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My impression is different.
They are squeezing out all the losers out of here!!! Ready for Booooooooooomage!!!!
The Risk
Let's take the possibly worst-case scenario. That would be that Trabelsi turns out to be a dreamer and nothing of his plans ever gets realized. So, what might SuperCom's shares be worth in that scenario? Let's say that the combined SuperCom & OTI show 0% growth in 2013 and 2014. Revenues are $26M and net income is $8M (ignoring any tax benefits). An amount of $8M in net income equals to $0.62 in EPS (taking 13M shares). Let's say the company stays under the radar and the market gives the company a low P/E of 9.
Year 2014 2015 2016 2017 2018
Net Income $21M $36M $54M $66M $75
Diluted Shares 18M 18M 18M 18M 18M
EPS $1.17 $2 $3 $3.67 $4.17
Share Price $17.5 $30 $45 $55 $62.5
Year 2014 2015 2016 2017 2018
Revenues
$70M $120M $180M $220M $250M
Growth Rate 133% 71.43% 50% 22.22% 13.46%
Management Commentary:
"We are immensely proud of our performance in 2023, surpassing expectations and delivering record-breaking growth and profitability. Our relentless pursuit of excellence and strategic initiatives propelled us to new heights, cementing our position as a frontrunner in the electronic monitoring industry," commented Ordan Trabelsi, President and CEO of SuperCom.
"Our expansion efforts globally yielded remarkable results, with annual revenue growth of 51% to a 5-year-record $26.6 million in annual revenues. We have not only sustained our growth trajectory but also accelerated it compared to the prior year, and in both years, outpaced the average industry growth by several multiples. We also achieved astonishing growth in EBITDA to a 5-year-record level of $4.8 million, reflecting operating leverage and cost optimizations. This growth is a testament to our competitive edge and ability to secure significant contracts, such as the $33 million national domestic violence project and other multiple high-value projects in Europe and California, reflecting our commitment to excellence and our ability to meet the diverse needs of our international clientele," continued Ordan.
"2023 also marked a year of pivotal technological evolution and innovation at SuperCom. We have designed advanced AI capabilities that are set to be integrated into our PureSecurity platform. Moreover, we significantly upgraded our technological suite and rolled out new solutions like PureProtect for domestic violence monitoring and PureOne for the North American market. These enhancements have allowed us to stay at the forefront of the electronic monitoring of offenders industry, consistently delivering solutions that meet and exceed the high standards our clients expect from us," continued Ordan.
"Looking ahead to 2024, we are focused on sustaining our momentum and leveraging our technological advancements to further penetrate existing markets and enter new ones. With a robust pipeline of projects and opportunities, coupled with our strong track record and recurring customer base, we are poised for continued expansion in the years to come. We remain committed to delivering superior value to our shareholders and enhancing the safety and security of the communities we serve," Ordan concluded.
SuperCom Path To $250M In Revenues By 2018
Jan. 22, 2014 2:27 PM ET | 1 comment | About: SPCB
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
SuperCom (SPCB) is a relatively unheard-of name. I suggest you read the excellent piece by Lazarus Investment Partners, which had the pleasure of interviewing the company's CEO. SuperCom is an Israeli company that operates in the RFID (radio frequency identification), and the e-ID (electronic ID) markets. Last week, an interview with Arie Trabelsi, the company CEO and major shareholder, caught my eye. Trabelsi has been leading SuperCom since 2010, when Sigma Wave, another company Trabelsi owns, acquired SuperCom's debt for a few million dollars. That debt was eventually converted to shares, and Trabelsi became the majority owner of SuperCom. A number of things got me to thinking that SuperCom might be a true gem. In this article I'll explain why I think you should definitely get to know the SuperCom name. I will also suggest a model that will enable you to follow the company in the coming years and tell if it is on course to achieve $250M in revenues by 2018 as Trabelsi suggests. So, what's the story with SuperCom?
