Supercom Ltd (SPCB) 2023 Q2 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to SuperCom's second-quarter 2023 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. With me on the call today is Ordan Trabelsi, SuperCom's President and Chief Executive Officer.

女士們、先生們，早安，歡迎參加 SuperCom 2023 年第二季財務業績和公司最新情況電話會議。 （操作員說明）本次電話會議的參與者請注意，本次電話會議的音訊正在透過網路進行現場直播，並且也被錄製用於回放。今天與我一起參加電話會議的是 SuperCom 總裁兼執行長 Ordan Trabelsi。

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.

我想提醒您，在這次電話會議中，SuperCom 管理層可能會做出前瞻性聲明，包括涉及 SuperCom 對未來業績或營運結果的預期的聲明。前瞻性陳述涉及風險、不確定性和其他因素，可能導致 SuperCom 的實際結果與這些陳述有重大差異。

For more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on Form 20-F and Form 6-K, and SuperCom's press release that accompanies this call, particularly the cautionary statements in it.

有關這些風險、不確定性和因素的更多信息，請參閱SuperCom 最近提交的表格20-F 和表格6-K 定期報告中描述的風險因素，以及SuperCom 隨本次電話會議發布的新聞稿，特別是警示性聲明在裡面。

Today's conference call includes EBITDA, a non-GAAP financial measure that SuperCom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss and comparable GAAP financial measure, please see the reconciliation table located in SuperCom's earnings press release that accompanies this call. Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.

今天的電話會議包括 EBITDA，這是 SuperCom 認為可用於評估其業績的非 GAAP 財務指標。您不應孤立地考慮此附加信息，也不應將其視為根據 GAAP 準備的結果的替代品。有關此非 GAAP 財務指標與淨虧損和可比較 GAAP 財務指標的調整表，請參閱本次電話會議隨附的 SuperCom 收益新聞稿中的調整表。其他非 GAAP 財務指標和可比較 GAAP 財務指標的調整表也可在此處找到。

The content of this call contains time-sensitive information that is accurate only as of today, July 31, 2023. Except as required by law, SuperCom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

本次電話會議的內容包含時效性信息，僅截至今天（2023 年7 月31 日）準確。除法律要求外，SuperCom 不承擔任何公開更新或修改任何信息以反映本次電話會議後發生的事件或情況的義務。

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

現在我很高興將電話轉給 SuperCom 總裁兼執行長 Ordan Trabelsi。

Thank you, operator. Good morning, everyone, and thank you for joining us today.

謝謝你，接線生。大家早安，感謝您今天加入我們。

Earlier this morning, we issued a press release of our financial results for the second quarter of 2023. You can find a copy in the Investor Relations section of our website at supercom.com. Today, I'll start my comments with a brief update on our recent business highlights, strategy, and Q2 results, followed by a Q&A session.

今天早些時候，我們發布了 2023 年第二季度財務業績的新聞稿。您可以在我們網站 supercom.com 的投資者關係部分找到副本。今天，我將首先簡要介紹我們最近的業務亮點、策略和第二季業績，然後進行問答環節。

The second quarter was an outstanding one for SuperCom, making our fourth consecutive quarter of remarkable year-over-year growth and positive EBITDA. We're delighted to announce a staggering 141% year-over-year revenue increase, reaching a five-year record quarterly revenue number of $7.7 million; and non-GAAP EPS of positive $0.07, as we continue to execute our project pipeline and introduce new product and services to the market.

第二季度對 SuperCom 來說是一個出色的季度，使我們連續第四季度實現了顯著的同比增長和正的 EBITDA。我們很高興地宣布營收年增 141%，達到 770 萬美元，創五年來新紀錄；隨著我們繼續執行我們的專案管道並向市場推出新產品和服務，非公認會計準則每股收益為正 0.07 美元。

During the past year, we won several important contracts in the US and Europe, and we're excited about the opportunities we see ahead. I'll go more into details in a few moments. But first, for those new to SuperCom, SuperCom's mission to revolutionize public safety worldwide through proprietary electronic monitoring technology, data intelligence, and complementary services. With over 35 years of experience since our founding in 1988, we've been a trusted partner to dozens of national governments worldwide, providing cutting-edge electronic and digital security solutions.

