#Israel #Cybersecurity #Tel Aviv #SuperCom #e-Government

SuperCom Achieves Exceptional Financial Milestones in 2024

SuperCom (NASDAQ: SPCB), a prominent player in the fields of e-Government, IoT, and cybersecurity, has reported remarkable financial results for the fiscal year ending December 31, 2024. The company has achieved record revenue, EBITDA, net income, and a significant non-GAAP EPS, marking a transformative year for its operations.

Financial Highlights

• - Revenue Growth: SuperCom's revenue for 2024 totaled $27.6 million, up 4% from the previous year’s $26.6 million. This marks the highest revenue recorded by the company in seven years and continues a streak of growth for four consecutive years.
• - Gross Margin Improvement: The gross profit surged by 31% to reach $13.4 million, with the gross margin climbing to 48.4% compared to the previous year's 38.5%.
• - Profitability Milestone: SuperCom reported a net income of $661,000, a significant turnaround from a loss of $4 million in the previous year. This achievement reflects SuperCom's first full year of GAAP profitability since 2015, representing a nine-year high.
• - EBITDA Rise: The company’s EBITDA rose by 31% to $6.3 million, which is also a record for the past nine years. Additionally, the non-GAAP net income increased by 99% to $6.33 million compared to $3.19 million in 2023.
• - Non-GAAP EPS: SuperCom reported a non-GAAP EPS of $3.66 for the full year, showcasing its strong operational performance.

Fourth Quarter Results

In the fourth quarter of 2024, SuperCom continued to demonstrate growth:

• - Quarterly Revenue: The revenue increased by 11.6%, amounting to $6.3 million compared to $5.67 million in Q4 2023.
• - Improved Gross Profit: Gross profit for this quarter was $2.7 million, with a gross margin strengthening to 42.7%.
• - Net Loss: Despite improvements, a net loss of $1.86 million was reported due to approximately $2 million in one-time expenses, including bad debt provisions.
• - Positive EBITDA: The EBITDA for the fourth quarter reached $1.66 million, up from $1.09 million in the prior year.
• - Non-GAAP EPS: The non-GAAP EPS for Q4 2024 was $0.66.

Transformational Strategy

SuperCom's financial achievements can be attributed to a revamped management team and a strategic business overhaul initiated in 2021. This four-year transformation has significantly improved the company's financial and operational metrics, enabling it to navigate challenging global conditions, including the COVID-19 pandemic, geopolitical tensions, and market volatility. The results from 2020 to 2024 showcase a profound turnaround:

• - Revenue Growth: From $11.8 million in 2020 to $27.6 million in 2024, marking an increase of 134%.
• - Gross Profit Increase: From $5.6 million to $13.4 million, a 140% improvement.
• - Transition to Profitability: GAAP net income shifted from a loss of $7.9 million in 2020 to a profit of $661,000 in 2024.
• - EBITDA Growth: Further growth in EBITDA from $2.8 million to $6.3 million.

These numbers illustrate the success of SuperCom’s strategic road map, anchored by technological advancements and stringent operational management, which have built a robust foundation for future growth.

Business Developments

SuperCom's recent endeavors highlight its ongoing commitment to expansion and innovation:

• - The company secured over 20 new electronic monitoring contracts across the U.S., expanding its reach into seven new states, including Ohio and Arizona.
• - New partnerships were established to augment its U.S. expansion, particularly in domestic violence prevention and community supervision programs.
• - A five-year national electronic monitoring contract was awarded by the Israel Prison Service, utilizing SuperCom’s advanced PureSecurity™ technologies.
• - The company launched electronic monitoring programs for domestic violence in Latvia and other EU countries, reinforcing its influence in public safety technology in Europe.

Additionally, SuperCom has made strides in reducing debt by 32% since the end of 2023, enhancing its capacity to pursue further growth.

Management Insights

Ordan Trabelsi, President and CEO of SuperCom, emphasized the significance of 2024 as a breakthrough year, marked by record financial achievements and notable operational advancements. The company's growth strategy is already yielding positive results in multiple markets, and as it approaches 2025, SuperCom is poised to deepen its global presence and continue delivering impactful solutions that bolster public safety and community welfare.

In conclusion, SuperCom's remarkable journey in 2024 underscores its resilience and strategic foresight, providing a clear path for sustained growth and innovation in the rapidly evolving fields of e-Government, IoT, and cybersecurity.