1. An Impressive Turnaround
Usually, when CEOs make rosy declarations in the media, I would like to see their past record. SuperCom was a losing company up until Trabelsi took the company's reins. Initially, the financial situation was harsh.
(click to enlarge)
Source: SuperCom Investor Presentation
As you can see, it took the new management four quarters to turn the company around and bring it back to profitability. That is while revenues were pretty flat q/q. In my view, this is a sign of impeccable management skills and great execution of the turnaround plan.
(click to enlarge)
In Q2-13 the company reported shareholders equity was $4.8M, and working capital was $3.13M.
2. Trabelsi Has Ambitious Plans
In his interview, Trabelsi said he plans to achieve revenues of $250M by 2018. After the recent acquisition of the e-ID division of On Track Innovation (OTIV), SuperCom put forth a pro-forma estimation of the 2012 results of the combined entity.
(click to enlarge)
As you can see, in 2012 the combined entity had revenues of $26.3M. That means that Trabelsi aims to grow the business by a factor of almost 10 above 2012 levels. He plans to do so by 2018. You don't see a lot of CEOs that go forth and set such ambitious goals. Are Trabelsi's goals sustainable? What's the path to $250M? We'll come back to that shortly.
3. SuperCom Is Still Undervalued
SuperCom's shares traded at $6.81 a share (as of Friday the 17th), and according to a recent press release, for 2013, the first six months' net income was $4.12M. That means that the company is on the path of achieving a net income of ~$8.6M and an EPS of $0.66. That gives the company a P/E of about 10. If Trabelsi's goals are to be materialized, and SuperCom will start enjoying a recurring revenue stream from e-ID contract wins, SuperCom should grow its bottom line in very high double-digit rates. Giving the company a PEG of 1 will require a much higher PE than 10 (in the 30-40 range). Thus, I believe that even after the recent stock price appreciation, the company is still cheap.
4. Balance Sheets Are Clean
As of June 2013, SuperCom had $6.9M in current assets. The company has only a $81K short term bank debt. With a shareholders' equity of $4.8M and a working capital of $3.7M, the company looks like it is financially sound. While the current financial situation might prevent SuperCom from winning certain large contracts, with rapid growth rates expected, this will quickly change.
The Path toward $250M
Dilution
Assuming that SuperCom will make two more acquisitions in the next five years, I got to the following:
In the next five years, SuperCom will acquire two businesses, each with $10M in revenues.
I assume SuperCom will pay $15M-$20M for each business.
Until SuperCom's pockets get deeper, it probably won't have a lot of access to bank debt. In that case, SuperCom will raise the required funds through secondary offerings.
Assuming the first offering will be at $6 a share, and the second one at $8 a share, we are facing an additional dilution of about 5M shares in the worst-case scenario.
Taking into account that 5M dilution, the company will have 18M shares in 2018.
I wanted to add this assumption to the model to get ready for the worst-case scenario, dilution-wise.
The 2014 revenue figure is based on the notion that SuperCom will win three contracts in 2014. In the Lazarus-Trabelsi interview, Trabelsi mentioned that the sizes of contracts vary between $5M and $150M. Assuming $15M per contract, winning three contracts in 2014 should bring SuperCom to a run rate of $70M/year.
Assuming a CAGR of 50% and decelerating growth, the path to $250M in revenues might look like this:
Year 2014 2015 2016 2017 2018
Revenues
$70M $120M $180M $220M $250M
Growth Rate 133% 71.43% 50% 22.22% 13.46%
According to the Trabelsi interview with Lazarus Investment Partners, SuperCom management believes such growth is possible with organic growth alone. I took the conservative side and assumed two more acquisitions. SuperCom inherited a pipeline from OTI of bids in more than 20 countries around the world. Management expects to win a few contracts in 2014. This will be crucial to the company. According to the above model, SuperCom needs to win at least three big contracts a year in the e-ID business. So, this will be a very easy way of following the company's success. Looking into 2014, if SuperCom is to achieve their goals, we need to see a contract win within the April timeframe.
