FY 2024: Record Revenues of $27.6 Million; Gross Margin 48.4%; Record EBITDA of $6.3 Million

Q4 2024: Revenues of $6.3 Million; EBITDA of $1.7 Million

TEL AVIV, Israel, April 28, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the twelve months and fourth quarter, ended December 31, 2024.

Financial Highlights for Twelve-Months Ended December 31, 2024 (Compared to the Prior Year Period)

• Revenue increased 4% to $27.6 million from $26.6 million, marking a 7-year-record and the fourth consecutive year of revenue growth.
• Gross profit increased 31% to $13.4 million from $10.2 million.
• Gross margin expanded to 48.4%, up from 38.5%.
• Net Income improved to a $661 thousand profit, compared to a ($4.0) million loss, reflecting SuperCom's first full-year GAAP profitability since 2015, marking a 9-year record.
• Non-GAAP Net Income increased 99% to $6.33 million from $3.19 million.
• EBITDA increased 31% to $6.3 million from $4.8 million, marking a 9-year-record.
• Non-GAAP EPS of $3.66 for the full year 2024.

Financial Highlights for Fourth Quarter 2024 Ended December 31, 2024 (Compared to the Fourth Quarter of 2023)

• Revenue increased 11.6% to $6.33 million from $5.67 million.
• Gross profit increased to $2.7 million from $2.35 million, with gross margin strengthening to 42.7%.
• Net Loss of ($1.86 million) compared to ($1.56 million), the Q4-2024 result was significantly impacted by approximately $2 million of one-time items including $1.5 million of bad debt expense.
• Non-GAAP Net Income of $1.39 million compared to $1.69 million.
• EBITDA reached $1.66 million compared to $1.09 million.
• Non-GAAP EPS $0.66 for the fourth quarter of 2024.

Four-Year Business & Financial Transformation (2020 to 2024)

Following the placement of a new management team and business strategy in 2021, SuperCom executed a transformation that drove substantial improvements across key financial and operational metrics over the four-year period, while navigating global challenges such as the COVID-19 pandemic, geopolitical conflicts, surging interest rates, supply chain disruptions, and volatile capital markets.

Twelve-Months Ended December 31, 2024 (Compared to the Full Year 2020)

• Revenue increased by 134% to $27.6 million from $11.8 million.
• Gross profit increased by 140% to $13.4 from $5.6 million.
• GAAP net income improved to a profit of $661 thousand in 2024 from a loss of ($7.9 million) in 2020.
• Non-GAAP net income shifted to a $6.33 million profit from a ($1.7 million) loss, a turnaround of more than $8.0 million.
• EBITDA more than doubled, growing to $6.3 million from $2.8 million.

This four-year transformation underscores the success of SuperCom's strategic roadmap, technological innovation, and disciplined operational management, establishing a strong foundation for continued expansion.

Recent Business Highlights:

• Since mid-2024, SuperCom has secured more than 20 new electronic monitoring (EM) contracts across the United States, including entry into seven new states—Ohio, Arizona, Alabama, South Dakota, New York, West Virginia, and Maryland. The Company also expanded its footprint in key existing markets such as California and Kentucky, reflecting strong adoption of its advanced technologies, including domestic violence monitoring, and its ability to successfully displace incumbent providers.
• SuperCom established new partnerships across the nation to support its U.S. expansion, introducing its proprietary technologies, including those for domestic violence prevention and community supervision programs. These collaborations allow for efficient market penetration and extend the Company's presence in the U.S. public safety sector.
• SuperCom, together with partner company Electra Security, was awarded a five-year national electronic monitoring contract by the Israel Prison Service to cover the entire EM offender population in Israel. The project, currently active on offenders, utilizes advanced GPS and RF technologies from SuperCom's PureSecurity™ Suite and includes options for up to four additional years of extension.
• SuperCom launched national domestic violence electronic monitoring programs in Latvia and another EU country during the second half of 2024, both secured through formal competitive tenders. These wins further reinforce the Company's leadership position in Europe's public safety technology market.
• In early 2025, SuperCom secured a new national domestic violence monitoring project in the EMEA region, marking its seventh national DV contract in that geography. The program will utilize SuperCom's advanced PureTrack and PureShield technologies to support victim protection and offender compliance.
• The Company reduced its outstanding debt by 32%, since the end of 2023, through premium-priced share issuances, including a $4.37 million reduction at $43.70 per share, enhancing its ability to capitalize on growth opportunities.
• After the debt reduction, in early 2025, SuperCom strengthened its balance sheet by raising over $16 million in gross proceeds, including a $6.0 million Registered Direct Offering and approximately $10.2 million from warrant exercises.

Management Commentary:

"2024 was a breakthrough year for SuperCom, as we achieved record financial and operational milestones that demonstrate the success of the strategic transformation we initiated in 2021," commented Ordan Trabelsi, President and CEO of SuperCom. "We achieved record revenues of $27.6 million — a 134% increase over 2020 — together with record EBITDA and net income, and delivered our first full year of GAAP profitability in nearly a decade. Our gross margins expanded by nearly 10 percentage points year-over-year to 48.4%, and we maintained our streak of ten consecutive quarters of positive EBITDA. These results are a testament to the resilience of our business model and the dedication of our global team."

"Our growth strategy is already bearing fruits across multiple markets. In the U.S., we secured over 20 new contracts and expanded into seven new states, providing our PureOne and PureShield solutions to a growing number of agencies. In Europe, we reinforced our leadership position with new national domestic violence monitoring wins and expanded deployments. These milestones and other recent accomplishments, including a 32% reduction in our outstanding debt balance followed by over $16 million in capital raised, have strengthened our foundation for sustainable expansion," continued Ordan.

"As we look ahead to 2025 and beyond, we remain sharply focused on scaling our business, expanding our global reach, and continuing to deliver impactful solutions that enhance public safety, strengthen communities, and drive positive social change. With strong momentum, proven technology, and a diversified base of recurring revenues, we believe we are well-positioned to drive meaningful value," Ordan concluded.

Conference Call

The Company will hold a conference call on April 28, 2025, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific time) Time / 5:00 p.m. IL time) to discuss the fourth quarter and year end 2024 results, followed by a question and answer session.

Conference Call Dial-In Information:

Date:                                  Monday, April 28, 2025

Time:                                 10:00 a.m. Eastern time (7:00 a.m. Pacific time)

U.S. toll-free:                     888-506-0062

Israel toll-free:                   1-809-423-853

International:                     973-528-0011

Access Code:                    SuperCom

Link:                                   https://www.webcaster4.com/Webcast/Page/2259/52340

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

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 healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, and domestic violence prevention. For more information, visit 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, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2025 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.

Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods. SuperCom's independent registered accounting firm has not audited the financial data discussed in this press release. During the course of SuperCom's quarter- and fiscal year-end closing procedures and review process, SuperCom may identify items that would require it to make adjustments, which may be material, to the information presented in this press release. As a result, the estimate financial results constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to such results.

Use of Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in the United States ("GAAP"), this release also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business.

Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of SuperCom's ongoing core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the company. Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares.

EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses.

SuperCom Investor Relations:

ir@supercom.com

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SOURCE SuperCom