Supercom Ltd (SPCB) 2024 Q4 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to SuperCom's fourth quarter and year-end 2024 financial results and corporate update conference call. At this time, all participants are in a listen-only mode. (Operator Instructions)

女士們，先生們，早安，歡迎參加 SuperCom 2024 年第四季和年終財務表現及公司更新電話會議。此時，所有參與者都處於只聽模式。（操作員指示）

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

請參加本次電話會議的人員注意，本次電話會議的音訊正在透過網路現場直播，並且還會錄製以供播放。與我一起出席會議的還有 SuperCom 領導團隊的總裁兼執行長 Ordan Trabelsi。

I'd like to remind you that during this call, SuperCom management may be making a forward-looking statements, including statements that address SuperCom's expectations for 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. 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.

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 20-F 表和 6-K 表定期報告中描述的風險因素，以及 SuperCom 隨附的新聞稿，特別是其中的警示性聲明。

Today's conference call includes EBITDA and non-GAAP financial measures 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.

今天的電話會議包括 SuperCom 認為可用於評估其業績的 EBITDA 和非 GAAP 財務指標。您不應孤立地考慮這些附加信息，也不應將其作為根據 GAAP 編制的結果的替代品。

For 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.

有關此非 GAAP 財務指標與淨虧損（可比較 GAAP 財務指標）的對帳表，請參閱隨附於本次電話會議的 SuperCom 收益新聞稿中的對帳表。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, April 28, 2025. Except as required by law, SuperCom disclaims any obligation to publicly update or revise any information to reflect any of the circumstances that occur after this call. It is now my pleasure to turn the call over to SuperCom's President and CEO, Ordan Trabelsi.

本次通話內容包含時間敏感訊息，僅截至今天（2025 年 4 月 28 日）準確。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任何情況的義務。現在我很高興將電話轉給 SuperCom 總裁兼執行長 Ordan Trabelsi。

Ordan, the floor is yours.

奧爾丹，現在請你發言。

Sorry, I'm here. Thank you, operator, and good morning, everyone. Thank you for joining us today. Earlier this morning, we released our financial results for the fourth quarter and full year ended December 31, 2024.

抱歉，我來了。謝謝接線員，大家早安。感謝您今天加入我們。今天早些時候，我們發布了截至 2024 年 12 月 31 日的第四季度和全年財務業績。

You can find a copy of the press release in the investor relations section of our website at supercom.com. We also filed a 2024 annual report on Form 20-F earlier today.

您可以在我們網站 supercom.com 的投資者關係部分找到新聞稿的副本。我們今天早些時候也提交了 20-F 表 2024 年年度報告。

Today, I'll provide you a detailed overview of a 2024 performance including financial highlights, recent business developments, strategic direction, followed by a Q&A session.

今天，我將為您詳細概述 2024 年的業績，包括財務亮點、近期業務發展、策略方向，然後進行問答環節。

I'm pleased to share SuperCom's outstanding performance in 2024, a year marked by continuing momentum across our financial and operating fronts. We achieved revenue of $27.6 million, a record over the past seven years, and a 134% increase from our 2020 revenue low highlighting a four year growth trajectory and successful exclusion across our markets.

我很高興與大家分享 SuperCom 在 2024 年的出色表現，這一年我們的財務和營運方面繼續保持強勁勢頭。我們實現了 2760 萬美元的收入，創下了過去七年來的最高紀錄，比 2020 年的收入低點增長了 134%，突顯了四年的增長軌跡和成功排除我們各個市場。

Gross profit increased 31% year over year to $13.4 million, reflecting a favorable revenue mix of more later stage projects and continued scale efficiencies. Gross margin expanded to 48.4%, up nearly 10% points from 2023, and our strongest level since 2021. They also reported positive GAAP net income of $661,000 compared to $4 million net loss in 2023 representing our first full year of GAAP profitability since 2015 and a nine-year record net income.

毛利年增 31% 至 1,340 萬美元，反映出更多後期專案和持續的規模效率帶來的良好收入組合。毛利率擴大至 48.4%，較 2023 年成長近 10 個百分點，為 2021 年以來的最高水準。他們還報告稱，2020 年 GAAP 淨收入為正 661,000 美元，而 2023 年的淨虧損為 400 萬美元，這是我們自 2015 年以來首次全年實現 GAAP 盈利，並創下了九年來的最高淨收入記錄。

In addition, EBITDA rose to $6.3 million up 31% year over year, supported by strong margins and operational leverage. This marks the 10th consecutive quarter of positive EBITDA, underscoring the consistency of our core business.