Don't Be Confused by Financial Income
The first six months of the 2013 results are showing $3M in tax benefits in comparison with $1.1M of income before tax. This might confuse investors. While tax benefits are without a doubt an asset, I don't like to base valuation upon big, non-operational items. SuperCom is showing that the combined entity had a net income of $4.6M in 2012, representing 38% of revenues. Just to be on the safe side of things, I'll assume a 30% net income margin, to make sure I'm not including any financial income in my model.
Valuation
When taking all of the above together, and taking a P/E of 15, I came up with:
Year 2014 2015 2016 2017 2018
Net Income $21M $36M $54M $66M $75
Diluted Shares 18M 18M 18M 18M 18M
EPS $1.17 $2 $3 $3.67 $4.17
Share Price $17.5 $30 $45 $55 $62.5
You can't afford to ignore these numbers. This is the potential reward you can get by riding along with Trabelsi and SuperCom. Of course, the reward is only one side of any investment. What's the risk?
The Risk
Let's take the possibly worst-case scenario. That would be that Trabelsi turns out to be a dreamer and nothing of his plans ever gets realized. So, what might SuperCom's shares be worth in that scenario? Let's say that the combined SuperCom & OTI show 0% growth in 2013 and 2014. Revenues are $26M and net income is $8M (ignoring any tax benefits). An amount of $8M in net income equals to $0.62 in EPS (taking 13M shares). Let's say the company stays under the radar and the market gives the company a low P/E of 9.
SPCB PE Ratio (
SPCB PE Ratio (TTM) data by YCharts
Applying those numbers gives us a stock price of $5.58 per share. That's a downside of 18.4% from Friday's closing price of $6.81.
Looking at both scenarios, the reward (2014 share price) is 8.5 times bigger than the risk. Not a risk/reward profile you stumble upon every day.
Conclusion
This could be a very interesting investment for those of you who can handle this level of risk. This will not be a gradual growing of the business, but rather a jumpy ride. I wanted to give you, the investors, both possible sides of this play. It is of the upmost importance to do your due diligence and know what factors affect the business you invest in. I hope that with the actual modeling of Mr. Trabelsi's goals, I have supplied you with a tool that you can refer to when you want to see if the company is on/off track. You know how many/how often contract wins should be reported each year, so you know what to expect from the company. Right now the goals are clear, and Trabelsi has proven he can live up to his goals in his turnaround of the company over the past two years. Will Trabelsi lead SuperCom to join the elite club of 10-baggers? Only the future will tell. You know the risks, and you know the potential reward. Choose and invest wisely.
HUBC News baby!!! SPCB Next explosion coming!!!
They are cheap, and so it will stay, so far I can judge this.
Even good numbers couldn’t help to jump and stay over .4.
So what should bring it higher.
Fill em bid$$ junkie$$ I want em cheapie$$$
HUBC Green G' Here comes green
US Government opening up the floodgates Cybersecurity
Yeah I wish you all the best, but I see here a history of dilution and Reversesplit.
Sorry, but I have no confidence in such companies.
2 weeks ago they sold new shares and warrants for .38, and they never reached that price, even the number couldn’t help.
So I will watch it, but I don’t think you can make money here.
With all the riots in USA university and college this technology will be gold
Don't get fooled by these tycoons,they want your shares low volume , mm manipulations here 100%all holding for gold
Well, I think you’re the only one who thinks that way.
Glty
Get ready for monster contract tomorrow morning$$$$$
Take out the news you dirty old rats!!!
More weakness hour than power hour.
I’ve heard that many times, it’s never been come true.
Get ready for news dude!!!!
It’s only going down since 1988 or so.
Just a dilution and Reversesplitjunkacademy from Israel.
No war or peace or Hisbolah or Iran or USA with Trump accepting Jerusalem as Capital or any other Fukka will ever change that.
