Form 6-K SuperCom Ltd For: Jul 16

Business



[ad_1]

News and research before hearing about CNBC and others. Claim your free 2 week trial at StreetInsider Premium here.

UNITED STATES

COMMITTEE ON SECURITIES AND EXCHANGE

Washington DC 20549

FORM 6-K

ISSUER

UNDER RULE 13a-16 OR 15d-16 ACCORDING TO

THE 1934 STOCK EXCHANGE ACT

For the July 2018

[19659019] SUPERCOM LTD.

(Translation of the name of the holder)
in English)

1 Shenkar Street,

Hertzliya Pituach,

Israel

(Address of the principal executive office)

Indicate by checkmark if the declarant
files or files annual returns under Form 20-F or Form 40-F

Form 20-E x
40-E ¨

Indicate by box if the declarant
submit Form 6-K on paper as authorized by Rule 101 (b) (1) of the S-T: ¨

Indicate by box whether the declarant
submit Form 6-K on paper as authorized by Rule 101 (b) (7) of the S-T: ¨

Indicate by box whether the declarant
providing the information contained in this form also provides the information to the Commission in accordance with
12g3-2b) under the Securities Exchange Act of 1934. Yes ¨ No x

If "Yes" is marked, indicate
below the file number badigned to the declarant in relation to Rule 12g3-2 (b): 82-


    
    
    

This report on Form 6-K incorporated by
reference in all effective registration declarations filed by the registrant under the Securities Act of 1933.

Signatures

In accordance with the requirements of the Securities
Exchange Act of 1934, the registrant duly had this report signed on his behalf by the undersigned, duly
authorized.

SuperCom Ltd.
By: / s / Arie Trabelsi
Name: Arie Trabelsi
Title: Chief Executive Officer

Date: July 16, 2018

Exposition 99.1

SuperCom Reports Significant
Improvements in earnings, earnings per share and EBITDA


200% improvement in gross profit for the first quarter

2018

] Non-GAAP
gross margin 58.3%; EBITDA margin 17.4%

EBITDA
$ 1.2 million; Non-GAAP EPS $ 0.07

Herzliya, Israel July 16, 2018
– SuperCom (NASDAQ: SPCB ), a
global provider of secure solutions for the areas of eGovernment, public safety, health care and finance results published
for the first quarter of 2018.

First financial figures for the first quarter of 2018 (Sequentially
compared to the fourth quarter of 2017)

· Revenues increased from $ 7.8 to $ 7.01 million
million.

· Gross profit increased 200% to $ 3.9 million
from 1.3 million.

· Non-GAAP gross margin increased to 58.3%
37.4%.

· Non-GAAP basic operating expenses decreased
27% to $ 3.5 million of $ 4.8 million.

· EBITDA improved to $ 1.2 million
an EBITDA loss of ($ 1.2) million.

· Improved non-GAAP net income to $ 1 million
or $ 0.07 per share of non-GAAP net loss of $ 1.6 million or $ 0.11 per share.

· Working capital increased by 13% to 10.6 million
from $ 9.4 million.

· Current exchange rate increased by 9% to 1.66 from 1.53

First financial results for the first quarter of 2018 (compared with
the first quarter of 2017)

· Revenues decreased to $ 7.01 million from $ 8.30
million.

· Gross profit increased 30% to $ 3.9 million
from $ 3 million.

· Non-GAAP gross margin increased to 58.3%
39.4%.

· Non-GAAP basic operating expenses decreased
22% to $ 3.5 million of $ 4.5 million.

· EBITDA improved to $ 1.2 million
an EBITDA loss of ($ 0.6) million.

· Improved non-GAAP net income to $ 1 million
or $ 0.07 per share of non-GAAP net loss of $ 913,000 or $ 0.06 per share.

· Working capital increased by 11% to 10.6 million
$ 9.6 million.


    
    
    

First quarter of 2018 and recent operational
Highlights by industry:

e-Gov:

· In April 2018, signed a new contract of value
worth about $ 4 million with an existing national government client in Africa. Built around SuperCom's Magna platform,
Deployment will allow the rapid expansion of additional e-Gov modules, which would lead to potential increases in
size of the contract. The majority of the new contract is expected to be recognized over the next two years and will increase SuperCom's state of balance
recurring income.

· Continued progress on the national project
deployments as well as the transition from recent projects in Africa to Steady State.

IoT and Connectivity:

· In January 2018, obtained a
contract to provide PureSecurity EM Suite in Idaho.

