SuperCom (SPCB) 15 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, good morning, and welcome to SuperCom's First Quarter 2024 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes.

Joining me from SuperCom's leadership team is Ordan Trabelsi, SuperCom's President and Chief Executive Officer.

I'd like to remind you that during this call, SuperCom management may be making forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results.

Forward-looking statements involve risks uncertainties and other factors that may cause SuperCom's actual results to differ materially from those statements.

and these factors and recently this described reports Form about to please filed call, information SuperCom's on risk and statement. the in XX-F particularly more the risks, that factors, uncertainties refer periodic press cautionary For release X-K accompanies Form SuperCom's most

non-GAAP includes SuperCom measure believes its can Today's conference financial evaluating call be performance. EBITDA, a that useful in

as not accordance a additional isolation substitute with results this information You consider or should in for prepared GAAP. in

this measure in the accompanies to of press a non-GAAP GAAP financial see loss, that reconciliation please comparable reconciliation a For financial this call. release SuperCom's net measure, located table earnings

publicly that and there today, of accurate turn XX, for non-GAAP obligation content or It revise SuperCom only to pleasure XXXX. circumstances call to over The May Ordan and Trabelsi. Reconciliations occur by CEO, required Except information events is after financial that disclaims information update this call. measures this comparable as to financial law, is SuperCom's well. the are available to my measures as reflect of President other or as any time-sensitive GAAP floor contains now any

Good thank joining today. a you this everyone, you, us for issued morning, our press morning, quarter for we financial with of XXXX. Thank Earlier release results operator. first and the

on X-year supercom.com. to find momentum income by performance with [ year-over-year. record a and had a $X.X business We're outstanding with copy recent strong thrilled followed net at quarters. my session. in section $XXX,XXX year I'll SuperCom look million . Today, of quarter. QX of brief a first our website a achieved the forward and can coming our this to an improvement We start update the maintaining start ], this You representing with it Q&A Relations in Investor great highlights, of the a results, comments strategy a quarterly

to in million as EM $XX During the in million our of in $X such projects project increase advance EBITDA investments Romania. EBITDA utilized a in to and a operating year-over-year quarter. quarter, this various leverage proprietary portfolio, significant a prior executed achieve technology we of XXX% level We national on our

For new our digital monitoring since we've intelligence technology, partner over complementary experience sector services. been electronic public XXXX, mission safety security and to solutions. of governments national is providing those SuperCom, XX and with years to proprietary trusted suite the in cutting-edge data worldwide our revolutionize of our electronic a to dozens With worldwide, founding of

violence technology, domestic superior strategic services, various highly global scores is programs GPS and by government develop Our print blue powerful, monitoring electronic our service. such tenders rehabilitation and arrest, strategy competitive This in solutions, presence our and expand straightforward, deliver monitoring, the which with innovative outstanding house technology, more. backed lead yet proprietary as following: supports is prevention

has XXXX, XX since multiyear over SuperCom And government new projects. secured

strong our Our and where monitoring ID greatest. each on electronic opportunity developed of growing markets, and focus new business provider in strategic tracking win the solutions with the reputation market our services customer premium position as is a enhances

constitute $X.X and of reach electronic XXXX, to billion U.S. electronic monitoring projected the With by market, about market markets. the Europe marketing the these XX%

technological provides to improved suffering markets, headway and Protect the pipeline revenue. continue in of including project significant in investments, recurring growing Last protection advanced These pivotal and PureOne. to Altogether, This these leadership substantial launch amplify year, have solutions the successes life-saving domestic violence. solution monitoring domestic opportunities and to offerings Pure are a is we expansion. PureProtect R&D our resulted are in leading already families violence solution. various U.S., with and from like making SuperCom's a

capabilities metrics monitoring domestic above in features, as enhances and all-in-one services. into comprehensive most tracking products PureOne device. is ankle a it company's violence addresses brace monitoring single and many top-notch the competition GPS offers more. of This our it such an products, that and of life, further innovative placing comfort battery solution issues portfolio Like integrates solution weight,

been PureOne segments and in redefine ] and have us innovations X which significant these [ upheaval have PureProtect helped So the products, and competitors industry.

