Supercom Ltd (SPCB) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good morning and welcome to SuperCom's third-quarter 2024 financial results and corporate update conference call.

女士們、先生們，早安，歡迎參加 SuperCom 2024 年第三季財務業績和公司更新電話會議。

(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.

（操作員指示）請參加本次通話的人員注意，本次電話會議的音訊將透過網路現場直播，同時也會被錄音以供回放。

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

與我一起加入 SuperCom 領導團隊的還有 SuperCom 總裁兼執行長 Ordan Trabelsi。

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

我想提醒您，在本次電話會議中，SuperCom 管理層可能會做出前瞻性陳述，包括涉及 SuperCom 對未來業績或營運結果的預期的陳述。

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

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 20-F 表和 6-K 表定期報告中描述的風險因素以及隨本次電話會議發布的 SuperCom 新聞稿，特別是其中的警告聲明。

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

今天的電話會議包括 EBITDA，這是一項非 GAAP 財務指標，SuperCom 認為它有助於評估其業績。

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

您不應孤立地考慮這些附加信息，也不應將其作為提前使用 GAAP 準備的結果的替代品。

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

此非 GAAP 財務指標與淨虧損（可比較 GAAP 財務指標）的對帳表，請參閱隨本次電話會議發布的 SuperCom 收益新聞稿中的對帳表。

Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.

其他非 GAAP 財務指標和可比較 GAAP 財務指標的對帳表也可在此查閱。

The content of this call contains time-sensitive information that is accurate only as of today, November 14, 2024.

本次通話內容包含時間敏感訊息，僅截至今天（2024 年 11 月 14 日）準確。

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.

除法律要求外，SuperCom 不承擔公開更新或修改任何資訊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.

謝謝您，接線生。

Good morning, everyone.

大家早安。

Thank you for joining us today.

感謝您今天加入我們。

Earlier this morning, we issued a press release of financial results for the third quarter and nine months ended September 30, 2024.

今天早些時候，我們發布了截至 2024 年 9 月 30 日的第三季和九個月的財務業績新聞稿。

You can find a copy in the Investor Relations section of our website at www.supercom.com. Today, I'll start my comments with a brief update on our recent business highlights, strategy, and future results followed by a Q&A session.

您可以在我們網站 www.supercom.com 的投資者關係部分找到一份副本。今天，我將首先簡要介紹我們最近的業務亮點、策略和未來結果，然後進行問答環節。

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

第三季度是 SuperCom 又一個重大成就的一個季度，展現了我們業務的持續實力和韌性。

Our financial results for the third quarter and first nine months of 2024 reflect the successful execution of our strategic initiatives, which have been driving revenue growth, improving profitability, and enhancing cash flows.

我們 2024 年第三季和前九個月的財務表現反映了我們策略性舉措的成功執行，這些舉措一直在推動收入成長、提高獲利能力並增強現金流。

Year to date, revenue increased to $21.3 million.

今年迄今，收入增加至 2,130 萬美元。

Gross profit surged by 35% to $10.7 million, and our gross profit margin improved dramatically to 50.1% from 30.7% in the prior year period.

毛利飆升35％至1070萬美元，毛利率從去年同期的30.7％大幅提高至50.1％。

Additionally, our free cash flows increased to positive $1.2 million from a negative number in Q3 of last year.

此外，我們的自由現金流從去年第三季的負數增加到正 120 萬美元。

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

我們對我們的業績感到滿意，並期待接下來的幾個季度。

This quarter is particularly exciting.

本季尤其令人興奮。

We saw our leadership position with key contract wins, including the prestigious National Israeli Electronic Monitoring Project.

我們透過贏得關鍵合約證明了我們的領導地位，其中包括著名的以色列國家電子監控計畫。

We also expanded into new regions, including New York, West Virginia, and Maryland, further strengthening our footprint in the US market.

我們也擴展到了紐約、西維吉尼亞和馬裡蘭等新的地區，進一步加強了我們在美國市場的影響力。

These wins not only reflect the exceptional value of our technology, but also help position us for sustained expansion in the years ahead.

這些勝利不僅體現了我們技術的卓越價值，而且有助於我們在未來幾年持續擴張。

Our commitment to financial -- operational efficiency and technology innovation has translated into tangible results.

我們對財務營運效率和技術創新的承諾已經轉化為實際的成果。

An improvement in net income to $2.52 million for the nine-month period, compared to a net loss of $2.48 million in the prior year period; free cash regeneration of $1.2 million this quarter; and a cash balance of $6.23 million at the end of it underscore these tangible results, along with an ability to support further potential growth opportunities.

前九個月的淨收入增至 252 萬美元，而去年同期的淨虧損為 248 萬美元；本季自由現金再生 120 萬美元；期末現金餘額623萬美元，凸顯了這些切實的成果以及支持進一步潛在成長機會的能力。

We are also particularly proud to have continued our successful integration of the PureOne solution into multiple new markets during this period, reflecting our continued commitment to innovation and our ability to meet the evolving needs of our client.

我們也特別自豪地在此期間繼續將PureOne解決方案成功整合到多個新市場，這反映了我們對創新的持續承諾以及滿足客戶不斷變化的需求的能力。

This, along with other strategic initiatives, has positioned us to deliver sustained profitability and expansion.

這項舉措與其他策略性舉措一起，使我們能夠實現持續的獲利和擴張。

For those new to SuperCom, our mission is to revolutionize the public safety sector worldwide with our proprietary electronic monitoring technology, our data intelligence, and suite of complementary services.

對於 SuperCom 的新人來說，我們的使命是透過我們的專有電子監控技術、數據智慧和一系列補充服務徹底改變全球公共安全領域。

With over 36 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.

自 1988 年成立以來，我們擁有超過 36 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 strategic blueprint is straightforward, yet powerful.

我們的策略藍圖簡單而有力。

We lead with innovative technology.

我們以創新技術引領。

Our proprietary electronic monitoring technology, which has scored highly in competitive government tenders, for various programs such as [counter-threats], GPS monitoring, rehabilitation services, domestic violence prevention, and more.

我們的專有電子監控技術在競爭激烈的政府招標中獲得了高度評價，用於各種項目，例如[反威脅]、GPS 監控、康復服務、家庭暴力預防等。

Moreover, we have recently broadened our portfolios to include advanced AI-driven analytics, which are an integration into our electronic monitoring system.

此外，我們最近擴大了我們的產品組合，包括先進的人工智慧驅動的分析，這些分析已整合到我們的電子監控系統中。

This addition enhances our ability to provide predictive insights and improve outcomes for our clients.

這項新增功能增強了我們為客戶提供預測見解和改善結果的能力。

We've developed superior solutions, and since 2018, we've secured over 50 new multi-year government projects with these solutions.

我們開發了卓越的解決方案，自 2018 年以來，我們已利用這些解決方案獲得了 50 多個新的多年期政府專案。

We expand our global presence, and our strong growing reputation as a premium provider of electronic monitoring solutions and services enhances our market position with each new customer win.

我們擴大了全球影響力，作為電子監控解決方案和服務的優質供應商，我們日益增長的聲譽隨著每個新客戶的贏得而提升了我們的市場地位。

And we deliver outstanding services.

我們提供優質的服務。

Our strategic focus on IoT tracking business in the developed market is where the opportunity is greatest.

我們的策略重點是已開發市場的物聯網追蹤業務，那裡蘊藏著最大的機會。

With the electronic monitoring market projected to reach $2.3 billion by 2028, the US and Europe account to about 95% of this global market.

預計到 2028 年電子監控市場規模將達到 23 億美元，其中美國和歐洲約佔全球市場的 95%。

We continue to amplify our technological leadership with significant R&D investments, leading to the launch of advanced solutions like PureProtect and PureOne.

