SuperCom (SPCB) 14 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, good morning, and welcome to SuperCom's Third Quarter 2024 Financial Results and Corporate Update Conference Call. [Operator Instructions], and is also being recorded for playback purposes.

Joining me on 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 make forward-looking statements, including statements that address SuperCom's expectations for the 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 statements the in XX-F particularly more the risks, that in factors, uncertainties refer periodic press cautionary For release X-K it. accompanies Form SuperCom's most

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

GAAP. prepared financial A a isolation You of should or in press in accompanies call. not advance table for substitute comparable see release information financial with consider non-GAAP this earnings reconciliation as results reconciliation loss, this on measure measure, this a net SuperCom's located that the additional to please GAAP

available time-sensitive disclaims well. that call to XXXX. there of this or this Reconciliations November that of by information circumstances content law, as SuperCom after any reflect events comparable other for financial are measures The contains non-GAAP accurate as call. or required occur XX, and revise today, to obligation only is Except any as information update measures GAAP publicly financial

pleasure turn It my SuperCom's Trabelsi. to CEO, now the to call President is and over Ordan

you, you us Earlier press ended September for morning, everyone. morning, today. the a operator. financial release we and joining issued results our X months Good this of for Thank quarter Thank third XX, XXXX.

of at www.supercom.com. website our find can section the copy a Relations You Investor in

highlights, recent session. I'll and a start our update results, business strategy Today, followed my with a comments future on by Q&A brief

for resilience our continued and quarter was in SuperCom, significant another showcasing third quarter the achievements The of business. strength

initiatives, prior improved XXXX improving of quarter the by margin XX% months to driving third the execution X from year XX.X% surged million, enhancing our which $XX.X $XX.X profit results strategic dramatically period. flows. Gross profitability cash revenue and have and successful the growth, in Year-to-date, increased been million. of Our to financial profit revenue our gross reflect first to XX.X% for and

increased flow negative of cash from Additionally, to QX our positive year. number a free in million last $X.X

to We are quarters. pleased with our forward results we the following look and

our particularly contracts Virginia prestigious quarter into Israeli also solidfy including to West York, exceptional leadership strengthening only ahead. our of could These also the our project, in market. years electronic position including expanded wins sustained the further with monitoring not the reflects Maryland, key expansion This New U.S. National and value was footprint help new exciting us for the in position regions, technology [indiscernible],

efficiencies to year period. of in Free growth along with million cash an million net and Our opportunities. quarter tangible commitment prior a has compared balance results. $X.X an a support in technology $X.X of cash further related operational generation loss month underscore improvement the period of extensive and net to million it, $X.XX to financial this to to the $X.XX [indiscernible], innovation income at potential [indiscernible] million ability flow in

initiatives has We continued to are needs integration our with markets our and expansion. also continued to positioned profitability This, the during evolving sustained to Pier reflecting our to meet commitment strategic ability new time. have into and innovation and solution our [indiscernible], particularly multiple successful along proud us over X

those new For SuperCom.

governments partner since Our data XX We intelligence our digital technology. electronic worldwide, our safety in and our proprietary mission trusted strategic did with worldwide security with years public complementary dozens cutting-edge innovative [indiscernible] is is we've for services. of With our electronic solutions, providing XXXX, module of straightforward, and revolutionize a been sector is technology, over powerful. experience founding national

in and to system. are analytics, have competitive our just AI-driven rehabilitation which technology, our government into which recently more. we domestic include tenders that monitoring portfolio come for Our scores various just brought proprietary electronic programs services, monitoring to prevention integration us. highly electronic [indiscernible] bios Moreover, advanced

in improve global core. multiyear outcomes and deliver XXXX, outstanding customer we to new and $X.X enhances of opportunity services tracking expand This XX the our on We since the predictive We win. market with solutions we've about superior is and is monitoring as us. developed projects market. addition solutions focus developed our new U.S. electronic of Europe monitoring premium billion solution. market enhances our services, for markets presence and and XX% global in position XXXX, electronic for over this ability strong our our insights provide And The where each IoT provider strategic secured constitute a reach reputation business by projected to growing the

