Supercom Ltd (SPCB) 2024 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to SuperCom's First Quarter of 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 recorded for playback purposes. Joining me from SuperCom's leadership team is Ordan Trabelsi, SuperCom's President and Chief Executive Officer.

女士們、先生們，早安，歡迎參加 SuperCom 2024 年第一季財務業績和公司動態電話會議。 （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，並且還會進行錄製以供回放之用。與我一起加入 SuperCom 領導團隊的是 SuperCom 總裁兼執行長 Ordan Trabelsi。

I'd like to remind you that during this call, SuperCom's 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. 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.

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。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，特別是它。

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, a 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（可比較的 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, May 15, 2024. 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（2024 年5 月15 日）準確。義務。

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

現在我很高興請 SuperCom 總裁兼執行長 Ordan Trabelsi 發言。

Thank you, operator. Good morning, everyone, and thank you for joining us today. Earlier this morning, we issued a press release with our financial results for the first quarter of 2024. You can find a copy of it in the Investor Relations section of our Web site at supercom.com. Today, I'll start my comments with a brief update on our recent business highlights, strategy, and Q1 results, followed by a Q&A session.

謝謝你，接線生。大家早安，感謝您今天加入我們。今天早些時候，我們發布了一份新聞稿，介紹了 2024 年第一季的財務表現。今天，我將首先簡要介紹我們最近的業務亮點、策略和第一季業績，然後進行問答環節。

SuperCom had a great start to the year with a strong first quarter. We achieved an eight-year record quarterly net income of $800,000, representing $2.3 million improvement year over year. We're thrilled with this outstanding performance and look forward to maintaining this momentum in the coming quarters.

SuperCom 今年開局良好，第一季表現強勁。我們的季度淨利潤達到 80 萬美元，創八年新高，年增 230 萬美元。我們對這一出色的表現感到非常興奮，並期待在未來幾季保持這種勢頭。

During the quarter, we executed and advanced on various projects in our portfolio such as the $33 million national EM project in Romania. We utilized operating leverage and prior investments in our proprietary technology to achieve a significant EBITDA increase of 400% year-over-year, to a level of $2 million EBITDA this quarter.

本季度，我們執行並推進了投資組合中的多個項目，例如羅馬尼亞價值 3,300 萬美元的國家新興市場項目。我們利用營運槓桿和對專有技術的前期投資，實現 EBITDA 年比大幅成長 400%，本季 EBITDA 達到 200 萬美元。

For those new to SuperCom, our mission is to revolutionize the public safety sector worldwide with our proprietary electronic monitoring technology, data intelligence, and suite of complimentary 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. Our strategic blueprint is straightforward yet powerful, lead with innovative technology, develop superior solutions, expand our global presence and deliver outstanding service.

對於 SuperCom 的新手來說，我們的使命是透過我們專有的電子監控技術、數據智慧和免費服務套件徹底改變全球公共安全部門。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。我們的策略藍圖簡單而有力，以創新技術為主導，開發卓越的解決方案，擴大我們的全球業務並提供卓越的服務。

This strategy is backed by the following. Our proprietary electronic monitoring technology, which scores highly in competitive government tenders and supports various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention and more. And since 2018, SuperCom has secured over 50 new multi-year government projects. Our strong, growing reputation as a premium provider of electronic monitoring solutions and services enhances our market position with each new customer win and our strategic focus on the IoT tracking business in developed markets, where the opportunity is greatest.

該策略得到以下支持。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。自 2018 年以來，SuperCom 已獲得 50 多個新的多年期政府專案。作為電子監控解決方案和服務的優質供應商，我們的聲譽不斷增強，隨著每一次贏得新客戶，我們的市場地位不斷提高，我們的策略重點是機會最大的已開發市場的物聯網追蹤業務。

The electronic market is projected to reach $2.3 billion by 2028. The electronic monitoring market in the US and Europe constitute about 95% of these markets. Altogether, these successes and opportunities have resulted in a growing project pipeline and substantial recurring revenue.

預計到2028年，電子市場將達到23億美元。總而言之，這些成功和機會帶來了不斷增長的專案管道和可觀的經常性收入。

Last year, we continued to amplify our technological leadership with significant R&D investments leading to the launch of advanced solutions like PureProtect and PureOne. These offerings are already making headway in various markets, including the US and are pivotal in SuperCom's expansion.

去年，我們透過大量研發投資持續擴大我們的技術領先地位，推出了 PureProtect 和 PureOne 等先進解決方案。這些產品已經在包括美國在內的各個市場取得了進展，並且對於 SuperCom 的擴張至關重要。

PureProtect is a life-saving domestic violence monitoring solution. This solution provides improved protection to families suffering from domestic violence. This innovative solution addresses domestic violence issues and further enhances the company’s portfolio of products and services.

PureProtect 是一種挽救生命的家庭暴力監控解決方案。該解決方案為遭受家庭暴力的家庭提供了更好的保護。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。

PureOne is an all-in-one GPS tracking ankle bracelet monitoring solution that integrates comprehensive monitoring capabilities into a single device. Like many of our products, it offers top notch features, placing it above competition in most metrics such as battery life, weight, comfort and more. So these two products, PureProtect and PureOne have been significant innovations, which have helped us redefine and upheaval competitors and segments in the industry.

PureOne 是一款一體式 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。與我們的許多產品一樣，它提供一流的功能，在電池壽命、重量、舒適度等大多數指標上都優於競爭對手。因此，PureProtect 和 PureOne 這兩款產品是重大創新，幫助我們重新定義並顛覆了產業中的競爭對手和細分市場。

Our cloud-based, software-enabled peer security product line has been particularly effective monitoring domestic violence offenders and managing real time information as well. The real time advantage is a game changer to the industry because it empowers authorities with actionable insights and timely intervention to mitigate potential risks and enhance public safety.

我們基於雲端的、支援軟體的對等安全產品線在監控家庭暴力犯罪者和管理即時資訊方面特別有效。即時優勢改變了行業的遊戲規則，因為它使當局能夠獲得可行的見解和及時幹預，以減輕潛在風險並增強公共安全。

These products have also been well received and have significantly expanded the company's addressable market. We've been very pleased with the reception and traction of our newest solutions and expect them to help facilitate the accelerated expansion of SuperCom into the US market and further European countries.

這些產品也廣受好評，並顯著擴大了公司的目標市場。我們對最新解決方案的接受度和吸引力感到非常滿意，並希望它們能幫助促進 SuperCom 加速向美國市場和更多歐洲國家的擴張。

We fortified our operational infrastructure to support our growth and have revamped our sales strategy with a proactive outreach approach. Our sales team with deep industry expertise has been instrumental in achieving new wins and driving growth.

我們加強了營運基礎設施以支持我們的成長，並透過積極主動的外展方法改進了我們的銷售策略。我們的銷售團隊擁有深厚的行業專業知識，在實現新的勝利和推動成長方面發揮了重要作用。

Over the past months, we announced many new project wins in the US and Europe. SuperCom has continued displacing incumbent vendors and achieved an over-65% win rate in Europe in competitive tenders over the recent years.

在過去的幾個月裡，我們宣佈在美國和歐洲贏得了許多新項目。近年來，SuperCom 不斷取代現有供應商，並在歐洲競爭性招標中取得了超過 65% 的中標率。

Despite macroeconomic uncertainties and the ongoing Israel-Gaza war, SuperCom Solution are being increasingly relevant. Factors like high recidivism rates and the escalating cost of incarceration make our solutions not only cost effective, but also essential for governments looking to enhance public safety and reduce costs.

儘管存在著宏觀經濟不確定性和正在進行的以色列-加薩戰爭，SuperCom 解決方案的重要性卻越來越大。高再犯率和不斷上升的監禁成本等因素使我們的解決方案不僅具有成本效益，而且對於尋求增強公共安全和降低成本的政府至關重要。

The company's PureSecurity technology solution have been designed to address this trend, offering an effective way for institutions to enforce home confinement, ease prison overcrowding, and lower costs significantly. For example, the total daily cost for monitoring offender on home confinement or GPS monitoring is approximately $10 to $35 compared to the much higher cost of $100 to $140 at a correctional facility.