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newest SuperCom of operational into countries. our to with sales infrastructure expect outreach with accelerated growth our pleased U.S. the facilitate have our support We've the and very them market the reception We fortified our help revamped strategy to and been and and European proactive approach. a solutions of traction expansion further

new sales achieving in deep Our with expertise team and been industry wins instrumental growth. has driving

also Europe. achieved macroeconomic ongoing SuperCom and being rate relevant, to PureSecurity vendors the Israel many are tenders XX% of displacing essential and designed looking Factors the continued solution and in Gaza offering costs. have an the we governments Over prison reduce trend, technology enhance significantly. effective Despite wins this past overcrowding in and ease an way make home increasingly confinement, institutions years. public the address company's solutions months, has cost-effective, and recent The been new lower high announced rates uncertainties win in escalating our the U.S. to cost solutions Europe recidivism incumbent like SuperCom enforce competitive project for and over not over war, safety for cost incarceration only to but

daily cost $XX example, correctional cost $XXX a to the to total of $XXX to or $XX For at compared approximately confinement is much for GPS home monitoring higher on facility. offender monitoring the the

to its business launch worldwide, improve countries Solutions XX their we significant our awarded through and tender process. importantly, the typically of SuperCom European and plan new Most witnessed in product, the strategic On has expanded have in over the In secured which of our victim a these reduce with of are lives in new top growth home perfectly aligns competitive been PureProtect. which shown contracts, the confinement a helping offenders and its effectiveness market, highlighting adoption surge protection communities. recidivism, drivers,

Besides continue and winning partners. projects, we execute from orders our to receive new ongoing

Just million versatility with weeks electronic space. PureSecurity Thanks monitoring solution. ago, the solutions program orders of these government receipt in PureProtect, already deployment to of national delivered. from European PureTag and new we the our about over we underscores been our effectiveness production of year, of announced at a XX% our optimized monitoring the and suite valued secured domestic Finnish governments. over of our violence orders $X demonstrates to leadership The and X efficient new processes, and and have our PureMonitor, consisting PureTrack deploy Last

the XX,XXX clients diverse confidence at Notably, the experience the XXXX, Our collaboration [indiscernible] month the $XX a award is with company area those up with Finland offenders at often choose monitor for of million, services for engagement year including end who won have up for national in Romania example as SuperCom, to the prime solutions. to industry years. largest per their in valued in our monitoring to our projects XX of that broaden

our as the large-scale trusted a announced our governments engagement we This reinforces for Romania's of further from national project project. in partner worldwide. at country's strength Ministry our orders XXXX, suite of PureSecurity million During extending over $XX Interior, position EM and valued the cements

and launched our in U.S. launched European violence domestic also solutions in other recently them the regions We

already SuperCom we multiple Although actively further expanding in U.S. presence does on our states, U.S. focused are the business in

rebids new strategically and to praise programs, regions the size The Our live is winning introduction scope expanding been company actively LCA actively with utilized geographies. existing programs into located new PureOne's customers. monitor during offenders. winning prioritizes the and in U.S. markets wholly deployed of and has with owned received subsidiary, existing PureOne of It where California customers expansion and successfully is has high into this various new

and commenced in activities America. new Moreover, promising North Europe sales have for markets outside PureOne

the our Launching sales new new existing pipeline. strategic solution new wins increased a within in increase XXXX market company's late have PureOne team in U.S. already significant expansion have U.S. the company's multiple Our driven [indiscernible] been and activity milestone first customers significant the strategy. our step in strategy was resulting and demos, the expansion in and

North we've new in already provide June to the announced X solution. In project wins 'XX, America

notable California for of LCA, formal The award in inmates. comprehensive valued up on SuperCom's new competitive bid judicial to a provide particularly result displacment focused monitoring process. we This all California Moreover, won LCA a California, the secured for with sector. $X an successful program million through new incumbent provider is winning to adult contract project services is in first the in [ vendor. long-term a The services electronic of monitoring contract established ]

this to with the in with This GPS Finally, existing technology new RF-based technologies. Canadian sector. SuperCom collaboration new the in providing partner, partner won Canada project tracking renown a tracking solutions transitioning from expands project industry embracing long-standing

contracts As competitive leader. I our these technology was PureOne solution commitment mentioned and a market these securing superior introducing our as earlier, securing contracts, underscores innovative solutions. in game we and delivering our edge to reinforce further By position a and changer

of North recent America and in indicators our and as review potentially We wins influence growing our worldwide. expansion

monitoring strategic calls, to of in electronic opportunity mentioned service we base we providers a As in U.S. and local customer believe growth local their our with reputation previous acquisitions strong enhance through markets. an there's also

and potential We that providing significant market market integration value expanding by market could acquisitions, immediately acquisitions generate constantly for the for potential presence expanding synergies. vertical monitor immediately