· In March 2018, obtaining an additional contract
to provide PureSecurity EM Suite in South Carolina.

· In April 2018, obtaining an additional contract
to provide PureSecurity EM Suite in East Texas to an established service provider .

· In April 2018, awarded a $ 7 million project with the national government of Sweden to roll out PureSecurity
EM Suite.

· In June 2018, announced the deployment of an innovative project to protect against domestic violence
with the Swedish National Police, a second national EM project was won in Sweden within two months.

· Continued progress on 13 deployments of EM projects,
including those from Denmark, the Czech Republic, Bulgaria, Sweden, Canada and the United States.

Computer Security:

· Safend maintains more than 15 Fortune 500 clients
and a retention rate of over 90% in the United States, thanks to ongoing customer satisfaction and ongoing technology improvements.

· Continued progress in development
new advanced cybersecurity products, adding more features, including anti-malware to integrate into the cyber-computer Safend
security platform. Also began the process of piloting features to new customers in the United States and Europe.

Management Commentary

"We are pleased with our first quarter results of 2018, highlighted
by a dramatic improvement in our financial performance. As we continue to successfully execute our business plan, SuperCom is
More and more lean and concentrated every day, and the quarterly results demonstrate it, "said Arie Trabelsi, president and CEO.
CEO of SuperCom. "With non-GAAP gross margins above 58% and non-GAAP quarterly core operating expenses of
We are moving closer to the lean operating structure that we have not seen since 2015 before strategic acquisitions.
Yet, today, I believe that our business prospects are multiple, with 2 additional business sectors, more than 50% growth
stable recurring revenues, a strong presence in developed markets and significant improvements in our technology portfolio
supported by 119 patents. "

" We continue to execute our growth strategy across
our business segments. In the recent past, we have grown organically into new countries and governments faster than ever
previously with an exceptionally high win rate, including 8 new multi-year projects in the last 6 months alone. That brings us
more than 16 multi-year multi-year project deployments worldwide that are expected to generate long-term recurring revenue for
coming years as well as additional business from customer references. This in turn has increased our working capital requirements, and
Given my confidence in SuperCom and its future, I have continued to personally provide zero rate loans to the Company. I see
a clear path for creating sustainable and growing shareholder value for years to come.

Conference Call

The Company hold a conference call today (July 16, 2018)
at 10:00 am Eastern Time (7:00 am Pacific Time / 5:00 pm Israel time) to discuss these financial results and outlook.

SuperCom management will host the call, followed by a question
and response period.

US Toll free: 1-877-407-9124

Israel Toll free: 1-809 406 247

International: 1-201-689-8584

Conference
ID: 13681296

Please call the conference telephone number
5-10 minutes before the start time. An operator will record your name and organization.

About SuperCom

Since 1988,
SuperCom has been a global provider of traditional and digital identity solutions, offering advanced security, identification and
security solutions for governments and organizations, private and public, around the world. Thanks to its exclusive electronic government
innovative platforms and solutions for enrollment, customization, issuance and control services at traditional and biometric borders,
SuperCom inspired governments and national agencies to design and deliver secure multi-ID documents and robust digital identity
solutions to its citizens and visitors. SuperCom offers a unique, field-proven RFID product and technology, all-in-one
followed by advanced complementary services for various industries, including health care and home care, safety and security,
community public safety, law enforcement, electronic monitoring, livestock monitoring and automation of building and access. For
more information, visit www.supercom.com .

Corporate Contact of SuperCom:

Ordan Trabelsi, President, Americas

Tel .: 1-212-675-4606

[email protected]

Opinion on the future
Declarations

This press release contains forward-looking statements in
the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
amended. Statements preceded or followed or otherwise including the words "believes," "expects," "anticipates,"
"Plans", "projects", "estimates", "plans", and similar or future or conditional expressions
verbs such as "will", "should", "would", "may" and "could" are generally
in nature and not historical facts. The forward-looking statements in this news release also include statements about business and the economy.
tendencies. Investors should also consider the risk areas described under the heading "Forward-Looking Statements" and
the factors referred to in the Company's periodic reports under the Securities Exchange Act of
1934, as amended, or in relation to any forward-looking statements that may be made by the Company. These statements are subject to
known and unknown risks, uncertainties and other factors that may result in actual results, performance or achievements
different from the future results, performance or achievements expressed or implied by these forward-looking statements. More detailed
information about the Company and the risk factors that may affect the fulfillment of these forward-looking statements are stated
the Company's filings with the Securities and Exchange Commission (SEC), including the company's annual report on Form 20-F
with the SEC on May 21, 2017. The Company badumes no obligation to update or revise these forward-looking statements, whether
as a result of new information, future events or otherwise, after the date of this press release.