該公司的 PureSecurity 技術解決方案旨在應對這一趨勢，為機構提供一種有效的方法來實施家庭監禁、緩解監獄過度擁擠並顯著降低成本。例如，在家中監控罪犯或進行 GPS 監控的每日總成本約為 10 至 35 美元，而懲教機構的成本則要高得多，為 100 至 140 美元。

Most importantly, home confinement has been shown to reduce recidivism, highlighting its effectiveness in helping offenders improve their lives and communities. On top of these growth drivers, we have witnessed a surge in the adoption of victim protection solutions worldwide, which aligns perfectly with our strategic plan and the launch of our new product, PureProtect. In the European market, SuperCom expanded its business in over 10 countries and secured significant new contracts, which are typically awarded to a competitive tender process.

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。除了這些成長動力之外，我們還見證了全球受害者保護解決方案的採用激增，這與我們的策略計畫和新產品 PureProtect 的推出完美契合。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程序授予的。

Besides winning new projects, we continue to execute and receive ongoing orders from our partners. Just about three weeks ago, we announced receipt of new orders valued at over $5 million from European governments. Thanks to our optimized and efficient production processes, over 50% of these orders have already been delivered.

除了贏得新項目外，我們還繼續執行並接收來自合作夥伴的持續訂單。就在大約三週前，我們宣布收到來自歐洲各國政府的價值超過 500 萬美元的新訂單。由於我們優化且高效的生產流程，超過 50% 的訂單已交付。

Last year, we secured a new national program with the Finnish government to deploy our domestic violence monitoring solution. The deployment of our PureSecurity suite consisting of PureProtect, PureTrack, PureTag and PureMonitor demonstrates the versatility and effectiveness of our solutions and underscores our leadership in the electronic monitoring space. Our collaboration with Finland is a prime example of the confidence that clients have in SuperCom, as those who experience our services often choose to broaden their engagement with our diverse array of solutions.

去年，我們與芬蘭政府達成了一項新的國家計劃，以部署我們的家庭暴力監控解決方案。由 PureProtect、PureTrack、PureTag 和 PureMonitor 組成的 PureSecurity 套件的部署展示了我們解決方案的多功能性和有效性，並強調了我們在電子監控領域的領導地位。我們與芬蘭的合作是客戶對 SuperCom 充滿信心的典型例子，因為體驗過我們服務的客戶通常會選擇擴大他們對我們多樣化解決方案的參與。

Notably, at the end of 2022, the company won the largest industry award of the year for national electronic monitoring project in Romania, valued at $33 million, including up to 15,000 monitor offenders per month for up to six years. During 2023, we announced orders valued at over $10 million from Romania's Ministry of Interior, further extending our engagement in the country's national EM project. This large-scale project reinforces the strength of our PureSecurity suite and cements our position as a trusted partner for governments worldwide.

值得注意的是，2022年底，該公司獲得了羅馬尼亞國家電子監控計畫年度最大行業獎項，價值3,300萬美元，其中包括每月多達15,000名違法者的監控，持續時間長達六年。 2023 年，我們宣布從羅馬尼亞內政部獲得價值超過 1000 萬美元的訂單，進一步擴大了我們對該國國家 EM 項目的參與。這個大型專案增強了我們 PureSecurity 套件的實力，並鞏固了我們作為全球政府值得信賴的合作夥伴的地位。

We also launched our domestic violence solutions in other European regions and recently launched them in the US. Although SuperCom already does business in multiple US states, we are actively focused on further expanding our presence in the US. Our wholly owned subsidiary, LCA, located in California, is actively expanding the size and scope of existing programs, winning rebids with existing customers and winning new programs with new customers.

我們也在歐洲其他地區推出了家庭暴力解決方案，最近又在美國推出了。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。我們位於加州的全資子公司 LCA 正在積極擴大現有項目的規模和範圍，贏得現有客戶的再投標，並贏得新客戶的新項目。

The company strategically prioritizes PureOne's expansion into new markets and geographies. It has received high praise during its introduction into various regions of the US, where PureOne has been successfully deployed and is actively utilized to monitor live offenders. Moreover, sales activities for PureOne have commenced in promising new markets outside Europe and North America. Our new strategic sales team and new wins have been the first step in executing the company's US market expansion strategy and have already driven increased activity within existing customers and multiple new demos, resulting in a significant increase in the company's pipeline.

該公司在策略上優先考慮 PureOne 向新市場和地區的擴張。 PureOne在美國各個地區推出後受到了高度評價，並已在這些地區成功部署並積極用於監控現場罪犯。此外，PureOne 的銷售活動已在歐洲和北美以外的前景廣闊的新市場開始。我們新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，並且已經推動了現有客戶和多個新演示的活動增加，從而導致公司管道的顯著增加。

Launching our PureOne solution in late 2023 was a significant milestone in our US expansion strategy. As of June '24, we've already announced three new project wins in North America to provide the solution. The first, through LCA, we won a new project in California, valued at up to $2 million, to provide a comprehensive program focusing on financial services for all adult inmates. The award was a result of winning a formal competitive bid process.

2023 年底推出 PureOne 解決方案是我們美國擴張策略的一個重要里程碑。截至 24 年 6 月，我們已經宣佈在北美贏得三個新項目來提供解決方案。第一個是透過 LCA，我們贏得了加州的一個價值高達 200 萬美元的新項目，旨在為所有成年囚犯提供專注於金融服務的綜合計劃。該獎項是在正式的競爭性投標過程中獲勝的結果。

Moreover, LCS secured a new electronic monitoring contract in California with an established California services provider in the judicial sector. This contract is particularly notable for SuperCom’s successful displacement of a long-term incumbent vendor.

此外，LCS 在加州與一家成熟的加州司法部門服務提供者簽訂了一份新的電子監控合約。該合約對於 SuperCom 成功取代長期現有供應商尤其引人注目。

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

最後，SuperCom 贏得了加拿大追蹤解決方案領域知名產業合作夥伴在加拿大的新項目。該計畫擴大了與這個長期合作夥伴的現有合作，從提供基於射頻的追蹤技術過渡到採用新的 GPS 技術。

As I mentioned earlier, introducing our PureOne solution was a game changer in securing these contracts. It underscores our competitive edge and commitment to delivering innovative and superior technology solutions. By securing these contracts, we further reinforce our position as a market leader. We review our recent wins as indicators of our growing influence and expansion, potentially in North America and worldwide.

正如我之前提到的，引入我們的 PureOne 解決方案改變了確保這些合約安全的遊戲規則。它強調了我們的競爭優勢以及對提供創新和卓越技術解決方案的承諾。透過獲得這些合同，我們進一步鞏固了我們作為市場領導者的地位。我們回顧最近的勝利，將其視為我們在北美和全球範圍內影響力和擴張不斷增長的指標。

As we mentioned in previous calls, we believe it is also an opportunity to enhance our US growth through strategic acquisitions of local electronic monitoring service providers with a strong reputation and customer base in their local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market for potential acquisition and immediately expanding market presence and providing vertical integration synergies.

正如我們在先前的電話會議中所提到的，我們相信這也是透過策略性收購在當地市場擁有良好聲譽和客戶基礎的當地電子監控服務提供者來增強我們在美國成長的機會。我們不斷監控市場中的潛在收購，這些收購可以透過立即擴大潛在收購市場、立即擴大市場佔有率並提供垂直整合協同效應來產生重大價值。

Our acquisitions of LCA in 2016 for $3 million is a great example. The successful acquisition has provided to be a great strategic value to the company through which we won over $35 million in new project wins and is generated in California alone.

我們在 2016 年以 300 萬美元收購 LCA 就是一個很好的例子。此次成功收購為該公司帶來了巨大的戰略價值，我們透過該收購贏得了超過 3500 萬美元的新項目，並且僅在加利福尼亞州就產生了這一價值。

I'll now turn to the financials. During our previous conference call, I mentioned that we anticipated contributing to our financial results in the subsequent quarters as our ongoing projects matured. I am delighted to share we have substantially improved our financial and operating results. We have seen a gross profit margin increase by 123% to 55% from 25%.

我現在轉向財務方面。在我們之前的電話會議中，我提到，隨著我們正在進行的專案的成熟，我們預計將在接下來的幾個季度為我們的財務表現做出貢獻。我很高興與大家分享，我們的財務和經營業績得到了顯著改善。我們看到毛利率從 25% 增加了 123% 至 55%。

Moreover, we have sustained positive EBITDA in each of the last four years, 2020 to 2023, and seen remarkable operating improvements, as evidenced by a record net income of $800,000 this quarter along with $400,000 EBITDA growth year-over-year to $2 million. This is driven by the significant growth in our company's revenue in the past few years, targeted spending and operating leverage. This quarter's profitability metrics demonstrate how we can seize the high margin potential of our project portfolio through successful execution and progression in different stages of these projects.