California for $X XXXX is $XX great has and successful we provided million through value over project new won example. acquisitions acquisition generated which wins in to LCA a Our in in company, great the of The strategic is alone. million

I'll now financials. turn to the

record to seen operating contributing I in XX% and We've income $XXX,XXX in with this we've sustained subsequent our along margin mentioned to Moreover, positive by by improved that increased and quarter $XXX,XXX from our the we delighted EBITDA our years, year-over-year During a as substantially evidenced 'XX million. to share we each of XXXX quarters as to I anticipated improvements matured. results projects XXX% last XX%. EBITDA ongoing to conference results. call, operating growth net a X $X our seen previous financial financial of remarkable profit am gross the

growth by driven revenue spending past in our leverage. significant targeted the company's operating is the few years, and in This

we quarter profitability results between potential stages This metrics demonstrate of first projects. can and following successful progression a is how portfolio in different execution quarter's of comparison through the high-margin our financial increased the typically of the seize XXXX. The these profit we a XXXX projects of our mature. first margins Gross progress direct $X.X million, $X.X of compared quarter million projects, across XXX% to made as to our the and enhance was outcome by of project

while the Typically, states and stages higher our incur margins causing deployment project high gross on fluctuations profit, yield project in composition advance depending expenses, initial gross stages.

the trend we As gross based upward an margins the in project portfolio. matures, expect pipeline project on evolving

decreased contribution the bracelet infrastructure, additional regions projects, in We we even our us as develop high, while or technology high we As be features and R&D existing projects to launch our for as edge deploy of expenses improve a continue at the XX% and keeping we innovation run by margins traditional where in existing on $XX,XXX space. leadership more. our can and products, new

marketing we by decreased In $XX,XXX addition, and expenses sales while revenues our year-over-year. our increased

and $XXX,XXX as contracts evidenced by by accommodate U.S., compared management general expansion $X.X operating to by an in The months. the our $XXX,XXX won yielded improved loss which operating million increased has X in $X.X income before. new from our have administrative such Moreover, also we million already the expenses to past company team of results

for in to profit. the improved million in to EPS it of improved $XXX,XXX compared positive increase to prior period. ] in the significant compared loss our million by gross to EPS prior $X.X $X.XX negative year an $X.XX of So $X.X resulting [ year, operating

profitability. with new compared ongoing in EBITDA associated achievement underscores revenues This million on The $X continued company's $XXX,XXX leverage the XXX% IoT deployed to our higher growth progress in sustained and our benefits on by focus reflecting projects improved faces and projects. operating

a Our $X.XX the quarter from to net $X.X of net million the profit loss year last million in And period. a net compared $XXX,XXX million profit our net non-GAAP income improved $X.X by loss profit to $X.X this to quarter. of $XXX,XXX former million by improved

compared $X.XX $X.XX. to non-GAAP non-GAAP EPS EPS of Positive negative positive to improved

cash is Our position stable.

continued month, and trajectory. We testament and to vision facility continue support a we a we public $X.X investment focus community's reducing on to company's completed in win offering our to in strategic of for have execute place, cash million the last a as more close the and need external Also, growth and initiatives, trust successful new credit we innovation our projects.