    
    
    

Use of non-GAAP financial information

In addition to disclosure of financial results calculated in accordance with
In accordance with US generally accepted accounting principles (GAAP), this publication of operating results also contains non-GAAP financial statements.
These measures, judged by SuperCom, are the main indicators of the operational and financial performance of its activity. Management
believes that non-GAAP financial measures are useful for investor understanding and evaluation
basic operations and future prospects, as the eliminated charges are not part of daily activities or do not reflect
the main operational activities of the Company. Management uses these non-GAAP financial measures as a basis
decisions, forecasting future results and evaluating the Company's current performance. However, these measures should not
be considered in isolation or in lieu of results prepared in accordance with GAAP. Reconciliation of Non-GAAP
the most comparable GAAP measures are provided in the accompanying tables.

[Tables to follow]


    
    
    

SUPERCOM SA

CONSOLIDATED BALANCE SHEETS

(US dollars in thousands)

    

    

March 31 December 31
2018 [19659135] 2017
Unaudited Audited
[19659227]
COMMON ASSETS
Cash and Cash Equivalents [19659266] 1,377 1,037
Restricted Bank Deposits 1,038 ] 1,063 [19 Net trade receivables 19659258] 5,283
Other receivables and accrued expenses 705 2,698
Net inventories 4,818 4,876
Total circulating active persons 26,599 27,413
]
LONG-TERM ASSETS [19659257]
Separation Fund 314 319
Taxation long-term deferred 4,548 4,505
Contracts with customers 3,386 3,640 [19659258]
Computer software and other intellectual property rights 4,817 ] 5,006
Other badets, net 5,181 5,071
Goodwill 7,026 [19659143] 7,026
Property, plant and equipment, net 959 1,218
Total long-term badets: 26,231 [19659258] 26,785 [1945902] 4]
Total Assets 52 830 54 198

    

    

CURRENT LIABILITIES [19659227]
Short-Term Bank Loan 731 738
Accounts Payable 4,971 5,838
Employees and Benefits Payroll 4,199 4,910
] Related Parties 91 61
Accrued Liabilities and Other Liabilities 3,666 3,739
Deferred Revenue ST 1,258 [19659311] 1511 [19659203] Short-term liabilities for future price supplements 1,095 1,163
[19659256] ]
Total Current Liabilities 16,011 17,960 [19659312]
PASSIVE LONG TERM [19659227]
Long-term bank loan [19659227] ] 0
Severance pay payable 580 585
Related parties 2,932 2,082
Deferred Tax Deferred 41 49
Deferred Revenue 662 668 [19659258]
Long-term liability for future price supplement 132 147
[19659257]
Total long-term liabilities 4,347 3,531 [19659335] [196593] CAPITAL STOCK: ]
Common Shares 1,026 1,026
Additional Installed Capital [19659256] 82,242 82,157
Accumulated Deficit (1965) ) (50,476 )
Total Shareholders' Equity 32,472 32,707
Total Capacity and Equity 52 830 54 198


    
    
    

SUPERCOM LTD.

STATEMENTS OF CONSOLIDATED RESULTS

(US dollars in thousands)

    

3
months ended

march
31

2018

December
31

2017

Unaudited Unaudited
[19659227]
REVENUES 7,014 7,797
COST OF INCOME 3,127 6,483
GROSS PROFIT (LOSS) 3,887 1,314
[
Research and Development 1,341 1,902
Sales and Marketing 1,701 [19659258] 2 104
General and Administrative 1 348 1 720
Other Expenditures 50 383
[19659143] [19659257]
Total Operating Expenses 4,440 6,109
[19659258]
LOSS OF PROPERTY INC. EXPLOITATION (553 ) [19659227] (4,795 )
FINANCIAL INCOME (EXPENDITURE), NET 52 ] [19659879]
[196593] LOSS BEFORE INCOME TAX [19659227] (501 ) (4,900 )
INCOME TAX EXPENDITURES (EARNED) [19659311] (181 ) ] (1965)
NET LOSS OF THE PERIOD (320 ) (4,618 ])

SUPERCOM LTD.

