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SPCB...SuperCom Reports Financial Results for the First Quarter of 2019 With $1.7 Million in EBITDA, 29% EBITDA Margin, and Non-GAAP EPS $0.06
IOT Product revenue up over 55% year over year
TEL AVIV, Israel, June 10, 2019 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IOT, and Cybersecurity sectors reported income statement financial results for the first quarter of 2019.

First Quarter 2019 Financial Highlights (Compared to the First Quarter of 2018)

EBITDA increased by 41% to $1.7 million compared to $1.2 million.
EBITDA Margin increased to 29% compared to 17%.
Operating Income increased to a profit of $130 thousand from an operating loss of ($550 thousand).
Non-GAAP Gross Margin remains at roughly 58%.
Non-GAAP operating expenses improved by 39% to $2 million from $3.3 million.
Non-GAAP operating Income increased to $1.3 million from $0.9 million.
Non-GAAP Net Profit decreased to $.9 million or $0.06 per share from $1 million or $0.07 per share.
Total Revenue decreased to $5.7 million from $7 million.
IOT products sub-segment revenue increased by over 55%.
IOT segment revenue, increased by over 30%.
e-Gov segment revenue decreased by over 50%, given the Company's strategy to focus on North America and Europe.
Revenue from North America and Europe represented over 90% of total revenue in comparison to 67% in the previous year period.
Management Commentary

"The financial results of this first quarter reflect significant progress in our multi-year strategy and business plan. We have been able to leverage our strong global brand of over 30 years as a government contractor in national security and our proprietary technology to shift most of our business to developed countries and recurring revenue based segments of IOT and Cyber security software. Our percentage of revenue from developed countries out of our total revenues, which was less than 5% in 2015 and approximately 67% in first quarter 2018, has reached a high of over 90%. We also continued to work very hard on optimizing our operational cost structure to reach record levels since 2015 with quarterly Non-GAAP operating expenses as low as $2 million and EBITDA margins as high as 29%," commented Arie Trabelsi, President and CEO of SuperCom.

"While revenue has declined year over year, a closer look shows that it's in line with our overarching strategy, with the decline coming from e-GOV as we have diverted focus and resources away from emerging countries towards North America and Europe and our IOT and Cyber segments. IOT segment revenues have grown significantly year over year, with a majority of that growth, over 55%, coming from IOT products mainly around our EM PureSecurity suite technology, which has been performing excellently in competitive tenders around the world. We have announced the launch of 6 new projects in this space in 2019 alone, and expect continued wins and success going forward as our global presence and technology improve with every new project," continued Mr. Trabelsi.

"With a steady base of recurring revenues globally, a growing targeted pipeline of opportunities, a lean operating cost structure, and strong financial backing from Fortress, we are poised to grow our top line and cash flow generation in years to come," concluded Mr. Trabelsi.

First Quarter of 2019 and Recent Operational Highlights:

e-Gov:

Continued development and enhancement of project in Iceland, given its geographic location in Europe, and maintained relationships with customers in Africa and other developing regions, with existing SuperCom systems in place.
Diverted some resources from this segment to support growth in IOT and Cyber.
IoT:

Development of new innovative and market-disrupting features and capabilities to the PureSecurity EM suite, supporting new project deployments and allowing for increased competitive advantages in new bids.
Continued to bid and maintain high win rates in competitive tenders for electronic monitoring projects in Europe and in California, with some expansion into additional states in the USA.
In January 2019, announced launch of $7 million project with the national government of Sweden to deploy PureSecurity EM Suite.
In January 2019, announced new project with the national government of Estonia to deploy PureSecurity EM Suite to track and monitor up to 400 enrollees simultaneously.
In February 2019, secured an additional contract to provide PureSecurity EM Suite in Southern Georgia to an established service provider.
In April 2019, announced win of new project in North California valued at up to $6 million.
In May 2019, secured an additional contract to provide PureSecurity EM Suite in Tennessee to an established service provider.
In May 2019, announced win of new project in California valued at up to $3.7 million.
Continued support and deployment of more units in other new and existing customers globally.
Cyber Security:

Cyber segment had minimal growth of 2% year over year and maintained high retention as we prepare for new cyber products deployment to a strong long term customer base.
Continued progress in the development of new advanced cyber security products, adding more capabilities, including anti-malware, advanced data loss prevention, and location based port and device protection to be incorporated into the Safend cyber security platform.
SuperCom management will host the conference call.

Date: Monday, June 10, 2019
Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
U.S. toll-free: 877-407-9124
Israel toll-free: 180-940-6247
International: 201-689-8584

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

http://www.investorpoint.com/stock/SPCB-SuperCom%20Ltd./news/6261369948995623/