在過去的一年裡，我們在美國和歐洲贏得了幾份重要合同，我們對未來的機會感到興奮。稍後我將詳細介紹。但首先，對於 SuperCom 的新手來說，SuperCom 的使命是透過專有的電子監控技術、數據智慧和補充服務徹底改變全球公共安全。自 1988 年成立以來，我們擁有超過 35 年的經驗，一直是全球數十個國家政府值得信賴的合作夥伴，提供尖端的電子和數位安全解決方案。

Our strategy has been to lead with our technology, develop top-notch solutions, expand our presence, and deliver outstanding services. This approach has proven successful, driven by the following key factors.

我們的策略是以我們的技術為主導、開發一流的解決方案、擴大我們的業務並提供卓越的服務。在以下關鍵因素的推動下，這種方法已被證明是成功的。

One, our proprietary electronic monitoring technology scores highly in competitive government tenders and support various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more. In 2018, SuperCom secured over 50 new multi-year governmental projects with project wins valued at over $40 million in 2022 alone.

第一，我們專有的電子監控技術在競爭性政府招標中獲得高分，並支持軟禁、GPS監控、復健服務、家庭暴力預防等各種計畫。 2018 年，SuperCom 獲得了 50 多個新的多年期政府項目，光是 2022 年贏得的項目價值就超過 4,000 萬美元。

Second, our strong reputation and recognition as a premium provider of electronic monitoring technology and services also contribute to our win rate. Each new customer win and project deployment further strengthens our competitive position.

其次，我們作為電子監控技術和服務的優質提供者的良好聲譽和認可也有助於我們的勝率。每個新客戶的贏得和專案的部署都進一步增強了我們的競爭地位。

And third, our managed strategic focus and attention to our IoT tracking business in developed countries, so the opportunity is greater. The electronic monitoring market is estimated to reach $2.1 billion by 2026, up from $1.2 billion in 2021. The US and Europe constitute about 95% of these markets. In Europe, there's been an increase in government tender activity with over $200 million in project opportunities in the past 18 months.

第三，我們管理的策略重點和對已開發國家物聯網追蹤業務的關注，因此機會更大。電子監控市場預計將從 2021 年的 12 億美元增加到 2026 年的 21 億美元。美國和歐洲約佔這些市場的 95%。在歐洲，政府招標活動增加，過去 18 個月內計畫機會超過 2 億美元。

These successes and opportunities have resulted in a growing business pipeline winning over 70% recurring revenue for SuperCom in 2022.

這些成功和機會導致業務管道不斷增長，為 SuperCom 贏得了 2022 年超過 70% 的經常性收入。

In Q2, we continued to invest in R&D to ensure our products remain the most competitive in the market, continuously introducing new features and technology proprietary platforms. These efforts led to the successful development and deployment of two brand-new solutions, PureProtect and PureOne.

第二季度，我們持續投資研發，以確保我們的產品在市場上保持最具競爭力，並不斷推出新功能和技術專有平台。這些努力促成了兩種全新解決方案 PureProtect 和 PureOne 的成功開發和部署。

PureProtect is a life-saving domestic violence monitoring solution. This innovative solution addresses domestic violence issues and further enhance the company's portfolio of products and services. Pure Protect has undergone a rigorous testing and has been successfully implemented in multiple projects, including Romania's $33-million EM project.

PureProtect 是一種挽救生命的家庭暴力監控解決方案。這項創新解決方案解決了家庭暴力問題，並進一步增強了公司的產品和服務組合。 Pure Protect 經過了嚴格的測試，並已在多個專案中成功實施，其中包括羅馬尼亞價值 3,300 萬美元的 EM 專案。

The second is a PureOne, an all-in-one, state-of-the-art, GPS tracking ankle bracelet monitoring solution that integrates comprehensive monitoring capabilities into a single device. With its lightweight design, longer battery life, remote charging, high precision, and future-proof features, the PureOne offers a more efficient and effective electronic monitoring solution. This product also expand the company's addressable market.

第二個是 PureOne，這是一款一體化、最先進的 GPS 追蹤腳環監控解決方案，將全面的監控功能整合到單一裝置中。 PureOne 憑藉其輕量化設計、更長的電池壽命、遠端充電、高精度和麵向未來的功能，提供了更有效率、更有效的電子監控解決方案。該產品還擴大了該公司的目標市場。

We've been very pleased with the early reception and traction of our newer solutions and expect them to help facilitate the rapid expansion of SuperCom into the US market.