That’s all one need to know.
Interesting reply, Bro!!! THANKS!!!
He isnt one, if not the greatest PUNK in human history yet? He is certainly at the top of the list! We are literally funding this war! Again, this is EXACTLY what the US wants. They love instability in the middle east. If we didnt have Israel, we would create an Israel!
LOL. the US will charge them with a war crime!!! That's too funny, this is EXACTLY what the US wants. The neocons are in charge in the white house, there will be NO peace any time soon. More the wars there are, the better! That's their mindset!
USA's Pres. JOE must step-up-to-the-plate and STOP all funding & otherwise commercial, industrial, and/or military interactions with Israel --- IMMEDIATELY!!! If he does NOT, then he will be one of the greatest PUNKS of Human History!!!! And, Israel will then secure its place in history --- ironically --- as yet another, garden-variety, HITLER/NAZI-like nation.
I have a different.
https://en.m.wikipedia.org/wiki/Israel
And I don’t care what other say or think.
As long as there are people which like to hate each other, there will be no peace.
To me it’s clear that the world is ruled by idiots, or that idiots have the power to rule people.
Much fun with that
There will be a reason why it’s not going really high.
And it will not be Israel’s policy.
Simply 'follow' your favorite World News media outlet --- and you won't believe what is about to transpire.
There is war about 80 years, and so it will stay for next 80 years.
SPCB: NOT a smart time to invest in a REPROBATE "nation" like Israel, Homeboys!!! (Ya-THINK???!!!) The USA, U.N., & NATO will very soon seize Israel at its core, arrest its "leader" for War Crimes, and thereby restore PEACE to the entire region.)
warrants AT .36 RDO S-3 8,116,155 $0.36 8,116,155 $2,900,000 Maxim 2024-4-18
https://dilutiontracker.com/app/search/SPCB
April 2024 Warrants
Not Registered
Remaining Warrants Outstanding
1,000,000
Exercise Price
$0.40
Total Warrants Issued
1,000,000
Known Owners
Armistice
March 2023 Warrants
EDGAR
Registered
Remaining Warrants Outstanding
0
Exercise Price
$0.42
Total Warrants Issued
1,517,615
Known Owners
Armistice
Underwriter/Placement agent
Maxim
Price Protection
Customary Anti-Dilution
PP Clause
-
Issue Date
2023-03-31
Exercisable Date
2023-03-31
Expiration Date
2028-03-31
Last Update Date
2024-03-12
August 2023 Warrants
EDGAR
Registered
Remaining Warrants Outstanding
0
Exercise Price
$0.42
Total Warrants Issued
2,082,484
Known Owners
Armistice
Underwriter/Placement agent
Maxim
Price Protection
Customary Anti-Dilution
PP Clause
-
Issue Date
2023-08-03
Exercisable Date
2023-08-03
Expiration Date
2028-08-03
Last Update Date
2024-03-12
Not really, sorry. But because for some reason it’s still below the warrant price from last week.
And can’t go really upside.
Should go above a buck.
Risk reaps rewards dude!!! Lift off declared$$$$
SPCB: Israel, Bro --- be very careful hear!!
Did you change your mind dude!!!
Bring it on baby!!!
SuperCom Receives over $5.0 Million in new Orders from European Governments
April 25 2024 - 8:00AM
PR Newswire (US)
Share On Facebook
Delivery of the New Orders expected in the Next Three Months
TEL AVIV, Israel, April 25, 2024 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, is pleased to announce the receipt of new orders by European governments. The orders are valued at over $5.0 million and are anticipated to be delivered in the next three months.
