SuperCom, a global provider of secured solutions for the e-Government, IoT and Cybersecurity sectors, today reported results for the three months ended June 30, 2021.
Second Quarter 2021 Financial Highlights (Compared to the First Quarter of 2021):
- Revenue increased to $3,093 million from $3,032 million.
- Gross margin increased to 57.6% from 55.3%.
- EBITDA increased to $684,000 from $652,000.
- EBITDA margin increased to 22.1% from 21.5%.
- Cash and cash equivalents increased to $10.9 million from $9 million.
Recent Business Highlights:
- Won new project in California valued at up to $4 million providing support to offenders reentering the community from periods of incarceration with objective of driving a reduction in recidivism, which represents continued growth in demand for the various offerings in our IoT Tracking segment.
- Won $3.6 million national electronic monitoring project in Finland, through a competitive national RFP process, and scoring high by offering our proprietary PureSecurity Electronic Monitoring Suite.
- Experienced an increase in market activity in our IOT segment, resulting in more RFPs and interest in our proprietary IOT segment technology and service offerings in Europe and the USA.
- Opened a new office in Kentucky, with new sales, sales support and tech support resources tailored to our unique offerings for the USA market. Since the beginning of the second quarter, received requests to demo and evaluate our proprietary technology from over 15 new USA potential customers.
- Launched new HR programs to attract top talent and are actively recruiting and building world class engineering teams to build our next generation tracking and monitoring products
- Released new generations and capabilities to our smartphone based monitoring products and solutions including support for new OS and mobile phone architectures.
- Experienced continued high customer retention and strong relationships with existing customers across all 3 business segments.
- Closed $5 million financing, which will also help support the Company’s growth strategy.
Management Commentary:
“In the second quarter, we achieved sequential quarterly improvements in revenue and margins in parallel to winning new projects and increasing our investment in long-term growth. We continued to see momentum in our IoT Tracking segment as correctional institutions are increasingly looking at alternative solutions to address challenges associated with overpopulated prisons. Our remote monitoring solutions, which enable offenders to serve sentences in home confinement, are not only successful in addressing the overpopulated prisons issue, but also enable these institutions to experience substantial cost savings while also reducing recidivism among offenders,” said Ordan Trabelsi, President and CEO of SuperCom.
“At the end of the quarter, we closed $5 million in additional financing that consists of a two-year unsecured promissory note. Our financings help provide the upfront capital required to support new project deployments, while continuing to invest in growth, taking advantage of the opportunities we see in the market. We continue to execute on our business plan to offer exceptional value to our existing customers and to potential new ones as we expand our global footprint,” concluded Ordan.