In addition, legacy of allowance expenses mainly the to company had $XXX,XXX, doubtful and of the onetime business debt. pertaining

In footprint this in to growth tireless our thank closing, continue as global achieve quarter. business I'd our our work We to company's marketing sales our as team invest and to our well record-setting drive like expand performance global plan. the execute and and revenue R&D hard for to

technology and billion overcome challenges centers in developed help have U.S. justice better of criminal rehabilitation use the over $XX operating to and We clients right systems products on and annually prisons. make the spent

significant monitoring research demand reputation growing several driven about years growth being in by products. through presence, an XX% factors, we're on shift to and recidivism the markets, and the showing violence monitoring we solutions. offender We there's from the capitalizing of business, shift legacy about to growing adoption improvement the show set We're technology are opportunities incarceration, the many our are in well believe transitioned the European and we that for including and profit. us. which of room we're happy approximate countercyclical deployed. public to continued and programs growing strong U.S., growth for domestic growth of nature With are in our to expansion new when the After business policy nice U.S. electronic before positioned the multiple industry, the effective to the These IoT prevention experiencing continue a in revenue tracking excited rate the

in We growth advancement remains over technological as the further area. questions. anticipate growth a share turn the I'll our expanding operator as sustained continue by With this robust to commitment Operator? and call our to foundation market to Europe, our preserving in invest for that, we U.S. steadfast

Group. Matthew first Your Instructions] Galinko Maxim for is with [Operator from today question

-- start on your remarks, think touched in I quarters one but margin of recent in you I the maybe it was know prepared you the stronger Can gross history.

you correct? are -- can you sustainable particular, guess, where I on that current, growth that little quarter, a in where why how was to in get is touch And range, math So more bit -- to and if able mid-XX% cycle? this given is your my

gross as question. stages Great increasing projects, of our you as our later margins with of We're general There with project Romania the them of as changes trend big see, revenues. various they projects. because fluctuations quarters, current consists gross with between our our some the of margin, in drive project, can parts the -- the And there's the which the affiliated are a a it. part of reaching we're mix some is

in and hardware lot of hardware just projects, at bracelets have from you lot are providing installations a margin our of and the we're for hours manufacturing which nature. the software. our speaking, stages training, stages a and of purchases, At Generally initial maintenance of more projects, support later teams lower kind of and

So the we project, margins the stage in the be will be. more higher can later of the

come stages they're and an projects little a they margins but as also of So smaller will are much they projects will initially impact these the new through make will larger where ones later and drive upon, lower a higher.

you available. there on the Got the today, focus guess, But those And XXXX, is of be now had your have more can bit products about kind for Europe like market sounds North I North versus you a because talk is America to in U.S. maybe market today. it. it American little

us to on on up accordingly without bid our to or more national The even rate -- size in to high win growing team, our little Xx fragmented. And U.S. we're The U.S. consistently market in on years. conformable battery an with PureOne requires developed XP of remote early market. because times which We there. a able it features it's been U.S. the over and us, a the of a helps way and by Europe. actually technology. one. had score stages. in the It projects terms team we and that. get doing the more address sales in X meets more advantage behaviors against little X market compete European of the large very market the optimized market. to a is recent that a we ground, the just scaling That the we're and opportunity market, a boots well it's for win product, is lightweight interesting vendors. the most, because has X requirements XX% which lot yet when research, others. come charging of is haven't We in U.S. And We've with developed all of over taken and a we in . We flash But roughly one of based to and solution, think, potential the say, a that life let's and couple we We're are

growing middle hope right more. could some larger. -- And we that is pipeline Europe and we're that to more Our live point, size demos active be of continue the We're of even in the and at now, doing growing. and

in me you I XX% there strategy? edge? products. uniquely is have to starting in -- the U.S., to question your competitive jump And successes impetus kind have and with Or a companies than to response X seem catch you to greater North the to queue, date in you're you're last Is some rate new a of the before you for mentioned to that still the an America seeing stay continue What think traction you with the that think to in could I on an the market player back and win do are gain are the that product you focused there try -- any side? Europe,

roughly to this and doing on we're app, coming markets. the show without very -- -- you say side, acquisition, lot Google years day going that When in compete. an so barriered for market to any X, a be you of been to even not competitors XX the highly you've the our lot XX have players, is it's product a response of a international

technology the They over haven't much hold lot A other existing recent are their contracts. there players. relationships to last updated them try to so use the of So on years.

year, X% been growth average growing of XX%. market anywhere and every say, let's we've at, rate is and I XX% The CAGR the between, think,

