Tel Aviv, Israel--(Newsfile Corp. - May 20, 2024) - SuperCom (NASDAQ: SPCB) is a global provider of secured solutions for e-Government, IoT, and Cybersecurity sectors. The company offers a unique all-in-one field-proven RFID & GPS tracking technologies product suite, enhanced by complementary services targeting businesses from various industries, including security, public safety, law enforcement, domestic violence prevention, and electronic monitoring of offenders. The company's recent aggressive push to the public safety sector has been met with client and investor praise. 

To find out why, Hawk Point Media met with SuperCom President and CEO Ordan Trabelsi, allowing him to provide insights into what led to the company's 5-year-best 2023 performance and drivers for continued success. Here's what he said:

Q: SuperCom is an under-the-radar company to many investors. But not so in the professional world, where SuperCom is entering its 37th year of business. How can you reconcile that disconnect?

A: First, we continue to do what we do best—remain an innovation leader and a global provider of traditional and digital identity monitoring solutions. From there, it will be up to investors to appraise our company's fair market value, which, at current levels, I consider falling short of a fair intrinsic valuation of our business.

It's my job to close that gap by providing tangible proof and showing our inherent potential from a world-class asset portfolio that can reshape the identification, monitoring, and public safety landscape while serving a growing list of government and private sector clients. Once investors understand how deeply ingrained we are in the high-barrier niche sector of public safety, which we show through our recently posted 5-year record high revenues and EBITDA, my job of creating shareholder value becomes much easier.

As we continue highlighting progress, it can happen faster than many expect, bringing market cap valuation more in line with our operating performance. We had to go through a similar process of education and showing consistent performance to help the investment community become aware of the intrinsic value of another business unit of ours from 2012 to 2014, and accordingly, the stock price appreciated by over 2000% in that period.

Q: Since you referenced operating performance, how are things going in that respect?

A: In a word- excellent. Let me start by pointing out our 2023 results, which we reported last month. First, SuperCom posted 5-year-record revenues of $26.6 million, a 51% increase year-over-year that contributed to EBITDA of $4.8 million, a 2350% increase over the prior period. That's not all.

Our Gross Profit surged 60% year-over-year to $10.2 million, which resulted, in part, from a strong Q4 that delivered $5.7 million, generated EBITDA of $1.1 million, and EPS of $0.15. That's excellent news from a new historical perspective. However, I wanted to highlight that first because we are also off to a great start in 2024.

Our subsidiary, Leaders in Community Alternatives (LCA), secured a new electronic monitoring (EM) contract with an established California services provider in the judicial sector worth about $2 million. We also added additional revenue-generating business in Canada and another new EM contract in California.

Additionally, SuperCom's IoT division announced receiving new orders from European governments value at $5 million and expected to be delivered during the next three months.

So, to refer back to your original question- winning more contracts while streamlining our operations and demonstrating improved performance quarter after quarter, year after year - that's how valuation gaps get closed.

Q: Are other value drivers contributing to that intention?

A: Yes. In late 2022, we won the largest project of that year in the industry, valued at $33 million, with Romania's Ministry of Interior. We achieved another significant milestone with this project by further establishing our reputation in executing large-scale national projects. We also announced launching a $3.6 million national EM project in Finland with the national government started last year, commenced a $4.25 million contract to provide adult re-entry services in Northern California, and implemented a new project in Iceland to upgrade its systems to support the secured issuance of National ID cards and passports. Those contracts were announced last year and continue to fortify revenue streams and help expedite the expansion of our business footprint.

Another key driver to our success lies in our innovative, top-notch technology. Recently, we successfully finalized the development and deployment of two new products. One is the life-saving PureProtect for domestic violence monitoring, which was successfully implemented in multiple projects, including a $33 million Nation EM project in Romania with a focus on protection from domestic violence. The other is the all-in-one ankle-bracelet monitoring solution called PureOne. Both products have been well-received and significantly expand the Company's addressable market. We are confident that both products will facilitate SuperCom's expansion into the US market.

Q: In preparing for this interview, I noticed that SuperCom is very focused on earning more market share in criminal justice. Why?

A: The electronic monitoring of offenders industry presents an opportunity for continued revenue growth, with analysts' forecast estimating a $2.3 billion market size by 2028. Furthermore, we have the right solutions and positioning to quickly capitalize as we've done in past years, where we grew multiples faster than the industry average. Remember, we already have a significant presence in the space, and with every new project win, we enhance our track record and technology capabilities, sharpening our competitive edge toward future expansion opportunities.