此外，受強勁利潤率和營運槓桿的支撐，EBITDA 較去年同期成長 31% 至 630 萬美元。這標誌著我們連續第 10 個季度實現正 EBITDA，凸顯了我們核心業務的一致性。

We've also made consistent progress to improve our operating cash flows year over year. From the use of $9.4 million in 2021 to $4.7 million in 2022, $2.4 million in 2023, and now just $1.3 million of operating cash use in 2024. This 85% reduction over the three years reflects strong execution across both new and legacy projects and positive change towards financial self-sufficiency.

我們的經營現金流也逐年穩定改善。從 2021 年的 940 萬美元到 2022 年的 470 萬美元，再到 2023 年的 240 萬美元，現在 2024 年的營運現金使用量僅為 130 萬美元。三年內減少 85% 反映了新項目和遺留項目的強勁執行以及朝著財務自給自足的積極變化。

Together, with our growth in revenue and profitability, these improvements in cash flow underscore the success of our strategic initiatives, and the operational leverage in our business model whereby we see improved margins as revenues grow. Especially when we're growing in regions where we have an existing projects.

加上我們的收入和獲利能力的成長，現金流的改善凸顯了我們的策略舉措的成功，以及我們商業模式中的營運槓桿，隨著收入的成長，我們看到利潤率的提高。特別是當我們在已有項目的地區發展時。

The US market is an excellent example of that, but we will get to that a bit later. I'd like to take a moment to thank our incredible team for their tireless work and dedication, which made the success possible. We're proud of what we've accomplished together and look forward to the next chapters.

美國市場就是一個很好的例子，但我們稍後再討論。我想花點時間感謝我們出色的團隊，感謝他們的不懈努力和奉獻，使成功成為可能。我們為共同取得的成就感到自豪，並期待接下來的篇章。

During the past year, we won several important contracts in the US and Europe, and we're excited about the opportunities we see ahead. I'll go into more details in a few moments.

在過去的一年裡，我們在美國和歐洲贏得了幾份重要的合同，我們對未來的機會感到非常興奮。稍後我將進行更詳細的介紹。

This year was particularly exciting as we further established our leadership position through a series of competitive wins, including the prestigious National Israeli Electronic Monitoring Project. This landmark contract not only displaced a long-standing incumbent of nearly 20 years, but also validated our technology and operational capabilities on a national scale.

今年尤其令人興奮，因為我們透過一系列競賽勝利進一步確立了我們的領導地位，包括著名的以色列國家電子監控計畫。這份具有里程碑意義的合約不僅取代了近20年的長期在職合同，而且在全國範圍內驗證了我們的技術和營運能力。

In the US, we significantly expanded our footprint with more than 20 new contracts secured since mid-2024.

在美國，我們大幅擴大了業務範圍，自 2024 年中期以來已簽訂了 20 多份新合約。

This included strategic entries to West Virginia, Maryland, New York, South Dakota, Alabama, Ohio, Arizona, Wisconsin, Minnesota, Michigan, and Kentucky. These contracts winds continue to diversify our revenue base and support recurrent income streams across multiple jurisdictions.

其中包括進入西維吉尼亞州、馬裡蘭州、紐約州、南達科他州、阿拉巴馬州、俄亥俄州、亞利桑那州、威斯康辛州、明尼蘇達州、密西根州和肯塔基州的戰略入口。這些合約將繼續使我們的收入基礎多樣化，並支持多個司法管轄區的經常性收入來源。

We are particularly proud of the successful integration and expansion of our Tier 1 solution across these regions. Its positive reception underscores both the technical strength and adaptation of our platform. These strategic wins, coupled with our product-led growth model, have positioned us to accelerate our momentum and deliver sustained value to our customers and stakeholders.

我們對我們的一級解決方案在這些地區的成功整合和擴展感到特別自豪。它的正面反應凸顯了我們平台的技術實力和適應性。這些策略性勝利，加上我們以產品為主導的成長模式，使我們能夠加速發展並為我們的客戶和利害關係人提供持續的價值。

Are 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 complementary services.

這些對於 SuperCom 來說都是新鮮事嗎？我們的使命是透過我們專有的電子監控技術、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. First, you would lead with innovative technology. Our proprietary technology -- electronic monitoring technology scores highly competitive government tenders to force various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more.

我們的策略藍圖簡單而有力。首先，你要以創新技術為主導。我們的專有技術－電子監控技術在競爭激烈的政府招標中脫穎而出，強制推行各種項目，如軟禁、GPS 監控、復健服務、預防家庭暴力等。

Moreover, we have recently broadened our portfolio to include advanced AI-driven analytics, which are an integration into our electronic monitoring solutions. This edition enhances our ability to provide predictive insights and improve outcomes for our clients.

此外，我們最近擴大了產品組合，包括先進的人工智慧驅動分析，這些分析已整合到我們的電子監控解決方案中。此版本增強了我們為客戶提供預測見解和改善結果的能力。

Develop superior solutions, the second. Since 2018, SuperCom's security of 50 new multi-year government projects. Third is to expand our global presence with a strong growing reputation as a premium provider of electronic monitoring solutions and services. And hence, the market position with each new win.