SuperCom_Logo
"We are pleased to continue our collaboration with European government customers, further solidifying our dedication to enhancing public safety through our innovative products and solutions. This demonstrates the continued validation of our cutting-edge technology, our steadfast dedication to project delivery, and the invaluable relationships we've cultivated with our discerning customers," commented Ordan Trabelsi, President & CEO of SuperCom
"The influx of new orders underscores our unwavering leadership in innovative electronic monitoring solutions for public safety on a global scale. SuperCom remains steadfast in our pursuit of excellence, guaranteeing seamless project execution and nurturing enduring collaborations with governments across the globe," Ordan concluded.
SuperCom's PureSecurity Suite is an end-to-end electronic monitoring solution with state-of-the-art GPS tracking, secured communication, monitoring technologies, and a secure software platform providing real-time tracking and Mon
Rocket boosters will all activate @.36
5 million in new orders not to shabby .52 around the corner
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SuperCom Ltd. (the “Company”) is an Israeli resident company organized in 1988 in Israel. On January 24, 2013 the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, the Company’s ordinary shares were approved for listing on the NASDAQ Capital Market and began trading under the ticker symbol “SPCB” on September 17, 2013. Previously, the Company’s ordinary shares traded on the OTCQB® electronic quotation service. |
The Company is a global provider of traditional and digital identity solutions, providing advanced safety, identification, tracking and security products to governments and organizations, both private and public, throughout the world. The Company provides cutting edge real-time positioning, tracking, monitoring and verification solutions enabled by its RFID &Mobile pure security advanced solutions suite of products and technologies, all connected to a web-based, secure, proprietary, interactive and user-friendly interface. The Company offers a wide range of solutions including, national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver’s licenses, and electronic voter registration and election management using the common platform (“MAGNA”).
State-of-the-art biometric identification and cyber security solutions to protect your nation,
For over 25 years, SuperCom has been a trusted partner with over 20 national governments around the world, recognized as a global leader in design, development, integration and delivery of highly secured national ID and e-government solutions.
Through one robust and unified platform, we integrate best-in-breed technologies to offer an array of interconnected, high value solutions.
Improve efficiency with real-time data on your patients and medical assets
SuperCom offers a variety of solutions for the healthcare market designed to improve safety and efficiency in healthcare facilities.
SuperCom's healthcare solutions are accessed, managed, and controlled from SuperCom's secure, cloud based software, creating an easy-to-use and cost effective platform that allows healthcare facilities to pick and choose the solutions they need, when they need them.
Solution Benefits:
Monitor and manage valuable assets such as: Pumps, Beds, Carts, Workstations On Wheels (WOWs), Cameras, and Monitors.
Instantly search and find a specific asset or the nearest asset and minimize staff search times for lost or misplaced assets.
Maximize asset utilization reducing the costs of excess units.
Receive alerts before equipment leaves a predefined area to prevent theft.
Trigger audio/visual alarms instantly if an asset approaches a restricted area or leaves the premises.
Automate location based inventory management which eliminates manual stock-taking.
How it works:
Small form factor tags are mounted on valuable or mission critical assets. Multiple tags and mounting options are available in order to suit many types of equipment. Each tag is assigned to a specific asset with a quick and intuitive process in the cloud based management software. Each unique asset is classified to an asset category. After assigning a tag to an asset, the asset can then be tracked and instantly located by the software. Custom, events, reports, and alerts can be created and the system can be configured to send automatic emails or SMS messages.
SuperCom offers secured mobile messaging apps for communication and data transfer between staff members at healthcare facilities. With SuperCom´s highly secure communication app healthcare facilities can enable a BOYD policy for staff members at the hospital cutting cost of dedicated communication devices. The app allows staff members to communicate and share medical data in an efficient, low cost, and most importantly, secure way. In addition, SuperCom also offers complete cyber security solution design and consulting services to make sure that patient data is safe and secure.
Digital and Cyber Security Product Offering
Complete Cyber Security solution design and consulting services.
Secure mobile messaging apps to enable a BYOD policy and ease internal communication and data flow without the need of purchasing additional communication devices.
HIPAA compliant, efficient, and secure data transfer.
