+1-(646)-536-7331 / +1-(646)-415-8972
[email protected] / [email protected]
Company Contact:
Ordan Trabelsi, President Americas
Tel: +1-212-675-4606
[email protected]
SOURCE SuperCom
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