制定更卓越的解決方案，第二。自 2018 年以來，SuperCom 負責 50 個新的多年期政府專案的安全保障。第三是擴大我們作為優質電子監控解決方案和服務供應商的聲譽，並不斷提升我們的全球影響力。因此，每次勝利都會帶來市場地位的提升。

And fourth, there will be the delivering of outstanding service. We have a strategic focus on the IT tracking business in developed markets where the opportunities is the greatest. With the electronic monitoring market projected to reach $2.3 billion by 2028, the US and Europe constitute about 95% of these markets.

第四，提供優質服務。我們的策略重點是發展中市場中機會最大的IT追蹤業務。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 95%。

We continue to amplify our technological leadership with significant R&D investments, leading to the launch of advanced solutions like PureProtect, also branded lately as PureShield 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 等先進解決方案，最近也以 PureShield 和 PureOne 為品牌。

These offerings are already making headway in various markets including the US and are pivotal in SuperCom’s expansion. PureProtect or PureShield is a life-saving domestic violence monitoring solution providing preventive measures to families suffering from domestic violence or stalking, thereby increasing their safety.

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 或 PureShield 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。

PureProtect is an all-in-one GPS tracking ankle brace and monitoring solution integrating comprehensive monitoring capabilities into a single device. Like many of our products, it offers top-notch features, placing it above the competition in most metrics. Our cloud-based software-enabled PureSecurity product line has been particularly effective in monitoring offenders and managing real-time information. This real-time advantage is a game changer, empowering authorities with actionable insights and timely intervention to mitigate potential risks and enhance public safety.

PureProtect 是一款一體式 GPS 追蹤踝關節支架和監控解決方案，將全面的監控功能整合到單一裝置中。就像我們的許多產品一樣，它提供了一流的功能，在大多數指標上都勝過競爭對手。我們的基於雲端軟體的 PureSecurity 產品線在監控罪犯和管理即時資訊方面特別有效。這種即時優勢改變了遊戲規則，使當局能夠獲得可行的見解並及時幹預，以減輕潛在風險並增強公共安全。

Our investment in product innovation had directly translated into meaningful market expansion. The launch and successful adoption of PureSecurity, PureProtect, and PureOne have significantly increased our addressable market, enabling us to penetrate new territories and deepen our presence in existing ones.

我們對產品創新的投資直接轉化為有意義的市場擴張。PureSecurity、PureProtect 和 PureOne 的推出和成功採用顯著擴大了我們的潛在市場，使我們能夠滲透到新的領域並深化我們在現有領域的存在。

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

我們對其受到的歡迎和關注感到非常高興，並希望它們能幫助 SuperCom 加速向美國市場和歐洲國家的擴張。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改善了銷售策略。我們的銷售團隊擁有深厚的行業專業知識，在取得新的勝利和推動成長方面發揮了重要作用。

In the fourth quarter, together with our prime partner Electric Security, we were awarded a high profile multi-year contract in the Israeli Prison Service, IPS, to deploy our pure security electronic monitoring suite, including PureCom, PureTrack, PureTag, and PureBeacon.

第四季度，我們與主要合作夥伴 Electric Security 共同獲得了以色列監獄管理局 (IPS) 的一份備受矚目的多年期合同，以部署我們的純安全電子監控套件，包括 PureCom、PureTrack、PureTag 和 PureBeacon。

The nationwide program is expected to cover all EM offender monitoring in the country with an estimated 1,500 enrollees and potential for expansion. The five-year contract is already in effect with hundreds of units already deployed and includes the option for up to four one-year extensions for a total of nine potential year contract terms.

預計這項全國性計畫將涵蓋全國所有新興罪犯監控，預計有 1,500 名參與者，並有擴大的潛力。這份為期五年的合約目前已經生效，數百個單位已經部署，並且包括最多四次一年期延期的選項，總共可能為九年的合約期限。

This project was secured through a highly competitive bidding process involving multiple evaluation rounds, demonstrations, and technical reviews supervised by the IPS. We just placed an Israel incumbent, as I said before, that held the contract for nearly 20 years.

該項目是透過IPS監督下多輪評估、演示和技術審查等高度競爭性的招標程序獲得的。正如我之前所說，我們剛剛任命了一位以色列現任官員，他擔任該職位近 20 年。

The winners amplifies our commitment to excellence, technology, leadership, and strong partnership. Our comprehensive set of offering positions us well to win multifaceted national projects, which is the one that are set to encompass all electronic monitoring programs in the country.

獲獎者增強了我們對卓越、技術、領導力和強大合作夥伴關係的承諾。我們全面的服務使我們能夠贏得多方面的國家項目，這些項目涵蓋了該國的所有電子監控計劃。

Across Europe and the United States, we continue to gain traction in competitive tenders, often displacing incumbent vendors. A strong track record, supported by our proven technology and operational excellence, continues to be a key driver of new project awards and long-term partnership.

