From SuperComs Q4 2015 CC
"Similarly cyber security encryption and data protection have also been an important component of our e-ID platform. Last month we announced accretive acquisition of Safend, a global data security company with a broad range of competitive and well known encryption and data protection solution.
Safend has thousands of customers in the United States, Europe and Asia including multinational enterprises, government agencies and small-to-mid sized companies around the globe, highly valuable potential for us with our SuperCom’s innovative product offerings. Safend was a subsidiary of Wave Systems Corp, which had acquired Safend in 2011 for more than $12.7 million. Safend's average annual revenues in recent years, is approximately $5 million in typical software license in gross margins.
The majority of these sales were generated through its parent worldwide distribution network which is no longer available to distribute Safend products. Going forward, while the high level services and support will continue as usual by the Safend team, new sales will be generated through Safend and SuperCom’s global distribution channel.
As a result of this transition annual average for Safend products in the near future is uncertain, but expected to grow and exceed historical levels after proper absorption into the new sales channel. It is noteworthy to mention that over 50% of the billings in 2014 and 2015 of Safend both for maintenance and support a strong recurring base we look forward to building on.
This integrates our many sales channels up and running effectively already through SuperCom and Safend around the globe. In consideration for the acquisition SuperCom provided Safend commitments up to $1.5 million of working capital to support its activity and growth through a structured debt to equity vehicle given the high margin recurring base of sales over the recent cost structure of Safend. We expect this acquisition to be quickly accretive and with significant growth to catch on."
5 Million a year in average revenues in recent years
spitball that since 2013
2013 total revs 24M
2014 total revs 17M
2015 3 quarters reported 7.6M
this product was providing the steadiest stream of revenue in the company
