SuperCom Reports Third Quarter 2015 Financial Results
HERZLIYA, Israel, Dec. 22, 2015 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a leading provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, today announced its results for the third quarter and nine months ended September 30, 2015, completing the preliminarily-announced results on November 30th, 2015.
First Nine Months 2015 Financial Highlights Compared to the First Nine Months of 2014
- Revenue was $21.2 million compared to $21.5 million
- GAAP operating income was $ 4 million compared to $7.3 million
- Non-GAAP operating income was $6.4 million compared to $8.6 million
- EBITDA was $6.6 million compared to $8.7 million
- Non-GAAP EPS was $0.43 compared to $0.63
Third Quarter Financial Highlights Compared to the Third Quarter of 2014
- Revenue was $5.7 million compared to $9.1 million
- GAAP operating income was $72,000 compared to $3735,000
- Non-GAAP operating income was $1.0 million compared to $4.1 million
- EBITDA was $1.1 million compared to $4.2 million
- Non-GAAP EPS was $0.06 compared to $0.30
"As we already expressed on November 30th, 2015, we faced a number of challenges during the third quarter but the underlying fundamentals of our business remain strong," commented Arie Trabelsi, SuperCom's President and CEO. "Recent international events have put a renewed focus on the importance of global security, border control and secure verifiable identification. Countries around the globe are facing well-documented challenges related to border security which reinforce the need for more advanced identification around the world."
Mr. Trabelsi added, "Strong market demand, our growing array of innovative technology offerings and solutions, and our valuable pipeline of opportunities gives us confidence in implementing our business plan for 2016 and beyond. We continue to believe the company's shares remain undervalued, and we will continue opportunistically repurchasing shares under our current buy-back program," Mr. Trabelsi concluded.
About SuperComSince 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 advanced, secure mobile payments ranging from mobile wallet to mobile POS, using a set of components and platforms to enable secure mobile payments and financial services. SuperCom is a global provider of a unique all-in-one field-proven RFID & mobile PureSecurity advanced solutions 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' 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 |
Company Contact: Ordan Trabelsi, President Americas Tel: 1 212 675 4606 |
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. | ||||
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CONSOLIDATED BALANCE SHEETS | ||||
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(U.S. dollars in thousands) | ||||
|
September 30, |
December 31, | |||
|
2015 |
2014 | |||
|
Unaudited |
Audited | |||
|
CURRENT ASSETS |
||||
|
Cash and cash equivalents |
30,014 |
4,789 | ||
|
Restricted bank deposits |
3,043 |
5,195 | ||
|
Trade receivable, net |
16,792 |
11,628 | ||
|
Deferred tax short term |
3,495 |
3,958 | ||
|
Other accounts receivable and prepaid expenses |
1,352 |
1,190 | ||
|
Inventories, net |
2,393 |
1,614 | ||
|
Total current assets |
57,089 |
28,374 | ||
|
LONG-TERM ASSETS |
||||
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Severance pay funds |
127 |
325 | ||
|
Deferred tax long term |
134 |
301 | ||
|
Customer Contracts |
3.898 |
4,587 | ||
|
Software and other IP |
4,683 |
4,949 | ||
|
Goodwill |
3,722 |
3,722 | ||
|
Property & equipment, net |
1,981 |
616 | ||
|
Total Assets |
71,634 |
42,874 | ||
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CURRENT LIABILITIES |
||||
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Trade payables |
3,466 |
2,892 | ||
|
Employees and payroll accruals |
1,408 |
944 | ||
|
Related parties |
222 |
341 | ||
|
Accrued expenses and other liabilities |
2,878 |
2,755 | ||
|
Advances from customers |
- |
2,864 | ||
|
Short-term liability for future earn-out |
2,021 |
2,870 | ||
|
Total current liabilities |
9,995 |
12,666 | ||
|
LONG-TERM LIABILITIES |
||||
|
Long-term liability for future earn-out |
1,477 |
1,477 | ||
|
Accrued severance pay |
187 |
425 | ||
|
Total long-term liabilities |
1,664 |
1,902 | ||
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SHAREHOLDERS' EQUITY: |
||||
|
Ordinary shares |
1,100 |
937 | ||
|
Additional paid-in capital |
86,502 |
58,210 | ||
|
Accumulated deficit |
(27,627) |
(30,841) | ||
|
Total shareholders' equity |
59,975 |
28,306 | ||
|
Total Liabilities and Shareholders' Equity |
71,634 |
42,874 | ||
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SUPERCOM LTD. | |||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||
|
(U.S. dollars in thousands, except per share data) | |||
|
Three months Ended September 30 |
Three months Ended September 30 | ||
|
2015 |
2014 | ||
|
Unaudited | |||
|
REVENUES |
5,723 |
9,104 | |
|
COST OF REVENUES |
2,534 |
2,192 | |
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GROSS PROFIT |
3,189 |
6,912 | |
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OPERATING EXPENSES: |
|||
|
Research and development |
466 |
949 | |
|
Selling and marketing |
1,522 |
1,659 | |
|
General and administrative |
715 |
569 | |
|
Other (expense) Income |
414 |
- | |
|
Total operating expenses |
3,117 |
3,177 | |
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OPERATING INCOME |
72 |
3,735 | |
|
FINANCIAL EXPENSES, NET |
6 |
51 | |
|
INCOME BEFORE INCOME TAX |