我們繼續透過大量研發投入來擴大我們的技術領先地位，從而推出了 PureProtect 和 PureOne 等先進的解決方案。

These offerings are already making headway in various markets, including the US, and are pivotal in SuperCom expansion.

這些產品已經在包括美國在內的各個市場取得進展，並且對 SuperCom 的擴張至關重要。

PureProtect is a life-saving, domestic violence monitoring solution providing preventive measures to families suffering from domestic violence or stalking, thereby increasing their safety.

PureProtect 是一種拯救生命的家庭暴力監控解決方案，為遭受家庭暴力或追蹤的家庭提供預防措施，從而提高他們的安全。

We offer a unique, lightly abrasive, long-term battery life and a solution architecture like no other to offer domestic violence protection in a unique way, which is spreading rapidly around the world with more wins in different regions.

我們提供獨特的、輕微磨損的、長期的電池壽命和無與倫比的解​​決方案架構，以獨特的方式提供家庭暴力保護，這種方式正在世界各地迅速傳播，並在不同地區取得了更多的勝利。

PureOne is an all-in-one GPS tracking, ankle bracelet monitoring solution, integrating comprehensive monitoring capabilities into a single device.

PureOne 是一款一體式 GPS 追蹤、腳踝手環監控解決方案，將全面的監控功能整合到單一裝置中。

Like many of our products, it offers top-notch features, placing it above the competition in most metrics, and this product is a key to our expansion in the US, which is on its way.

就像我們的許多產品一樣，它提供了一流的功能，在大多數指標上都超越了競爭對手，而且這款產品是我們正在進行的美國擴張的關鍵。

Our cloud-based software PureSecurity product line has been particularly effective in monitoring offenders and managing real-time information.

我們的基於雲端的軟體 PureSecurity 產品線在監控罪犯和管理即時資訊方面特別有效。

This real-time advantage is a game changer, empowering authorities with actionable insights and timely intervention to mitigate potential risks and enhance public safety.

這種即時優勢改變了遊戲規則，使當局能夠採取切實可行的見解並及時幹預，以減輕潛在風險並增強公共安全。

These products have significantly expanded the company's addressable market.

這些產品大大擴展了該公司的目標市場。

We've been very pleased with the reception and traction and expect them to help facilitate the accelerated expansion of SuperCom into the US market and further European countries.

我們對其反應和發展感到非常滿意，並希望它們能夠幫助 SuperCom 加速擴張到美國市場和其他歐洲國家。

We've fortified our operational infrastructure to support our growth and have revamped our sales strategy with a proactive outreach approach.

我們加強了營運基礎設施以支持我們的成長，並透過積極主動的拓展方式修改了銷售策略。

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

我們的銷售團隊擁有深厚的行業專業知識，在取得新勝利和推動成長方面發揮了重要作用。

Last month, we announced that, together with our prime partner Electra in Israel, we have been awarded a five-year contract by the Israeli Prison Service state agency, or IPS, to deploy our PureSecurity electronic monitoring suite.

上個月，我們宣布，我們與以色列的主要合作夥伴 Electra 共同獲得了以色列監獄服務國家機構（IPS）的一份為期五年的合同，以部署我們的 PureSecurity 電子監控套件。

This nationwide program is expected to cover all electronic monitoring offender programs in the country, with an estimated 1,500 enrollees simultaneously and potential for expansion.

預計這項全國性計畫將涵蓋全國所有電子監控罪犯項目，預計同時有 1,500 名參與者，並具有擴大的潛力。

SuperCom will deploy its cutting-edge EM solutions, including PureCom, PureTrack, PureTag, and PureBeacon.

SuperCom 將部署其尖端的 EM 解決方案，包括 PureCom、PureTrack、PureTag 和 PureBeacon。

The five-year contract is already in effect and includes the option for up to four one-year extensions for a total of a nine-year potential contract term.

這份為期五年的合約已經生效，其中包括最多四次一年期續約的選項，總合約期限可能為九年。

The project was won through a highly competitive bid process, including several rounds of negotiations, demonstrations, and system evaluations required and supervised by the IPS.

該項目透過高度競爭的投標過程贏得，包括IPS要求和監督的幾輪談判、演示和系統評估。

We displaced an Israeli incumbent that had held the contract for many years, and this win exemplifies our commitment to excellence, technology leadership, and strong partnerships.

我們取代了多年來一直持有該合約的以色列現任者，這次勝利體現了我們對卓越、技術領先和強大合作夥伴關係的承諾。

Our comprehensive set of offerings position us well to win multifaceted national projects, such as this one, that are set to encompass all electronic monitoring programs within the country.

我們全面的產品組合使我們能夠贏得像這樣的多方面的國家項目，該項目將涵蓋該國境內的所有電子監控項目。

We have a broad array of solutions, and with one contract and one provider, our sales will begin to support all the programs.

我們擁有廣泛的解決方案，只需一份合約和一個供應商，我們的銷售就可以開始支援所有計劃。

Over the past month, we announced many new orders and new project wins in the US and Europe.

過去一個月，我們在美國和歐洲宣布了許多新訂單和新項目。

In recent years, SuperCom has continued to displace incumbent vendors and achieved an over 65% win rate in European competitive tenders.

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。

Looking to the EU market, SuperCom has secured several new national tracking programs across Europe over the past two years, with bids and contracts at various stages of execution.

放眼歐盟市場，SuperCom 在過去兩年中已在歐洲各地獲得了多個新的國家追蹤項目，其中的投標和合約處於不同執行階段。

Notably, the company's large-scale domestic violence offender tracking programs, like the one launched in Romania, have the potential to catalyze further uptake from existing European customers.

值得注意的是，該公司在羅馬尼亞推出的大規模家庭暴力罪犯追蹤計畫有可能進一步激發現有歐洲客戶的採用。

As more European countries adopt these technologies, we anticipate a broader expansion of our solution across the continent.

隨著越來越多的歐洲國家採用這些技術，我們預計我們的解決方案將在整個歐洲大陸得到更廣泛的推廣。

In the European market, SuperCom expanded its business into over 10 countries and secured significant new contracts, which are typically awarded through a competitor tender process.

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對手的招標程序授予的。

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

除了贏得新項目外，我們還繼續執行並接收來自現有合作夥伴的持續訂單。

Just about four weeks ago, we announced we were receiving new orders that added over $2.9 million to the European government, totaling over $13.5 million new orders in the past period as described.

大約四周前，我們宣布收到了新的訂單，為歐洲政府增加了超過 290 萬美元的訂單，如上所述，過去一段時間的新訂單總額超過 1,350 萬美元。

Last year, we secured a new national program with the Finnish government to deploy our domestic violence monitoring solution.

去年，我們與芬蘭政府達成了一項新的國家計劃，部署我們的家庭暴力監控解決方案。

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.

我們的 PureSecurity 套件（包括 PureProtect、PureTrack、PureTag 和 PureMonitor）的部署展示了我們解決方案的多功能性和有效性，並凸顯了我們在電子監控領域的領導地位。

Our collaboration with Finland is a prime example of the confidence that clients have in SuperCom and those experiencing our services often choose to broaden their engagement with our diverse array of solutions.

我們與芬蘭的合作充分體現了客戶對 SuperCom 的信心，體驗過我們服務的客戶經常選擇擴大我們多種解決方案的參與。

That means they start with one program like house arrest, they expand to GPS or domestic violence or alcohol monitoring, and that gives us, of course, opportunities for growth and margin improvement with the same customer.