perfective launch making continue headway safety. and on enhance offerings particularly U.S., U.S. information, the this is of been significant is the setting advantage silence markets insights offers is key by which game in different an it with suffering a filing competitive powering solution, unique protection battery R&D the in base competition around solution, a [indiscernible] and lightly the vendors a is [indiscernible] long-term and price line tracking to to domestic technological PureProtect offer investments our regions. engine, get the in is creating real-time life-saving amplify domestic affected to from and PureOne world comprehensive with PureOne, in for cloud-based in device. SuperCom features expansion and a many like providing actionable measures in motor mitigate solution pivotal expansion. various is risk our placing our product products stock, safety. way, product leadership into solutions our or monitoring to to and offer of most managing increasing with these spreading wind peers PureProtect has all-in-one timely architecture it real-time their Like authorities We with domestic and our top other no more families unique, single above this already that monitoring monitoring capabilities which are a the offer thereby in We rapidly offer and life line potential

deep accelerated were approach, with We and wins very to team with our driving pleased expansion our sales for sales the SuperCom revamped support reception has market at market. significantly and new countries. growth. European of U.S. traction outreach in into operational fortified the our facilitate We instrumental and infrastructure These to industry products achieving with been expanded have trust growth expertise in have proactive help the the our strategy company's acceptance

for system X-year a of and excellence, of in term. is contract The a X-year rounds PureTrack, expected to will incumbent our we all expansion. X,XXX project IPS. deploy strong This with and monitoring announced and one have to a SuperCom including pure in center effect contracts Pure[indiscernible]. The potential for with several and potential together is by supervise leadership the knowledge option PureCom, years. monitoring. month, nationwide solution EM estimated our a contract process, Israeli partnerships. electronic Last through in the we displayed total already negotiations, is IPS one for a the competitive program simultaneously the Prison X-year cutting-edge by prime And and has evaluations our includes and Electra X-year or that commitment this an highly awarded that, been electronic country the held programs demonstrations We deploy required simplifies ], cover partner, security Service and to enrollees [ the for many PureTag contract Agency Israel including extension

within are can of have array this electronic and ourselves, well encompass national monitoring and set comprehensive all the broad programs country. contract Our with offerings of a all the programs. but us position to multifaceted to win one one projects set we They one, provider solutions such as support

XX% Europe. U.S. many the and vendors the project Over The recent rate win in competitive wins orders past new an the European month, over continues tenders. incumbent achieved predominance in we and years to announced and

catalyze Looking Notably, bids conduct methionine the SuperCom secured past company's [indiscernible] European to customers. stages the execution. programs uptake further existing have potential from the new the launch EU costs national the in tracking large scale market. over years X tracker various like several Romania with one and programs of to

awarded winning competitor added XX.X in European European that tender past to period into orders a as million more the these anticipate expanded business $X.X simply is continent, to market, countries SuperCom As a contracts, over as process. countries expansion from our a receive new XX partners, its orders of formidable just we about over and continue execute over which our existing described. broader [indiscernible], adopt new totaling in the announced significant European secure solutions million in orders new projects, Besides to ongoing technologies receiving

That PureMonitor here, leadership in national our affinity consisting a demonstrates solution. solution. effectiveness we pre-security and and national service long-term or versatility the in program prime monitoring broaden course, underscores [indiscernible] example diverse and solutions to margin with domestic trade us, Lab domestic that of rated new and have secured our of is improvement GPS space. or and experience final is or site By that collaborational and our the bio customer. our SuperCom for finished our engagement of confidence The gives they PureTag a growth opportunities program PureTrack, same PureProtect, [indiscernible] of with the as employer suite those mine deployment opportunities for alcohol

government XX,XXX position month, superior of and Romania year project monitor $XX progressed per cements won company the to to worldwide. simultaneously The location trusted in put security electronic industry reinforced XXXX, end million, the for the at offenders substantial up project. our National the largest national partner Notably, project years. extending advancements excluding large the scopes the The a has as including and X demonstrated for our been over valued of monitoring country's over our EM further in strength suite at

to launched [indiscernible] as well linked U.S. European domestic the We've in [indiscernible] and the U.S. market. the also regions solutions on

note size a for opportunity grow, margin. it's the the X to [indiscernible] European market important being approximately that European to the offers Xx to continues While the market UFR of larger

in untap the monitored we [indiscernible] of and substantial SuperCom introduction the is of PureOne market. unlock a growth now product, potential in domestic solution, to With position this our our expansion believe available U.S.