66 |
3,684 | |
|
INCOME TAX EXPENSES |
- |
- | |
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NET INCOME FOR THE PERIOD |
66 |
3,684 | |
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NET EARNINGS PER SHARE: |
|||
|
Basic |
0.00 |
0.27 | |
|
Diluted |
0.00 |
0.27 | |
|
Weighted average number of ordinary shares used in computing basic income per share |
16,266,297 |
13,715,751 | |
|
Weighted average number of ordinary shares used in computing diluted income per share |
16,413,434 |
13,800,536 | |
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SUPERCOM LTD. | |||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||
|
(U.S. dollars in thousands, except per share data) | |||
|
Nine months Ended September 30 |
Nine months Ended September 30 | ||
|
2015 |
2014 | ||
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Unaudited | |||
|
REVENUES |
21,167 |
21,468 | |
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COST OF REVENUES |
7,650 |
4,888 | |
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GROSS PROFIT |
13,517 |
16,580 | |
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OPERATING EXPENSES: |
|||
|
Research and development |
1,976 |
2,751 | |
|
Selling and marketing |
4,391 |
4,881 | |
|
General and administrative |
2,775 |
1,663 | |
|
Other (expense) Income |
414 |
- | |
|
Total operating expenses |
9,556 |
9,295 | |
|
OPERATING INCOME |
3,961 |
7,285 | |
|
FINANCIAL EXPENSES, NET |
117 |
151 | |
|
INCOME BEFORE INCOME TAX |
3,884 |
7,134 | |
|
INCOME TAX EXPENSES |
630 |
- | |
|
NET INCOME FOR THE PERIOD |
3,214 |
7,134 | |
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NET EARNINGS PER SHARE: |
|||
|
Basic |
0.23 |
0.53 | |
|
Diluted |
0.22 |
0.53 | |
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Weighted average number of ordinary shares used in computing basic income per share |
14,675,702 |
13,500,867 | |
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Weighted average number of ordinary shares used in computing diluted income per share |
14,850,061 |
13,585,651 | |
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SUPERCOM LTD. | |||
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Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income | |||
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(U.S. dollars in thousands) | |||
|
Three months ended September 30, | |||
|
2015 |
2014 | ||
|
Unaudited |
Unaudited | ||
|
GAAP gross profit |
3,189 |
6,912 | |
|
Amortization of Software and IP |
89 |
155 | |
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Stock-based compensation expenses |
58 |
- | |
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Non-GAAP gross profit |
3,336 |
7,067 | |
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GAAP operating income |
72 |
3,735 | |
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Amortization of Software and IP |
89 |
155 | |
|
Amortization of Customer Contracts |
230 |
240 | |
|
Stock-based compensation expenses |
231 |
- | |
|
Expense related transaction DD |
414 |
- | |
|
Non-GAAP operating income |
1,036 |
4,130 | |
|
GAAP net income |
66 |
3,684 | |
|
Amortization of Software and IP |
89 |
155 | |
|
Amortization of Customer Contracts |
230 |
240 | |
|
Stock-based compensation expenses |
231 |
- | |
|
Expense related transaction DD |
414 |
- | |
|
Income Tax Expenses |
- |
- | |
|
1,030 |
4,079 | ||
|
Non-GAAP Basic EPS |
0.06 |
0.30 | |
|
GAAP net income for the period |
66 |
3,684 | |
|
Income tax Expenses |
- |
- | |
|
Financial expenses, net |
6 |
51 | |
|
Depreciation, amortization and stock-based compensation expenses |
615 |
428 | |
|
Expense related transaction DD |
414 |
- | |
|
EBITDA (*) |
1,101 |
4,163 | |
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(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, onetime expenses, depreciation andamortization. | |||
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SUPERCOM LTD. | |||
|
Reconciliation Table of GAAP to Non-GAAP figures and EBITDA to Net Income | |||
|
(U.S. dollars in thousands) | |||
|
Nine months ended September 30, | |||
|
2015 |
2014 | ||
|
Unaudited |
Unaudited | ||
|
GAAP gross profit |
13,517 |
16,580 | |
|
Amortization of Software and IP |
266 |
155 | |
|
Stock-based compensation expenses |
151 |
- | |
|
Non-GAAP gross profit |
13,934 |
17,045 | |
|
GAAP operating income |
3,961 |
7,285 | |
|
Amortization of Software and IP |
266 |
465 | |
|
Amortization of Customer Contracts |
689 |
720 | |
|
Stock-based compensation expenses |
1,109 |
17 | |
|
Expense related transaction DD |
414 |
138 | |
|
Non-GAAP operating income |
6,439 |
8,625 | |
|
GAAP net income |
3,214 |
7,134 | |
|
Amortization of Software and IP |
266 |
465 | |
|
Amortization of Customer Contracts |
689 |
720 | |
|
Stock-based compensation expenses |
1,109 |
17 | |
|
Expense related transaction DD |
414 |
138 | |
|
Income Tax Expenses |
630 |
- | |
|
6,322 |
8,474 | ||
|
Non-GAAP Basic EPS |
0.43 |
0.63 | |
|
GAAP net income for the period |
3,214 |
7,134 | |
|
Income tax Expenses |
630 |
- | |
|
Financial expenses, net |
117 |
151 | |
|
Depreciation, amortization and stock-based compensation expenses |
2,236 |
1,262 | |
|
Expense related transaction DD |
414 |
138 | |
|
EBITDA (*) |
6,611 |
8,685 | |
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(*) EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, onetime expenses, depreciation andamortization. | |||
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SOURCE SuperCom