這意味著他們從一個專案開始，例如軟禁，然後擴展到 GPS 或家庭暴力或酒精監控，這當然為我們提供了透過同一個客戶實現成長和提高利潤的機會。

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 over $33 million, including up to 15,000 monitored offenders simultaneously per month for up to six years.

值得注意的是，2022年底，該公司因羅馬尼亞國家電子監控計畫獲得了年度最大的行業獎項，價值超過3300萬美元，其中包括每月同時監控多達15,000名罪犯，監控期限長達六年。

The project has been progressing smoothly and demonstrating substantial advancements, further extending our engagement in the country's national EM project.

計畫目前進展順利，取得了實質進展，進一步擴大了我們在國家電磁相容計畫中的參與。

The large-scale project reinforces the strength of our PureSecurity suite and cements our position as a trusted partner for governments worldwide.

這個大型專案增強了我們的 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've also launched domestic violence solutions in other European regions and have recently launched them as well in the US.

我們也在其他歐洲地區推出了家庭暴力解決方案，最近也在美國推出了這個解決方案。

Now looking to the US market, while the European market continues to grow, it's important to note that the US market offers an even larger opportunity, being approximately three to five times the size of the European market for electronic monitoring.

現在放眼美國市場，雖然歐洲市場持續成長，但值得注意的是，美國市場提供了更大的機會，其規模約為歐洲電子監控市場的三到五倍。

With the introduction of our PureOne electronic monitoring product, now available in the US, and the expansion of our domestic violence tracking solution, we believe SuperCom is well positioned to unlock substantial growth potential in this untapped market.

隨著我們目前在美國上市的 PureOne 電子監控產品的推出，以及我們家庭暴力追蹤解決方案的擴展，我們相信 SuperCom 已準備好在這個尚未開發的市場中釋放巨大的成長潛力。

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

儘管 SuperCom 已經在美國多個州開展業務，但我們仍積極致力於進一步擴大我們在美國的業務。

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 brand-new customers.

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，贏得現有客戶的重新競標並贏得全新客戶的新項目。

The company strategically prioritizes PureOne's expansion into new markets and geographies.

該公司在策略上優先考慮 PureOne 向新市場和新地區的擴張。

The PureOne has already received high praise during its introduction to various regions of the USA, where it has been successfully deployed and is actively utilized to monitor live offenders.

PureOne 在美國各地推出後就已獲得高度讚譽，並被成功部署並積極用於監視在世的罪犯。

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

此外，PureOne 的銷售活動已在歐洲和北美以外有前景的新市場開始。

Despite our long-standing presence in parts of California, the US market remains largely untapped for us.

儘管我們長期在加州部分地區開展業務，但美國市場對我們來說仍然很大程度上尚未開發。

Since we began investing in outbound sales efforts in 2022 for the US, we secured wins in California, Idaho, Texas, Kentucky, and Wyoming, to name a few; this quarter, we just announced a few more, which we'll reiterate.

自 2022 年開始在美國投資外向銷售工作以來，我們在加利福尼亞州、愛達荷州、德克薩斯州、肯塔基州和懷俄明州等地取得了成功；本季度，我們剛剛宣布了更多消息，我們將重申。

And the launch of PureOne in 2023, coupled with top positive feedback from initial deployment, positions us to accelerate market capture across the US, unlocking significant growth opportunities.

PureOne 將於 2023 年推出，再加上初始部署所獲得的最積極回饋，這將使我們能夠加速佔領美國市場，釋放巨大的成長機會。

Our strategic new 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 multiple new demos, resulting in a significant increase in the company's pipeline.

我們策略性的新銷售團隊和新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的活動和多個新演示的增加，從而顯著增加了公司的管道。

Launching our PureOne solution in the US market in late '23 was a significant milestone in our expansion strategy.

23 年底在美國市場推出我們的 PureOne 解決方案是我們擴張策略的一個重要里程碑。

Since our last earnings call alone, we've announced multiple new projects in North America to provide the solution.

自從上次財報電話會議以來，我們已經宣佈在北美開展多個新項目來提供解決方案。

SuperCom secured multiple new contracts with sheriff agencies across West Virginia.

SuperCom 與西維吉尼亞州各地的治安機構簽訂了多份新合約。

These contracts leverage SuperCom's innovative PureOne suite with both cellular and Wi-Fi communication ability.

這些合約利用了 SuperCom 的創新 PureOne 套件，該套件具有蜂窩和 Wi-Fi 通訊功能。

And these contracts are already generating recurring revenue, further solidifying our presence and footprint in the US market.

這些合約已經產生經常性收入，進一步鞏固了我們在美國市場的地位和影響力。

We've also secured new contracts with a leading Baltimore-based service provider in Maryland.

我們還與馬裡蘭州巴爾的摩的一家領先服務提供者簽訂了新合約。

And the contract, which was launched in June 2024, estimated to generate an annual recurring revenue of approximately $250,000.

該合約於 2024 年 6 月啟動，預計每年將產生約 25 萬美元的經常性收入。

And we secured our first new contract in a county in New York State recently.

我們最近在紐約州的一個縣簽署了第一份新合約。

This win, achieved through a competitive selection process, further strengthens SuperCom's strategic expansion across the US and marks another milestone in our business plan.

這場勝利是透過競爭性選拔程序取得的，進一步加強了 SuperCom 在美國各地的戰略擴張，標誌著我們商業計劃的另一個里程碑。

As I mentioned earlier, the introduction of PureOne was a game changer in securing these contracts.

正如我之前提到的，PureOne 的推出對於確保這些合約的簽訂起到了至關重要的作用。

It underscores our competitive edge and commitment to delivering an innovative and superior technology solution.

它強調了我們的競爭優勢和提供創新和卓越技術解決方案的承諾。

Our securing these contracts has further reinforced our position as a market leader in various fields.

這些合約的獲得進一步鞏固了我們在各個領域的市場領先地位。

And we view these recent wins as indicators of our growing influence and expansion, potentially in North America and worldwide.

我們將這些最近的勝利視為我們影響力和擴張速度不斷提升的標誌，範圍可能覆蓋北美乃至全世界。

In conclusion, despite macroeconomic uncertainties and ongoing global challenges, including those in Israel, SuperCom's solutions are being increasingly relevant.

總而言之，儘管存在宏觀經濟不確定性和持續的全球挑戰（包括以色列的挑戰），SuperCom 的解決方案仍然越來越重要。

We continue to see growth driven by high recidivism rates, escalating costs of incarceration, and the surge in adoption of victim protection solutions worldwide.

我們繼續看到，高再犯率、不斷上升的監禁成本以及全球範圍內受害者保護解決方案採用率的激增推動著增長。

The company's PureSecurity technology design suggests these trends offer an impressive way for institutions to enforce home confinement, ease prison overcrowding, and lower costs significantly.

該公司的 PureSecurity 技術設計表明，這些趨勢為機構實施家庭監禁、緩解監獄過度擁擠並大幅降低成本提供了一種令人印象深刻的方法。

For example, monitoring confinement, offender at home, or GPS, costs about $10 to $35 a day, which is 90% less than a $100 to $140 daily cost at a corrections facility.

例如，監控監禁、在家監控罪犯或使用 GPS 的費用約為每天 10 至 35 美元，比監獄每天 100 至 140 美元的費用低 90%。

Moreover, home confinement helps to reduce repeat offenses, highlighting its effectiveness in helping offenders improve their lives and communities.

此外，居家監禁有助於減少重複犯罪，凸顯了其在幫助罪犯改善生活和社區方面的有效性。

As we mentioned in previous calls, we believe there is also an opportunity to enhance US growth through strategic acquisitions of local electronic monitoring service providers with a strong reputation of customer based in their local markets.