我們對新解決方案的早期接受度和吸引力感到非常高興，並希望它們能幫助促進 SuperCom 快速擴張到美國市場。

It supports SuperCom's growth. It will not only maintain its technological advantage, but also invested in enhancing its operational infrastructure. Furthermore, we bolstered the company's global sales efforts by recruiting a new sales team with industry experience shifting from passive bidding to active outreach strategy.

它支持 SuperCom 的發展。它不僅將保持其技術優勢，還將投資加強其營運基礎設施。此外，我們招募了一支具有行業經驗的新銷售團隊，從被動競標轉向主動外展策略，從而增強了公司的全球銷售力度。

Throughout the past 12 months, we announced many new projects wins in the US and Europe. SuperCom has continuously displaced the incumbent vendors with over 65% win rate in European competitive tenders. These achievements are particularly notable given the economic uncertainty and market volatility caused by the potential recession and unstable geopolitics.

在過去 12 個月中，我們宣佈在美國和歐洲贏得了許多新項目。 SuperCom 在歐洲競賽招標中以超過 65% 的中標率持續取代現有供應商。考慮到潛在衰退和不穩定的地緣政治造成的經濟不確定性和市場波動，這些成就尤其引人注目。

However, SuperCom is a good candidate to be a recession resistant due to the factors such as high recidivism rates of roughly 75%, prison overcrowding of over 100%, and soaring incarceration costs of nearly $80 billion in the US alone. In 2020, the US alone turned over $80 billion as just mentioned to keep approximately 2.3 million people incarcerated, which equates to nearly 5% of the entire US population.

然而，由於諸如約 75% 左右的高再犯率、超過 100% 的監獄人滿為患以及僅在美國就飆升近 800 億美元的監禁成本等因素，SuperCom 是抵抗經濟衰退的良好候選人。 2020年，光是美國就上繳了剛才提到的800億美元，關押了約230萬人，相當於美國總人口的近5%。

For these reasons, among others, we see a growing global trend of government turning to innovative solutions and alternatives to incarceration to ensure public safety. The company's clear security technology suite has been designed to address this trend, offering an effective way for institutions to enforce home confinement to ease prison overcrowding and lower costs significantly.

由於這些原因以及其他原因，我們看到政府轉向創新解決方案和監禁替代方案以確保公共安全的全球趨勢日益增長。該公司的清晰安全技術套件旨在應對這一趨勢，為機構強制實施家庭監禁提供有效方式，以緩解監獄過度擁擠並顯著降低成本。

For example, the total daily cost for monitoring an offender on home confinement or GPS monitoring of approximately $10 to $35 compared to a much higher cost of $100 to $140 at a correctional facility. Most importantly, home confinement has been shown to reduce recidivism, highlighting its effectiveness in helping the offenders improve their lives and communities.

例如，在家中監視罪犯或進行 GPS 監視的每日總成本約為 10 至 35 美元，而懲教機構的成本要高得多，為 100 至 140 美元。最重要的是，家庭監禁已被證明可以減少再犯，突顯其在幫助罪犯改善生活和社區方面的有效性。

On top of these growth drivers, we have witnessed a surge in adoption of beacon protection solutions worldwide, which aligns perfectly with our strategic plan and the launch of our new product solution, PureProtect.

除了這些成長動力之外，我們還見證了全球信標保護解決方案的採用激增，這與我們的策略計畫和新產品解決方案 PureProtect 的推出完美契合。

In the European market, SuperCom expanded its business into over 10 countries and secured significant new contracts which are typically awarded through competitive tender processes. SuperCom launched a $3.6 billion national EM project in Finland with the national government in Q1 2023. And by May 2023, the PureSecurity EM suite was fully deployed in Finland covering all offender program: house arrest, GPS, and monitoring.

在歐洲市場，SuperCom 將業務擴展到 10 多個國家，並獲得了重要的新合同，這些合同通常是透過競爭性招標流程授予的。 SuperCom 於2023 年第一季與國家政府在芬蘭啟動了一項價值36 億美元的國家EM 計畫。到2023 年5 月，PureSecurity EM 套件已在芬蘭全面部署，涵蓋所有罪犯計畫：軟禁、GPS 和監控。

Notably, the company won largest industry award for the year of a national electronic monitoring project in Romania. The first electronic monitoring program in Romania valued at $32 million, which includes up to 15,000 monitored offenders per month for up to six years. We've also launched our domestic violence solutions in the European regions and our plan to launch them in the US too.