multiple already does SuperCom [indiscernible] this U.S. in states.

existing and the expansion commenced outside biofactors. has of in have reduction new rebids actively California praise further programs in PureOne with deployed expanding subsidiary, sales promises various winning whereas activities of in successfully Moreover, PureOne on focused strategically [indiscernible] U.S., are our owned that brand-new [indiscernible] wholly our products actively in into to customers programs, the winning opportunities. monitor customers. Europe and us. prioritizes utilized untapped for during and parts The Texas located it PureOne geographies. size And the wins Despite with company appetent sales already reiterate outbound since investing high launch LTA, and The features mission We from received feedback in in growth or USA, across we markets in of market new deployment, remains if market name North positions for XXXX began a we'll and few and in California we to in this our few Idaho, top efforts capture PureOne a we just positive U.S., more, us Turkey. presence U.S. [indiscernible] and U.S. announced accelerate quarter, the America. unlocking which the the the California, largely in significant for long-standing is secure

wins And provide generating Virginia, U.S. earnings facilities. announced demos, significant secured sites to becomes strategic resulting leverage solar a have milestone in further in in the across companies U.S. in North to strategy sales U.S. solidifying team with market the increase Our multiple with with been in West both new our and agencies our contracts and revenue, -- existing call, the new the expansion presence in first solutions. and the market pipeline. are and customers late XX PureOne new Since contracts company's share these multiple new order increase these last in Launching new the in turn solution a strategies. projects SuperCom driven we've innovative expense recurring market. has and WiFi our multiple our in communication significant half contracts through America

provider we we And markets We've approximately and the U.S. business. the leading demand selection Baltimore-based the of secured New contract all contracts launched recurring across process, secured in contracts new our with We strategic your an the in XXXX first expansion achieve June to generated become service county annual in as milestone strength in revenue competitive on Maryland State. York $XXX,XXX. further

changer underscores innovative these uncertainties, Israel, an game in mentioned interior ongoing reinforce in our As despite view In wins and indicators. those North in to to deliver contract our as including competitive position growing [indiscernible] economic increasing contracts influence PureOne further challenges, and introduced a leader solutions. edge commitment we expansion are I These being We're relevance. solutions securities and and and worldwide. that technology fields, a was America various earlier, as the SuperCom conclusion, recent global potential market

trends is We offering PureSecurity continue and effective address Technology in dictates is in protection to cost not lower the and consideration company's The can. of and growth see cost escalating solutions for worldwide. of to surge on way online these [indiscernible] Victor adoption recoding present transitions

example, GPS [ about to which a at facility. the helps $XX a cost distractedness to compliment, improve is less their cost ] a For $XX correction communities. tender at to confinement home and home data help or than day, $XXX,XXX monitoring XX% Moreover, offenders lives

in a calls, mentioned good lever local acquisition an strong in implication base the we to acquisitions our enter monitor we previous customer constantly significant providers integration with service immediately provide U.S. growth local expanding presence the to monitoring of generate value markets. strategic through As at opportunity that could also electronic our market potential We By a synergies. price. of

$XX allowed in company greater last of example. XXXX, of [indiscernible] which It alone the is capital to its million strategic win $X to and great over the store to in Our California acquisition projects the been million LCA of has us of new for value acquisition.