在歐洲和美國，我們在競爭性招標中不斷獲得關注，並經常取代現有的供應商。我們憑藉成熟的技術和卓越的營運所獲得的良好業績記錄，繼續成為我們獲得新專案和建立長期合作夥伴關係的關鍵驅動力。

In Europe, we continue to execute on a strategy that's delivering tangible growth and long-term opportunity.

在歐洲，我們持續執行能夠帶來實際成長和長期機會的策略。

Over the past several years, we've expanded our footprint into many countries in Europe. With over -- winning over 15 national electronic monitoring programs for competitive tenders. These include large-scale domestic violence tracking initiatives that align with growing public safety priority across the region.

在過去的幾年裡，我們的業務範圍已擴展到歐洲許多國家。已贏得超過 15 個國家電子監控項目的競爭性招標。其中包括大規模的家庭暴力追蹤舉措，以滿足該地區日益增長的公共安全優先事項。

A standout example is our success in Romania, where we secured the largest industry award of 2022. National electronic monitoring projects valued at approximately $33 million designed to serve the 15,000 monitoring individuals simultaneously for over a period of six years.

一個突出的例子是我們在羅馬尼亞的成功，我們獲得了 2022 年最大的行業獎項。國家電子監控計畫價值約 3,300 萬美元，旨在為 15,000 名監控人員同時提供為期六年的監控服務。

The program is actively running and shows the scalability of the peer security. The program is actually running. And shows the scalability of our peer security suite in managing complex appointments such as this one.

該計劃正在積極運行，並展示了對等安全的可擴展性。該程式實際上正在運行。並展示了我們的同儕安全套件在管理此類複雜約會方面的可擴展性。

We also strengthened our presence in Finland with the national level deployments of our domestic violence monitoring solution. This contract builds on our growing reputation in the region and reflects the confidence our European government partners have in our technology and support infrastructure. Most recently, we launched a new national project in Latvia, our third in the country. Focusing again on domestic violence offender monitoring.

我們也透過在全國部署家庭暴力監控解決方案，加強了我們在芬蘭的影響力。該合約建立在我們在該地區日益增長的聲譽之上，並反映了我們的歐洲政府合作夥伴對我們的技術和支援基礎設施的信心。最近，我們在拉脫維亞啟動了一個新的國家項目，這是我們在該國的第三個項目。再次關注家庭暴力犯罪者監控。

Ordered following competitive tender, this initiative leverages the PureSecurity platform to support the Latvian state police with enhanced offender compliance and victim protection tools.

該計劃透過競爭性招標，利用 ​​PureSecurity 平台為拉脫維亞國家警察提供增強的罪犯合規和受害者保護工具。

In parallel, we are actively receiving additional orders from current partners across Europe demonstrating the strength and stickiness of our solution. As more governments transition to our proactive monitoring approaches, we believe a strong European foundation and proven delivery model position us for continued success in the region.

同時，我們正在積極接收來自歐洲各地現有合作夥伴的更多訂單，以證明我們解決方案的實力和黏性。隨著越來越多的政府轉向我們的主動監控方法，我們相信強大的歐洲基礎和成熟的交付模式將使我們在該地區繼續取得成功。

While Europe remains an important growth driver, the US market presents an even greater long-term opportunity, estimated to reach up to 6 times the size of the European market in the coming years.

儘管歐洲仍然是重要的成長動力，但美國市場提供了更大的長期機遇，預計未來幾年將達到歐洲市場的6倍。

With the introduction of the Pure One electronic monitoring product.

隨著Pure One電子監控產品的推出。

Now available in the US, and the expansion of our domestic violence tracking solutions, we believe SuperCom is well positioned to unlock substantial growth potential in this untapped market. In line with this, our expansion strategy in the US has accelerated meaningfully over the past 18 months.

目前，SuperCom 已在美國上市，我們的家庭暴力追蹤解決方案正在不斷擴展，我們相信，SuperCom 已做好準備，在這個尚未開發的市場中釋放巨大的成長潛力。與此相符的是，我們在美國的擴張策略在過去 18 個月中得到了顯著加速。

Although SuperCom already does business in multiple US states, we're 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 the existing programs, winning rebates.

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。我們位於加州的全資子公司 LCA 正在積極擴大現有計畫的規模和範圍，以贏得回扣。

With existing customers and winning new programs with new customers, the company strategically prioritizes PureOne's expansion into new markets and geographies. The PureOne has already received high praise during its introduction into various regions of the US, where it's been successfully deployed and is actively utilized to monitor live off vendors. Moreover, sales activities for PureOne have commenced in promising new markets outside Europe and North America.