Keep in mind that our company's record-setting performance isn't the result of just being in a hot sector at the right time. It's from having the right technology and products to help criminal justice system clients overcome challenges and make better use of the over $80 billion spent annually in the USA on operating rehabilitation centers and prisons. With research showing an approximately 75% recidivism rate in the USA, there is significant room for improvement when effective programs and technology are deployed.

We believe, as supported by studies, that a technology-based, data-driven approach to rehabilitation and reintegration strategies is not only a better course of action but could help reduce the recidivism rate to roughly 35%, which could save billions of dollars in the process.

Q: Why Are SuperCom products and service platforms a better choice?

A: We offer highly advanced technology that is several steps ahead of the competition. We are happy to see our customers appreciate this as we score highly on the technology and innovation sections of the government-run competitive processes. For instance, the battery of our Pure Tag bracelet can run for over a year without charging, while competitors typically require charging their ankle bracelets daily. Our location tracking is more accurate and shows movements underground and within buildings. Our products are small, ergonomic, and lightweight. These are just a few examples from a long list of features and attributes our solutions present in a leading fashion.

SuperCom's electronic monitoring and house arrest solutions provide a cost-effective and humane-centered alternative to incarceration in overcrowded facilities, thereby improving living conditions and enhancing rehabilitation outcomes. Offenders aren't the only beneficiaries.

In addition, our technologically advanced products prioritize protecting vulnerable populations, including victims of domestic violence. This is achieved with the help of our technology, which acts as a preventive measure that offers rapid response mechanisms, secure communication channels, and, most importantly, real-time monitoring to safeguard lives and maintain community peace.

By the way, our product portfolio's technological and innovative prowess results from significant investment. Since 2014, we've invested over $40 million in R&D, on top of the long track record of success of our R&D teams, which has resulted in over 100 patents. So, we are more than a competitor in many respects. Our IP portfolio shows we are a sector trailblazer that has pushed technological boundaries and raised the benchmark for excellence.

Q: That shows in your reported contract win rate. It's over 60%, correct?

A: Even slightly better than that. Our solutions' distinctions are inherent advantages in many respects and have led us to a contract win rate of over 65% in National Government Tenders in Europe. As we expand our footprint globally, we hope to achieve high win rates in newer geographies in our expansion plan such as the USA and Canada. Considering there are roughly 10 international players in the industry, this win rate is quite significant.

Q: Entering the middle of Q2, your recent news indicates that's the path your company is on. Any final thoughts on how you plan to turn that ambition into progress?

A: We will meet goals by staying true to what we've done since 1988 - remaining committed to revolutionizing government sectors through superior technology and solutions. This approach has made us leaders in providing highly advanced offender tracking and monitoring solutions, and by keeping ahead of fast-changing technology, we will retain that position. That's part of our mission each day.

Clients recognize our dedication, including the value of our cutting-edge RFID and GPS tracking technologies, which could be the best at providing practical, effective, and scalable monitoring solutions for tracking offenders. Most importantly, we are creating products and platforms that are mindful of all stakeholders involved, especially end users. We believe that people should be provided an opportunity to make amends and become a better version of themselves. We see our technology as a facilitator of this approach. Our solutions empower governments to use alternative ways to manage their incarcerated populations. By partnering with SuperCom, nations globally can improve the safety of their communities.

In other words, we provide a proactive means of supervision that doesn't necessarily need to be physical. The same intent can be accomplished by monitoring and restricting the movements of convicted offenders without resorting to punitive action or prolonged incarceration. That can be invaluable to a better rehabilitation process. We've made sure our solutions can contribute to that cause, which can not only provide more manageable monitoring solutions, but can also increase stakeholder value simultaneously.

End Interview

This interview is published with permission from Hawk Point Media Group, Llc.

About SuperCom

Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification, and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries including security and safety, community public safety, law enforcement, domestic violence prevention, and electronic monitoring. For more information, please visit SuperCom's website, www.supercom.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical or current facts. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the statements made. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the levels of consumer, business and economic confidence generally, the adverse effects of these risks on our business or the market price of our ordinary shares, and other risks and uncertainties described in the forward looking statements and in the section captioned "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 22, 2024, our reports on Form 6-K filed from time to time with the SEC and our other filings with the SEC. Except as required by law, we not undertake any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

SuperCom Investor Relations:
ir@supercom.com

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