此外，在過去四年（2020 年至2023 年）中，我們每年都保持正的EBITDA，並實現了顯著的營運改善，本季淨收入創紀錄地達到800,000 美元，EBITDA 同比增長400,000 美元，達到200 萬美元。這是由過去幾年我們公司收入的顯著成長、目標支出和營運槓桿所推動的。本季的獲利指標展示了我們如何透過這些專案不同階段的成功執行和進展來抓住專案組合的高利潤潛力。

The following is a comparison between the financial results of first quarter of 2024 and the first quarter of 2023. Gross profit increased by 139% to $3.8 million compared to $1.6 million, which direct the outcome of the progress we’ve made across our projects, our margins typically enhanced as projects mature. Typically, the initial project stages incur high expenses while advanced stages yield higher gross margins causing fluctuations in our gross profit, depending on project composition and deployment stages.

以下是 2024 年第一季與 2023 年第一季財務表現的比較。隨著專案的成熟而提高。通常，初始專案階段會產生高額費用，而高階階段會產生更高的毛利率，導致我們的毛利波動，這取決於專案組成和部署階段。

As the project pipeline matures, we expect an upward trend in gross margin. Based on the evolving project portfolio as we deploy additional bracelets in regions where we run existing projects on our infrastructure, the contribution margins for each additional bracelet can be high even as high as 70% or more.

隨著專案儲備的成熟，我們預期毛利率將呈上升趨勢。基於不斷發展的專案組合，當我們在基礎架構上運行現有專案的地區部署額外的手鍊時，每個額外手鍊的邊際貢獻可能高達 70% 或更高。

We decreased our R&D expenses by $90,000 while we continued to develop and launch new feature and improve existing products, keeping us at the edge of innovation and technology leadership in our space. In addition, our sales and marketing expenses decreased up to $2000 while we increased our revenues year over year. Moreover, our general and administrative expenses increased by $300,000 to accommodate our management team expansion also in the US, which has already yielded results such as evidenced by three new contracts we have own in the past months.

我們將研發費用減少了 90,000 美元，同時繼續開發和推出新功能並改進現有產品，使我們始終處於行業創新和技術領先地位。此外，我們的銷售和行銷費用減少了 2000 美元，而我們的收入逐年增加。此外，我們的一般和管理費用增加了 30 萬美元，以適應我們在美國管理團隊的擴張，這已經取得了成果，我們在過去幾個月擁有的三份新合約就證明了這一點。

The company's operating income improved by $1.8 million from $700,000 compared to an operating loss of $1.8 million before. So we improved from $1.8 million from $700,000 compared to an operating loss of $1.1 million in the prior year, resulting for significant increase in our gross profit. EPS improved positive $0.04 compared to negative EPS of $0.32 in the prior year period.

該公司的營業收入從 70 萬美元增加了 180 萬美元，而先前的營業虧損為 180 萬美元。因此，與前一年 110 萬美元的營業虧損相比，我們的營業虧損從 70 萬美元的 180 萬美元有所改善，毛利顯著增加。與去年同期的負每股收益 0.32 美元相比，每股收益正成長 0.04 美元。

The company's EBITDA improved by 400% $2 million compared to $400,000 reflecting benefits of operating leverage associated with high revenues, deployed new IoT projects and continued progress on the phases in our ongoing projects. This achievement underscores our focus on sustained growth and profitability.

該公司的 EBITDA 比 40 萬美元提高了 400%，為 200 萬美元，反映出與高收入、部署新的物聯網專案以及我們正在進行的專案各階段的持續進展相關的營運槓桿帶來的好處。這項成就凸顯了我們對持續成長和獲利能力的關注。

Our net income improved by $2.3 million from a net loss of $1.5 million last quarter to net profit of $800,000 this quarter. And our non-GAAP net profit improved by $1.6 million to $1.35 million profit compared to $250,000 loss in the former year period. Positive run rate EPS improved to positive $0.07 compared to negative non-GAAP EPS of $0.05.

我們的淨利潤從上季度的淨虧損 150 萬美元增加到本季的淨利 80 萬美元，增加了 230 萬美元。我們的非 GAAP 淨利潤增加了 160 萬美元，達到 135 萬美元，而去年同期虧損 25 萬美元。正運轉率每股收益提高至正 ​​0.07 美元，而非 GAAP 每股收益為負 0.05 美元。

Our cash position is stable. We have a credit facility in place. And we are focused on reducing our need for external cash as we continue to win and execute more new projects. Also, last month, we completed successful close of $2.9 million public offering to support the company’s continued innovation and growth initiatives, a testament to the investment community’s trust in our vision and strategic trajectory.

我們的現金狀況穩定。我們有信貸安排。隨著我們繼續贏得並執行更多新項目，我們致力於減少對外部現金的需求。此外，上個月，我們成功完成了 290 萬美元的公開發行，以支持公司持續創新和成長計劃，證明了投資界對我們願景和策略軌蹟的信任。

In addition, the company had one-time expense of $280,000, mainly pertaining to the legacy business and allowance of doubtful debt. We continue to invest in our sales and marketing, as well as R&D, to drive revenue growth and expand our global footprint and execute our business plan.

此外，該公司還有28萬美元的一次性費用，主要與遺留業務和呆帳備抵有關。我們繼續投資於銷售和行銷以及研發，以推動收入成長、擴大我們的全球足跡並執行我們的業務計劃。

In closing, I would like to thank our global team for the hard tireless work to achieve our company’s record setting performance this quarter. We have developed the right technology and products to help criminal justice system clients overcome challenges and make better use of the over $80 billion spent annually in the US on operating rehabilitation centers and prisons. With research showing an approximate 75% increase in the US, there is a significant room for improvement when effective programs and technology are deployed.

最後，我要感謝我們的全球團隊的不懈努力，使我們公司在本季度創下了創紀錄的業績。我們開發了合適的技術和產品，幫助刑事司法系統客戶克服挑戰，並更好地利用美國每年用於營運康復中心和監獄的超過 800 億美元的資金。研究顯示，美國的增幅約為 75%，如果部署有效的計畫和技術，還有很大的進步空間。

We are excited about the growth we are experiencing and about the growing demand for our products. After several years through which transitioned from a legacy business of IoT tracking fender business, we are happy to show the shift to nice growth in revenue and profit.

我們對我們正在經歷的成長以及對我們產品不斷增長的需求感到興奮。經過幾年從物聯網追蹤護板業務的傳統業務轉型，我們很高興地向大家展示收入和利潤的良好成長。

We believe that we are well-positioned to continue the growth and continue the expansion by capitalizing on the many new opportunities before us. These are being driven by multiple factors including our strong presence reputation in the US and European markets, the countercyclical nature of electronic monitoring industry, the growing public policy shift in monitoring the set of incarceration, and the growing adaption of domestic violence prevention solutions. We anticipate sustained growth by further expanding our market share in the US and Europe, our commitment to preserving our technological advancement as a robust growth foundation remains steadfast as we continue to invest in this area.

我們相信，透過利用擺在我們面前的許多新機遇，我們有能力繼續成長並繼續擴張。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良好聲譽、電子監控行業的反週期性質、監控監禁範圍的公共政策不斷轉變，以及家庭暴力預防解決方案的不斷採用。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，隨著我們繼續在這一領域投資，我們將堅定不移地致力於保持我們的技術進步作為強勁增長的基礎。

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

這樣，我會將電話轉給接線生詢問問題。操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員說明）Matthew Galinko，Maxim Group。

Can you maybe start – I know you touched on it in the prepared remarks, but the gross margin was I think one of the stronger quarters in recent history. So can you touch a little bit more on why this quarter in particular was able to get to that mid-50% range, if my math’s correct? And how sustainable is that, given where you are in your current growth cycle?

您可以開始嗎？ 我知道您在準備好的發言中談到了這一點，但我認為毛利率是近代歷史上最強勁的季度之一。那麼，如果我的數學正確的話，您能否進一步談談為什麼本季能夠達到 50% 的中間範圍？考慮到您目前的成長週期，這種情況的可持續性如何？

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

謝謝。正如您所看到的，這是一個很好的問題，隨著我們當前專案進入後期階段，我們的毛利率總體呈現成長趨勢。有一些波動是因為我們的一些項目，例如羅馬尼亞項目，它是我們收入的一部分。隨著專案各部分的季度之間的組合發生變化，它們就會推動與之相關的毛利率。

Generally speaking, at the initial stages of project you have a lot of hardware inflations, and training, a lot of hours from our teams and hardware purchases which are lower margin in nature. And later stages of projects are just kind of manufacturing more bracelets and providing maintenance and support for our software. So that the more we can be in later stages of project, the higher our margins will be. So as the new projects come upon, smaller projects won't make much of impact, but the larger ones will, and they will also drive margins through these stages where, initially, they're a little lower, and later they're higher.

