• Revenue: $27.6 million for 2024, a record over the past seven years and a 134% increase from 2020.
• Gross Profit: $13.4 million, a 31% increase year over year.
• Gross Margin: Expanded to 48.4%, up nearly 10 percentage points from 2023.
• Net Income: Positive GAAP net income of $661,000 compared to a $4 million net loss in 2023.
• EBITDA: $6.3 million, up 31% year over year.
• Operating Cash Flow: Reduced to $1.3 million in 2024 from $2.4 million in 2023, marking an 85% reduction over three years.
• Quarterly Revenue (Q4 2024): $6.33 million, up from $5.7 million in the prior year period.
• Quarterly Gross Profit (Q4 2024): $2.7 million, with margins improving to 42.7%.
• Quarterly EBITDA (Q4 2024): $1.6 million, up from $1.09 million in Q4 2023.
• Debt Reduction: Total outstanding debt reduced by 32% from over $34 million to approximately $23 million.

• Warning! GuruFocus has detected 3 Warning Signs with SPCB.

Release Date: April 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SuperCom Ltd (NASDAQ:SPCB) achieved a record revenue of $27.6 million in 2024, marking a 134% increase from 2020.
• The company reported a positive GAAP net income of $661,000, a significant turnaround from a $4 million net loss in 2023.
• EBITDA rose to $6.3 million, marking the 10th consecutive quarter of positive EBITDA.
• SuperCom Ltd (NASDAQ:SPCB) secured several important contracts in the US and Europe, expanding its footprint significantly.
• The company has successfully reduced its operating cash use by 85% over three years, reflecting strong execution across projects.

Negative Points

• Despite positive net income, SuperCom Ltd (NASDAQ:SPCB) reported a GAAP net loss of $1.86 million for Q4 2024.
• The company faces macroeconomic uncertainties and global challenges, including geopolitical conflicts and supply chain disruptions.
• There is potential volatility in gross margins due to the nature of multi-region projects and their varying scales.
• SuperCom Ltd (NASDAQ:SPCB) has a significant focus on the US market, which remains largely untapped and presents challenges in expansion.
• The company is still dependent on strategic acquisitions to consolidate its presence in the US market, which may pose integration risks.

Q & A Highlights

Q: It seems like SuperCom has maintained a gross margin above 40% for six consecutive quarters. Is 40% now considered the floor, or is there potential for more volatility in the gross margin line? A: Ordan Trabelsi, President and CEO, explained that while margins have been strong due to scaling and project efficiencies, there is still potential for volatility. However, as the company continues to expand in the US and other markets, they expect margins to improve over time with larger unit numbers per customer and region.

Q: What are the next steps for SuperCom in the US market, and how do you plan to accelerate growth there? A: Ordan Trabelsi highlighted that SuperCom has already secured over 20 new contracts in the US since mid-2024. The company plans to continue expanding through partnerships and increasing the size of projects. They are also focusing on building a sales team to actively pursue new opportunities and larger contracts.

Q: Is there an opportunity to consolidate some of the partners in the US market, and what are the barriers to executing such deals? A: Ordan Trabelsi noted that acquiring local partners could be beneficial, as seen with their successful acquisition in California in 2016. While they are open to such opportunities, they are focused on strengthening their balance sheet and ensuring any acquisition is a good strategic fit.

Q: How is SuperCom addressing the recent tariff situation in the US, particularly concerning supply chain and product mix? A: Ordan Trabelsi stated that SuperCom's manufacturing is currently based in Israel, but they have the capability to produce in other regions if necessary. They are monitoring the tariff situation and have strategies in place to adapt as needed. Additionally, a significant portion of their revenue comes from software services, which helps mitigate tariff impacts.

Q: What is the likelihood of SuperCom closing deals in the next 18 months, and how does the company's financial position affect this? A: Ordan Trabelsi mentioned that with a stronger balance sheet and reduced debt, SuperCom is in a better position to pursue larger projects and potential acquisitions. The company is focused on organic growth and strategic opportunities that align with their business model.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.