透過現有客戶以及贏得新客戶的新項目，該公司在策略上優先考慮 PureOne 向新市場和新地區的擴張。PureOne 在美國各地推出後就獲得了高度讚譽，並被成功部署並積極用於監控現場供應商。此外，PureOne 的銷售活動已開始在歐洲和北美以外有前景的新市場進行。

Despite our long-standing presence in parts of California, the US market remains largely untapped. Since we began investing in outbound sales efforts, we've secured numerous contract wins across the US with over 20 new contracts since mid-2024. The recent launch of PureOne, coupled with the positive feedback from initial deployments, positions us to accelerate market capture in the US, unlocking significant growth opportunities.

儘管我們長期在加州部分地區開展業務，但美國市場仍在很大程度上尚未開發。自從我們開始投資外向型銷售工作以來，我們已在美國各地贏得了眾多合同，自 2024 年中期以來已簽訂了 20 多份新合約。PureOne 的近期推出，加上初期部署所獲得的正面回饋，使我們能夠加速佔領美國市場，從而釋放巨大的成長機會。

Our newly expanded strategic sales team has already delivered tangible results. Beyond contract wins, we've seen a significant uptick in demos, pilot programs, and qualified leads. All of which are contributing to a sharp increase in our US pipeline.

我們新擴充的策略銷售團隊已經取得了實質的成果。除了贏得合約之外，我們還看到演示、試點項目和合格潛在客戶的數量顯著增加。所有這些都促使我們在美國管道的急劇增加。

Launching our PureOne solution in the US market was a defining milestone in our North America expansion strategy. Since our last earnings call, we will discuss new winds in West Virginia, Maryland, and New York. SuperCom continued its rapid expansion with several notable contracts.

在美國市場推出我們的 PureOne 解決方案是我們北美擴張策略的一個重要里程碑。自上次收益電話會議以來，我們將討論西維吉尼亞州、馬裡蘭州和紐約州的新風。SuperCom 憑藉幾份重要的合約繼續快速擴張。

In South Dakota, we secured multiple contracts and county sheriff agencies. Along with the sheriff agencies marketing our official entry into the state, these deployments leverage our pure one technology known for its dependable performance in both urban and rural environments and are already contributing recurring revenue. In Alabama, we signed a new government contract to deliver GPS tracking and monitoring violence monitoring solutions, domestic violence monitoring solutions expanding our public safety footprint in the South, either in the US, and advancing victim protection initiatives.

在南達科他州，我們獲得了多份合約和縣治安官機構。隨著治安機構宣傳我們正式進入該州，這些部署利用了我們純粹的技術，該技術以其在城市和農村環境中的可靠性能而聞名，並且已經帶來了經常性收入。在阿拉巴馬州，我們簽署了一份新的政府合同，提供 GPS 追蹤和監控暴力監控解決方案、家庭暴力監控解決方案，擴大我們在美國南部的公共安全足跡，並推進受害者保護舉措。

In Ohio, we secured a contract with juvenile probation agency successfully displacing the incumbent provider. The project utilizes our discrete and compliance-driven Tier 1 solution tailored specifically for juvenile justice programs. In

在俄亥俄州，我們與青少年緩刑機構簽訂了合同，成功取代了現任提供者。該計畫採用我們專門針對青少年司法計畫量身定制的離散且合規驅動的一級解決方案。在

Arizona, we partner with a prominent statewide service provider marketing our seventh new US state entry since mid-2024. This partnership broadens our reach across the state's justice system and accelerates market penetration.

亞利桑那州，我們與一家著名的州級服務提供者合作，自 2024 年中期開始行銷我們的第七個美國新州入口。此次合作擴大了我們在整個州司法系統的影響力並加速了市場滲透。

Through strategic regional partnership, we also expanded into Wisconsin, Minnesota, and Michigan, where GPS domestic violence monitoring technologies are being introduced by an established for the provider network. And in Canada, we launched a new project with a long-standing tracking solutions partner, transition from RF-based to GPS technologies using our advanced P01 devices. This should began turning revenue in early 2024.

透過戰略區域合作夥伴關係，我們還將業務擴展到威斯康辛州、明尼蘇達州和密西根州，這些地區的供應商網路正在引入 GPS 家庭暴力監控技術。在加拿大，我們與長期的追蹤解決方案合作夥伴啟動了一個新項目，使用我們先進的 P01 設備從基於 RF 的技術過渡到 GPS 技術。這應該會在 2024 年初開始產生收入。

As I mentioned earlier, introducing the PureOne solution was a game changer in securing these contracts underscores our competitive edge and commitment to developing innovative and superior technology solutions.

正如我之前提到的，引入 PureOne 解決方案對於獲得這些合約具有重大意義，凸顯了我們的競爭優勢以及開發創新和卓越技術解決方案的承諾。

This momentum highlights a strong market demand for our PureOne and PureProtect solutions and reinforces our trajectory for continued growth in various regions of the market.