一般來說，在專案的初始階段，您需要大量的硬體膨脹、培訓、我們團隊的大量時間以及本質上利潤較低的硬體採購。專案的後期階段只是製造更多手鐲並為我們的軟體提供維護和支援。這樣我們越能進入專案的後期階段，我們的利潤就會越高。因此，隨著新項目的出現，較小的項目不會產生太大的影響，但較大的項目會產生很大的影響，並且它們還將在這些階段中提高利潤率，在這些階段中，最初會稍低，後來會更高。

Got it. Thank you. And it sounds like you're focused now on the North American market today maybe because you have those products now available. But can you talk a little bit about North America versus Europe for 2024. I guess is there just more to be had in the US market today?

知道了。謝謝。聽起來您現在專注於北美市場，也許是因為您現在擁有這些產品。但您能談談 2024 年北美與歐洲的情況嗎？

The US is market is roughly, based on market research, three to four times the size of European market. We've been doing very well in Europe. We had over 65% win rate over recent years, and it's national projects we get to bid on one by one. And even without a large sales team, we're able to win consistently because of our high-scoring technology.

根據市場研究，美國市場的規模大致是歐洲市場的三到四倍。我們在歐洲做得很好。這幾年我們的得標率都在65%以上，而且都是國家項目我們一一投標。即使沒有龐大的銷售團隊，我們也能夠憑藉高分技術持續獲勝。

The US market is a little more fragmented, requires a little more boots on the ground. And we're actually scaling up and growing our team accordingly to address that. We developed the PureOne product, which is a one-piece solution which meets a lot of their requirements and behaviors that are more accustomed to the US markets. And we developed in a way that has the most, let's say, optimized features in terms of battery life, and lightweight, and remote charging, and others that helps us come in with a flash when we compete against incumbent vendors.

美國市場更加分散，需要更多的實地考察。我們實際上正在相應地擴大和發展我們的團隊來解決這個問題。我們開發了 PureOne 產品，這是一種一體式解決方案，滿足了他們更習慣美國市場的許多要求和行為。我們的開發方式在電池壽命、輕量化、遠端充電等方面擁有最多的最佳化功能，這些功能可以幫助我們在與現有供應商競爭時脫穎而出。

But the US market we think, for us, is a nice and interesting opportunity because we haven't taken advantage of it yet and all the potential there. We're just in early stages. Our pipeline is growing. We're in the middle of active live demos right now. And we hope to continue growing that more and more. And at some point, that could be the size of Europe, and even larger.

但我們認為美國市場對我們來說是一個很好且有趣的機會，因為我們還沒有利用它以及那裡的所有潛力。我們還處於早期階段。我們的管道正在成長。我們現在正在進行活躍的現場演示。我們希望繼續不斷發展。在某些時候，這可能與歐洲一樣大，甚至更大。

Thanks. And one last question for me before I jump back in the queue. I think you mentioned a greater-than-65% win rate in Europe, and you're starting to gain some traction in the US, North America with the new product. What is the competitive response to your successes to date, what the strategy is there? Are there any companies that are seeing an impetus to try to catch you on the product side or do you think that you're still kind of a uniquely focused player in the market, that you could stay and continue to have an edge?

謝謝。在我重新回到隊列之前，還有最後一個問題要問我。我認為您提到了在歐洲的勝率超過 65%，並且您的新產品開始在美國和北美獲得一些關注。迄今為止，競爭對您的成功有何反應？是否有任何公司看到了試圖在產品方面抓住你的動力，或者你認為你仍然是市場上一個獨特的專注參與者，你可以留下來並繼續擁有優勢？

You say response on the product side, so a lot of our competitors, the market is roughly 10 international players, and it's a very highly barriered market, so Google or Apple are not going to be coming in any day without an acquisition. You have to show that you've been doing this for 5, 10 years to even compete.

你說的是產品方面的反應，所以我們有很多競爭對手，這個市場大約有10 個國際參與者，這是一個壁壘非常高的市場，所以穀歌或蘋果不會在沒有收購的情況下進入任何一天。你必須證明你已經這樣做了 5 年、10 年才能參加比賽。

So they know the players. A lot of them haven't updated their technology over the last recent years. They use their relationships to try to hold on to existing contracts. The market average growth rate is anywhere between, let's say, 7% and 13% every year. And we've been growing at I think a CAGR of 70%. So we're growing significantly faster than the average market and the average companies on the market.

所以他們了解球員。他們中的許多人在過去幾年中沒有更新他們的技術。他們利用自己的關係來試圖維持現有的合約。市場平均成長率每年在 7% 到 13% 之間。我認為我們的複合年增長率為 70%。因此，我們的成長速度明顯快於平均市場和市場上的平均公司。

Some of them try to respond to improving technology, but we haven't seen any threats there with anyone that's competing with the level of progress and advancement that we're showing. We're not just showing technology, which is more advanced, it has more features, we're also expanding our technological capabilities and adding new features at a very high rate. So we continue every project we do and we're doing a whole lot of projects. We add more features and more capabilities that we developed for ex-customer, we bring it to customer wide, bring it to customers.

他們中的一些人試圖對改進的技術做出反應，但我們還沒有看到任何與我們所展示的進步和進步水平競爭的威脅。我們不僅展示更先進、具有更多功能的技術，我們還在擴展我們的技術能力並以非常高的速度添加新功能。所以我們繼續我們所做的每一個項目，我們正在做很多項目。我們添加了為前客戶開發的更多功能和功能，將其帶給廣大客戶，並將其帶給客戶。

And then, you saw like in Finland, for example, we started with one type of program that we had domestic violence and we saw the same thing in Sweden, we started with one and then we added other programs. And we expect to do the same. And what's great about this technology that a lot of it is software on the cloud and you can apply it to the new bracelets we have as well because these bracelets are leased. Is that once we have a new capability, we can share it to customers existing and new alike.

然後，你會看到，例如，在芬蘭，我們從一個有家庭暴力的計畫開始，我們在瑞典也看到了同樣的情況，我們從一個計畫開始，然後增加了其他計畫。我們也希望這樣做。這項技術的偉大之處在於，它的內容很多都是雲端軟體，您也可以將其應用到我們的新戒指上，因為這些手環是租賃的。一旦我們有了新功能，我們就可以將其分享給現有客戶和新客戶。

Got it. That makes sense. Thanks. I'll jump back in the queue.

知道了。這就說得通了。謝謝。我會跳回到隊列中。

Thank you.

謝謝。

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

（操作員說明）今天您的下一個問題來自私人投資者 [Dan Schultz]。

First of all, it was great to see a positive net income and some, the gross margin expansion was fantastic. My question really is concerning the repeated capital raises over the last couple of years that have diluted existing shareholders.

首先，很高興看到淨利為正，而且毛利率的成長也非常驚人。我的問題實際上是關於過去幾年的重複融資，這些融資稀釋了現有股東的權益。

I’m a long-time shareholder. I’ve been a big fan of the company, but I’m hopeful that we’ve turned the corner now with some net profitability. And I know we recently raised some money at a price that was higher than the stock was trading at.

我是長期股東。我一直是這家公司的忠實粉絲，但我希望我們現在已經渡過了難關，並獲得了一些淨利潤。我知道我們最近以高於股票交易價格的價格籌集了一些資金。

But I guess my question is, are you planning on any additional capital raises? And I’m hoping that that we can leave that to a minimum if you are.

但我想我的問題是，您是否計劃進行任何額外的融資？如果您願意的話，我希望我們能夠將這種情況降至最低。

Thank you for your continued support in SuperCom and great questions. So I was a CEO and if you remember, I was a CEO in the US for the years before and into 2021, I moved to Israel for the global CEO role, and we changed some of our strategy and that was focused on growth because we had declines in revenues for five years or so and we shifted to growth.