So significantly and than average we're market. companies growing faster the average the on market

high there any them advancement more just showing we're not to technology, We're We're capabilities to advanced technology, and features respond at and we very seen competing rate. is the new improving threats more our features. with of technology that with haven't showing. which try progress of has Some adding expanding that's a but also level and anyone

We a added other because new project we to have whole of can So great we every that we y, it doing we new we you bracelets bring customer more of expect the and developed add and on with like do that same. for we we domestic Sweden. Finland, lot same this you [indiscernible] example, program and the what's one that and started We bring features x to a programs about violence with alike. them, and in apply of capabilities one more technology the once we capability, to of customer continue cloud the software saw And then are projects. share do, added lot that new a and have existing we we leased, then we're customers for z type to we sell it we and bracelets we as is in thing started can customer, these to well

[Operator Instructions] investor. Schetz, is question private for Your from next a today Dan

the of -- than my raises? that But some minimum, big planning that some and I'm long-time profitability. see leave existing raises money was at. know recently years higher to turn trading the we a hoping it on stock And great some over can last diluted a I'm now really is you income net a company. I'm and guess if capital margin And hopeful a we the is, that any My you the I are. of repeated the question expansion I have positive First fantastic. was a with But are fan at price net shareholders, raised corner of to shareholder additional we that that capital the concerning all, couple question was gross was

and was I the on for the and CEO years Thank remember, role, in of great Israel because you strategy the global CEO, we our or XXXX, questions. declines X CEO for [indiscernible] to was the changed was I and the in for and your U.S. before. we of so, years in growth. continued the we shifted for had revenues you SuperCom, growth to focused moved support I some And

And revenues had went needs closed of money to in million of in million million us achieve to growth expand and XXXX, we period on and growth, cash. a short time, $XX $XX.X to over we our focus from from now plus $XX.X million. costs year, also So that last and into to brought that order it $XX

the is see to did on usage and we years. cash, while we nice focus declined growth our the what's But cash have has over

between to cash we're ago, is then this an years capital give $X.X roughly and and But we like could the did support now use to have actually later that positive stabilize then and X year a Romania last to as just cash cushion us perspective. raise somewhere doing cash was from fluctuation. for needs. the And currently, $X operating operating cash project, from million in projects a good more million just more it pretty And we in our flow reach $X and $X So stages, then it and they become mid-X, million million.

even cash Sometimes, breakeven positive. we're or flow

on that company projects it's over needs grow that That bit a lot time to negative take on expansion stabilize that are [indiscernible] we're to the projects other. But And and and a years, there cash manufacture temporary with think for sometimes, when ahead they massive we need us are cash will ahead of doing, that out. that flow afterwards. of of that leased. time projects balance And large then little of require units, amount the there negativity said, being bracelets flow We these some a into big hope brings significantly. decline. like And start we're things out project to cash in kind our projects of okay one they those we because

state capital We And see, require cash for over you sometimes users would our decreasing now upfront raises. to as external we're has operations at, than of some depend keep production growth, rather look minimum. our to happy these use the more will years cash. declined that we're than and accordingly our for time. cash after in can to cash Those we're X try of And see we been some able have operating

we're if that. investors, reduce to raises opportunities but try We're that a there's there's cognizant And also will that could out So of the opportunities them. there. trying to capital many minimum, aware practically on our capitalize we return to to

that and the caution last shareholders the a significant commentary I that to because existing capital in amount feedback. raise you appreciate I of we've years. keep the couple dilution suffered over mind just of when happens

are will the we've grow valuation over Okay. very activities the all -- Good. company justify and doing to the aware We over hopefully, that years. the We're time, been

Mike next investor. question Your for today is Walters, from a private

your you quarter appreciate -- quarterly thanks time taking you I another I for with and growth. provide your Mr. calls. earnings with taking record one. -- provide to on quarterly to great us Congratulations another to thank guys -- Trabelsi, time appreciate another growth, for of conference us always

growth time. we're and thing, It's the with investor, by methodical also your that been up It's now, progress answer. As years pleased been questions your the and appreciate I a I down appreciate I've long-term X also over asked. been

dip future, the you're the possibly as to into in correct? us could positive one answered have projects also capital, my questions you you shareholders using of -- is You be to that whenever that whenever

you a repeat sentence, Can second. broke for last the you out

future. Whenever shareholder directed possible your capital use the of -- towards in value growing is

also interested increase shares, also main of also course. And focus. the and and our shares, management, we're value myself Yes, and the of inclined me, we're -- to own it's we very other

that long-term short we to term, Just to manifest our raise capital sometimes need goals.

