SuperCom gets $1.25m follow-on order from gov't customer
CE Unterberg, Towbin analyst James McIlree reiterated his "Market Perform" recommendation and target price of $0.74.
Globes correspondent 3 Apr 06 16:37
Smart card and electronic identification (e-ID) solutions provider SuperCom (Euronext: SUP; OTCBB: SPCBF) today announced that it has received a follow-on order from an unnamed government customer, following the successful implementation of an e-ID system that was delivered to the customer in 2005.
The contract, which includes raw materials supply, maintenance and software support services over a period of 5 years starting from the first quarter of 2006, is valued at $1.25 million.
"Our success in the first stage of this project led to this follow-on order", said Supercom CEO Eyal Tuchman. "This order demonstrates the overall strength in our business model and the visibility that it provides to our revenue stream for the upcoming years. We believe the strong working relationship that we have and are continuously building with this client will lead to further orders over the long-term."
SuperCom offers a wide range of standard and customized smart-card-based solutions for physical and logical security, education, corrections facilities, airports and seaports. It is also a leader in the manufacturing of secure and durable documents such as national identity cards, passports, visas, drivers' licenses and vehicle registration to improve homeland security, governmental efficiency and document ease of use.
Later today, CE Unterberg, Towbin analyst James McIlree reiterated his "Market Perform" recommendation and target price of $0.74. McIlree stated, "The SuperCom $1.25 million 5-year eID follow-on contract does not change our estimates nor our recommendation. Our 2006 revenue estimate of $9.1 million assumes the company receives two or three contract renewals from current customers. The upside to this would come if Supercom bags some of the larger deals the company is chasing (maybe three to four).
"At EV/sales of 1.6x, we believe the shares already incorporate improvement in margins we are forecasting. Until price point improves, or company demonstrates greater margin potential, we would remain on sidelines."
Published by Globes [online], Israel business news - www.globes.co.il - on April 3, 2006
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