感謝您對 SuperCom 的持續支持和提出的寶貴問題。所以我是一名首席執行官，如果你還記得的話，我在2021 年之前和2021 年之前曾在美國擔任首席執行官，我搬到以色列擔任全球首席執行官，我們改變了一些戰略，重點是成長，因為我們收入下降了五年左右，我們轉向成長。

So from 2021, revenues on from $11.7 million to $12.5 million to $17 million plus and now last year we closed over $25 million and in order to achieve that growth, in a short period of time, we had to also expand our focus on growth and that cost money, and it brought us into needs of cash.

因此，從2021 年開始，收入從1,170 萬美元增加到1,250 萬美元，再到1,700 萬美元以上，去年我們的收入超過了2,500 萬美元，為了在短時間內實現這一增長，我們還必須擴大對成長的關注，這需要花錢，這讓我們需要現金。

But what’s nice to see is while we focus on growth and we did have need cash, our cash usage had declined over the years. So from three years ago, it was roughly $9 million in operating cash and then $4.5 million and last year was just somewhere in the mid-$2 million, between $2 million and $3 million and as projects reach later stages like the Romania project then they become more cash flow positive and then we could use that to stabilize our cash needs.

但令人高興的是，雖然我們專注於成長並且確實需要現金，但多年來我們的現金使用量有所下降。因此，從三年前開始，營運現金約為900 萬美元，然後是450 萬美元，去年約為200 萬美元左右，即200 萬至300 萬美元，隨著項目進入後期階段（如羅馬尼亞項目），它們就會變成更多的正現金流，然後我們可以用它來穩定我們的現金需求。

And we did this capital raise just now to give us more support and to have a cushion for fluctuation. But currently, we're actually doing pretty good from operating cash perspective. Sometimes we're even breakeven or cash flow positive, and sometimes we're a little bit cash flow negative and we need to manufacture things ahead of time. Like for some projects that are leased, we need to manufacture a lot of bracelets ahead of time and that brings us into temporary cash flow negativity on that project and then afterwards. But these things balance out and with the large amount of projects that we're doing, they start to kind of stabilize one another and we hope that over the years, our cash needs will decline.

我們剛剛進行這次融資是為了給我們更多的支持，緩衝波動。但目前，從營運現金的角度來看，我們其實做得相當不錯。有時我們甚至是損益平衡或現金流為正，有時我們的現金流有點為負，我們需要提前製造產品。就像某些租賃項目一樣，我們需要提前製造大量手鐲，這使我們在該項目上以及之後陷入暫時的現金流負值。但這些事情是平衡的，隨著我們正在進行的大量項目，它們開始相互穩定，我們希望多年來我們的現金需求將會下降。

That being said, when there are big projects out there that require massive expansion and units, we think it's okay to take on those projects because they grow the company significantly. Those will require some cash upfront sometimes then we would accordingly look for capital raises. We try to keep them to a minimum and as you can see, our uses have been decreasing over time.

話雖如此，當存在需要大規模擴張和單位的大型專案時，我們認為承接這些專案是可以的，因為它們可以顯著促進公司發展。有時這些需要預先支付一些現金，然後我們會相應地尋求融資。我們盡力將它們保持在最低限度，正如您所看到的，我們的使用量隨著時間的推移一直在減少。

And now in the state we're at after these three years of growth, we're happy to see that our cash used for operations have declined and we're able to depend more over operating cash production rather than external cash. So we're cognizant of that. We're trying to reduce the capital raises to minimum, but also aware that there's many opportunities out there. And if there's opportunities that could probably return to our investors, we will try to capitalize on them.

現在，在經歷了這三年的成長之後，我們很高興看到用於營運的現金下降，並且我們能夠更多地依賴營運現金生產而不是外部現金。所以我們認識到這一點。我們正在努力將融資減少到最低限度，但也意識到那裡有很多機會。如果有機會可能回報我們的投資者，我們將盡力利用它們。

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

謝謝。感謝評論和回饋。我只是提醒您，在進行融資時要記住現有股東，因為我們在過去幾年中遭受了嚴重的稀釋。

Yes. And we are okay, good. Yes, we're very aware and hopefully over time, the valuation will justify all the activities that we've been doing to grow the company over the years.

是的。我們還好，很好。是的，我們非常清楚，並希望隨著時間的推移，估值將證明我們多年來為發展公司所做的所有活動都是合理的。

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

今天的下一個問題來自私人投資者 [Mike Walters]。

Congratulations to you guys on another quarter of growth, record growth. As a long-term investor, four years now, I've been pleased by your methodical progress over time. I appreciate the questions that were also asked. It's been up and down with the growth thing. And I appreciate your answer. You also answered one of my questions was that, whenever you have to dip into the capital, you're using it on possibly projects that could be positive to us as shareholders in the future, correct?

恭喜你們又一個季度實現成長，創紀錄的成長。作為一名長期投資者，四年來，我對您隨著時間的推移有條不紊的進步感到高興。我很感謝大家提出的問題。它隨著增長而起起落落。我很欣賞你的回答。您還回答了我的問題之一，即每當您必須動用資金時，您都會將其用於可能對我們作為股東未來產生積極影響的項目，對嗎？

Can you repeat the last sentence? You broke up for a second.

你能重複最後一句話嗎？你們分手一秒鐘。

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

每當您使用資本的目的是為了未來可能成長的股東價值時。

Yes, of course. And we're also me, myself and other management, we also own shares and we're very inclined and interested in to increase the value of the shares also our main focus. It's just that sometimes short term, we need to raise capital to manifest our long-term goals.

是的當然。我們也是我、我自己和其他管理層，我們也擁有股票，我們非常傾向於並有興趣增加股票的價值，這也是我們的主要關注點。只是有時在短期內，我們需要籌集資金來實現我們的長期目標。

Our current stock price, we believe does not represent the intrinsic value of the company at all. We're trading at fractions of multiples that we're seeing in the industry and we're growing at 10 times faster than the average industry as I said earlier. So we think over time the market value aligns with intrinsic value, and then investors will be able to appreciate the valuations for the company.

我們認為，我們目前的股價根本不代表公司的內在價值。我們的交易價格僅為行業中的幾倍，正如我之前所說，我們的成長速度是行業平均水平的 10 倍。因此，我們認為隨著時間的推移，市場價值與內在價值一致，然後投資者將能夠欣賞公司的估值。

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

我很欣賞這個答案。在我看來，你們的基本面脈搏良好且不斷增長。你會說從根本上來說，你會說這可能是正確的嗎？

We have a growing pulse? Sorry.

我們的脈搏正在增長？對不起。

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

是的，你的基本面有很大的脈動，而且它們正在朝著正確的方向發展。

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

是的。正如您從盈利能力的一些改善中看到的那樣，我們努力關注基本面以及底層技術和項目的健康狀況。正如我們所說，我們能夠重新投標這些項目，贏得重新投標，因為我們與客戶有著良好的關係，並保持良好的聲譽，這有助於我們在世界其他地方贏得更多項目。

That leads into my next question is on June 29 last year, you guys issued a press release that you incorporated advanced AI capabilities to enhance your monitoring solutions?

這就引出了我的下一個問題，去年 6 月 29 日，你們發布了一份新聞稿，稱你們採用了先進的人工智慧功能來增強你們的監控解決方案？

Yes.

是的。

And integrated cutting-edge AM models to empower your EM offerings by unlocking new real time data insights and enhanced decision-making processes. So I was wondering about that because you guys are obviously bidding on or you are announcing contracts over the course of last couple of years pretty frequently.

並整合尖端的 AM 模型，透過解鎖新的即時數據洞察和增強的決策流程來增強您的 EM 產品。所以我想知道這一點，因為你們顯然在過去幾年裡頻繁地競標或宣布合約。

So my question is does the AI, the advancement in your AI capabilities, get stronger every contract? Like does it make it more efficient, your next onboarding? Because like I noticed that you guys like part of your business model is to onboard your customers, which I like. I like that a lot that you onboard your customers before actually coming to terms on the contracts. And I was wondering if the AI, the advance, the investment, so the AI is paying off possibly by maybe making each onboarding more efficient than the last.

所以我的問題是，人工智慧，也就是人工智慧能力的進步，是否會在每份合約中變得更強？就像它會讓你的下一次入職變得更有效率嗎？因為我注意到你們喜歡的商業模式的一部分是吸引客戶，我喜歡這一點。我非常喜歡您在實際簽訂合約條款之前就與客戶建立聯繫。我想知道人工智慧、預付款、投資是否會帶來回報，因為人工智慧可能會讓每次入職都比上一次更有效率。

So as you may be familiar with AI in general, the more data you have, the more helpful it is. For us, it’s still, we started designing the implementation for a lot of these constructs and modules, and we have a lot of data, not just new, but over the years with onboarding of tens of thousands of customers, different regions around the world, that could be used to help the – at first, the officer where they’re tracking all these offenders, because one officer could be tracking 50 to 100 offenders at the same time, it’s hard to keep track of everything.