SuperCom´s Emergency Response system is a great solution for home care, assisted living, and other long term care facilities. Using the system, residents can be monitored to ensure their safety, providing peace of mind for those who are living alone and for their loved ones. The waterproof wrist tag worn by the resident can be used to trigger an emergency call. The same can be done from the Base Unit which can also function as a two-way communication system with any phone number. The Tag can automatically identify a fall and trigger an emergency call from the Base Unit. The system allows continuous monitoring of the patient or resident even outside the range of the home unit using a dedicated mobile app.
How it works:
A wrist tag worn by the resident communicates with the Base Unit which forwards the data to the cloud software. The Tag can trigger an emergency call from the Base Unit to a predefined number. The Base Unit can also be used as a two-way communication device. When paired with the dedicated Mobile App, the resident can be monitored and trigger emergency calls even when not in range of the Base Unit. The resident´s GPS location is sent via the mobile app to the Cloud Monitoring Software.
Staff Safety and Workflow Solution Features
Indoor and outdoor coverage (via mobile app).
IP-68 rated tags (water and dust resistant)
Long lasting Tag battery – up to 4 years.
Cloud base software platform for central monitoring 24/7.
Multiple communication options: Land-line, Cellular, Wi-Fi.
Periodic self-test mechanism to ensure full system functionality.
The Companion Wander Detection Solution was designed to improve patient safety by utilizing the location and tracking capabilities of SuperCom´s Real Time Location System. With the Cloud Monitoring Software, users can set predefined rules and geo-fences in order to receive automatic alerts if a patient has wandered or is in danger. SuperCom´s wrist tag has a slim watch-like design which is comfortable to wear even while taking a shower or swimming. This allows non-intrusive tracking of patients or residents in order to ensure their safety. The Companion reader and Tag set is also available as a stand-alone product that does comes preconfigured and does not require any software.
Solution Benefits
Instantly search for any patient across the facility to find wandering patients.
Receive real-time alerts when a patient enters a restricted area or leaves the premises in order to protect them from eloping to unwanted areas and to prevent fall risks.
Improve patient care by monitoring patient wait times, bottle necks, and patient-staff contact times by generating reports and statistics on patient locations.
Trigger audio/visual alarms when patients come close to an unwanted area.
Identify patients or staff members that may have come in contact with an infected patient and may be at risk, by generating a dedicated report or viewing a BI dashboard.
How It Works
Each patient is assigned a tag in the Software´s Admit Screen. The Tags transmit a periodic message which is used by the system to monitor the patient. Using the software, wandering patients can be instantly located on a map and the location status of all patients can be viewed at a glance. In addition, SuperCom Readers can be mounted at predefined exits or chokepoints and instantly alert when a patient is at an unwanted location. The system can trigger an audio/visual alarm and/or automatically send an email or SMS.
The Staff Safety Solution leverages SuperCom´s Real Time Location System to protect and assist healthcare staff members in emergency situations. A staff member wearing a Tag can automatically signal a distress call by pressing a call button on the tag. The distress call is immediately forwarded to SuperCom´s Monitoring Software Application which in turn can trigger a variety of actions. For example a silent alarm can be sent via SMS or email to a predefined address or an audio/visual alarm can be activated at specific locations. The location capabilities of SuperCom´s system enable it to identify which room the call came from. This can be used to indicate to response teams the exact location of the distress call. The system also has the ability to track staff - patient interactions and provide analysis on potential infection risks as well as staff utilization.
Solution Benefits
?
Staff members can trigger silent alarms in the event of an attack or other emergency by pressing the tag call button.
Event locations are immediately forwarded to the Supercom Monitoring System with the exact room location.
Automatically log the patients that a staff member has come in contact with to identify potential infection risks.
Trigger audio/visual alarms at defined locations upon an emergency call button press.
Quickly search for a specific staff member or find the nearest nurse or doctor in the event of an emergency.
??Analyze workflows to reduce staff walking distance during shifts and improve efficiency.
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