SuperCom shift to biometric IoT offender monitoring yields solid Q1 results
Revenue from IoT products has increased by 55 percent year-over-year at SuperCom, driving the company’s 41 percent improvement in EBITDA from $1.2 million to $1.7 million in its first fiscal quarter of 2019.
Total revenue decreased from $7 million a year earlier to $5.7 million in the quarter, and non-GAAP net profit fell $1 million, or $0.07 cents per share, to $0.9 million, or $0.06 cents per share, though EBITDA margin increased from 17 percent to 29 percent. SuperCom reports an operating income of $130,000, after an operating loss of $550,000 in Q1 2018.
“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 Cyber segments,” comments SuperCom President and CEO Arie Trabelsi. “IOT segment revenues have grown significantly year over year, with a majority of that growth, over 55%, coming from IOT products mainly around our EM PureSecurity suite technology, which has been performing excellently in competitive tenders around the world. We have announced the launch of 6 new projects in this space in 2019 alone, and expect continued wins and success going forward as our global presence and technology improve with every new project.”
The EM (Electronic Monitoring) Suite is a platform which includes fingerprint biometrics among a number of security and communication features, and was recently selected by the state of Tennessee service provider for offender monitoring. EM PureSecurity contracts with Estonia and Sweden are among first quarter highlights for the company.