因此，您可能總體上熟悉人工智慧，因此您擁有的數據越多，它就越有幫助。對我們來說，仍然是，我們開始為許多這樣的結構和模組設計實現，並且我們擁有大量數據，不僅僅是新數據，而且多年來，不同地區的數萬名客戶都已加入在世界各地，這可以用來幫助追蹤所有這些罪犯的警官，因為一名警官可以同時追蹤50 到100 名罪犯，因此很難追蹤一切。

And when there's behaviors that create trends, it's easy for us to know that something's going to happen before the officer even sees it. And those are the kind of, it's an example of a kind of AI insight that we use the learning and to improve. But these are still, a lot of them are still in various design and implementation stages, and we think that there's a big opportunity there for more value creation for our customers as these start to roll out in a more efficient and comprehensive fashion.

當出現創造趨勢的行為時，我們很容易在警察看到之前就知道會發生什麼事。這些就是我們利用學習和改進的人工智慧洞察力的一個例子。但這些仍然，其中許多仍處於不同的設計和實施階段，我們認為，隨著這些開始以更有效率、更全面的方式推出，為我們的客戶創造更多價值的機會很大。

Also, a lot of the labor-intensive tasks of monitor where you have to do a lot of clicks, a lot of shifts from one to one that will help with that. And that will make the efficiency for the program, which will save effectively more costs and also save more officer time.

此外，監控的許多勞動密集型任務，您必須進行大量點擊，從一項到另一項的大量轉換都會有所幫助。這將提高該計劃的效率，從而有效地節省更多成本，並節省更多官員時間。

That's what I was thinking, okay, that's what I was thinking. Your employees, you guys employ over 100 people, and you said that, in one answer, you said that you implemented a new, or any addition to a new sales team?

我就是這麼想的，好吧，我就是這麼想的。你們的員工，你們僱用了 100 多名員工，你們在一個回答中說，你們實施了一個新的銷售團隊，或者對新的銷售團隊進行了任何補充？

What did you say about the employees, sorry?

對不起，你對員工說了什麼？

Employees, I think you're over 100. Is that true?

員工們，我想你們已經超過 100 歲了，是真的嗎？

Yes. Globally, we're over 100, yes, 120 --

是的。在全球範圍內，我們有超過 100 個，是的，120 個——

You're probably pretty proud of 120. Awesome. You're probably pretty proud of them and the progress that they've made.

您可能對 120 感到非常自豪。您可能為他們以及他們所取得的進步感到非常自豪。

Yes. I'm mostly proud. We've had a great run in the last quarter. We're doing very well with the growth and profitability and winning new projects. There's a lot of work. We're a relatively small team, a lot of work, and we're doing a lot of these things at the same time. So yes, we're very happy with our teams.

是的。我主要是感到自豪。我們在上個季度表現出色。我們在成長和獲利方面做得非常好，並贏得了新項目。有很多工作要做。我們是一個相對較小的團隊，工作量很大，而且我們同時做很多這樣的事情。所以，是的，我們對我們的團隊非常滿意。

I'm happy with the progress as well. Yes, I was surprised by the $5.7 million. I actually thought that might have been a challenge a little bit, as an estimate, because I know in the past, your estimates haven't, I felt like, reflected your actual progress. But this one, I felt like challenged you a little bit with the $5.7 million revenue, and I was happy to see that it was $6.9 million. So I'm really proud of you guys' continued growth, and I look forward to continuing to invest with you guys long-term.

我也對進展感到高興。是的，我對 570 萬美元感到驚訝。我實際上認為，作為估計，這可能是一個挑戰，因為我知道過去，我覺得您的估計並沒有反映您的實際進展。但這個，我想用 570 萬美元的收入給你帶來一點挑戰，我很高興看到它是 690 萬美元。因此，我對你們的持續成長感到非常自豪，我期待著繼續與你們進行長期投資。

Good. Thank you for your support and for your questions.

好的。感謝您的支持與提問。

No data. I'll let you go. Thanks. Thanks. We're done.

沒有數據。我會讓你走。謝謝。謝謝。我們完成了。

Thank you.

謝謝。

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

您的下一個問題是 Matthew Galinko 提出的後續問題。

Two quick follow-ups for you, first, I get the balance sheet question. I noticed your receivables were up in the first quarter compared to the end of '23. Just wanted to see I guess, is there a meaningful difference in payment terms between US and European EM clients, and I guess, what moves the payment terms around?

為您提供兩個快速跟進，首先，我得到資產負債表問題。我注意到你們第一季的應收帳款比 23 年底增加。我只是想看看美國和歐洲新興市場客戶之間的付款條件是否有重大差異，我想是什麼改變了付款條件？

Sometimes, it's just how it falls at the end of the quarter, because you can receive an order, just like we received 5 million orders. You can receive orders, and you start to manufacture them and deliver them. You recognize revenues, but you haven't received the cash yet.

有時，季度末就是這樣下降的，因為你可以收到訂單，就像我們收到500萬筆訂單一樣。您可以接收訂單，然後開始製造並交付它們。您確認了收入，但尚未收到現金。

On the other hand, you can receive the cash right before the end of the quarter, and then it brings down the AR nicely for the report, so to speak. But we're not some of these are paid by delivery, and some of these are consistently monthly payments based on lease, so we have a whole mix of projects. The more lease-like projects, which is more what's happening in the US, it's more of a monthly base, which is a little bit more consistent than the delivery, which is sometimes the national projects in Europe, which are more they buy the units, and they manufacture them.

另一方面，您可以在季度末之前收到現金，然後可以很好地降低報告的 AR。但我們並不是其中一些是透過交付支付的，其中一些是基於租賃的每月付款，所以我們有一個完整的專案組合。更多類似租賃的項目，這更多的是在美國發生的事情，它更多的是每月的基礎，這比交付更加一致，這有時是歐洲的國家項目，他們更多地購買單位，然後他們製造它們。

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

知道了。謝謝。然後，考慮到羅馬尼亞在過去幾季中對您的影響有多大，我想，我很好奇您如何看待不包括羅馬尼亞的業務。顯然，你有很多勝利，但是你如何平衡一點風險，或者就像，當羅馬尼亞放慢速度時，你如何填補這個桶，你可以用你的其他人來填補空白嗎？

So first of all, Romania is still running well, and they're ordering more and more, and we'll see if the customer continues to maintain its positivity and its satisfaction. As you've seen with other customers in the world, there's always opportunities for growth programs and additional programs.

首先，羅馬尼亞仍然運作良好，他們的訂單越來越多，我們將看看客戶是否繼續保持積極性和滿意度。正如您在世界上其他客戶身上看到的那樣，成長計劃和附加計劃總是有機會的。

Meanwhile, we're not just relying on Romania, of course. We're bidding on other projects, and in Europe and in the US, we have active demos, and a lot of those will come to add on to Romania and also add on to the base of other projects that we have there. So Romania is certainly a nice win, and rather than just being a nice win, which gives us nice revenues and profitability, it's also a good reference, because as you may remember in the past, there's some projects we couldn't bid on because we didn't have references of certain size.

當然，同時，我們也不僅僅依靠羅馬尼亞。我們正在競標其他項目，在歐洲和美國，我們有活躍的演示，其中許多將添加到羅馬尼亞，並添加到我們在那裡的其他項目的基礎上。因此，羅馬尼亞無疑是一次不錯的勝利，不僅僅是一次不錯的勝利，這給我們帶來了不錯的收入和盈利能力，它也是一個很好的參考，因為正如您過去可能還記得的那樣，有有些項目我們無法投標，因為我們沒有一定規模的參考資料。

Here, you're looking at 15,000 units, 15,000 simultaneous units project with domestic violence. There aren't many of these in the world, and we have, and we've been implementing it successfully, and when other projects of large size come out, we could bid and show that we've been doing this very nicely, and so that puts us in a new area where we weren't if you look three or four years ago.

