Business
SuperCom Reports Financial Results for the First Quarter of 2019 With $1.7 Million in EBITDA, 29% EBITDA Margin, and Non-GAAP EPS $0.06
TEL AVIV, Israel, June 10, 2019 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IOT, and Cybersecurity
About this update from Supercom, Ltd.
[{"type":"text","content":"TEL AVIV, Israel, June 10, 2019 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IOT, and Cybersecurity sectors reported income statement financial results for the first quarter of 2019.\nFirst Quarter 2019 Financial Highlights (Compared to the First Quarter of 2018)\nEBITDA increased by 41% to $1.7 million compared to $1.2 million. EBITDA Margin increased to 29% compared to 17%. Operating Income increased to a profit of $130 thousand from an operating loss of ($550 thousand). Non-GAAP Gross Margin remains at roughly 58%. Non-GAAP operating expenses improved by 39% to $2 million from $3.3 million. Non-GAAP operating Income increased to $1.3 million from $0.9 million. Non-GAAP Net Profit decreased to $.9 million or $0.06 per share from $1 million or $0.07 per share. Total Revenue decreased to $5.7 million from $7 million. IOT products sub-segment revenue increased by over 55%. IOT segment revenue, increased by over 30%. e-Gov segment revenue decreased by over 50%, given the Company's strategy to focus on North America and Europe. Revenue from North America and Europe represented over 90% of total revenue in comparison to 67% in the previous year period.Management Commentary\n\"The financial results of this first quarter reflect significant progress in our multi-year strategy and business plan. We have been able to leverage our strong global brand of over 30 years as a government contractor in national security and our proprietary technology to shift most of our business to developed countries and recurring revenue based segments of IOT and Cyber security software. Our percentage of revenue from developed countries out of our total revenues, which was less than 5% in 2015 and approximately 67% in first quarter 2018, has reached a high of over 90%. We also continued to work very hard on optimizing our operational cost structure to reach record levels since 2015 with quarterly Non-GAAP operating expenses as low as $2 million and EBITDA margins as high as 29%,\" commented Arie Trabelsi, President and CEO of SuperCom. \n\"While revenue has declined year over year, a closer look shows that it's in line with our overarching strategy, with the decline coming from e-GOV as we have diverted focus and resources away from emerging countries towards North America and Europe and our IOT and C...