Table of Reconciliation of GAAP to Non-GAAP
Net Earnings and EBITDA

(in thousands of US dollars, except per share
data)

3
months ended

March

31,
2018

December

31,
2017

Unaudited Unaudited
[19659959] GAAP Gross Profit 3,887 1,314
Realization of Deferred Revenues – 1,384
Amortization of Computer Software and intellectual property 154 154
Stock-Based Compensation Costs 41 64
Non-GAAP Gross Profit [19659329] 4,082 2,916
[19659257] [196593] Loss of exploitation GAAP 553 ) (4,795 )
Amortization of Software / IP, Customer Contracts and Trademarks, and Stock-based Compensation Costs 1055 1106
Exchange Rate Loss [19659970] 445 1,729
DD Related Transaction Transaction – ]
Charg e for Doubtful Accounts – 327
Operating Earnings Excluding GAAP (Loss) 947 (1522 )

    

    

Net next: Los (320 ) (4,618 )
Amortization of software / IP, customer contracts and trademarks, and stock-based compensation expenditures [19659320] 1055 1106
Foreign exchange loss 445 [19659970] 1,729
Transaction related transaction DD – 111
Expenditures for doubtful debts [19659720] – 327
Income tax expense (benefit) (181 ) [19659720] (282 )
Net income (loss) ) non-GAAP 999 [19659878]
Non-GAAP EPS ]] 0 , 1965 (19659371) (0.11 )
NET LOSS FOR THE PERIOD (320 ) (4,618 )
Income Tax (Benefits), Net (181 ) (282 )
Financial Expenditures ( income), net (52 ) 105
Depreciation and stock-based compensation charges 1,321 1,421
Abroad
Foreign exchange loss 		445 1,729
Transaction related to transaction DD – ] 111
Expenditures for doubtful debts – 327
BAIIA * 1213 (1,207 )

*
EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization.


    
    
    

CONSOLIDATED FINANCIAL STATEMENTS

19659720]

3
completed months

March 31

2018

March 31

2017

Non-audi Unaudited
[19659746] REVENUES 7.014 8,327
COST OF REVENUES [19659311] 3,127 5,285
]
GROSS PROFIT (LOSS) [19659310] 3,887 [196592] [196594] 19659436] 3,042
OPERATING EXPENSES: ]
Research and development 1.341 1.681 [1965928] 6]
Selling and marketing 1.701 1,934
General and Administrative Description 1.34 1,675
Other expenses (Income) 50 (400 ])
Gain on Bargain Acquisition – [19659310] –
Total operating expenses 4,440 4,890
[196594]
OPERATING LOSS (553 ) [1 9659439] (1,848 )
FINANCIAL INCOME (EXPENSES) NET 52 (176 ]
LOSS BEFORE INCOME TAX (501 ) (2024 )
INCOME EXPECTED TAXES (BENEFIT) (181 ) [19659432] (28 )
NET LOSS FOR THE PERIOD [19659431] (320 ) (1,996 )

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP
Figures and EBITDA to Net Income

(U.S. dollars in thousands, except for share
data)

3
months ended

March

31,
2018

March

31,
2017

Unaudited Unaudited
[19659635]
GAAP gross profit 3,887 3,042
Amortization of Software and IP 154 154
Stock-based compensation expenses 41 53
Non-GAAP gross profit 4,082 3,249
GAAP operating loss (553 ) (1,848) )
Amortization of Software / IP, Customer Contracts and Brand, and Stock-based compensation expenses 1055 910
    Foreign Currency Loss     445       201  
Non-GAAP operating Income
    (Loss)		     947       (737 )

 

 

GAAP net Loss     (320 )     (1,996 )
    Amortization of Software/IP, Customer Contracts and Brand, and Stock-based compensation expenses     1055       910  
    Foreign Currency Loss     445       201  
    Income tax expense (benefit)     (181 )     (28 )
Non-GAAP
    net Income (Loss)		     999       (913 )
                 
Non-GAAP EPS     0.07       (0.06 )
                 
NET LOSS FOR THE PERIOD     (320 )     (1,996 )
    Income tax expenses (benefit), net     (181 )     (28 )
    Financial expenses (income), net     (52 )     176  
    Depreciation, amortization and stock-based compensation expenses     1,321       1,086  
    Foreign Currency Loss     445       201  
EBITDA *     1213       (561 )

 

 

*
EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization.

 

 

 

[ad_2]
Source link

Tags

Powered by https://naaju.com/israel | Designed by Naaju
© Copyright 2024, All Rights Reserved