SuperCom (SPCB, Financial) has secured a new contract for its electronic monitoring technology, PureSecurity, with a long-standing service provider in Nebraska. This deal marks SuperCom's entry into its tenth U.S. state since mid-2024, highlighting its rapid growth within the North American public safety sector.
The Nebraska partner has decided to transition all its existing GPS programs to SuperCom's platform after evaluating various technology providers. The decision was driven by SuperCom's superior tracking precision, system reliability, and mobile integration features. Under this agreement, SuperCom will become the primary partner for the provider's electronic monitoring technology, supporting current services while aiding future growth.
The initial phase of the partnership involves adopting SuperCom's Pure One solution. The contract operates on a simple recurring revenue model, with monthly billing based on total daily units, a standard setup in U.S. electronic monitoring programs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for SuperCom Ltd (SPCB, Financial) is $14.00 with a high estimate of $18.00 and a low estimate of $10.00. The average target implies an upside of 61.10% from the current price of $8.69. More detailed estimate data can be found on the SuperCom Ltd (SPCB) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, SuperCom Ltd's (SPCB, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SuperCom Ltd (SPCB, Financial) in one year is $1.90, suggesting a downside of 78.14% from the current price of $8.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SuperCom Ltd (SPCB) Summary page.
SPCB Key Business Developments
Release Date: May 14, 2025
- Revenue: Increased to $7.05 million, up from $6.85 million in the same period last year.
- Gross Profit: Increased to $4.46 million, a 17.8% increase from $3.79 million last year.
- Gross Margin: Improved to 63.6% compared to 55.3% last year.
- Operating Income: Doubled to $1.22 million, up from $0.72 million last year.
- Operating Margin: Improved to 17.3% from 10.5% last year.
- GAAP Net Income: $4.23 million, up from $0.8 million last year.
- Non-GAAP Net Income: $5.24 million, up from $1.35 million last year.
- EBITDA: Reached $2.5 million, a 25% year-over-year increase from $2 million.
- GAAP Earnings Per Share (EPS): $1.2 compared to $0.8 in Q1 2024.
- Non-GAAP EPS: $1.5 compared to $1.4 in Q1 2024.
- Long-term Loans: Reduced to $24.2 million from $34.3 million in Q1 last year.
- Cash and Cash Equivalents: Increased to $17.1 million from $3.2 million at year-end 2024.
- Working Capital: Increased to $38.9 million from $22.6 million at year-end 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SuperCom Ltd (SPCB, Financial) reported a strong start to 2025, building on record-breaking success in 2024 with significant milestone achievements.
- The company has invested over $40 million in technology platforms, achieving a win rate of approximately 65% in competitive tenders, particularly in Europe.
- SuperCom Ltd (SPCB) has secured over 70 multi-year government projects since 2018, with accelerated expansion in the past year, adding more than 20 new contracts across North America.
- The company reported a significant improvement in financial performance, with revenue increasing to $7.05 million and gross margin improving to 63.6%.
- SuperCom Ltd (SPCB) has a strong cash position, with cash and cash equivalents increasing to $17.1 million, and has reduced long-term loans significantly.
Negative Points
- The company's outlook is long-term, and reviewing one specific quarter may not suffice to understand its progress, indicating potential variability in quarterly results.
- SuperCom Ltd (SPCB) faces macroeconomic uncertainties and ongoing global challenges, including those in Israel, which could impact its operations.
- The US market is fragmented, requiring the company to plant seeds in multiple locations, which may lead to slower initial growth compared to Europe.
- The company is still on the smaller side in the US market, and its expansion relies heavily on word of mouth and organic growth.
- SuperCom Ltd (SPCB) has a significant amount of long-term debt, although it has been reduced, it still poses a financial burden.