在這裡，您看到的是 15,000 個單位，15,000 個同步單位涉及家庭暴力。世界上這樣的項目並不多，但我們有，而且我們一直在成功實施，當其他大型項目出現時，我們可以投標並表明我們一直做得很好，並且因此，這使我們進入了一個新的領域，而如果你看三、四年前的話，我們還沒有進入這個領域。

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

我想作為後續行動，您在歐洲羅馬尼亞規模的成功是否有助於為在美國或北美開展國家級計畫提供參考？

Yes. Of course, the closer you are, it's easier to win Texas after you've done California. The closer you are, since it's in the same country, then there is more similarity there, but a $33 million project of 50,000 units is substantial anywhere in the world, and it's our biggest one, and we grew up a ladder.

是的。當然，距離越近，在完成加州之後，贏得德克薩斯州就越容易。你越接近，因為它在同一個國家，那麼那裡的相似性就越大，但是一個價值3300 萬美元、擁有50,000 個單元的項目在世界任何地方都是重要的，而且它是我們最大的一個，我們是沿著階梯成長的。

We started with projects in Lithuania of 100,000, 200,000, Lithuania, Latvia. We went up to Canada of $1.8 million, and we had Finland and Denmark, and some of these are $3, $4 million, and Sweden was $7 million, and that was $33 million, so it certainly does help us, and in the US, the more we went, we're still doing counties in the US. We're also looking at states, and we also considered maybe going on the federal level in the US as well. It's all a matter of where do we have the highest return on investment on our dollar expense.

我們從立陶宛的10萬、20萬、立陶宛、拉脫維亞的計畫開始。我們去了加拿大 180 萬美元，還有芬蘭和丹麥，其中一些是 3,400 萬美元，瑞典是 700 萬美元，那是 3,300 萬美元，所以這確實對我們有幫助，在美國，我們走得越多，我們仍然在美國的縣裡做事。我們也在考慮各州，我們也考慮過在美國聯邦層級進行。問題在於我們的美元支出在哪裡可以獲得最高的投資回報。

And some of these projects could have a very nice return, but the expected return is low because we don't know the probabilities there because these are large projects that we haven't yet worked on as much, whereas in Europe, we can bid on with more confidence as we know pretty much how things are going to fall out and how the competitors align and score in these projects. We've done many of them.

其中一些項目可能會有很好的回報，但預期回報很低，因為我們不知道那裡的可能性，因為這些是我們還沒有做太多工作的大型項目，而在歐洲，我們可以投標我們更有信心繼續前進，因為我們非常清楚事情將會如何發展，以及競爭對手在這些項目中如何協調和得分。我們已經做了很多。

And in the US, we're trying to develop that same capability and the same knowledge, and we're going to be able to use that more effectively, so we're still in the early stages in the US, and that's what's exciting about this. I think there's a big opportunity there, and we're very well positioned for it.

在美國，我們正在努力開發相同的能力和相同的知識，並且我們將能夠更有效地利用它們，因此我們在美國仍處於早期階段，這就是令人興奮的地方對這個。我認為那裡有一個很大的機會，而且我們已經做好了充分的準備。

Great. I appreciate the color.

偉大的。我很欣賞它的顏色。

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

（操作員說明）您的下一個問題來自私人投資者 [Eric Hamilton]。

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

我知道您關注的是監獄市場，但是移民市場呢？您是否有機會向有移民問題的國家推銷您的產品？

Can you repeat that, migration problems with -- over the borders?

您能再說一遍，跨國移民問題嗎？

Yes, yes.

是的是的。

In the US -- (multiple speakers) Sorry, go ahead.

在美國——（多名發言者）抱歉，請繼續。

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

存在這些問題的國家是否有興趣從您那裡獲取手環或監視器來監控進入其國家的移民？

A good question, it's something that we're looking into and considering further. We know that in the US, there's the ICE program, and they use similar technology to track people coming over the border. They call them detainees. They come over the border from Mexico, and they're being tracked for a period of time until they decide the status and if they're approved to enter fully. They have big programs with, I think, over 100,000 units.

這是一個很好的問題，我們正在進一步研究和考慮。我們知道在美國有 ICE 計劃，他們使用類似的技術來追蹤越境的人。他們稱他們為被拘留者。他們從墨西哥越過邊境，我們會對其進行一段時間的跟踪，直到他們確定自己的身份以及是否獲準完全入境。我認為他們有超過 100,000 個單元的大型專案。

Other countries are considering and have considered, not just now, but also over the recent years, various programs like that. We've been looking into it, but we have not yet made that our biggest focus. Our biggest focus has been on the programs in the country for the offender monitoring. That's where the complexity is the greatest. And since we have technological prowess and we're able to score higher, we can go straight to the largest projects with the highest complexities. But these are other ones that are complementary and that could be added. It's something that, over time, we'll probably look into further, even though we've already started looking.

其他國家不僅現在而且已經考慮過類似的各種計劃。我們一直在研究這個問題，但尚未將其作為我們最大的焦點。我們最關注的是該國的罪犯監控計畫。這就是複雜性最大的地方。由於我們擁有技術實力並且能夠獲得更高的分數，因此我們可以直接進入最複雜的最大專案。但這些是其他互補的、可以添加的。隨著時間的推移，我們可能會進一步研究這個問題，儘管我們已經開始研究了。

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

那麼，您為監獄系統所做的技術是否會用於移民監控系統？

The technology, I mean, the government would use technology in whichever way they would like, but the technology is the same. It's different policies. You have different rules and different procedures, but the technological capabilities are the same. You have a bracelet. You monitor someone's location. There's anti-tampering. They can't take it off. They can't remove it. There's all these processes on the back end, the data intelligence aspect of what people are doing and how they're doing.

我的意思是，技術，政府會以任何他們想要的方式使用技術，但技術是一樣的。是政策不一樣吧你們有不同的規則和不同的程序，但技術能力是相同的。你有一個手鐲。您監視某人的位置。有防篡改功能。他們無法把它脫下來。他們無法刪除它。後端有所有這些流程，即人們正在做什麼以及如何做的數據智慧方面。

And we provide so much flexibility and so much customization to our customers. We have so many customers that they each want something a little bit different. This is, let's call it a simple adjustment, if someone wanted to change from this to that, the technology is there.

我們為客戶提供瞭如此多的靈活性和如此多的客製化服務。我們有很多客戶，他們每個人都想要一些不同的東西。這是，我們稱之為簡單的調整，如果有人想從這個改變到那個，技術就在那裡。

Well, I know you have a limited staff and workforce, but I have to think that this is an area that you should be investing in and trying to get some of these substantial contracts if the technology is the same for a migrant as it would be for an inmate. It just makes sense that you would be taking some personnel and trying to get yourself involved in this migrant problem because it's huge and I think it would be a good way of the governments monitoring these people that come into the countries.

好吧，我知道你們的員工和勞動力有限，但我必須認為，如果技術對於移民來說是一樣的，那麼這是一個你們應該投資並嘗試獲得一些實質合約的領域。你會帶一些人員並試圖讓自己參與這個移民問題，這是有道理的，因為這是一個巨大的問題，我認為這將是政府監控這些進入這些國家的人的好方法。

So first of all, you're right. Certainly, it's a good idea to look at complementary markets with similar technology. That's what we've been doing consistently. That's how we entered domestic violence tracking and also the inmate tracking over the years. And I appreciate the thought and the focusing on this.

所以首先，你是對的。當然，尋找具有類似技術的互補市場是個好主意。這就是我們一直在做的事情。這就是我們多年來進入家庭暴力追蹤和囚犯追蹤的方式。我很欣賞這個想法和對此的關注。

The question for us when it comes to new projects and new types of programs is how ready the customers are to actually deploy these programs. A lot of times, especially In other countries outside the US and Europe, we see them trying to enter the normal electronic monitoring market, let’s say in South America, and they seem very excited, and you spend a lot of time and effort and then at the end they’re not ready for one reason or another to actually deploy something like this.

當涉及新專案和新類型的程序時，我們面臨的問題是客戶為實際部署這些程序做好了多少準備。很多時候，特別是在美國和歐洲以外的其他國家，我們看到他們試圖進入正常的電子監控市場，比如說南美洲，他們看起來很興奮，你花了很多時間和精力努力，然後最終由於某種原因他們還沒準備好實際部署這樣的東西。

So with migrants, like other ones, we need to understand how likely the programs are to actually be deployed before we invest a significant amount of time and adjustments for them. We do interact with local partners in any country where we work on these projects, and they give us continuous updates also for stuff like this. It’s not something that we’re crossing off or not emphasizing and it’s something that we continuously look at, but we assess it versus the likelihood of other projects.