briefly turn now financials. the to I'll

of and of X-month first of the of year. these projects effect months. the period our quarter in fluctuate which the and We'll not cannot NOI quarterly drive on performance. X to start to with months helps comparison should fluctuations under the some QX in this the scale Note quarterly. in During multiyear same that last XXXX run X

year. net a gross income The when non-GAAP million and revenue months, to $X.X EPS the Net at $XX.X year. X EPS amortization difference to $XX.X the net of margin, to million in business. period X.X%. $X.X in trends months XX% last from included same improved in cooperations first for million, $X.XX Gross XX%, So from $XX.X for prior and year. of million last income time Non-GAAP tapered million $X.X the to compared of reached the reached million loss XX% surged attributed significantly up profit increased up asset

to profit driven million, performance margin million, QX quarter a compared year, in expansions increased wins of XX% timing. quarterly million million $X price $X.XX mix due last the in This to to million $X.XX to timing. this primarily and project mainly revenue from $X.X project margin of of The QX is in was and margin new year, to mix Gross $X.X in QX, of and million up due QX. of $X.X also totaled and last XX% contract. compared decrease was EBITDA reflecting

at this part improvement cash In This were On year. further operations the the in same negative our underscore cash negative flow flow recent the first free this from $X.X million of years. X of flows interesting. million had months very XXXX, $X.X for we XXXX, XXXX, and had cash free in strong a Positive to for negative flows. supports financial cash the we year positive. achieving keep them that million see of it. track. negative discipline of and is is look operating $X.X cash operating into in from positive In the are this flows. QX results in are we operating in for And year, a last If strategic XXXX, like cash Note, to period our and months tap $X.X big and operating and cash we had trend we again, great first X flows, million success we flows. These great we'd in have plan the

focus quarter's stages on through profitability. on ability competition stages our of profit, execution fluctuations incur showcasing gross of deployment potential and and expenses a in The portfolio yield Typically, gross progression sustained the successful and cost to while margins, these advanced initial our projects results project depending our our seize high-margin at growth project different stages. higher stages highlight project higher

trend portfolio. in XX% [indiscernible] basis into world, on our see [indiscernible] more. margin each how how based in as each the we on gross upward matures, project and can existing you In specific projects falls projects expect pipeline that run the project the margin high The stages multiple as structure. we braces be quarter. can throughout depending in running on evolved that's are contribution as new quarters, the where for additional in and fluctuations an the different We

or continue expenses existing in to strides of our And to line to million XXX% debt first as which made to half long-term stayed creditors includes price. our note, with of premium to we've we our liabilities also the operating strategy. with in equity year Our the in up considerable quarter the up $X.X of year-over-year, and negotiated reducing with market premiums exchanges interesting

in This win to in cash operating at Our and position our projects. reported execute external marks at cash million and recent position flows on improved year-over-year, years, funding to reducing our the of $X.X cash highest as grew quarter. we we million cash continue and remain the focused end the $X.X our

improvements to investments. initiatives to ongoing for and These thank further performance. like closing, achieve record growth tireless our hard company's the work strategic [indiscernible] team I'd financial In global foundation our to strengthened support our

help right U.S. billion and over better rehabilitation in the room clients approximately when make We're adopters. in we legacy did program number developed from near There's U.S.A. transition nice justice XX% significant overcome funders have a $XX about products We several showing operating inciting to experiencing system criminal technology to the spent we're growing the we fact of profit. the at our improvement are for challenges growth the centers on show in shift, products. demand revenue business use annually it to IoT growth years happy excited and business, technology tracking the through our which about of and After

many in that including by well us. driven markets. presence European expand and to are factors, believe multiple reputation the for U.S. positioned being we're to opportunities continue capitalize on We and These strong our

anticipate of domestic regions. the the potential nature to shift the Europe and bio U.S. countercyclical incarceration public of prevention and monitoring expansion in adoption electronic the monitor other growing We solutions. policy continued and The growing industry, setup

sedate to Operator? areas. brought continue a turn we and operator, technological Our in open call to commitment the remains advantage to invest I'll foundation to conserving questions. as over With that, growth robust our for these over

[Operator Instructions].

