th5 new project launch from the start of the new year highlights rapid follow-on expansion through established regional partnerships TEL AVIV, Israel, Feb. 2, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, today announced the expansion of its electronic monitoring footprint into an additional county in Wisconsin. This latest win marks SuperCom's third project in the state, underscoring the company's ability to scale ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $6.2 million, down from $6.9 million in Q3 2024, reflecting a decrease due to revenue mix and timing of contract launches [13][16] - Gross profit increased to $3.8 million, with gross margins expanding to 60.8%, up from 45.6% a year ago [14] - Operating income surged to $640,000, up from around $30,000 in Q3 2024, with operating margins increasing to 10.3% [15] - EBITDA doubled to $2.2 million from $1.1 million in Q3 2024, reflecting EBITDA margins of 34.6% [15] - Net income reached $700,000, a turnaround from a net loss of $400,000 in the prior year [15] - Non-GAAP net income surged to $1.9 million, up from $350,000 last year [15] Business Line Data and Key Metrics Changes - The company secured over 30 new electronic monitoring contracts in the US since mid-2024, including entry into 12 new states [4][5] - The US presence was reinforced by a five-year reentry services contract valued at up to $2.5 million through its subsidiary, LCA [6] - The company expanded its international presence with a $7 million electronic monitoring project in Germany, marking a strategic foothold in Europe [7][8] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach $2.3 billion by 2028, with approximately 95% of that opportunity concentrated in the US and Europe [12] - The US market is estimated to be more than six times the size of the European market, making it a particularly attractive driver for long-term growth [12] Company Strategy and Development Direction - The company aims to address challenges in modern justice systems, including high recidivism rates and prison overcrowding, by providing scalable alternatives to incarceration [11] - The company continues to evaluate strategic acquisition opportunities in the US market to enhance market penetration and operational synergies [10] - The operational advantage in the US includes a cloud-based centralized platform, enabling faster and more cost-effective program launches [10][40] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of continuous innovation and investment in R&D, with over $45 million invested in electronic monitoring solutions [11][12] - The company expects to see more consistency in revenues as the US market matures and recurring revenue becomes a larger portion of total revenues [32][46] - Management noted that the current margins reflect a favorable mix of projects and contracts, with expectations for long-term margin resilience and expansion [19] Other Important Information - The company reduced its net debt by nearly $25 million over the past two years through strategic debt-to-equity exchanges [17] - Working capital stood at $41.8 million as of September 30, 2025, up from $26.1 million a year ago [18] - Book value of equity tripled to $40.8 million, up from $13.3 million a year ago [18] Q&A Session Summary Question: Market opportunity in Germany - The company sees potential for expansion in Germany following a recent $7 million project win, with expectations for growth in scale and capabilities [24] Question: Repeatable opportunities with service providers in the US - The company has signed 14 service providers this year, with many replacing existing technologies with SuperCom's advanced solutions [25][26] Question: Debt position decline in Q3 - The company confirmed ongoing strategic debt-to-equity swaps to reduce debt balance [27] Question: Revenue breakdown by geography - The company noted that revenue volatility is influenced by the mix of projects in different stages, with the US market showing strong growth potential [30][31] Question: Contract lengths and renewal rates - US contracts typically span five to ten years, with a high likelihood of renewal once agencies are satisfied with the technology [33][34] Question: Accounts receivable buildup - The company clarified that the increase in accounts receivable is due to the timing of revenue recognition in long-term projects, not collection issues [49][50] Question: Buyout rumors - The company acknowledged interest from various firms but emphasized that any decision will prioritize shareholder value [54]

Core Insights - SuperCom has been awarded a statewide technology procurement contract by the North Carolina Sheriff's Association, becoming the only new electronic monitoring technology provider selected through a competitive RFP process [1][4] - This contract allows all counties in North Carolina to contract directly with SuperCom on preset terms, facilitating efficient purchasing for law enforcement and public safety agencies [1][2] - The company plans to present its technology at a large conference organized by the North Carolina Sheriff's Association, aiming to expand its reach across the state [3] Company Performance - SuperCom met stringent requirements for the contract, including financial stability and positive feedback from five active U.S. customers [2] - Multiple solutions from SuperCom's Pure Security suite, including PureOne, PureTrack, and PureShield, were approved for procurement under this contract [2] - The contract will follow a recurring revenue model, with billing based on daily unit count [3] Strategic Expansion - The contract win is seen as a significant milestone in SuperCom's expansion strategy within the U.S. public safety market [4] - The company is exploring new avenues for U.S. expansion, with this award providing a potentially impactful opportunity [5] - State-level procurement vehicles are expected to enable faster sales cycles and broader access to counties across the U.S., enhancing SuperCom's confidence in its expansion trajectory [5]

