4 new biometric monitoring contracts for Supercom in the US, Q2 revenue up
SuperCom announced it secured an agreement with a new customer and strategic partner who is reportedly one of the largest private probation and judicial drug testing companies in the Commonwealth of Kentucky.
The new deployment follows closely on the heels of new deals with government departments in Idaho, Southern California and Texas.
The unnamed partner is also a provider of electronic monitoring (EM) products and services. It has already placed the first order from SuperCom of the company’s biometric EM solutions for continuous GPS tracking.
The first order, which reportedly includes over 50 units, counts a variety of SuperCom’s monitoring solutions, including PureOne, PureTrack, PureProtect, PureCom, Purebeacon, and PureTag products.
Part of SuperCom’s PureSecurity Suite, these tools integrate within dedicated smartphones to enable the scanning of fingerprint biometrics and come with anti-tamper features.
According to a company announcement, SuperCom’s biometric monitoring solutions will be distributed in the southeastern U.S. market region alongside its new partner’s services.
“The state of Kentucky is characterized by high rates of prison overcrowding, a pitiful situation that harms the well-being of the imprisoned population, making rehabilitation much more difficult,” explains SuperCom CEO Ordan Trabelsi.
“We strive to ease prison overcrowding, reduce recidivism rates, and promote public safety through SuperCom’s proprietary EM technology and our partner’s complimentary services.”
The first order placed by SuperCom’s new partner is scheduled to arrive in a few weeks at three separate offices, with an additional order of up to another 100 units anticipated to be arranged in the foreseeable future.
“After the successful deployment of our solutions for national EM projects in various European countries over the past few years, it is rewarding to see our solutions gain traction and spread further across the U.S.,” Trabelsi adds.
“This is our 10th new contract win in the U.S. in less than a year, across five different states, and combined with a base of 83 percent recurring revenues in recent years, adds to confidence in our future growth outlook.”
The Idaho contract is the third in the state for SuperCom, and like the contract in Texas sees the company provide its PureTrack smartphone GPS monitoring solution to a county juvenile department, according to an announcement. In Southern California, a company with an established presence in the criminal justice market will contract SuperCom’s PureSecurity suite on a per unit per day lease model.
SuperCom has also gained traction overseas, with a five-year contract with the Croatian government won by the company in May.
Results show incremental revenue gains
SuperCom’s revenues in the second quarter of its fiscal 2022 were up slightly on a year-over-year basis from $3.1 million to $3.2 million.
The results also show an improvement over Q1, 2022 of $200,000.
The company’s gross margin fell from 58 percent a year ago to 40 percent, but the change is attributed to the higher costs of new IoT deployments before they start generating recurring revenue.
Trabelsi suggested in the earnings announcement that SuperCom expects revenues from its series of recent contract wins to boost company earnings in the near-term.