這一勢頭凸顯了市場對我們的 PureOne 和 PureProtect 解決方案的強勁需求，並鞏固了我們在各個市場區域持續成長的軌跡。

Despite macroeconomic uncertainties and ongoing global challenges, including those in Israel, SuperCom solutions are becoming increasingly relevant. We continue to see growth driven by high recidivism rates, the escalating cost of incarceration, and the surge in the adaption of victim protection solutions worldwide.

儘管宏觀經濟存在不確定性，包括以色列在內的全球挑戰持續存在，但 SuperCom 解決方案正變得越來越重要。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的採用激增推動了成長。

The company's PureSecurity technology solutions have been designed to address these trends, offering an effective way for institutions to enforce home confinement, ease prison overcrowding, and lower costs significantly. For example, monitoring an offender on home confinement or GPS costs about $10 to $35 a day, which is 95% -- 90% less than the $100 to $140 daily costs at a correctional facility. Moreover, home confinement helps reduce repeat offenses, highlighting its effectiveness in helping offenders improve their lives and communities.

該公司的 PureSecurity 技術解決方案旨在應對這些趨勢，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有效方法。例如，監控一名在家中監禁的罪犯或使用 GPS 監控罪犯每天的費用約為 10 至 35 美元，比在懲教所每天 100 至 140 美元的費用低 95% 至 90%。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 you mentioned on previous calls, we believe there's also an opportunity to enhance our US growth strategic acquisitions of local electronic monitoring service providers with a strong reputation and customer base in their local markets.

正如您在先前的電話會議中所提到的，我們相信，我們還有機會透過收購在當地市場擁有良好聲譽和客戶群的本地電子監控服務提供者來增強我們在美國的成長策略。

We constantly monitor the market, potential acquisitionsthat could generate significant value by immediately expanding market presence and providing vertical integration synergies. Our acquisition of LCA in 2016 for $3 million is a great example of that. Successful acquisition has proven to be a great strategic value through the over $35 million in new project wins it has generated since then in California alone. I’ll now turn over to the financials.

我們不斷監測市場，潛在的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來產生巨大的價值。我們在 2016 年以 300 萬美元收購 LCA 就是一個很好的例子。成功的收購已被證明具有巨大的戰略價值，僅在加州，它就贏得了超過 3500 萬美元的新項目。我現在來談談財務問題。

Considering this quarter, Q4 and full-year 2024, in comparison to the same period last year, note that our multi-year projects do not run on a quarterly scale and thus can have fluctuating effects when analyzed quarterly. We'll start with the full-year performance, which helps neutralize some of the fluctuation full-year performance of 2024. We achieved our fourth consecutive quarter of revenue growth -- sorry, our fourth consecutive year of revenue growth, which revenues increasing to $27.6 million. This represents our highest revenue since 2017 and 134% increase from 2020 of 11.8%, underscoring the strength of our multi-year recovery.

考慮到本季、第四季和 2024 年全年與去年同期相比，請注意，我們的多年期專案不是按季度運行的，因此按季度分析時可能會產生波動的影響。我們將從全年業績開始，這有助於抵消 2024 年全年業績的一些波動。我們實現了連續第四個季度的營收成長——抱歉，是我們連續第四年的營收成長，營收增至 2,760 萬美元。這是我們自 2017 年以來的最高收入，比 2020 年的 11.8% 成長了 134%，凸顯了我們多年復甦的強勁勢頭。

Gross profit surged to $13.4 million, 31% increase over the prior year driven by continued scaling of operations and payroll project mix. This resulted in gross margin expansion to 48.4%, up from 38.5% in 2023, a nearly 10% improvement in the strongest margin level since 2021.

受業務和工資項目組合持續擴大的推動，毛利飆升至 1,340 萬美元，比上年增長 31%。這使得毛利率從 2023 年的 38.5% 擴大至 48.4%，比 2021 年以來的最高利潤率水準提高了近 10%。

We reported positive net income of $661,000, a significant turnaround from net loss of $4 million in '23. And as I've said, this marks our first full year of GAAP profitability since 2015 and highlights the durability of our operation model.

我們報告的淨收入為 661,000 美元，與 23 年 400 萬美元的淨虧損相比有了顯著的扭轉。正如我所說，這是我們自 2015 年以來首次實現全年 GAAP 獲利，凸顯了我們營運模式的持久性。

On net GAAP -- on a non-GAAP basis where we exclude non-cash items like amortization of intangibles from prior acquisitions among other things, net income rose to $6.33 million, up from $3.19 million, and 99% increase driven by core business strength, including non-recurring and non-cash items. Non-GAAP EPS reached $3.66 for the full year of 2024. EBITDA reached $6.3 million reflecting 31% year over year growth supported by strong gross margins and operating efficiencies. This marks our 10th consecutive quarter of EBITDA and operating cash flow improvement material with usage reduction to $1.3 million in 2024, continue the positive trend from $9.4 million, $4.7 million, $2.4 million in '21, '22, and '23.