因此，對於移民，就像其他人一樣，在投入大量時間和調整之前，我們需要了解這些計劃實際部署的可能性有多大。我們確實與我們從事這些專案的任何國家/地區的當地合作夥伴進行互動，他們也為我們提供此類內容的持續更新。這不是我們要忽略或不強調的事情，而是我們不斷關注的事情，但我們會根據其他項目的可能性來評估它。

Like in Romania, they did a new project for electronic monitoring, brand new project for them. They were very serious about it, and you see it also by how quickly they deployed it with us and all the continued growth of the project. And if we can find customers like that, that are willing to do this on the migrant issue and they’re able to adjust their laws and regulations, then that would be great.

就像在羅馬尼亞一樣，他們做了一個新的電子監控項目，對他們來說是全新的項目。他們對此非常認真，從他們與我們一起部署它的速度以及專案的持續成長中也可以看出這一點。如果我們能找到這樣的客戶，他們願意在移民問題上這樣做，並且他們能夠調整他們的法律和法規，那就太好了。

In Israel, there is an issue with domestic violence, and they've been trying to pass a low for over 10 years. And just last year, they were able to pass it, and then that became a big focus now. And now they're having the RFE processes around it, which are guided by the government. So we're in touch with all the different players and we're needed, but the governments are the ones that have to push these laws and regulations for new projects to start.

在以色列，存在著家庭暴力問題，十多年來他們一直在努力擺脫家庭暴力的低點。就在去年，他們才通過了考試，然後這就成為了現在的一大焦點。現在他們有圍繞它的 RFE 流程，這是由政府指導的。因此，我們與所有不同的參與者保持聯繫，我們是被需要的，但政府是必須推動這些法律和法規以啟動新計畫的人。

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

好的。好吧，我們希望你能夠開發更多的產品，這樣你就可以提高公司的價值，因為透過向你提供更多股票或發行更多流通股來稀釋股東價值的問題並不是一個成功的公式。

Yes.

是的。

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

您需要對專案出價更高，以支付管理費用並有資金用於研發。獲得專案固然很棒，但如果你在合約上賠錢，那對任何人來說都不是贏家。

Of course, and we're surely not losing money on contracts. We're making money on these contracts, and we're actually winning with our technology, not with a low-price approach which some companies deploy in some industries. The thing is these projects are sometimes large, and they require capital. And sometimes, we need to raise capital accordingly.

當然，我們肯定不會在合約上賠錢。我們透過這些合約賺錢，我們實際上是透過我們的技術獲勝，而不是透過一些公司在某些行業採用的低價方法。問題是這些項目有時很大，並且需要資金。有時，我們需要相應地籌集資金。

And of the stock price, our stock was higher in the recent past, and the valuations are not always reflective of the intrinsic value of the company. As the intrinsic value is more apparent, it also makes it much easier to raise capital with minimal dilution, that we don't still control market, but the market has been sometimes challenging in terms of valuations over the past two or three years. But we continued to grow, and to win projects, and deploying new products, and we're happy with the progress we've achieved, even though we're aware of the dilution, and we're trying to keep that to a minimum as much as possible.

就股價而言，我們的股票最近較高，估值並不總是反映公司的內在價值。由於內在價值更加明顯，這也使得以最小稀釋度籌集資金變得更加容易，我們仍然無法控制市場，但過去兩三年市場有時在估值方面面臨挑戰。但我們繼續成長，贏得項目，部署新產品，我們對所取得的進展感到滿意，儘管我們意識到稀釋，並且我們正在努力將其保持在最低限度越多越好。

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

您能否讓有興趣向您下訂單的客戶預先支付一些初始資金成本來處理他們的訂單？當他們給你採購訂單時，可以提前給你一些錢嗎？

It's a great question. The governments are usually the ones that decide the structure and the payments. Remember, these are competitive processes. So there's five, six, seven players competing, and the government says, these are the payment terms that I want, and it's hard to come and say, no, with us, you need to pay up front, with everyone else they're going to pay over time. Sometimes, you have the ability to do that, especially when it's an existing customer that's been working with us for many years because they already have our system and deployed, they already know us, then we have more flexibility. There are also sometimes we don't have that flexibility, and we have to conform to the structure that the customer demands.

這是一個很好的問題。政府通常是決定結構和付款的人。請記住，這些都是競爭過程。所以有五、六、七名參與者競爭，政府說，這些是我想要的付款條件，很難說，不，與我們一起，你需要預先付款，與其他人一樣隨著時間的推移將付款。有時，您有能力這樣做，特別是當它是與我們合作多年的現有客戶時，因為他們已經擁有並部署了我們的系統，他們已經了解我們，那麼我們就有更大的靈活性。也有的時候我們沒有那種彈性，我們必須符合顧客要求的結構。

I understand. And I --

我明白。和我 -

We've been doing this for 35 years, yes --

我們這樣做已經 35 年了，是的——

I understand all your responses, I understand that completely. It's just the way of having relationships with a client that makes them understand, listen, we already have the best technology, we have the best product. And you want to come onboard with us. Well, we need you to help us and assure us that -- or help us to get you the product so we aren't going into heart to supply you with the product you need.

我理解你所有的反應，我完全理解。這只是與客戶建立關係的方式，讓他們理解、傾聽，我們已經擁有最好的技術，我們擁有最好的產品。您想加入我們。好吧，我們需要您幫助我們並向我們保證 - 或幫助我們為您提供產品，這樣我們就不會專心為您提供您需要的產品。

Yes. And we have those conversations when they allow us to, and once a relationship has developed and evolved over the years. So really it's an ongoing sensitivity and approach with these government customers, that we've been working with them for 35 years, because even before offender monitoring, we've been doing passports, and ID cards, and drivers' licenses. And it's always been that -- it's always escorted with the payment terms, it's a big part of these government contracts. And at the beginning you have less say, over time, you have more say.

是的。當他們允許時，一旦關係經過多年的發展和演變，我們就會進行這些對話。因此，實際上，我們與這些政府客戶合作了 35 年，這實際上是一種持續的敏感性和方法，因為即使在罪犯監控之前，我們就一直在處理護照、身分證和駕照。一直以來，它總是伴隨著付款條件，它是這些政府合約的重要組成部分。一開始你的發言權較少，隨著時間的推移，你的發言權會越來越多。

When your technology becomes more unique and more prevalent as an industry leader and that's what we're working on all the time, that's why you keep seeing the continued investment in R&D. You have more abilities. And we expect and hope, over time, as we become larger, our expansion potential is there, and once we manifest it we'll also be able to improve our terms with payments from the customers.

當您的技術變得更加獨特並且作為行業領導者更加普遍時，這就是我們一直在努力的方向，這就是為什麼您會不斷看到研發方面的持續投資。你有更多的能力。我們期望並希望，隨著時間的推移，隨著我們變得更大，我們的擴張潛力就在那裡，一旦我們體現出來，我們也將能夠改善我們的客戶付款條件。

But our shift from South America and Africa to the US and Europe has already done a huge amount of benefit improvement for us in terms of collections, in terms of payment structures. So that's already been a big help for us over the five to seven years. And now, even with these visions, there is always room for improvement, as we've discussed.

但我們從南美洲和非洲向美國和歐洲的轉變已經在收款和支付結構方面為我們帶來了巨大的效益改善。所以這在五到七年裡對我們來說已經是一個很大的幫助。現在，正如我們所討論的，即使有這些願景，也總是有改進的空間。

Well, thank you very much for putting up with me and taking my questions. And I certainly --

嗯，非常感謝您容忍我並回答我的問題。我當然——

Good questions. (multiple speakers)

好問題。 （多個發言者）

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

股票的價值和你的潛力似乎有些脫節。現在，你已經證明你可以實現淨利潤，這是關鍵的事情。可以與淨利潤保持一致。它必須提高股票的價值。

Yes.

是的。

Thank you.

謝謝。

Over time, that's what we really hope to happen. And thank you very much for your questions and for supporting SuperCom.

隨著時間的推移，這就是我們真正希望發生的事情。非常感謝您提出的問題以及對 SuperCom 的支持。

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

（接線生指示）此時，我會將電話轉回 Ordan 進行結束語。

I want to thank all of you for participating in today's call and for your interest in SuperCom. Please contact us directly if you have any additional questions. And we look forward to sharing our progress with you on our next conference calls, filings, and press releases. Thank you 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。我們期待在下一次電話會議、文件和新聞稿中與您分享我們的進展。謝謝你，有美好的一天。

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

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。