In the third quarter of 2024, SuperCom reported a notable increase in revenue, climbing to $6.9 million. The company managed to generate free cash flows amounting to $1.2 million and achieved an EBITDA of $1.1 million, reflecting the solid performance of its business operations. Based in Tel Aviv, Israel, SuperCom, listed on NASDAQ as SPCB, specializes in secured solutions across the e-Government, IoT, and cybersecurity sectors. For the first nine months ending September 30, 2024, SuperCom experienced several financial improvements over the same period in 2023.

Revenue increased from $20.9 million to $21.3 million, while gross profit rose to $10.7 million from $7.9 million, marking a significant increase in the gross profit margin to 50.1% from 37.7%. Operating income shifted from a loss of $0.91 million to a gain of $1.13 million, and net income improved considerably from a net loss of $2.48 million to a net income of $2.52 million. Non-GAAP operating income advanced to $3.91 million compared to $3 million, and Non-GAAP net income improved from $1.68 million to $4.88 million.

Moreover, EBITDA saw growth from $3.7 million to $4.6 million, and cash availability increased to $6.23 million, with Non-GAAP EPS reaching $3.1. During the third quarter, revenue rose to $6.91 million from $6.78 million in the previous year, but gross profit decreased from $4.0 million to $3.2 million, with the gross profit margin falling from 59% to 46%. Operating income declined to $0.03 million from $0.81 million, and EBITDA decreased from $2.5 million to $1.1 million.

Despite a net loss of $0.44 million, this was an improvement over the previous net profit of $0.12 million. Non-GAAP net profit also decreased to $0.35 million from $1.4 million. However, cash grew significantly to $6.2 million, and cash per share stood at $3. Additionally, SuperCom generated positive free cash flows of $1.2 million and saw its working capital increase to $26.1 million, with a Non-GAAP EPS of $0.17.

SuperCom has seen substantial business development recently, with new contracts exceeding $13.5 million from European governments, which are anticipated for delivery by year-end. This enhances SuperCom's leadership in public safety across Europe. A significant contract includes a five-year agreement with the Israel Prison Service for the deployment of its PureSecurity Electronic Monitoring Suite, expected to cover approximately 1,500 enrollees with scope for extension.

In the U.S., SuperCom secured multiple contracts in West Virginia, leveraging its PureOne suite to provide comprehensive monitoring solutions in areas with limited cellular coverage. Additionally, in Maryland, a new contract is projected to bring annual recurring revenues of $250,000. SuperCom also won a competitive contract in New York State, marking a strategic expansion in the U.S. Moreover, through its subsidiary LCA, it acquired a contract in North California to deliver housing and case management services, expected to generate annual revenues close to $500,000.

SuperCom maintains a decade-long partnership with a government client through a $1.8 million contract and further expanded its presence in California with a new electronic monitoring deal. Additionally, a Canadian project with an industry partner transitioned to using GPS technology, showcasing SuperCom’s commitment to innovation. Management expressed satisfaction with the quarterly outcomes, linking them to the effective execution of strategic initiatives. Revenue and gross profit saw substantial growth, highlighting the company's operational success.

The leadership team, led by CEO Ordan Trabelsi, emphasized their commitment to disciplined financial management and continued technology innovation as key drivers of shareholder value. SuperCom plans to hold a conference call to discuss these outcomes in more detail. The call is scheduled for November 14, 2024, at 10:00 a.m. Eastern Time, and will include a Q&A session. SuperCom has been a global leader in providing identity solutions since 1988, prioritizing security and safety solutions across various industries. With a focus on innovation, the company has developed solutions for electronic monitoring and advanced identification technologies worldwide.