from Maxim Galinko Group. from is Your Matthew first question coming

you up looks start for what is bid as the you by in Or for maybe XXXX? for large off XXXX. over are Europe you or Can that national outlook next on think any close pursuing look there Are your the out pipeline just in what that that could looks year? -- touching like you're now projects like

Thanks, Matthew. Good question.

in we small with Denmark you as Europe, remaining access which $XX a [indiscernible], are -- of grew we and have and to last ones. several Those we entered $X years ERP as a recall, that this ceded record larger may the million when projects like beat us the Our ago, at million. market are track an $XXX,XXX, now Europa stage. all some references basically helps

waiting basically we come So with usual out to one compete our for use projects. the those stronger then to help our and rate and leverage

bidding In that though countries countries, many Europe, won still are there's enter. we haven't had evaluated out across and there's and and almost where continuously monitoring and Norway project we and yet Germany national many country so progressing Spain. as projects rate [indiscernible] has every many and being Western France, England, like one our even for many have countries European And we to a various we

out U.S., while various And many still market there great Romania of opportunities that us. And for the are are that sizes, bigger are Europe, certain there than so in smaller are a being there and projects.

while U.S. parallel, the continue position, we to be and because regulation We very there, there enter market. in have we a a good

functionality usually generally the Or -- what And they on the of are displacing it as for brace or or such ankle generally displace stuff? are Or to violence it? legacy new is new one when looking kind in the for? it. replace Europe, go, Got bids looking domestic what's in additional projects old you've been

arrest, company first around and did every is we almost track monitoring, [indiscernible] time we times the [indiscernible] incumbent we the to been the in time. in that. core monitoring tune have like do many house programs a and long because programs also has displaced an natural encompass displacing there [indiscernible] first XX domestic years. in all track alcohol, violence themselves. Romania, make some In monitoring prison the Initial very The GPS which countries displaced come like oral for Usually monitor other the that we're that. well, We as one is for

and to capital to for and it switch does new investment country So a our require vendor. work over

a You what need today. they do that proposition, to significant see are which to they value when is experiencing

other to whole that. staff or improve whole important them. do now that marginally they technology to So monitoring big systems their and We're firstly, life have, and as or domestic GPS we the features. And integrate what solutions and PureProtect project. or are to they scale program. because existing significant have offering programs to going improvement retrain and but to before, and don't like offer just improvements branded different looks have, and architecture given have But able they and other change whether all house their much That is it's capabilities offers longer of very haven't we're had completely violence battery to to at

effective And government SuperCom. over line mix. of contractor get see to they is them usually which which bring support, team partner, a to provides good all experience programs. the we local from here of used great a a things time better to top to years contractor they're as a the together it's at XX communication looking that version opportunities the the government that with and find a lines, program So execution, new existing go and

ground the effort it that it. the then you're in U.S. how to Got bigger curious that expect seems the states then try need North to going me, respect more queue. just accelerate -- boots I'll faster? to Or that do do the the U.S. to Or within you jump add like with into What market, expect do you back think and America. add resources North last footprint push expanding America? to about to to U.S. like opportunity And you to on for in you after guess, question your I and new

or workers you . accelerate on -- do it You're clarify, we're just to for as the ground putting others? more to

exactly. yes, . Yes,

question. Good Okay.

that counting take want technology, on the they in County. is process, sell. a is much So products market, a it have their an counties Europe through go Resellers looking [indiscernible] than and sometimes to agencies XX have towers -- trade-off not are it's running faster at all you're things electronic three in because government If retailers, a to they're U.S. their that they own. controlling on RFP decide