值得注意的是，該公司榮獲羅馬尼亞國家電子監控計畫年度最大行業獎項。羅馬尼亞的第一個電子監控計畫價值 3,200 萬美元，每月監控多達 15,000 名罪犯，持續時間長達六年。我們也在歐洲地區推出了家庭暴力解決方案，並計劃在美國推出。

In Israel, there's high potential for new domestic violence program as the government has just passed this week a law requiring domestic violence offenders to be monitored with technological advances such as ours.

在以色列，新的家庭暴力計畫具有很大的潛力，因為政府本週剛通過了一項法律，要求使用我們這樣的先進技術來監控家庭暴力犯罪者。

Although SuperCom already does business in multiple US states, we're actively focused on further expanding our presence in the US. The company strategically prioritizes the expansion of PureOne into new markets and geographies. It's already received high praise during this introduction in various regions in the US for Q1 has been successfully deployed and is actively utilized to monitor live offenders today.

儘管 SuperCom 已經在美國多個州開展業務，但我們正在積極致力於進一步擴大我們在美國的業務。公司策略上優先考慮將 PureOne 擴展到新市場和地區。 Q1在美國各個地區的推出期間已經獲得了高度評價，因為Q1已經成功部署並被積極用於監控現場罪犯。

Moreover, sales activities of PureOne have commenced in promising new markets outside Europe and North America. Our strategic sales team and new wins have been the first steps in executing the company's US market expansion strategy and have already driven increased activity with existing customers and numerous new demos and valuations for potential new ones.

此外，PureOne 的銷售活動已經開始在歐洲和北美以外的前景廣闊的新市場。我們的策略銷售團隊和新的勝利是執行公司美國市場擴張策略的第一步，並且已經推動了與現有客戶的活動增加以及對潛在新客戶的大量新演示和評估。

And as we've talked about before, we believe there's also opportunities to enhance our US growth through strategic acquisition of local electronic monitoring service providers, the strong reputation, and customer base in their respective local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration synergies.

正如我們之前談到的，我們相信還有機會透過策略性收購當地電子監控服務提供者、在各自當地市場的良好聲譽和客戶群來增強我們在美國的成長。我們不斷監控市場，尋找可能透過立即擴大市場份額和提供垂直整合協同效應而產生重大價值的潛在收購。

Our acquisition of LCA in 2016 for $3 million is a great example. The successful acquisition has proven to be a great value through the over $30 billion of new project wins generated in California since acquisition alone and improvements to operational margins with operational efficiencies and introduction of our technology and sales operations.

我們在 2016 年以 300 萬美元收購 LCA 就是一個很好的例子。事實證明，自收購以來，加州已贏得超過 300 億美元的新項目，並且透過提高營運效率以及引入我們的技術和銷售業務來提高營運利潤，事實證明，此次成功收購具有巨大的價值。

I'll now turn it over to the financials.

現在我將把它交給財務部門。

During our previous conference call, I mentioned that we were anticipating a contribution to our financial results in the next quarters from the projects we discussed. I'm delighted to share that our revenue has recorded a remarkable year-over-year growth of 141%, amounting to five-year record revenue of $7.7 million in the second quarter, marking the fourth consecutive quarter of high year-over-year revenue growth.

在我們之前的電話會議中，我提到我們預計我們討論的項目將在接下來的幾個季度對我們的財務表現做出貢獻。我很高興與大家分享，我們的營收年增 141%，第二季營收達到五年來最高紀錄 770 萬美元，連續第四個季度實現年比高成長收入成長。

Moreover, our 12 trailing months year-over-year revenue increased by 106% to a staggering $25.5 million with our IoT division being the primary growth engine.

此外，我們過去 12 個月的營收年增 106%，達到驚人的 2,550 萬美元，我們的物聯網部門是主要的成長引擎。

To put things into perspective. While the global electronic monitoring market grows at approximately 11% per year, SuperCom revenues achieved over 100% growth in the past 12 months, outpacing the global market growth by over a multiple of 10x. This growth is a testament to the fact that the market prefers our solution over those alternatives.

正確看待事物。雖然全球電子監控市場每年增長約 11%，但 SuperCom 收入在過去 12 個月內實現了超過 100% 的成長，超過全球市場成長 10 倍以上。這種成長證明了市場更喜歡我們的解決方案而不是那些替代方案。

Furthermore, we are proud to sustain positive EBITDA in each of the last three years, 2020 to 2022, and achieve EBITDA $0.9 million in the second quarter of 2023 and EBITDA of $2.5 million in the trailing 12-month period ending in Q2 2023; which resulted from operating leverage, targeted spending, and high year over year increases in revenue.