industry, Our value trading XXx the current multiples we're the does the earlier. than company we're we all. intrinsic fractions at at and we're said I stock that of industry faster at believe, seeing as average of growing the price, represent not in

intrinsic align market and will the company. to time, valuations investors with value over think we able then for value appreciate will the be the So

It would that pulse you a I speaking, that's you seems -- say growing fundamentals good correct. fundamentally you have would appreciate me that. to our that on and say, guys probably

a have pulse, sorry? growing We

Yes. Yes, in on direction. are the fundamentals that in a pulse great they growing right your

Yes.

the rebids, as fundamentals underlying and improvement rebid projects. we projects have win to win -- we're health in said, and these help of to from of you to projects our the us other and great So the profitability, maintaining to We're we on reputation try because see able world. relationship can to some around we also with our the as a focus technology in great the places customers more

your of kind That a leads enhance solutions? issued capabilities XX press guys AI next monitoring year, you last advanced June you into my to question on that is release incorporated

Yes.

decision-making to integrated processes. by cutting And and enhanced edge models empower your offerings EM unlocking real-time insights data

-- over last on pretty that are So of you contracts or frequently. the course you are guys of bidding announcing I couple was because wondering obviously years about

it is, -- my does contract? the your So advancement it make Like does AI is question the every next in more AI your capabilities onboarding? get efficient stronger -- it

is onboard that to maybe I last. making possibly to off terms your lot to the advanced was a like you each Because onboard model by actually business of AI you noticed onboarding the efficient that that customers, the I is which the your part wondering, I before paying your on investments like than coming contracts. AI guys if And customers -- more

helpful So more more it the the general, -- you with familiar is. in you're data have, be as AI may

of start around the comprehensive as help could we these designing different customers, of that same and lot improve. one offenders hard officer for a monitor a for onboarding but sees big the to -- tracking because -- the the roll the an do at the with cost one a officer various the a learning effectively that . And we example everything labor-intensive regions lot they're AI of officer there and first, will still could for create save started it's new, to customers the clicks, It's at and as to that opportunity just kind to make these out Also behaviors used also we and of it tracking tasks with for lot of even years of time. we value will to help more be those [indiscernible] still know us, is that, But tens track happen that be implementation a lot construction have the are of our that think It's lot efficient all -- in implementation of trends. have are going you fashion. of that modules, XXX For of and the these over more a kind will before and it. to of design not more for world, efficiency stages, keep thousands creation more use insight they officer a something to one that the are XX time. of which easy offenders lot program, data, them save still there's to in from of of where to and us shifts

a a people, you your team? X the that you and it's new and guys new said employees, an XXX you you -- answer, implemented employ in addition -- to or over said sales that

say employee, you about did sorry? What

Employees, that true? you're over think I XXX. Is

Yes. over XXX. Globally, XXX, we're yes,

pretty proud probably the XXX, you're awesome, and progress. them of

lot a quarter. there's small We're things and We've growth profitability had winning work work and at of lot relatively had doing and time. great last we're of a new and team, lot the same with the the in very a a these a doing for well great we've a of projects, -- run

happy yes, So very our with teams. we're

that the I to past, was like I in was bit as I $X.X I thought been estimates well. estimate the I point, $X.X you that might a surprised your asked you I'm -- But happy felt actually have bit the like -- happy felt the haven't actual as see know little revenue progress. a million that with with was the $X.X by was an challenge million. reflected because I it -- little this a and challenge little progress I was million. a

term. to So and you invest of I'm continued to guys with you really proud look long forward guys continuing I growth,

from Matthew question Galinko. follow-up a is question next Your

Two you. for quick follow-ups

the first end in receivables First, the 'XX. sheet compared quarter I were question. guess up the of noticed balance to I your

guess I Just U.S. clients? payment terms the moves terms European and meaningful guess, in there a wanted to around? I difference see, EM is And what payment between

because at you of it we can and deliver receive falls order yet. receive you the an X revenues, received manufacture and but the million just them cash the it's and haven't recognize just received sometimes, like quarter end can Just start how orders, you to them you orders

