SuperCom Announces Preliminary First Quarter 2019 Selected Financial Results

PRNewswire 16-May-2019 8:58 AM

TEL AVIV, Israel, May 16, 2019 /PRNewswire/ -- SuperCom (NASDAQ:SPCB), a global provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors today provided an update around the FY 2018 audit and preliminary selected financial results for the first quarter ended March 31, 2019.

The 2018 financial audit is in its advanced stages. This audit, while not yet complete, has potential to impact certain elements of the FY 2018 financial results, hence management has decided to wait until the audit is complete before announcing FY 2018 results. Upon completion of the audit, SuperCom will also file its Annual Report on Form 20-F for FY 2018 and set up an investor conference call to discuss the results.

Meanwhile, the company can share preliminary information on unaudited first quarter 2019 financials. Based on preliminary estimates, the following results are expected:

• Revenue in the range of $5.0 million to $5.8 million
• Gross Profit margin in the range of 51% to 55%
• *EBITDA in the range of $1.4 million to $1.9 million  

The anticipated financial results discussed in this press release are based on management's preliminary unaudited analysis of financial results for the quarter ended March 31, 2019.  As of the date of this press release, the Company has not completed its financial statement reporting process for the quarter ended March 31, 2019. During the course of the Company's quarter- closing procedures, the Company may identify items that would require it to make adjustments, which may be material, to the information presented above. As a result, the estimates above constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary financial results.

*EBITDA is a non-GAAP measure used by the company to represent earnings before interest, taxes, depreciation, amortization and other non-cash items such as stock based compensation and foreign exchange currency loss/gains.

With respect to such non-U.S. GAAP financial measure included in the preliminary results for the first quarter ended March 31, 2019, a quantitative reconciliation to U.S. GAAP is not available without unreasonable efforts.

About SuperCom
Since 1988, SuperCom has been a leading global provider of traditional and digital identity solutions, providing advanced safety, identification and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secured Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers advanced, secure mobile payments ranging from mobile wallet to mobile POS, using a set of components and platforms to enable secure mobile payments and financial services. SuperCom is a global provider of a unique all-in-one field-proven RFID & mobile PureSecurity advanced solutions suite, accompanied by advanced complementary services for various industries, including healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation.

SuperCom's website: http://www.supercom.com

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with 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 cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements arising from the annual audit by management and the Company's independent auditors. The Company undertakes 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 disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this release of operating results also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business. Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the Company.  Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance.  However, such measures should not be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

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SOURCE SuperCom Ltd