正如我們在先前的電話會議中提到的，我們相信，透過策略性地收購在當地市場享有良好客戶聲譽的本地電子監控服務提供商，也有機會促進美國業務的成長。

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

我們不斷監控市場以尋找潛在的收購，這些收購可以透過立即擴大市場佔有率和提供垂直整合協同效應以優惠的價格創造巨大價值。

Our acquisition of LCA in 2016, which is the last of this sort, for $3 million is a great example.

我們在 2016 年以 300 萬美元收購了 LCA，這是最後一次此類收購，就是一個很好的例子。

The successful acquisition has been a great strategic value to the company and allowed us to win over $35 million in new projects in California alone since the acquisition.

此次成功收購對該公司具有重大的戰略價值，自收購以來，僅在加州我們就贏得了超過 3500 萬美元的新項目。

I'll now turn briefly to the financials.

現在我將簡單談談財務狀況。

During this quarter, Q3 and the first nine months of 2024, in comparison to the same period of last year, note that our multi-year projects are now run on a quarterly scale and can have fluctuating effects when analyzed quarterly.

與去年同期相比，本季、第三季和 2024 年前 9 個月請注意，我們的多年期專案現在按季度規模運行，按季度分析時可能會產生波動的影響。

We'll start with the nine-month performance, which helps neutralize some of these fluctuations, and then look at three months.

我們將從九個月的表現開始，這有助於消除一些波動，然後再看看三個月的表現。

So for nine months, revenue for the first nine months increased $21.3 million, up from $20.9 million in the same period of last year.

因此，前九個月的營收增加了 2,130 萬美元，高於去年同期的 2,090 萬美元。

Gross profit surged 35% to $10.7 million and improved gross margin 51%, up from 37.7% last year.

毛利飆升 35% 至 1,070 萬美元，毛利率提高 51%，高於去年的 37.7%。

Net income improved significantly to $2.52 million compared to a net loss of $2.48 million in the prior year.

淨收入大幅改善至 252 萬美元，而上年度的淨虧損為 248 萬美元。

Non-GAAP net income grew to $4.88 million, demonstrating the strength of our core operations.

非公認會計準則淨收入成長至 488 萬美元，彰顯了我們核心業務的實力。

And EPS reached $1.6, and non-GAAP EPS reached $3.1. The difference is mainly attributed to the amortization of past acquired assets

EPS達1.6美元，非GAAP EPS達3.1美元。差異主要歸因於過去收購資產的攤銷

[and businesses].

[和企業]。

The quarterly performance in Q3, revenue increased to $6.91 million, up from $6.78 million in Q3 of last year, driven by new project wins and expansions of existing contracts.

第三季的季度表現方面，營收從去年第三季的 678 萬美元增至 691 萬美元，這得益於新項目的贏得和現有合約的擴展。

Gross profit this quarter was $3.2 million, reflecting a margin of 46%, compared to $4 million, and a margin of 59% in Q3.

本季毛利為 320 萬美元，利潤率為 46%，而第三季毛利為 400 萬美元，利潤率為 59%。

This margin decrease was primarily due to project mix and timing.

利潤率下降主要由於專案組合和時間安排。

EBITDA totaled $1.1 million, compared to $2.5 million in Q3 of last year, also mainly due to project mix and timing.

EBITDA 總計 110 萬美元，而去年第三季為 250 萬美元，這也主要歸因於專案組合和時間表。

Positive free cash flow of $1.2 million in Q3 of this year further underscored a strong financial discipline in comparison to negative free cash flows for the same period last year.

今年第三季的自由現金流為 120 萬美元，與去年同期的負自由現金流相比，進一步凸顯了強大的財務紀律。

Note -- this is very interesting -- that our cash flow from operations the first nine months of the year were positive.

請注意——這非常有趣——我們今年前九個月的營運現金流為正。

This is a big improvement from recent years.

這比近年來有了很大的進步。

If we look at it and keep track, in 2021, we had negative $9.7 million in operating cash flows.

如果我們觀察並跟踪，2021 年我們的營運現金流為負 970 萬美元。

In 2022, we had negative $4.7 million in operating cash flows.

2022 年，我們的經營現金流為負 470 萬美元。

And in 2023, we had negative $2.4 million in operating cash flows.

2023 年，我們的經營現金流為負 240 萬美元。

And again, for the first nine months of 2024, we have positive operating cash flows.

並且，2024 年前九個月，我們的經營現金流為正。

These are great results and a great trend that we'd like to see, and this supports our strategic plan and a testament to the success we are achieving in it.

這些都是我們希望看到的偉大成果和偉大趨勢，這支持了我們的策略計劃並證明了我們在其中取得的成功。

The quarter's results highlight our ability to seize the high margin potential of a project portfolio through successful execution and progression at different stages of these projects, showcasing our focus on sustainable profitability.

本季的業績凸顯了我們透過成功執行和推進專案不同階段來抓住專案組合的高利潤潛力的能力，展現了我們對永續獲利能力的關注。

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

通常，專案初始階段的費用較高，而高級階段的毛利率較高，導致我們的毛利出現波動，這取決於專案組成和部署階段。

We are running multiple projects at different stages throughout the world, and that's how you can see these fluctuations in the quarters, depending on how each one falls in that specific quarter.

我們在全球範圍內運行著處於不同階段的多個項目，因此你可以看到各個季度的波動，這取決於每個項目在特定季度的表現。

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

隨著專案管道的成熟，我們預計基於不斷發展的專案組合，毛利率將呈現上升趨勢。

As we deploy additional braces in regions where we run existing projects on our existing infrastructure, the contribution margin for each additional brace can be as high as 70% or more.

當我們在現有基礎設施上運行現有專案的地區部署額外的支架時，每個額外支架的貢獻利潤率可能高達 70% 甚至更高。

Operating expenses in the quarter stayed in line with those of the first half of the year as we continue with our existing strategy.

由於我們繼續執行現有策略，本季的營運費用與上半年保持一致。

And also interesting to note, we've made considerable strides in reducing our long-term liability for up to $4.5 million year over year, which includes exchanges with our creditors of debt to equity and negotiated premiums of up to 100% premium to market price.

值得注意的是，我們在減少長期負債方面取得了長足進步，與去年相比，我們的長期負債減少了高達 450 萬美元，其中包括與我們的債權人進行債轉股，以及協商高達市場價格 100% 的溢價。

Our operating cash flows improved to $1.2 million year over year, and our cash position grew to $6.2 million at the end of the quarter.

我們的經營現金流年增至 120 萬美元，季末的現金狀況則成長至 620 萬美元。

This marks our highest reported cash position in recent years, and we remain focused on reducing our cash need for external funding as we continue to win and execute projects.

這是我們近年來報告的最高現金狀況，在繼續贏得和執行專案的同時，我們仍將致力於減少對外部融資的現金需求。

These improvements further strengthen our financial foundation to support our ongoing growth initiatives and strategic investments.

這些改進進一步加強了我們的財務基礎，以支持我們持續的成長計畫和策略投資。

In closing, I'd like to thank our global team for the hard, tireless work to achieve our company's record-setting performance.

最後，我要感謝我們全球團隊的辛勤、不懈的努力，使我們公司取得了創紀錄的業績。

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 USA on operating rehabilitation centers and prisons.

我們開發了合適的技術和產品來幫助刑事司法系統客戶克服挑戰，並更好地利用美國每年在營運康復中心和監獄上花費的超過 800 億美元。

With research showing that approximately 75% of citizens are raised in the US, there is significant room for improvement when effective programs and technology are adopted.

研究表明，大約 75% 的公民在美國長大，如果採用有效的計劃和技術，還有很大的改進空間。

We're excited about the growth we are experiencing and about the growing demand of our products.

