SuperCom Reports Second Quarter 2015 Financial Results
HERZLIYA, Israel, Sept. 16, 2015 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for e-Government, Public Safety, HealthCare, and Finance sectors, announced today its results for the quarter and six months ended June 30, 2015.
First Six Months 2015 Financial Highlights Compared to the First Six Months of 2014
- Revenue increased by 24% to $15.4 million compared to $12.4 million
- GAAP operating income increased by 8% to $ 3.9 million compared to $3.6 million
- Non-GAAP operating income increased by 20% to $5.4 million compared to $4.5 million
- EBITDA increased by 22% to $5.5 million (36% margin) compared to $4.5 million (37% margin)
- Non-GAAP EPS increased by 15% to $0.38 compared to $0.33
Second Quarter Financial Highlights Compared to the Second Quarter of 2014
- Revenue increased by 10% to $7.75 million compared to $7.06 million
- GAAP operating income was $1.3 million compared to $2.2 million
- Non-GAAP operating income was $2.3 million compared to $2.7 million
- EBITDA was $2.4 million (31% margin) compared to $2.7 million (39% margin)
- Non-GAAP EPS was $0.16 compared to $0.20
"We executed according to plan in the second quarter, achieving revenue growth and strong margins while dramatically broadening our new business pipeline and solution offerings in our fast growing target markets," commented Arie Trabelsi, SuperCom's President and CEO. "In parallel to the complex implementation of large government e-ID contracts, we executed on a number of strategic and operational initiatives including securing more than $7 million in follow on orders from existing e-ID customers, winning a highly strategic electronic offender monitoring tender with a new European government customer and strengthening our balance sheet by raising approximately $27 million net proceeds from a successful public offering. We also recognized nearly $2 million of high-margin revenues that we expected to recognize in late June, during the first weeks of July, shortly after the quarter closed."
"We made significant progress to strengthen and expand our e-ID and M2M businesses, while further developing our secure mobile payment offering and strengthening our market position," Mr. Trabelsi added. "The number, quality, stage and size of opportunities in our pipeline are increasingly encouraging. Based on the number of open proposals we have around the globe in various stages and in light of our strengthened balance sheet following the successful offering, we believe we are well positioned to win additional new contracts this year."
Mr. Trabelsi concluded, "I'm increasingly excited to see that more and more organization and governments around the world select SuperCom and its innovative secure solutions for their e-ID, M2M, and Secure Payment needs. With a growing base of recurring revenues and increasing demand for our solutions, I believe we will meet the guidance previously issued, adjusted to the increased new share count as a result of the successful public offering we completed in June."
Results Conference Call
The Company will host a conference call today, Wednesday, September 16, 2015 at 11 a.m. ET. (8 a.m. PT / 6 p.m. IL time) to review the company's financial results and business outlook.
To participate, please call one of the following telephone numbers a few minutes before the start of the call:
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US: |
1-888-708-5692 |
at 11 am Eastern Time |
|
Israel: |
1-80-925-8350 |
at 6 pm Israel Time |
|
International: |
1-913-981-5507 |
A live and archived webcast of the call will be available on the SuperCom investor relations website at http://www.supercom.com.
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
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Investor Relations Contacts: Brett Maas / Rob Fink Hayden IR (646) 536.7331 / (646) 415.8972 [email protected] / [email protected]
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Company Contact: Ordan Trabelsi, President Americas Tel: 1 212 675 4606
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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.
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SUPERCOM LTD.CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) | ||||
|
June 30, |
December 31, | |||
|
2015 |
2014 | |||
|
Unaudited |
Audited | |||
|
CURRENT ASSETS |
||||
|
Cash and cash equivalents |
32,393 |
4,789 | ||
|
Restricted bank deposits |
3,043 |
5,195 | ||
|
Trade receivable, net |
15,901 |
11,628 | ||
|
Deferred tax short term |
3,495 |
3,958 | ||
|
Other accounts receivable and prepaid expenses |
1,242 |
1,190 | ||
|
Inventories, net |
1,818 |
1,614 | ||
|
Total current assets |
57,892 |
28,374 | ||
|
LONG-TERM ASSETS |
||||
|
Severance pay funds |
102 |
325 | ||
|
Deferred tax long term |
134 |
301 | ||
|
Customer Contracts |
4,128 |
4,587 | ||
|
Software and other IP |
4,772 |
4,949 | ||
|
Goodwill |
3,722 |
3,722 | ||
|
Property & equipment, net |
855 |
616 | ||
|
Total Assets |
71,605 |
42,874 | ||
|
CURRENT LIABILITIES |
||||
|
Trade payables |
2,783 |
2,892 | ||
|
Employees and payroll accruals |
1,668 |
944 | ||
|
Related parties |
401 |
341 | ||
|
Accrued expenses and other liabilities |
2,981 |
2,755 | ||
|
Advances from customers |
- |
2,864 | ||
|
Short-term liability for future earn-out |
2,482 |
2,870 | ||
|
Total current liabilities |
10,315 |