AR nicely the hand, of then report. other the receive you brings right the end before cash the quarter, for down On could and it the

speak. to -- these some by delivery. paid So we're of are But not

are And based consistently payments monthly some these of on lease.

little manufacturer them. what's had which in So we a which is base, sometimes Europe, lease whole more mix than in U.S., the a the is which -- monthly it's units projects. more the of projects like delivery, are and they more happened bit which consistent on is more the project, they of more a national buy the

balance strong you of last Permania few you Obviously, I'm how have I gap pipeline . given you the Got question. the of how the Romania. business, quarters, it. how fill bucket you a little has of Romania kind lot is your the a of curious bit? look the that in you then of do at slows down, how of can fill over kind in when been do guess a wins, but with Or like kind lot for of risk rest excluding And you the

U.S., course, to of and projects. a And and in bidding we're Romania just see in other Europe to we're the and more, programs. that projects relying also not running add other the and always more Romania, programs in and we customer have Romania, lot on all, the certainly on and Meanwhile, demos to of of win. growth as to base world, other seen with add-on of we first still there's additional you've is satisfaction customers maintain opportunities for its if Romania those So will come They're positivity on ordering there. nice active and its we'll have a a well. continues

a the gives us bid references because being nice have can may remember than nice were in to on it Because a rather projects is win, some past, as And revenue a reference. we we there good just size. certain didn't you which also profitability,

we've very sites X doing look we've show X come this weren't us we ago. in that out, years And large units we could aren't or if it haven't XX,XXX project -- There simultaneous have been bid projects and you're nicely these world, XX,XXX area at the with so puts units, and violence. that and Here implementing a in we when looking new you been successfully. domestic of other many where

in U.S. follow-up I at America? success guess doing does as that, Europe, Romania in at help North reference scale for projects the state-level the your or something to a

Yes.

same a world. we Texas $X the Lithuania closer a we are, went and project some course, it's it's similarity was there $XXX,XXX, Lithuania, The one, we to that million. $XX you the there, million easier of our Of million, win but of million, biggest up anywhere $X substantial Denmark are And and withi with projects done $X.X of is and are million We lot. units the started had to closer you've XX,XXX then $XX country, Latvia, California. you $X million more grew in in and up it's Canada these Sweden $XXX,XXX, was Finland after and

a return as the more states, of do So that dollar the also all and still a in consider help doing matter investment have we're we win also going level looking we're federal U.S., the in us. we spend. the the And at we on maybe in does highest certainly well. It's where on on U.S., the U.S. counties --

large know low So some these have we haven't as are return of return, expected the worked because projects much. there the probabilities a in is because nice on we projects don't these yet but very that

how develop knowledge with we done Europe, of the these many in use to capability that able how to We've can more and and same and fall In out that know pretty to going we And the we're confidence in we're are U.S., bid the them. Whereas as going on, trying things and score much competitors to align projects. more effectively.

So the a and about very excited U.S., There's it. we're well still big for in and the this. opportunity early what's we're in positioned there, that's stages

is Hamilton, next Instructions] a [Operator Your question investor. private Eric from

prison the have about your any concentrating you to opportunities know for market? countries to market, problems? Is solicit the on products what migration there but that migrant I you're

borders? Can you repeat that migration over the problems

the Are the in that interested from the these countries. getting bracelets to have Yes. or monitor migrants Yes. monitors you issues countries coming their into

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look we the other able even greatest. these since Our have has largest higher, for the be country that with straight the where on we looking. we've projects added complexities. complementary over already could that's technological time, into the And something even started is programs are to the been are to biggest further, the and the we're probably that it's monitoring, prowess, and But score that ones we'll complexity go in highest focus offender though

done be would technology for migrant the a for the the systems, that you've used system. technology prison monitoring to Well, same

whichever government capabilities The in same like have technology same. procedures, the would they different policies, you the technology but would the and -- by mean different different use the are technology is technological rules way I

processes you are it. on off. there's move we of flexibility customization end the There's back so bracelet, doing much and and what take And they're temporary, someone's anti provide data how have They the aspect monitor and so can't intelligence to location, customers. people can't doing. You they and it much all can these our

adjustment, so the many change a customers is different. let's that technology call from a that. each have is We The This there. simple a, bit it, want this of to little somewhat