此外，我們很自豪能夠在過去三年（2020 年至2022 年）中每年保持正的EBITDA，並在2023 年第二季度實現EBITDA 90 萬美元，在截至2023 年第二季度的過去12 個月內實現EBITDA 250 萬美元；這是由於營運槓桿、目標支出和收入較去年同期大幅成長所致。

The following is a comparison between the financial results of the second quarter of 2023 and the second quarter of 2022. Gross profit increased by 77% to $2.3 million compared to $1.3 million, driven by new project launches. Initial planning stages incurred higher expenses while advanced stages yielded higher gross margin. As our project pipeline matures, we expect an upward trend in gross margin based on the evolving project portfolio.

以下是 2023 年第二季與 2022 年第二季的財務表現比較。在新專案推出的推動下，毛利從 130 萬美元成長了 77%，達到 230 萬美元。最初的規劃階段產生了更高的費用，而高級階段則產生了更高的毛利率。隨著我們的專案管道的成熟，我們預計毛利率將隨著專案組合的不斷發展而呈上升趨勢。

We achieved a $350,000 decrease in total operating expenses through operational optimization efforts, including one time and other expenses. We decrease our R&D expenses by $80,000 while we continue to develop and launch new products and improve existing ones, keeping us at the edge of innovation and technology leadership in our space.

透過營運優化工作，包括一次性費用和其他費用，我們的總營運費用減少了 35 萬美元。我們將研發費用減少了 80,000 美元，同時繼續開發和推出新產品並改進現有產品，使我們始終處於行業創新和技術領先地位。

In addition, our sales and marketing expenses decreased by $200,000 and general and administrative expenses decreased by $55,000. The company had an operating loss of $650,000 versus an operating loss of $1.75 million in the previous year period, resulting from significant increases in our gross profit and a slight decrease in operating expenses.

此外，我們的銷售和行銷費用減少了 200,000 美元，一般和管理費用減少了 55,000 美元。該公司的營業虧損為 65 萬美元，而去年同期的營業虧損為 175 萬美元，這是由於我們的毛利大幅增加和營業費用略有下降。

The company's EBITDA improved by $1.6 million to $0.9 million compared to $0.7 million loss in the previous period, reflecting the benefits of operating leverage associated with higher revenues, deploying new IoT projects and a continued shift away from the legacy business at achieving underscores our focus on sustained growth and profitability.

與上一期的虧損70 萬美元相比，該公司的EBITDA 提高了160 萬美元，達到90 萬美元，反映出與收入增加、部署新的物聯網項目以及持續從傳統業務轉移相關的營運槓桿所帶來的好處，這凸顯了我們對持續成長和獲利能力。

The net income improved by 63% to a $1.1 million loss compared to $2.8 million loss in the former year period. And our non-GAAP net income improved by $2.2 million to a $0.3 million profit compared to a $1.9 million loss in the previous period. Positive non-GAAP EPS improved to a positive $0.07 compared to negative $0.50 in the former year period.

淨收入減少 63%，虧損 110 萬美元，而去年同期虧損 280 萬美元。我們的非 GAAP 淨利潤增加了 220 萬美元，利潤為 30 萬美元，而上一期為虧損 190 萬美元。正的非 GAAP 每股收益從去年同期的負 0.50 美元增至正 0.07 美元。

Our cash position is stable. We have credit facilities in place to reduce our need for cash as we continue to win and execute big projects. And as these big projects start on, there's a cash used for manufacturing equipment, which later turns into high cash generation in the later phases of the project deployment. In addition, the company has had one-time expenses, $230,000, mainly pertaining to legacy business and allowance itself.

我們的現金狀況穩定。我們擁有適當的信貸設施，以在我們繼續贏得和執行大型專案的同時減少對現金的需求。隨著這些大型專案的啟動，會有一筆現金用於製造設備，這些現金隨後在專案部署的後期階段轉化為大量現金。此外，該公司還有一次性費用 23 萬美元，主要與遺留業務和津貼本身有關。

In closing, we're excited about the growth we're experiencing and the growing demand for our products after five years through which we transition from our legacy business to the IoT tracking of offenders business to finally see the shift to rapid growth in revenue and believe that we're well positioned for continued growth by capitalizing on the many new opportunity for us.