So technology find they happens ours could that quickly. and in switch a to the company like

within to So start months, and They they That we switching have go does everything them X don't require us X time months do to can give over. faster. one over, it move flexibility small, though. allows a to lot of

can though, On maintain ground projects ago, on burn, spread heard market the expansion. multiple cash projects have negative the production which sellers, our of forth. X hundreds year, on fragmented more faster. money have We have early work because have relationships. they'll some We a you It's We we have for optimize throughout counties and feet try back on our as to we these feet put trying national a our our also $X.X we a to had one just you fragmented. venture cash is say, of looking for faster faster. and grow try could use, other putter to and have hand, try the the resellers the the time, may But many, in co use U.S. of We some eye cash base, work, years fund across even more raised thousands because and aggregate an were profitability. raise have And flow same profitability. or, could do to we'll the you different company. very looking many instead And script you program monitoring. at and count see ground to so the more the We keep project this positive, requires where at on and let's and cash expand to million capital we're from try,

we're to the So same time. at everything trying manage

ground. put expenses And optimize our have already seen and as people many of growth as We utilize optimally the can. we our with are and try and we as we to our great sales salespeople cognizant efficiently work sales how very even we capital on

answers, all and other you. no Thank are I Well, queue. the in be appreciate the questions I'll Great. if back there

coming Your from Dan next question Shades. is

sounds a of First all, it that. I appreciate couple like questions. great We another really of have, Ordan, guess, quarter of execution. I

debt-to-equity in be conversion, many how at price? would one shares and issued what First . were new how the --

of million. think significant exactly over the to when of XXX%. We've our And with they're a Don't done that debt We it's would conversions course hint as the have one the helped premium on to conversion saw usually numbers, several year. be reduce and in at you that. price. the by we benefit $X.X we long-term liability a the shareholders, you're stock a to because reduce course, got premium forgive together seeing that

were were concerned as quarter. more So quarter? How conversion issued that part about shares new of many I'm many particular -- well, how this this

this quarter, This quarter. in nothing

in Zero third quarter. the

Yes.

conversions nothing, or the just amount, to optimal version terms with an just see it. it's we compared and with liabilities Quarter of the reduce to we long-term update, in to just Third previous Small you one done updates the the quarters. try last annual not to year. our what conversions give achieve because

Okay. you That's end excellent How the Wonderful. an hear. give many of are to at . third shares can of outstanding the -- me quarter? how account many

work we semiannual report, roughly We little we X shares. [indiscernible] share. bit more that had million on A ran did a outstanding

of -- knowledge once your and to you -- I mission, us. performance last And got that's that's but what's thrilled it's disheartening you shareholder. couple will in The years. holding hope now, I'm I one . right long-term And dilution product the to any been I been And your behind change Wonderful. wasn't your see a believe over than once to that hear and because little just additional stock there is there, the a Okay. will continual all is back. final market comment. that's out common say. that dilutions

negative to million and and over Thanks expand control win understand. positive now grow stages to we've time, said, we been a been don't our cash as have more million and our infrastructure million, we for that, that things want We I and hope reducing I $X.X of [indiscernible] flows. to and the cash working we projects. to exactly $X.X negative roll out project free $X.X how use

we've we to cognizant use but describe trying why a shareholders. cash trying value great be sometimes provided are that's cognizant and XXX%, up growth, [indiscernible] done be to And to we debt. to help this our and terms debt, the optimize delaying We're to worked support years. And in to be our premium to trying . support to that grow execute plan need that the we've we appreciate and with I And and parties of value. to maturity on extended and able closely your at while come to [indiscernible], implement to shareholder partners, business various

question Galinko next from coming from Maxim Your Group. is Matthew

Another that it the for questions Israel, And on little opportunities particularly the of or me. little of a bit . you what project from we structure? of are bit expand more more expanding over deal Can about have Is maybe in the purchase time? recurring a a couple more structure? now kind a

make sure on information Good for question, and organized the I'll just you.

are we that the many as is see the expected that in came in arrest, is it holding for parts is discussed that to regions incumbent things could partnership. level. the which was to in X defensive it project another with all are with house allows domestic and the X-year not some a we really there's in right based, [indiscernible] So times clients, in well, these we the four a This use we is country. there's to starts of extensions which and There's is U.S. years. for in initial the years together monitoring do we market and vendors like a call IPS, years. a many many gives programs project path and a last is around is monitoring high types more that for believe through X in we low we'll Europe. with lease help domestic of that, of projects -- electronic and and extended I and that different of a an programs bid, been plan period complement project miles have start they use The process. that's others X,XXX Israel. the world. partnership for we and they There's Electra, the other model incumbent, There with other as over in electronic was be years. Israel with the if us the program present see year purchase first X call, won liens on these Initially, years

for every be it the noted we just increase on of grow. And to of deploy programs grows, the rest program. initial program, But That's those [indiscernible]. quantities for numbers beyond potential house additional seen is projects, have in be added minute. the So we be very countries even as the could initial year. which government and projects in various expect as the Romania, to projects we're the many decides to expecting these to XX,XXX in sizes, We've vendor the around will more experience, in deployment. units programs, which world. many we including invested