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on you're over and and we've years. And That's Certainly, a technology to comes doing are been inmate markets how with focusing to appreciate is domestic right. these when of consistently. projects I that's actually the programs how new is good ready The us, deploy it types thoughts the of first for customers idea tracking also similar the complementary all, enter So the it violence tracking what at and we and programs. the question new this. to look

normal outside you America. And A enter monitoring we seem trying effort end, to the like a very within and countries for at and this. ready not South to the they especially of Europe, U.S. spend see time in them the lot actually another one lot reason and and then other electronic of times, market deploy or excited they're something

we migrant understand like the us on stuff and we give continuous invest them. any amount do actually to likely updates deployed they for of and So also other we programs before how local are adjustments with for time like ones, interact country work projects, we with partners this. significant need the these in But

that also but They quickly serious it we new project and or [indiscernible] likelihood very projects project also of emphasizing deploy that us So not we're how something them. it's you it to we growth like monitoring, the continuously it's in of and continued see for were project. at, brand something did a by versus new assess the and it Romania, look that it, they for electronic about with other

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develop products because shareholders or can doing the company winning the providing you shares that not just you of formula. is by value the hope more more issue diluting a shares outstanding more of the so let's Well, the Okay. value can enhance of

but the need win to to have to you higher on either contracts, money that's on great projects cover You bid get to no projects, losing R&D. and if for for are your overhead anybody. It's money,

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even deploy as trying to possible. much we're the the We progress aware projects and achieved a And as we're products. we've continue to to grow we're dilution, in new happy keep minimum that of and with though

some giving with they your you give you giving some order to money when upfront in are of in loading Can interested get PO? they of do you initial process upfront clients their a that cost Can the to capital order. you you some

decide That's usually the that a competitive structure, are these great ones question. government's terms, the The the processes. payments

don't and the competing up X, terms else, us, with there's going you everyone hard payment to says it's with want. front the that players these on And time. they're government come pay I X are pay say, to and So X, no, over and

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relationships we us the best with I a just product, product. a us help that having Listen, understand the It's with best get completely. and you want that responses. well, your us us on have come we understand or we all board need way through to the them I that technology, of client makes understand. and assure have you to to -- help

with to going into need. the supply aren't we product you you how So

has part when licenses. them sensitivity relationship these it's once evolved that developed terms, with the even we've have us it's of -- contracts. driver over the with and doing approach ongoing it's we've -- [indiscernible] offender we the with the to customers these government and working been been Yes. cards years And before always and allow they XX an Really, those passports years. monitoring, ID that for and always And government payment been because conversations.

leader, industry we're say beginning, prevalent becomes and and when time, more That's on you At an investment you more what how in technology over continued the have keep you less all have your say, R&D. more unique seeing working time. the more, as that's

is and Europe payment already a our America But more done improve with able and also we expect to we collections, our improvement the there, U.S. of South amount and from -- has shift of to be terms terms Africa we'll payments in have potential for hope You expansion it, manifest us of become in customers. huge and the terms of benefit, our over larger, as structures. abilities, time,

room discussed. already regions, improvement, as for a now X X always over these help us past the for So with that's to is big even years. there And been we

you the net disconnect can thing, profit, potential. profits, the the can some shares. You net do shares got that now and which to to it's with shown there Have it have consistent some potential. There's your be great seems the . critical value is improve And a you the -- with value be of of

to in And and your for happen. time, you we that's your support questions over Yes, for need to hope much SuperCom. what very thank

I [Operator remarks. Instructions] time, pass to closing At call the back this will Ordan for

and have if progress of questions. I sharing next a in Please Thank for day. and you want look to us the releases. call, any today's great forward you, on additional SuperCom. We have conference you and to contact in our press your thank all you for filings interest participating with call directly

your Thank concludes you lines may your This conference, and disconnect at for today's this time. participation. you