最後，我們對我們正在經歷的成長和對我們產品不斷增長的需求感到興奮，五年後，我們從傳統業務過渡到犯罪者物聯網跟踪業務，最終看到收入和收入快速增長的轉變相信我們能夠充分利用許多新機遇，實現持續成長。

These are being driven by multiple factors, including our strong presence and reputation in the US and European markets; the countercyclical nature of electronic monitoring industry; a growing public policy shift to monitor incarceration; and the return to post-COVID levels of business activity. We anticipate sustained growth by further expanding our market share in the US and Europe. Our commitment to preserving our technological advantage and robust growth foundation remains steadfast as we continue to invest in these areas.

這些都是由多種因素推動的，包括我們在美國和歐洲市場的強大影響力和聲譽；電子監控產業的反週期性質；公共政策不斷轉變以監控監禁；以及恢復到新冠疫情後的商業活動水準。我們預計透過進一步擴大我們在美國和歐洲的市場份額來實現持續成長。隨著我們繼續在這些領域進行投資，我們對保持技術優勢和強勁成長基礎的承諾依然堅定。

With that, I'll turn the call over to operator to open the call for questions. Operator?

這樣，我會將電話轉給接線員以開啟提問電話。操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員說明）Matthew Galinko，Maxim Group。

Terrific. Thanks for taking my questions. Can you start with PureOne. When did that become available in the US? And I guess, did you mention that it's already deployed in places or when can we expect to see it begin to be deployed?

了不起。感謝您回答我的問題。您可以從 PureOne 開始嗎？什麼時候在美國可用？我想，你有沒有提到它已經在一些地方部署了，或者我們什麼時候可以看到它開始部署？

Great question. And let me preface that with a little bit of explanation on PureOne. So we started our main focus in technological advances in the European market where we had the PureCom solution and the PureTag solution, which works on smartphone.

很好的問題。讓我先對 PureOne 做一些解釋。因此，我們開始將重點放在歐洲市場的技術進步上，我們擁有 PureCom 解決方案和適用於智慧型手機的 PureTag 解決方案。

In the US market, historically, a lot of the judges like all-in-one solution and we created a brand-new PureOne solution where it's all in one, but it has the longest battery life, it has a mobile charger, it's lightweight, it has the best -- and we believe the best tracking and has accuracy in buildings and underground and things that we've never seen in the market before.

在美國市場，從歷史上看，許多評審喜歡一體式解決方案，我們創建了一種全新的PureOne 解決方案，它是一體式的，但它具有最長的電池壽命，它有行動充電器，它很輕，它擁有最好的 - 我們相信最好的跟踪，並且在建築物和地下以及我們以前在市場上從未見過的東西上具有準確性。

So far, we've given it to some of our potential retail partners, including LCA, and have seen very, very good responses and feedback. And it's actually running on live offenders in various places in the US. We haven't done a massive launch yet. It's still in small launches in various locations in the US.

到目前為止，我們已將其提供給包括 LCA 在內的一些潛在零售合作夥伴，並獲得了非常非常好的回應和回饋。它實際上正在美國各地的活犯身上運行。我們還沒有進行大規模發布。它仍在美國各地進行小規模發布。

And so far, it's working great. The feedback is great, and we expect that this will be a very strong market driver for growth in the US and other regions in the world where they're looking for all-in-one solution.

到目前為止，效果很好。反饋很好，我們預計這將成為美國和世界其他地區成長的強大市場驅動力，他們正在尋找一體化解決方案。

Got it. That's helpful context. Can you help us understand maybe the structure, maybe how you think about the pipeline with PureOne and now being, I guess, more appealing to the US market with that product versus some of the larger pipeline activity that we know of in Europe. How do you think about those two buckets of classical revenue and opportunity over the next year, two years?

知道了。這是有用的背景。您能否幫助我們了解結構，也許您如何看待 PureOne 的管道，我想，與我們所知的歐洲一些較大的管道活動相比，該產品現在對美國市場更具吸引力。您如何看待未來一年、兩年的這兩大經典收入和機會？

Good question. So we've had in Europe over $200 million pipeline of opportunities in the European market. Some of the larger opportunities in the US market, we have not bid on. And some of them had some restraining factors such as the requirement of the one-piece solution as well.