我們對我們正在經歷的成長以及我們產品日益增長的需求感到非常興奮。

After several years through which we transitioned from our legacy business to the IoT tracking and offenders business, we're happy to show a shift in nice growth in revenue and profit.

經過幾年的時間，我們從傳統業務轉型到物聯網追蹤和罪犯業務，我們很高興地看到收入和利潤實現了良好的成長。

We believe that we're well positioned to continue expanding and capitalizing on many opportunities before us.

我們相信，我們有能力繼續擴張並利用我們面前的眾多機會。

These are being driven by multiple factors, including our strong presence and reputation in the US and European markets.

這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。

The countercyclical nature of the electronic monitoring industry, the growing public policy shift to monitoring the threat of incarceration, and the growing adoption of domestic violence prevention solutions, we anticipate continued expansion in the US, Europe, and potential other regions.

電子監控產業的反週期性質、公共政策日益轉向監控監禁威脅、以及家庭暴力預防解決方案的日益普及，我們預計該產業將繼續在美國、歐洲和其他潛在地區擴張。

Our commitment to preserving our technological advantage and our robust growth foundation remains steadfast as we continue to invest in these areas.

我們將繼續在這些領域進行投資，並堅定不移地致力於維持我們的技術優勢和強勁的成長基礎。

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

說完這些，我將把電話轉給接線生來回答問題。

Operator?

操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員指示）Matthew Galinko，Maxim Group。

Hey.

嘿。

Thanks for taking my questions, and congrats on the strong year to date.

感謝您回答我的問題，並祝賀您今年迄今為止取得的輝煌成績。

Can you maybe start off by just touching on what the pipeline looks like for Europe in 2025?

能否先簡單介紹一下 2025 年歐洲的管線狀況？

Are there any large national projects that are up for bid or that you're pursuing now that you think could close in 2025?

有沒有什麼大型國家計畫正在招標或您正在進行，您認為可以在 2025 年完成？

Or what does Europe look like as you look out over the next year?

或者展望未來一年歐洲會是什麼樣子？

Thanks, Matthew.

謝謝，馬修。

Good question.

好問題。

As you may recall, when we entered the market several years ago, we had to start with small projects in Europe, like Latvia and Lithuania, which were $100,000.

您可能還記得，幾年前我們進入市場時，必須從歐洲的小型專案開始，例如拉脫維亞和立陶宛，這些專案的投資額為 10 萬美元。

We grew to larger ones like Denmark and then Sweden of $7 million, and now with Romania at $33 million.

我們的業務擴展到更大的國家，例如丹麥和瑞典，總額分別為 700 萬美元和現在的羅馬尼亞，總額為 3,300 萬美元。

Those are all access references and track record that helps us basically compete on any RP at this stage.

這些都是存取參考和記錄，基本上可以幫助我們在這個階段參加任何 RP 的競爭。

So we're basically waiting for the ones to come out, and then we compete and leverage our strong win rate to help win those projects.

因此，我們基本上在等待專案的出現，然後我們進行競爭並利用我們強大的勝率來幫助贏得這些專案。

In Europe, there's so many countries.

歐洲有很多國家。

Even though we had to touch that win rate and we won many countries, there's so many countries that we haven't yet to enter.

儘管我們必須達到那個勝率並且我們贏得了許多國家，但還有很多國家我們尚未進入。

And we are continuously monitoring and bidding and progressing and being evaluated for various projects across Europe.

我們正在持續監控、競標、推進和評估歐洲各地的各種項目。

Almost every Western European country has national EM projects, and there's many we haven't entered yet, like England, France, Germany, and Norway, Spain.

幾乎每個西歐國家都有國家新興市場項目，還有很多我們還沒進入，像是英國、法國、德國、挪威、西班牙。

And so there are certainly opportunities of various sizes, and there are many out there that are bigger than Romania project.

因此，肯定存在各種規模的機會，其中許多機會比羅馬尼亞計畫更大。

And Europe, while being smaller than the US, is still a great market for us.

儘管歐洲比美國小，但對我們來說仍然是一個巨大的市場。

We have a very good position, very good reputation there, and we continue to bid there while in parallel we enter the US market.

我們在那裡擁有非常好的地位和良好的聲譽，我們將繼續在那裡競標，同時進入美國市場。

Got it.

知道了。

Thanks.

謝謝。

And when you bid on new projects in Europe, is it usually displacing or to displace or replace legacy kind of old ankle bracelets?

當您在歐洲競標新項目時，通常會取代或更換傳統的舊式腳環嗎？

Are they looking for additional functionality generally in one go, such as domestic violence stuff?

他們是否通常會一次尋找附加功能，例如家庭暴力相關功能？

Or what are the new bids generally looking for?

或者說新的出價通常尋求的是什麼？

The national programs many times encompass all the electronic monitoring programs, like house arrest, GPS monitoring, domestic violence, alcohol.

國家計劃很多時候都涵蓋了所有的電子監控計劃，例如軟禁、GPS 監控、家庭暴力、酒精。

In Sweden, we also do inmate monitoring in the prisons themselves.

在瑞典，我們也在監獄內監視囚犯。

Usually, there is an incumbent because electronic monitoring has been around for a long time.

通常來說，都有一個現任者，因為電子監控已經存在很久了。

In some countries like Romania, we did the first program.

在羅馬尼亞等一些國家，我們進行了第一個計畫。

They didn't have electronic monitoring.

他們沒有電子監控。

Similarly in Croatia, we did the first.

同樣地，在克羅埃西亞，我們也做了第一次。

But almost every other one, we're displacing an incumbent.

但幾乎​​在每一個任期內，我們都在取代現任者。

Sweden had an incumbent for 24 years, and we displaced them.

瑞典曾經有一位在位者，他執政了24年，而我們取代了他。

In Israel, they had an incumbent for a very long time as well, and we displaced them.

在以色列，他們也長期有一個在位者，而我們取代了他們。

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

因此，一個國家轉向新的供應商確實需要資本、勞動力和投資。

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

通常，當他們看到對他們今天所經歷的事情具有重要意義的價值主張時，他們就會這樣做。

So we don't just have to marginally improve what they have, but to give them a big step of improvement because they have to now retrain all their staff and change their systems and integrate and go through the whole process.

因此，我們不只是要對他們現有的體系進行微小的改進，而是要給他們帶來巨大的進步，因為他們現在必須重新培訓所有員工，改變他們的系統，並整合和完成整個流程。

We're able to do that by, firstly, offering significant improvements to existing programs they have, whether it's house arrest or GPS monitoring.

我們能夠做到這一點，首先，就是對現有的項目進行重大改進，無論是軟禁還是 GPS 監控。

Because our technology and our architecture is completely different and offers a much longer battery life and a whole scale of other capabilities and features that are important to them.

因為我們的技術和架構完全不同，並且提供了更長的電池壽命和一系列對他們來說很重要的其他功能和特性。

And we're able to offer brand-new solutions that they haven't had before, like domestic violence with our PureProtect program.

我們能夠提供他們以前從未有過的全新解決方案，例如透過我們的 PureProtect 計劃解決家庭暴力問題。

So it's a mix.

所以這是一種混合。

They get a better version of their existing programs and the opportunity to go to new programs.

他們獲得了現有程式的更好版本，並有機會使用新程式。

And they find a team, which is us together usually with a local partner, which provides them top-notch support, great execution, effective timelines, good communication, and all the things that they're looking to see from a government contractor that we bring with over 36 years of experience as a government contractor here at SuperCom.