And additional we on under rest think units it. additional win. that Got as programs the about or House

look what margin incremental benefit is add a end? guess? X,XXX, to So if units, the if you go guess the like there I does beyond I you But

yes. yes, Yes,

sometime be which same the has going lower specifications we or of In mainly add to good X,XXX units and every lot manuals is than more any they in additional on support protocol. setting besides if much units, they So of system have the the pricing programs there's same run you're on teaching do to software but so because but because margins, higher one that installation It XX% program nice doing the have includes and you cellular going setting whether new business change, are about in costs with the two also to a specific effort don't you on original you could our that all U.S., customer have higher customer on add additional and and the that specific XX,XXX hardware, programs, includes to customization, every and say have [indiscernible], tone, the you software have [indiscernible] margin. as the high more base and We'll contract. And large the a to and insisted different costs interesting development ones it's brace Israel, the each put do run sometimes the on then what's of put much one unit among different customer the that that when two one are high, it's and wants. the specific and and brace our time such up up programs you every and calls very additional that you cloud margins. digital margins is the and language know, very But infrastructure, has each or rates margin units tone, with same higher. depends

where So allowing market higher will Europe a already versus which nice us is there, Besides of different to laws, in nation. year. lot to reach there X utilize from and each same margins bit Europe, it's more systems and to different very languages, nation Xx was it protocols, have we the of purchasing nation the A has a auto little different made it complex

U.S., the more us between programs, actually in a benefit the more consolidation and forward going future. going for Here seeing similarities to be we're in that's

if track answer it. you then question think I can Got Do that. of but deal over period. don't the X-year on final a initial know there this, reach defender. is And the Israel can you number

it ends impossible Or answer is X,XXX So that like to at at at started point? X,XXX? we this that and maybe

of into to million, different end population the the in remainder without and programs. look it was 'XX, XX the of specifics, as XX of With laws and processes Israel you population getting million close at

to not X,XXX started and on to move talking the much It's government's just more of that potential they're There's go done. in be propensity processes They're than It see Romania growing. depends can quickly. country. XX,XXX, the also at population You Israel. a to in the are certainly still lot of and the

headquarters numbers working are tracking, with like that COVID-XX in well, processes grow the as good and technology and our visual these work effectively lease the a are we the the so deploy Israel here together program and Israel had a of a product government experience to lot different is Our in operations and work comfortable have with for We technology. it's they grow the and effective Electra numbers. as projects they as decisions with them And and it numbers. continue solutions. to to they it their see improving closely

sorry, last one And follow-up.

Or X,XXX, go new? on and you For to implemented? in do that they need the turn of the the what's for as initial old and as a go-live point? to process that swap where the soon ramp-up period kind Or is reaching there number initial you're towards .

do between XXX And X,XXX, a to happen less you at different is able right now another the a little run -- access up issue so started be number to the quickly smaller with the than deployment the project California, already you vendors. it initial the is takes grows the X should while expected or ready offenders everyone to is number, then X,XXX some to in. in months like regions with And everyone, month a points It the time. it first, X,XXX exactly. set a the in large it It's have We and across that's to for do maybe on months, to processes easier you infrastructure, to it beginning relatively That a is to the Israel task beginning do swaps. for program the from running but X test and and deployment. does . But bit And are through swap somewhere planning. the so one train could quick in now touch then and of easier have spend take than different the region.

declines And that's the around world with confidence customers that first our they So process, course, successfully. we're familiar it's a that of very gives which the what watch choose one. handover we've done other

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

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