Core Insights - SuperCom reported strong financial results for Q1 2025, with revenue of $7.05 million, a gross profit of $4.5 million, and a record gross margin of 63.3% [1][4][6] - The company achieved a net income of $4.2 million, significantly up from $0.8 million in the same quarter of 2024, and a non-GAAP net income of $5.24 million [1][4][6] - SuperCom's cash and cash equivalents increased to $17.1 million, and working capital improved to $38.9 million, reflecting a solid financial foundation for future growth [4][6] Financial Highlights - Revenue increased by 2.9% from $6.85 million in Q1 2024 to $7.05 million in Q1 2025 [4] - Gross profit grew by 18% from $3.8 million to $4.5 million [4] - Gross margin improved from 55.3% to 63.3%, marking a 10-year record [4] - Non-GAAP net income rose from $1.35 million to $5.24 million [4] - Cash and cash equivalents increased from $3.2 million at the end of 2024 to $17.1 million [4] - Working capital improved from $22.5 million at the end of 2024 to $38.9 million [4] - Book Value of Equity increased from $11.7 million at the end of 2024 to $34.8 million [4] Business Developments - Since mid-2024, SuperCom secured over 20 new electronic monitoring contracts across the U.S., including entries into eight new states [4] - The company was awarded a national electronic monitoring contract by the Israel Prison Service, actively monitoring over 1,200 offenders [4] - New contracts were announced in various U.S. states, including Utah, Kentucky, and Arizona, as well as a partnership with a Canadian service provider [4][6] - SuperCom's technology saw over 200% growth in PureTrack™ GPS units as of January 2025, reflecting strong market demand [4] Management Commentary - The CEO highlighted the company's record-breaking success in Q1 2025, driven by strong project execution and strategic financial agreements [6] - The management emphasized the importance of disciplined execution and expanding the global footprint, with a focus on public safety and long-term value creation [7]

Core Insights - SuperCom achieved record revenues of $27.6 million for FY 2024, marking a 134% increase from $11.8 million in 2020, and a 4% increase from $26.6 million in FY 2023 [9][10] - The company reported a gross margin of 48.4%, up from 38.5% in the previous year, and a gross profit of $13.4 million, which is a 31% increase from $10.2 million [9][10] - SuperCom recorded an EBITDA of $6.3 million for FY 2024, a 31% increase from $4.8 million in FY 2023, and the first full-year GAAP profitability since 2015 with a net income of $661 thousand [9][11] Financial Highlights for FY 2024 - Revenue increased by 134% to $27.6 million from $11.8 million in 2020 [10] - Gross profit rose by 140% to $13.4 million from $5.6 million in 2020 [10] - GAAP net income improved to a profit of $661 thousand in 2024 from a loss of $7.9 million in 2020 [10] - Non-GAAP net income shifted to a profit of $6.33 million from a loss of $1.7 million, a turnaround of over $8 million [10] - EBITDA more than doubled, growing to $6.3 million from $2.8 million [10] Financial Highlights for Q4 2024 - Revenue for Q4 2024 increased by 11.6% to $6.33 million from $5.67 million in Q4 2023 [9] - Gross profit for Q4 2024 increased to $2.7 million from $2.35 million, with a gross margin of 42.7% [9] - The net loss for Q4 2024 was ($1.86 million), compared to a loss of ($1.56 million) in Q4 2023, impacted by approximately $2 million of one-time items [9] Business Transformation and Strategy - SuperCom underwent a significant transformation since 2021, which has led to substantial improvements in financial and operational metrics despite global challenges [4][7] - The company secured over 20 new contracts in the U.S. and expanded into seven new states, enhancing its market presence [11][15] - In Europe, SuperCom reinforced its leadership position with new domestic violence monitoring contracts and expanded deployments [11][15] Management Commentary - The President and CEO highlighted 2024 as a breakthrough year with record financial milestones and the first full year of GAAP profitability in nearly a decade [11] - The company aims to scale its business and expand its global reach while delivering impactful solutions for public safety [12]