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Revenue updates for Precise Biometrics and Prodigy, SuperCom goes for reverse stock split

Revenue updates for Precise Biometrics and Prodigy, SuperCom goes for reverse stock split
 

Precise Biometrics has recently published a blog post by CEO Patrick Höijer providing an update about the company’s financials for the third quarter of 2022.

Despite low global demand for mobile phones, Höijer explains that revenues grew from the last quarter to SEK 18.8 million ($1.79 million).

“This growth is a direct effect of our efforts to broaden our Digital Identity business model through the acquisition of the visitor management system provider, EastCoast Solutions,” the executive says.

In fact, Höijer adds that the order value sales of EastCoast’s solutions have increased 50 percent compared to the same period last year.

“However, as we see temporary uncertainties in the global demand for mobile phones, we have, during this quarter, increased our cost control and taken initiatives to reduce our [operational expenditure] going forward.”

Additionally, according to Höijer, mobile phone manufacturers are starting to reduce their inventories, so Precise expects a gradual return of sales and, thereby, an increase in royalties at some point in 2023.

Prodigy Ventures’ Q3 revenues increase slightly

Prodigy’s revenues for Q3 totaled $3,409,267 compared to $3,403,466 last year, an increase of 0.2 percent.

Similarly, gross profit for the three months ended September 30, 2022, was at $1,067,121, also an increase of 0.2 percent compared to the $1,065,487 in Q3 2021.

Expenses for the three months ended September 30, 2022, decreased by 1 percent and net losses went up to $434,705 compared to $390,979 last year.

Finally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) totaled negative $188,312 compared to negative $166,341 in Q3 2021 as the company closed the quarter with working capital of $2,380,555, a decrease from the $3,143,145 of December 31, 2021.

SuperCom confirms reverse stock split

Israel-based company SuperCom has recently approved a 1-for-10 reverse stock split of its ordinary shares.

Following the move, SuperCom’s ordinary shares started trading on a split-adjusted basis as of Wednesday (November 23), meaning every ten shares of the firm’s issued and outstanding common shares will be automatically converted into one, and the par value per share of ordinary shares will be multiplied by ten.

“We are pleased to announce this reverse stock split as we believe it is in the best interest of our shareholders and will help position SuperCom to attract fundamental institutional investors as we continue on our growth trajectory,” comments SuperCom CEO Ordan Trabelsi.

“The perceived overhang of trading below certain Nasdaq trading price thresholds has been a hindrance in our ability to attract larger investors, and we are happy to move forward clear of this hurdle.”

According to the executive, while the reverse stock split changes the price per share and the number of shares outstanding, it will not impact the company’s operations or overall size and growth potential.

“It is, however, key in maintaining our Nasdaq listing and our ability to meet certain funds’ investment criteria,” Trabelsi adds. “We are excited to move forward stronger in conjunction with our significant recent progress reflected also through our numerous new project wins.”

These include a national contract for biometrically tracking criminals in Croatia, a $33M one with a European customer, and four more in the US.

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