以淨 GAAP 計算——以非 GAAP 計算，我們排除了非現金項目，例如先前收購產生的無形資產攤銷等，淨收入從 319 萬美元增至 633 萬美元，增長 99%，這得益於核心業務實力，包括非經常性項目和非現金項目。2024 年全年非公認會計準則每股收益達 3.66 美元。EBITDA 達到 630 萬美元，年成長 31%，這得益於強勁的毛利率和營運效率。這是我們連續第 10 個季度實現 EBITDA 和經營現金流改善，2024 年使用量將減少至 130 萬美元，延續 21、22 和 23 年分別為 940 萬美元、470 萬美元和 240 萬美元的正面趨勢。

This marks 85% reduction in cash over the last few years, how they enhanced cash generation for both new and legacy projects.

這標誌著過去幾年現金減少了 85%，他們如何提高新項目和遺留項目的現金產生率。

Quarterly performance. We'll look at currently revenue increased in the fourth quarter to $6.33 million, up from $5.7 million in the prior year period. This growth was driven by new project wins and the expansion of existing programs both in the US and Europe.

季度業績。讓我們來看看目前第四季的營收從去年同期的 570 萬美元增加到 633 萬美元。這一增長是由美國和歐洲的新項目勝利和現有項目的擴張所推動的。

Gross profit increased to $2.7 million, up from $2.35 million, with margins improving to 42.7%, up from 41% in the prior year period. This margin expansion reflects improved scale and favorable project dynamics. Importantly, our EBITDA increase to $1.6 million from $1.09 million achieved in Q4 last year. Marketing our 10th consecutive quarters said of positive EBITDA.

毛利從 235 萬美元增至 270 萬美元，利潤率從去年同期的 41% 增至 42.7%。利潤率的提高反映了規模的擴大和有利的專案動態。重要的是，我們的 EBITDA 從去年第四季的 109 萬美元增至 160 萬美元。行銷部門連續 10 個季度實現正 EBITDA。

While GAAP net loss for the quarter was $1.86 million compared to loss of $1.56 million last year. This is primarily driven by timing of revenue recognition and certain operating items such as $2 million in one-time items, including doubtful debt breakdown.

本季 GAAP 淨虧損為 186 萬美元，去年同期淨虧損為 156 萬美元。這主要是由收入確認的時間和某些經營項目（例如 200 萬美元的一次性項目，包括可疑債務細目）所驅動。

In addition to showing year over year results, it's worth at this moment to take a step back and look at how SuperCom has come over the past four years.

除了展現年比業績之外，此刻還值得回顧一下 SuperCom 過去四年的發展歷程。

Following the placement of a new management team and business strategy in 2021, SuperCom executed a transformation that drove substantial improvements across key financial and operating metrics over the four year period.

在 2021 年建立新的管理團隊和業務策略後，SuperCom 實施了一項轉型，在四年內推動了關鍵財務和營運指標的大幅改善。

While navigating global challenges such as the COVID-19 pandemic, geopolitical conflicts, rising interest rates, changes in various policies, supply chain disruptions, and volatile capital markets.

在因應新冠疫情、地緣政治衝突、利率上升、各項政策變化、供應鏈中斷、資本市場動盪等全球挑戰的同時。

Between 2020 and 2024, we achieve remarkable transformation in our financial operation performance. Revenue more than doubled, rising from $11.8 million in 2020 to 27.6% in 2024.

2020年至2024年，我們的財務營運表現將顯著轉變。營收成長了一倍多，從 2020 年的 1,180 萬美元成長到 2024 年的 27.6%。

Gross profit also grew from $5.6 million to $13 million. Operating losses narrowed substantially, improving by 90%. On a GAAP basis, net income improved from $7.4 million loss to a $661,000 profit, our first full year since 2015 of GAAP profitability. EBITDA more than doubled from $2.8 million to $6.3 million, reflecting 125% growth.

毛利也從 560 萬美元成長至 1,300 萬美元。營業虧損大幅收窄，改善了90%。根據 GAAP 標準，淨收入從 740 萬美元的虧損改善至 661,000 美元的利潤，這是我們自 2015 年以來首次全年實現 GAAP 盈利。EBITDA 成長了一倍多，從 280 萬美元增至 630 萬美元，增幅達 125%。

And a non-GAAP basis net income improved from a loss of $1.7 million in '22 -- 2022 to $6.3 million in $2024. $8 million turnaround over this four year period in a non-GAAP net income.