他們找到了一個團隊，通常是我們和當地合作夥伴一起，為他們提供一流的支援、出色的執行力、有效的時間表、良好的溝通以及他們希望從政府承包商那裡看到的所有東西，我們在 SuperCom 擁有超過 36 年的政府承包商經驗。

Got it.

知道了。

Thank you.

謝謝。

And then last question for me, and then I'll jump back in the queue.

這是我的最後一個問題，然後我會回到隊列中。

I guess with respect to the US market, it seems like you're expanding your footprint into new states within the US and North America.

我想，就美國市場而言，似乎您正在將業務擴展到美國和北美的新州。

What do you expect to -- do you need to add resources to that effort to accelerate North America?

您期望什麼－您是否需要增加資源來加速北美的發展？

Or do you expect to add like more boots on the ground to try to push that faster?

或者您希望派遣更多地面部隊來加快推進這項進程？

Or I'm just curious how you think about going after that bigger opportunity in the US?

或者我只是好奇您如何考慮在美國尋求更大的機會？

Just to clarify, you're asking if we're putting more boots on the ground to accelerate it or if we're doing other strategic moves?

只要澄清一下，您問的是，我們是否會派遣更多地面部隊來加速這一進程，或者我們是否正在採取其他戰略舉措？

Yeah, exactly.

是的，確實如此。

Okay, good.

好的，很好。

Good question.

好問題。

So it's a trade-off.

所以這是一個權衡。

In the US market, things are much faster than Europe because you're looking at counties sometimes and resellers.

在美國市場，事情比歐洲快得多，因為有時你會關注縣和經銷商。

Resellers are not government agencies that have to go through an RFP process.

經銷商不是必須經過 RFP 流程的政府機構。

They can decide on their own.

他們可以自行決定。

A reseller could have 10 counties that they're controlling, and they are running all the electronic monitoring programs for those counties.

一個經銷商可以控制 10 個縣，並且他們為這些縣運行所有電子監控程式。

If they want to switch the technology, it is their right to do so.

如果他們想改變技術，這是他們的權利。

So they could find a new technology, a new company like ours, and switch, and it happens quickly.

因此，他們可以找到一項新技術、像我們這樣的新公司並進行轉換，而且這一切很快就會發生。

So within two months, three months, sometimes you see them switching over.

因此，在兩個月或三個月內，有時你會看到他們轉變了。

They could start small, move over.

他們可以從小事做起，不斷進步。

They don't have to do everything at once.

他們不必一次完成所有的事情。

So it gives them a lot of flexibility, and it allows us to move faster.

因此，這為他們提供了很大的靈活性，也使我們能夠更快地採取行動。

That does require, though, on the other hand, more feet on the ground because the market is fragmented.

但另一方面，這確實需要更多的腳踏實地，因為市場是分散的。

And instead of just looking at one national project, you have dozens and even hundreds of projects spread across the US, throughout different counties.

而且，你不僅只看一個國家項目，而是有數十個甚至數百個項目遍布美國的不同縣。

And sometimes in some counties, they'll have multiple projects because they'll have the sheriff program without probation.

有時在某些縣，他們會有多個項目，因為他們有不帶緩刑的警長計劃。

They'll have early intervention courts.

他們將設立早期介入法庭。

They'll have outcome monitoring.

他們會進行結果監控。

It's very fragmented and requires more relationships.

它非常分散並且需要更多的關係。

But the resellers do aggregate some of these, and we work with resellers.

但經銷商確實匯總了其中一些，我們也與經銷商合作。

We have quicker expansion.

我們的擴張速度更快。

And we try, as you can see, to keep an eye also on our cash use and our profitability.

正如您所看到的，我們也盡力關注現金使用情況和獲利能力。

We were looking to grow faster.

我們希望能夠更快成長。

We could have raised, if we were a venture capital-backed fund company, more money and tried to put many, many feet on the ground to expand faster and faster.

如果我們是一家由風險投資支持的基金公司，我們可以籌集更多資金，並嘗試腳踏實地地更快地擴張。

We, at the same time, though, are trying to maintain our profitability.

但同時，我們也在努力維持獲利能力。

We're trying to optimize our cash use, which you may have heard on the script from three years ago, where you had a negative $9.7 million in cash burn this year.

我們正在努力優化我們的現金使用，你可能在三年前的腳本中聽說過，今年的現金消耗為負 970 萬美元。

We're cash flow positive so far.

到目前為止，我們的現金流為正。

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

因此，我們嘗試同時管理所有事務。

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

我們清楚自己在當地部署了多少銷售人員，而且我們已經看到了巨大的成長，同時我們非常有效率地利用我們的資本，並儘可能優化和利用我們的銷售人員和銷售費用。

Great.

偉大的。

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

好吧，我很感謝大家的回答，如果沒有其他問題的話我會回來的。

But thanks.

但還是謝謝。

Your next question is coming from

你的下一個問題來自

[Dan Shates].

[丹·沙茨]。

Hi, Ordan.

你好，奧爾丹。

First of all, it sounds like another great quarter of execution.

首先，這聽起來像是另一個執行出色的季度。

We really appreciate that.

我們對此深表感激。

I have, I guess, a couple of questions.

我想我有幾個問題。

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

第一個問題，債轉股發行多少新股、發行價格是多少？

We don't have one conversion.

我們沒有一次轉換。

Over the course of the year, we've done several conversions, and usually at a premium, sometimes up to 100%.

在這一年中，我們進行了多次轉換，通常費用很高，有時甚至高達 100%。

And that would be -- as you saw in the numbers, that helped reduce our long-term liability by $4.5 million.

正如您在數字中看到的那樣，這有助於減少我們的長期負債 450 萬美元。

We think it's a benefit to shareholders, of course, because we're getting forgiveness together with that.

當然，我們認為這對股東有利，因為我們也獲得了寬恕。

We reduced the debt while using a significant premium to the stock price.

我們利用股價大幅溢價來減少債務。

I'm more concerned about this particular quarter.

我更關心這個特定季度。

How many new shares, as part of that conversion, were issued?

作為該轉換的一部分，發行了多少新股？

This quarter, nothing.

本季度，沒有。

Nothing was done this quarter.

本季沒有採取任何行動。

Zero in the third quarter?

第三季為零？

Yeah.

是的。

The third quarter, nothing; it's just an update.

第三季度，沒有什麼；這只是一個更新。

We just gave annual updates compared to the last year.

我們只是提供了與去年相比的年度更新。

You can see the long-term liability is reduced because of conversions done in the previous quarters.

您可以看到，由於前幾季進行的轉換，長期負債減少了。

Previous, okay.

之前，好的。

Small amounts, not just one conversion.

金額很小，不只一次轉換。

Small conversions with optimal terms that we tried to achieve with our initiatives.

我們試圖透過我們的舉措來實現具有最佳條件的小型轉換。

Okay, wonderful.

好的，太棒了。

That's excellent to hear.

聽到這個消息真是太好了。

Can you give me an account of how many shares are outstanding at the end of the third quarter?

你能告訴我第三季末流通股數是多少嗎？

We did report -- we had a semi-annual report that we took out recently, but roughly 2 million outstanding shares.

我們確實發布了報告——我們最近發布了半年報告，但流通股數約為 200 萬股。

Okay, great.

好的，太好了。

A little bit more than 2 million outstanding shares.

流通股數略多於200萬股。

Okay, wonderful.

好的，太棒了。

Well, I'm thrilled to hear that there wasn't any additional dilution.

嗯，我很高興聽到沒有任何額外的稀釋。

I've been a long-term shareholder and I believe in your product and your mission, but it's been a little disheartening to see the continual dilutions over the last couple of years.

