Supercom Ltd (NASDAQ:SPCB) today has announced that they have secured new contracts totally $8 million. The full value of the orders received are expected to be recognized during the first half of 2016.
“I am very pleased with these new contracts as they continue to demonstrate the inherent value within our customer base and our ability to build long-term relationships,” commented Arie Trabelsi, CEO of SuperCom. “It also indicates a strong vote of confidence and a high level of satisfaction in our products and services by customers. We look forward to continuing to pursue and realize the strong demand to our products and solutions.”
In addition to this news, SPCB also announced their preliminary third quarter revenue and updated their full year 2015 forecast. Revenue estimates for the quarter that ended on September 30, 2015 are expected to be between $5.5 million and $6.1 million, with cash and cash-equivalents coming in around $35 million. Their guidance for the full year of 2015 is expected to surpass $30 million.
“Our financial performance in the third quarter and full-year were impacted by our inability to recognize more than $10 million of revenues that were expected this year, mainly due to delays associated with foreign government customers,” commented Mr. Arie Trabelsi, President and Chief Executive Officer of SuperCom. “This delay, while inherent in our business, is frustrating, but we believe we will be able to recognize this revenue in 2016. As a result of these delays, we are adjusting our full-year outlook. Our confidence in our continued growth in 2016 and beyond remains intact. We continue to be successful in identifying, bidding upon and winning business. Our quarterly results can be erratic based on complex revenue recognition challenges, but nothing that has occurred has changed our medium and long-term outlook.”
The stock is down 34.08% or $2.62 after the news, hitting $5.08 per share. About 355,747 shares traded hands or 294.11% up from the average. SPCB has declined 31.00% since April 27, 2015 and is downtrending. It has underperformed by 30.11% the S&P500.
SuperCom Ltd. is a global well-known provider of traditional and digital identity solutions, providing safety, identification, tracking and security products to governments and private and public organizations. The company has a market cap of $82.51 million. The Firm offers solutions for traditional and biometrics enrollment, personalization, issuance and border control services. It has 11.94 P/E ratio. The Firm offers secure mobile payments ranging from mobile wallet to mobile point of sale (POS) using a set of components and platforms to enable secure mobile payments and financial services.