SuperCom, an Israel-based provider of IoT, cybersecurity, and identity solutions – including fingerprint-based identity verification technology – has issued its results for the first quarter of 2021. It is the first quarterly update from the company since the first half of 2019.
While the company is reporting an overall net loss of $1,303 for the period ended March 31, 2021, a number of other metrics indicate positive trends for the business. Working capital, for example, rose from $5.3 million at the end of 2020 to $12.7 million in Q1; and cash and cash equivalents increased from $4 million to $9 million in the same timeframe.
Gross margin increased from 47.5 percent in 2020 to 55.3 percent in Q1 of 2021. Revenues, meanwhile, came in at $3.0 million, with SuperCom reporting EBITDA of $652,000 for the quarter.
Among the operational highlights of SuperCom’s Q1 was the company’s work providing the Israeli government with mobile devices and ankle bracelets that can be used to track individuals under quarantine due to COVID-19. The same approach also offers penal applications that are of growing interest to the company, according to CEO Ordan Trabelsi.
“We continue to work hard also to capitalize on the trend that we are seeing with correctional institutions increasingly shifting their policy to enable more inmates to serve time under home confinement and utilizing GPS monitoring solutions,” he said. “Given the strong fundamental drivers behind this industry growth, including prison overcrowding, advancements in the underlying mobile and location-based technologies and the clear financial benefits of reducing facility populations, we believe this is just a small part of a longer-term trend.”
Trabelsi also noted that it was his decision, since his appointment as CEO in February, to resume reporting SuperCom’s results on a quarterly basis. He intends to maintain this effort to “improve [SuperCom’s] reporting capabilities” on an ongoing basis.
May 27, 2021 – by Alex Perala