好問題。因此，我們在歐洲擁有價值超過 2 億美元的歐洲市場機會。美國市場上一些較大的機會，我們還沒有競標。其中一些還存在一些限制因素，例如一體式解決方案的要求。

Now our suite, our PureSecurity suite has the PureTrack, which is the two-piece solution with a smartphone, with a bracelet. It has track domestic violence, it has alcohol monitoring. And now finally, this last piece that we were missing for a lot of potential opportunity, the all-in-one solution, we can right now meet with our PureOne.

現在我們的 PureSecurity 套件配備了 PureTrack，它是帶有智慧型手機和手環的兩件式解決方案。它有家庭暴力追踪，有酒精監測。最後，我們錯過了很多潛在機會的最後一塊，即一體化解決方案，我們現在可以與 PureOne 見面。

So that essentially opens up our market opportunity by multiples, probably three or four places that we could have been before. So right now, we're evaluating opportunities, whether it's the government tenders or resellers that want to try the technology that's in the US and all the other areas around the world.

因此，這實質上為我們打開了數倍的市場機會，可能是我們以前可能達到的三到四個位置。因此，現在我們正在評估機會，無論是政府招標還是想要嘗試美國和世界其他地區技術的經銷商。

But our pipeline of opportunities can grow significantly. And right now, just in July, started actually deploying into the US. It's brand new. It's working great. But we'll see during the quarters and years ahead, how this really starts to propel our business going forward and complements what we've been doing already with other technology solutions, mainly in Europe.

但我們的機會管道可以顯著成長。現在，就在七月，開始實際部署到美國。這是全新的。效果很好。但我們將在未來的幾個季度和幾年中看到，這將如何真正開始推動我們的業務向前發展，並補充我們已經在其他技術解決方案（主要是在歐洲）上所做的事情。

Got it. Okay. That sounds good. And maybe last question from me. You touched on adding outbound sales in the last year -- year and a half, I think. Can you maybe touch on how you structure incentives for sales, particularly maybe in the US, where it's a little bit more fragmented? Is there a commission structure or how do you incentivize people to go out and sell the PureOne or the different products?

知道了。好的。聽起來很好。也許是我的最後一個問題。您提到去年（我想是一年半）增加了對外銷售。您能否談談如何建立銷售激勵措施，特別是在美國，那裡的銷售激勵措施更加分散？是否有佣金結構，或如何激勵人們出去銷售 PureOne 或不同的產品？

Good question. Let's split. So, our team, the very common form, we have commissions, and we have on target quotas for the salespeople. And if they pass the quotas, they get acceleration. If they don't meet the quotas, there's the acceleration on their commission.

好問題。我們分手吧。因此，我們的團隊，這是非常常見的形式，我們有佣金，我們有銷售人員的目標配額。如果他們通過了配額，他們就會獲得加速。如果他們沒有達到配額，他們的佣金就會加速。

But beyond that, we also work with resellers who do the selling for us because for example, LCA sells to many counties in California, and it aggregates all of them together into one. There's many other providers like that around the US that do the same thing. And they, of course, care about ability and good products, and they also care about technological advantage.

但除此之外，我們還與為我們進行銷售的經銷商合作，因為例如，LCA 向加州的許多縣銷售產品，並將所有這些縣匯總為一個。美國各地還有許多類似的供應商也在做同樣的事情。當然，他們關心的是能力和好的產品，他們也關心技術優勢。

And they have the ability to switch over. If they have 1,000 clients of their monitoring on GPS, they have the ability to switch them over almost immediately into new technology and are continuously evaluating the best technology out there and they love to evaluate our technology. We've, in various iterations, provide them technology. And now with the PureOne, we've received very good feedback and now allow them to quickly move over. And as we deploy 10, 50, 100 units. And if you get it, works great, then they could deploy a larger scale into more units.

而且他們有能力切換。如果他們有 1,000 個 GPS 監控客戶端，他們幾乎可以立即將其切換到新技術，並不斷評估現有的最佳技術，並且他們喜歡評估我們的技術。我們在不同的迭代中為他們提供了技術。現在有了 PureOne，我們收到了非常好的回饋，現在允許他們快速轉移。當我們部署 10、50、100 個單位。如果你得到了它，效果很好，那麼他們就可以將更大的規模部署到更多的單位。

What was the second part of the question if I missed it?

如果我錯過了問題的第二部分是什麼？

It was really about the commission for sales. But I guess just final question is now that you have resellers evaluating PureOne, how long do you expect it to go from evaluating those 5,000 units as the trial to starting to swap or make a primary decision to deploy PureOne going forward?