12,666 | ||
|
LONG-TERM LIABILITIES |
||||
|
Long-term liability for future earn-out |
1,477 |
1,477 | ||
|
Accrued severance pay |
147 |
425 | ||
|
Total long-term liabilities |
1,624 |
1,902 | ||
|
SHAREHOLDERS' EQUITY: |
||||
|
Ordinary shares |
1,100 |
937 | ||
|
Additional paid-in capital |
86,259 |
58,210 | ||
|
Accumulated deficit |
(27,693) |
(30,841) | ||
|
Total shareholders' equity |
59,666 |
28,306 | ||
|
Total Liabilities and Shareholders' Equity |
71,605 |
42,874 | ||
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SUPERCOM LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) | |||
|
Three months Ended June 30 |
Three months Ended June 30 | ||
|
2015 |
2014 | ||
|
Unaudited | |||
|
REVENUES |
7,744 |
7,056 | |
|
COST OF REVENUES |
2,814 |
1,673 | |
|
GROSS PROFIT |
4,930 |
5,383 | |
|
OPERATING EXPENSES: |
|||
|
Research and development |
833 |
543 | |
|
Selling and marketing |
1,468 |
2,105 | |
|
General and administrative |
1,344 |
545 | |
|
Total operating expenses |
3,645 |
3,193 | |
|
OPERATING INCOME |
1,285 |
2,190 | |
|
FINANCIAL EXPENSES, NET |
117 |
75 | |
|
INCOME BEFORE INCOME TAX |
1,168 |
2,115 | |
|
INCOME TAX EXPENSES |
82 |
- | |
|
NET INCOME FOR THE PERIOD |
1,086 |
2,115 | |
|
NET EARNINGS PER SHARE: |
|||
|
Basic |
0.08 |
0.16 | |
|
Diluted |
0.08 |
0.16 | |
|
Weighted average number of ordinary shares used in computing basic income per share |
13,980,235 |
13,472,973 | |
|
Weighted average number of ordinary shares used in computing diluted income per share |
14,164,381 |
13,553,224 | |
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SUPERCOM LTD. CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except per share data) | |||
|
Six months Ended June 30 |
Six months Ended June 30 | ||
|
2015 |
2014 | ||
|
Unaudited | |||
|
REVENUES |
15,444 |
12,364 | |
|
COST OF REVENUES |
5,116 |
2,696 | |
|
GROSS PROFIT |
10,328 |
9,668 | |
|
OPERATING EXPENSES: |
|||
|
Research and development |
1,510 |
1,802 | |
|
Selling and marketing |
2,869 |
3,222 | |
|
General and administrative |
2,060 |
1,094 | |
|
Total operating expenses |
6,439 |
6,118 | |
|
OPERATING INCOME |
3,889 |
3,550 | |
|
FINANCIAL EXPENSES, NET |
111 |
100 | |
|
INCOME BEFORE INCOME TAX |
3,778 |
3,450 | |
|
INCOME TAX EXPENSES |
630 |
- | |
|
NET INCOME FOR THE PERIOD |
3,148 |
3,450 | |
|
NET EARNINGS PER SHARE: |
|||
|
Basic |
0.23 |
0.26 | |
|
Diluted |
0.22 |
0.26 | |
|
Weighted average number of ordinary shares used in computing basic income per share |
13,862,731 |
13,391,037 | |
|
Weighted average number of ordinary shares used in computing diluted income per share |
14,048,570 |
13,471,288 | |
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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, | |||
|
2015 |
2014 | ||
|
Unaudited |
Unaudited | ||
|
GAAP gross profit |
4,930 |
5,383 | |
|
Amortization of Software and IP |
88 |
155 | |
|
Stock-based compensation expenses |
56 |
- | |
|
Non-GAAP gross profit |
5,074 |
5,538 | |
|
GAAP operating income |
1,285 |
2,190 | |
|
Amortization of Software and IP |
88 |
155 | |
|
Amortization of Customer Contracts |
229 |
240 | |
|
Stock-based compensation expenses |
703 |
8 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
Non-GAAP operating income |
2,305 |
2,731 | |
|
GAAP net income |
1,086 |
2,115 | |
|
Amortization of Software and IP |
88 |
155 | |
|
Amortization of Customer Contracts |
229 |
240 | |
|
Stock-based compensation expenses |
703 |
8 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
Income Tax Expenses |
82 |
- | |
|
2,188 |
2,656 | ||
|
Non-GAAP Basic EPS |
0.16 |
0.20 | |
|
GAAP net income for the period |
1,086 |
2,115 | |
|
Income tax Expenses |
82 |
- | |
|
Financial expenses, net |
117 |
75 | |
|
Depreciation ,amortization and stock-based compensation expenses |
1,111 |
418 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
EBITDA (*) |
2,396 |
2,746 | |
|
(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization. | |||
|
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, | |||
|
2015 |
2014 | ||
|
Unaudited |
Unaudited | ||
|
GAAP gross profit |
10,328 |
9,668 | |
|
Amortization of Software and IP |
177 |
310 | |
|
Stock-based compensation expenses |
93 |
- | |
|
Non-GAAP gross profit |
10,598 |
9,978 | |
|
GAAP operating income |
3,889 |
3,550 | |
|
Amortization of Software and IP |
177 |
310 | |
|
Amortization of Customer Contracts |
459 |
480 | |
|
Stock-based compensation expenses |
878 |
17 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
Non-GAAP operating income |
5,403 |
4,495 | |
|
GAAP net income |
3,148 |
3,450 | |
|
Amortization of Software and IP |
177 |
310 | |
|
Amortization of Customer Contracts |
459 |
480 | |
|
Stock-based compensation expenses |
878 |
17 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
Income Tax Expenses |
630 |
- | |
|
5,292 |
4,395 | ||
|
Non-GAAP Basic EPS |
0.38 |
0.33 | |
|
GAAP net income for the period |
3,148 |
3,450 | |
|
Income tax Expenses |
630 |
- | |
|
Financial expenses, net |
111 |
100 | |
|
Depreciation ,amortization and stock-based compensation expenses |
1,621 |
834 | |
|
Expense for doubtful debt associated with old project from 2009 |
- |
138 | |
|
EBITDA (*) |
5,510 |
4,522 | |
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(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization. | |||
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SOURCE SuperCom