我一直是你們的長期股東，我相信你們的產品和使命，但看到過去幾年裡股權不斷稀釋，我感到有點沮喪。

I hope that's behind us.

我希望那已經成為過去。

And just one final comment.

最後我還有最後一則評論。

The market will -- once that is common knowledge and is out there, your stock performance will change.

市場將會－一旦這成為常識並被公開，你的股票表現就會改變。

Because right now, that's what's been holding you back.

因為現在，這正是阻礙你前進的因素。

And that's all I got to say.

這就是我要說的全部。

I understand.

我明白。

Thank you for that.

謝謝你。

And I just want to note that we have been working to grow our infrastructure and expand, and we've been reducing our use of cash.

我只想指出，我們一直在努力發展和擴大我們的基礎設施，並減少現金的使用。

And over time, as I said, we went from negative $9.7 million to negative $4.7 million to $2.4 million, now positive free cash flows.

正如我所說，隨著時間的推移，我們的自由現金流從負 970 萬美元增加到負 470 萬美元，再增加到 240 萬美元，現在是正自由現金流。

We don't control exactly the project stages and how things roll out, and we hope to win more projects.

我們無法準確控制專案階段和事情的進展，但我們希望贏得更多的專案。

Sometimes, we need to use cash to support this growth, but we are trying to be cognizant.

有時，我們需要使用現金來支持這種成長，但我們正努力保持警惕。

That's why the conversion that we've described as a debt was done at a premium up to 100%, and that provided great value to shareholders.

這就是為什麼我們所描述的債務轉換以高達 100% 的溢價進行，並且為股東提供了巨大的價值。

We're trying to be cognizant and delaying, extending, and pushing maturity of our debt.

我們正在努力認識到這一點，並推遲、延長和推動債務到期。

And we've worked closely with various partners and parties to help get the best terms and to be able to execute and grow and implement our business plan while trying to optimize shareholder value.

我們與各個合作夥伴和各方密切合作，以幫助獲得最佳條款，並能夠執行、發展和實施我們的業務計劃，同時努力優化股東價值。

And I appreciate your support over the years.

我感謝您多年來的支持。

Matthew Galinko, Maxim Group.

馬修·加林科（Matthew Galinko），馬克西姆集團（Maxim Group）。

Hey.

嘿。

Thanks for taking another couple of questions from me.

感謝您回答我的另外幾個問題。

Can we expand a little bit more on the deal you have now in Israel, particularly maybe a little bit more about the structure?

我們能否進一步詳述您目前與以色列達成的協議，特別是有關其結構的問題？

Is it more of a purchase or kind of a recurring structure?

它比較像是一種購買，還是一種重複結構？

And what are the opportunities for expanding that project over time?

隨著時間的推移，擴大該計畫有哪些機會？

Good question.

好問題。

And just to make sure I have some information organized for you, so we'll start with the high level.

為了確保我為您整理了一些訊息，我們將從高層次開始。

The project was through an incumbent.

該項目是透過一位現任者進行的。

There was an incumbent for many years in Israel, a partnership that was holding the project.

以色列有一位在職多年的合夥企業負責此專案。

And we came in with a different partnership, us together with Electra, and we won the bid.

我們與 Electra 建立了不同的合作夥伴關係，並贏得了競標。

The first period is five years.

第一期為五年。

There's four one-year extensions, so that's nine years.

有四次一年的延期，所以一共有九年。

If we do well, it could be extended for another nine years, as we see in many regions in the world.

如果我們做得好的話，這個期限可以再延長九年，正如我們在世界許多地區所看到的。

Initially, it starts with house arrest, which is RF-based.

最初是從軟禁開始的，這是基於射頻的。

That is an initial program.

這是一個初步計劃。

It's expected to have 1,500 offenders, and it's not a purchase-delete model like we see many times in the US market and some parts of Europe.

預計將有 1,500 名罪犯，而且它不是像我們在美國市場和歐洲部分地區多次看到的那樣的購買-刪除模式。

There are other types of programs that, as we discussed on the call, like domestic violence and others, we believe the Israeli prison, IPS is what they're called, they plan to use more of these programs to help with criminal justice in Israel.

還有其他類型的項目，正如我們在電話會議上討論的那樣，例如家庭暴力等，我們相信以色列監獄（即所謂的 IPS）計劃使用更多此類項目來幫助以色列的刑事司法。

There's been a law passed last year around domestic violence, which will allow us to complement the use of electronic monitoring for domestic violence.

去年通過了一項針對家庭暴力的法律，這將使我們能夠補充使用電子監控來打擊家庭暴力。

And there's other things that are in process.

還有其他事情正在進行中。

This project gives us the right for all the electronic monitoring projects in the country over these years.

這個計畫把這些年來全國所有的電子監控計畫的權利都給了我們。

So as the government decides to deploy more projects, we will be the vendor deploying them.

因此，當政府決定部署更多項目時，我們將成為部署這些項目的供應商。

And we have experience, as noted, in many of these programs in many countries around the world of various sizes, including the 15,000 EM projects in Romania, which is mainly domestic violence.

如前文所述，我們在世界許多國家都開展過許多規模各異的此類項目，其中包括羅馬尼亞的 15,000 個 EM 項目，主要針對家庭暴力。

We've seen, even in house arrest, increases to the quantities every year, and we expect those numbers to grow.

我們看到，即使是軟禁，被關押人數也逐年增加，我們預計這個數字還會繼續增加。

That's just for the initial program.

這只是初始程序。

But beyond the initial program, which grows, we're expecting potential additional programs to be added on to the project, which will be very valuable.

但除了不斷發展的初始計劃之外，我們還期待有潛在的附加計劃添加到專案中，這將非常有價值。

Got it.

知道了。

And as we think about additional units on the house arrest or additional programs under that win, so if you add incremental units, what does the margin look like if you go beyond 1,500, I guess?

當我們考慮在那次勝利下軟禁的額外單位或額外計劃時，如果您添加增量單位，那麼如果超過 1,500，利潤率會是什麼樣子？

I guess, is there a benefit to add?

我想，還有什麼好處可以補充嗎？

Yes.

是的。

So there's a lot of costs with deploying a new system that includes installation and hardware, teaching and setting up support, manuals, and setting up software that includes development of the software and adaptations to specific programs that the customer wants.

因此，部署新系統會產生許多成本，包括安裝和硬體、教學和設定支援、手冊以及設定軟體（包括軟體開發和對客戶想要的特定程序的調整）。

We'll do that with not every customer, but every large customer that has specifications.

我們不會對每個客戶都這樣做，但會對每個有規格的大客戶都這樣做。

We have to put our effort in that, and that lowers our margins.

我們必須在這方面付出努力，這會降低我們的利潤。

But as you noted, every additional brace that we put on has very high margins, much higher than the original ones, because you don't have to do any additional customization.

但正如您所說，我們安裝的每個額外支架的利潤率都很高，比原來的支架高得多，因為您不需要進行任何額外的客製化。

Whether you're doing 1,500 or 10,000 units, it's mainly the same.

無論生產 1,500 個單位還是 10,000 個單位，基本情況都是一樣的。

You can add more units, and the margin on each additional unit is very high, sometimes 70% or higher.

您可以添加更多單位，並且每個附加單位的利潤都很高，有時甚至高達 70％ 或更高。

It depends on the specific pricing of the specific program.

還要看具體方案的具體定價。

Sometimes you have one bracelet and one phone.

有時你會有一個手鐲和一支手機。

Sometimes you have one bracelet and two phones.

有時你會有一個手鐲和兩部手機。

Sometimes you don't have a phone at all.

有時您根本沒有電話。

You just have bracelets.

你只有手鐲。

Sometimes you have a house unit.