這實際上是關於銷售佣金的。但我想最後一個問題是，現在您有經銷商評估 PureOne，您預計從評估這 5,000 台設備作為試用版到開始更換或做出部署 PureOne 的主要決定需要多長時間？

It's a good question. I don't have exactly the crystal ball for that one. So far, they're seeing tracking points of higher accuracy they've ever seen. They like the mobile charger. They like the design. The ergonomic people are very, very excited about it. Still, it's public stage fees, just so there's some caution, and people want to make sure that things are working and they're stable. They don't overnight put 1,000 new offenders.

這是一個好問題。我沒有確切的水晶球。到目前為止，他們看到了前所未有的更高精度的追蹤點。他們喜歡手機充電器。他們喜歡這個設計。人體工學人士對此非常非常興奮。儘管如此，這是公開的舞台費用，所以需要謹慎，人們希望確保事情正常運作並且穩定。他們不會一夜之間關押 1,000 名新罪犯。

But just like in the European market, we started last year in Romania, $100,000 project; and now we're closing projects at $33 million. Step by step, when they see more and more counties and states taking on the same technology, and they all talk to each other and then call each other off on how it works, and how you like it, and if it works well, then you start to see a huge increase.

但就像在歐洲市場一樣，我們去年在羅馬尼亞啟動了 10 萬美元的計畫；現在我們將完成價值 3,300 萬美元的專案。一步一步地，當他們看到越來越多的縣和州採用相同的技術，他們都互相交談，然後互相討論它是如何工作的，以及你如何喜歡它，以及它是否運作良好，然後你開始看到巨大的增長。

And so, we still have our pipelines in Europe. And the growth that we see today, 141% growth quarter over quarter, that's mainly from Europe. We're still seeing that. And on top of that, we still have our growth in California because we have a good presence in California with our services and our abilities there.

因此，我們在歐洲仍然有管道。我們今天看到的成長，環比成長 141%，主要來自歐洲。我們仍然看到這一點。最重要的是，我們在加州仍然有成長，因為我們在加州擁有良好的業務和能力。

But now, we have a whole brand-new growth driver into growth throughout many counties and space in the US, and a lot of that is propelled by technology. Just like in Europe, we grew their technology. With the natural relationships in Sweden or Denmark or Bulgaria or a lot of the other. It's all based on tech. Because the tech out there, they put on their hands, they like it, they love it, they bought it, and displace other vendors that have been there for 20, 25 years sometimes.

但現在，我們在美國許多縣和地區都有了全新的成長動力，其中很大一部分是由科技推動的。就像在歐洲一樣，我們發展了他們的技術。與瑞典、丹麥、保加利亞或許多其他國家的自然關係。這一切都基於技術。因為他們把現有的技術放在手上，他們喜歡它，他們喜歡它，他們購買它，有時會取代其他已經存在了 20 年、25 年的供應商。

So we're doing the same thing. Just in the US, it can move faster because instead of waiting for the national tender, the review showers given an opportunity to move faster than a formal government national tender.

所以我們正在做同樣的事情。僅在美國，它可以更快地進行，因為審查無需等待國家招標，而是提供了比正式的政府全國招標更快地進行的機會。

So we expect the growth in US to move faster because of that and also because we're already an accepted vendor and well known in the world, whereas before in Europe, we're kind of branded to the industry just five years, six years ago.

因此，我們預計美國的成長會更快，因為我​​們已經是世界公認的供應商和知名供應商，而之前在歐洲，我們在業界的品牌只用了五年、六年前。

So we expect this to move faster, whether it's a quarter or four quarters. We don't know yet what to see, but I think the results would be nice.

因此，我們預計這一速度會更快，無論是四分之一還是四個季度。我們還不知道會看到什麼，但我認為結果會很好。

(Operator Instructions) We don't appear to have any further questions in the queue. I'm now going to hand back over to Ordan for any closing remarks.

（操作員說明）隊列中似乎沒有任何其他問題。現在我將把結束語交還給奧爾丹。

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

我要感謝大家參加今天的電話會議以及對 SuperCom 的興趣。如果您還有任何其他問題，請直接與我們聯繫。我們期待在下次電話會議、文件和新聞稿中與您分享我們的進展。非常感謝您，祝您有美好的一天。

Thank you, everybody. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。