有時您有一個房屋單位。

But each one has different costs and different cellular costs, and the margins can change.

但每種方式的成本、蜂窩成本都不同，利潤也會改變。

But they are much higher when you add additional units to each.

但是當你在每個單位上添加額外的單位時，它們會高得多。

And just in contrast, and what's nice about, besides Israel, which is going to put more programs, and it's going to be interesting, good margin, in the US, almost all the programs run on the cloud, and they run with the same language and out of the same infrastructure and the same protocol.

相較之下，除了以色列將投入更多項目並且利潤率較高之外，美國幾乎所有項目都在雲端運行，而且它們使用相同的語言、相同的基礎設施和相同的協議運行。

So it's very nice that the market there, which is already three to five times the size of Europe, will utilize the same systems, allowing us to reach higher margins, versus in Europe, where each nation had a lot of what it was purchasing, and a lot of them had different languages, different protocols, different laws, and it made it a little bit more complex there from nation to nation.

因此，我們很高興看到那裡的市場規模已經是歐洲的三到五倍，而且他們將使用相同的系統，這使我們能夠獲得更高的利潤。 相較之下，歐洲每個國家都有自己的採購項目，而且許多國家都有不同的語言、不同的協議、不同的法律，這使得各國之間的採購流程稍微複雜一些。

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

在美國，我們實際上看到了專案之間越來越多的整合和相似之處，這對我們未來的發展將大有裨益。

Got it.

知道了。

Thank you.

謝謝。

And then final question on that, I don't know if you can answer this, but is there a number of track defenders you think the Israel deal can reach over the initial five-year period?

最後一個問題，我不知道您是否可以回答，但是您認為以色列協議在最初五年內可以達到多少田徑後衛的數量？

So we start at 1,500, and maybe then ends at, like, 3,000?

那麼我們從 1,500 開始，然後可能以 3,000 結束？

Or is it impossible to answer that at this point?

還是現在還無法回答這個問題？

Let me try to give you a rough estimate without counting.

讓我試著在不進行計算的情況下給您一個粗略的估計。

So the population in Israel, as of end of '23, was close to 10 million.

截至 23 年底，以色列人口已接近 1,000 萬人。

In Romania, you're looking at 19 million population.

羅馬尼亞的人口為 1900 萬。

Without getting into the specifics of different laws and processes, different programs, you can see that if Romania started at 15,000, and they're still talking, considering growing, there's certainly room for much more than 1,500 in Israel.

無需考慮不同法律、程序和計劃的具體細節，您就能看到，如果羅馬尼亞的起始人數為 15,000 人，並且他們仍在討論、考慮增長，那麼以色列肯定有超過 1,500 人的容納空間。

There's a lot of potential to be done.

還有很大的潛力可以實現。

It's not just the population of the country.

這不僅僅是這個國家的人口。

It also depends on the processes and the government's propensity to move quickly.

這也取決於流程和政府快速採取行動的傾向。

Our experience in Israel, and our headquarters are here, is a lot of the different programs in Israel and the government processes like technology; they're comfortable with technology.

我們在以色列的經驗以及我們的總部都在這裡，包括以色列的許多不同項目和政府流程，例如技術；他們對技術很滿意。

We had a program in Israel for COVID even tracking, and we have good aspirations to work closely together with them and with Electra to deploy effective solutions.

我們在以色列有一個 COVID 追蹤項目，我們希望與他們以及 Electra 密切合作，部署有效的解決方案。

And as these solutions work well, they grow the numbers.

由於這些解決方案效果良好，它們的數量也隨之增加。

And it's a leased project, so they continue to grow it as they see it working effectively and improving the numbers.

這是一個租賃項目，當他們看到它有效運作並提高業績時，他們便會繼續發展它。

Thanks.

謝謝。

And sorry, one last follow-up, for the initial 1,500, do they turn on as soon as they're implemented?

抱歉，最後一個問題，對於最初的 1,500 個，它們會在實施後立即啟動嗎？

Or is there kind of a ramp-up period to that initial number where you need to go in and swap the old for the new?

或者是否存在初始數字的上升期，在此期間您需要進入並將舊數字替換為新數字？

Or what's the process towards go-live and reaching that point?

或者上線並達到這一點的流程是怎麼樣的？

We already started with the project deployment.

我們已經開始專案部署。

It takes time.

這需要時間。

Right now, the processes, the definitions, the planning, and it should take six months or so for some of the initial deployment steps.

目前，流程、定義、規劃以及一些初步部署步驟大約需要六個月左右的時間。

The beginning number is expected to be a little less than 1,500, and then it can grow maybe somewhere between 1,000 to 1,500 at the beginning, and then it grows to 1,500 quickly.

預計起始數字會略少於 1,500，然後可能會成長到 1,000 到 1,500 之間，然後會迅速成長到 1,500。

But it does happen through swaps.

但它確實是透過交換來實現的。

And Israel is a smaller region.

而以色列地區較小。

It's easier than when you span across larger regions like California or so.

這比跨越加州等較大地區要容易得多。

You have an easier touchpoint and access to the vendors.

您可以更輕鬆地接觸並訪問供應商。

You're able to do the swap from one vendor to another relatively quickly.

您可以相對快速地從一個供應商轉換到另一個供應商。

It can be done in a month, for example, that kind of -- that number.

例如，可以在一個月內完成那種——那個數字。

But first, you have to set up the infrastructure, run the test, train everyone, get everyone ready.

但首先，您必須設置基礎設施，運行測試，培訓每個人，讓每個人都做好準備。

And that's what we're looking to do in the six months while the program is running right now with different vendors.

這正是我們希望在六個月內與不同的供應商合作實施該計劃期間要做的事情。

So it's a swatch.

因此，它是一個樣本。

It's a swap, a handover process, which we're very familiar with.

這是一個我們非常熟悉的交換、交接過程。

And we've done dozens of times around the world successfully.

我們已在世界各地成功舉辦了數十次。

And of course, that's what gives our customers confidence when they choose us in the first place.

當然，這也是客戶選擇我們時充滿信心的原因。

So we're doing that here in Israel, just a little closer to some of our staff, which will make it actually easier than normal.

所以我們在以色列這樣做，離我們的一些員工更近一點，這實際上比平常更容易。

Great.

偉大的。

Thanks again.

再次感謝。

And I mentioned, we have a local partner, Electra, which is a large corporation here in Israel.

我提到過，我們有一個當地的合作夥伴，Electra，它是以色列的一家大公司。

And they're spread out throughout the country.

它們遍布全國各地。

And they're going to be doing and handling a lot of services and swapping and so forth.

他們將會做和處理很多服務和交換等等。

And it's going to be an interesting endeavor for anyone.

對任何人來說這將是一次有趣的嘗試。

We feel confident in the government as well that this process should be smooth, like many others that we've seen in the past, through our partnerships.

我們對政府也充滿信心，相信這一進程將會順利進行，就像我們過去透過合作關係看到的許多其他進程一樣。

Congrats.

恭喜。

Sounds like a great win.

聽起來像是一場偉大的勝利。

And thanks again.

再次感謝。

Thank you.

謝謝。

Thank you.

謝謝。

At this time, we'll pass the call back to Ordan for closing remarks.

現在，我們將把電話轉回給奧爾丹，請他作結束語。

I want to thank you all for participating in today's call and for your interest in SuperCom.

我要感謝大家參加今天的電話會議並感謝你們對 SuperCom 的關注。

Please contact us directly if you have an additional questions.

如果您還有其他問題，請直接與我們聯絡。

We look forward to sharing our progress with you on our next conference call, filings, and press releases.

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。

Thank you and have a good day.

謝謝您，祝您有美好的一天。