非公認會計準則淨收入從 2022 年至 2022 年的 170 萬美元虧損改善至 2024 年的 630 萬美元。這四年期間非公認的會計準則淨收入為 800 萬美元。

Operating cash flow usage was reduced by 86% from $9.4 million to $1.3 million. I think enhanced cash efficiency across project deployments and operational usage. This four-year turnaround demonstrates the success of our strategic roadmap, the scalability of our core solutions, and the strength of our global operations. We've shifted from financial recovery to consistent profitable execution. We remain focused on building on this momentum into 2025 and beyond.

經營現金流使用量減少了 86%，從 940 萬美元減少到 130 萬美元。我認為提高了專案部署和營運使用的現金效率。這四年的轉變證明了我們策略路線圖的成功、核心解決方案的可擴展性以及全球營運的實力。我們已經從財務復甦轉向持續獲利執行。我們將繼續致力於在 2025 年及以後繼續保持這一勢頭。

Moreover, we achieved a longer term goal of transitioning away from the legacy business of identification in Africa to the IoT business in developing countries. In 2024, over 97% of our revenues are from developed countries in comparison to 2015, where over 89% of the revenues were from Africa alone. IoT revenues over this period of time grew from 1% of the company revenues in 2015 to 91% of company revenues in 2024 regarding IOT revenues.

此外，我們還實現了一個長期目標，從非洲的傳統識別業務轉向發展中國家的物聯網業務。到 2024 年，我們的收入將有 97% 以上來自已開發國家，而 2015 年，我們的收入有 89% 以上來自非洲。在此期間，物聯網收入從 2015 年占公司營收的 1% 成長到 2024 年占公司營收的 91%。

Furthermore, in recent months, we've made substantial progress in strengthening our financial position. Since the end of 2023, we've reduced our total outstanding debt by 32% from over $34 million to approximately $23 million, a reduction of more than $11 million in just over a year.

此外，近幾個月來，我們在加強財務狀況方面取得了實質進展。自 2023 年底以來，我們已將未償債務總額減少了 32%，從 3,400 多萬美元減少至約 2,300 萬美元，僅一年多的時間就減少了 1,100 多萬美元。

This was achieved in part through strategic exchanges of debt to equity and negotiated premiums up to 100% or more of market price, as well as an amendment of our senior debt extending maturity to December 31, 2028, as well as an interest rate reduction that is expected to save the company more than $1 million in interest and fees for the current loan term.

這一目標的實現部分是透過策略性債轉股和協商溢價達到市場價格的 100% 或更高，以及修改我們的優先債務，將到期日延長至 2028 年 12 月 31 日，以及降低利率，預計這將為公司在當前貸款期限內節省超過 100 萬美元的利息和費用。

Following the reduction in debt, we raised over $60 million in gross proceeds: $6 million through a registered direct offering, an additional approximately $10.2 million from the cash exercise of investor warrants that were outstanding. These combined initiatives have strengthened our balance sheet and provided the resources necessary to continue executing our strategy.

債務減少後，我們籌集了超過 6,000 萬美元的總收益：透過註冊直接發行籌集了 600 萬美元，另外透過行使未償還的投資者認股權證籌集了約 1,020 萬美元。這些綜合措施增強了我們的資產負債表，並提供了繼續執行我們的策略所需的資源。

In closing, I'd like to thank our global teams for the hard, tireless work to achieve our company's record setting performance in 2024. We've developed the right technology and products to help criminal justice systems clients overcome challenges and make better use of over $800 billion spent annually in the USA on operating rehabilitation centers and prisons. With research showing that approximately 75% recidivism rate in the US, there is significant room for improvement when effective programs and technology are deployed.

最後，我要感謝我們全球團隊的辛勤努力和不懈努力，使我們公司在 2024 年取得了創紀錄的業績。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用於經營康復中心和監獄的 8000 多億美元。研究表明，美國的再犯率約為 75%，如果部署有效的計畫和技術，還有很大的改善空間。

We're excited about the growth we've been experiencing and about the demand for our products. After several years through which we transition from our legacy business to the IoT tracking of a vendors business, we are happy to show the shift to strong growth in revenue and profit in recent years. And we believe that we're well positioned for continued expansion of our solutions to more locations, geographies, as we capitalize on opportunities that lay before us.

我們對我們的成長以及我們產品的需求感到非常興奮。經過幾年的時間，我們從傳統業務轉型到供應商業務的物聯網跟踪，我們很高興地看到近年來收入和利潤的強勁增長。我們相信，隨著我們利用擺在我們面前的機遇，我們有能力繼續將我們的解決方案擴展到更多的地點和地區。

These are being driven by multiple factors including a strong presence, reputation in the US and European markets, the counter-cyclical nature of the electronic monitoring industry, the growing public policy shift to monitoring instead of incarceration, and the growing adaptation of domestic violence prevention solutions.

推動這些發展的因素有很多，包括在美國和歐洲市場的強大影響力和聲譽、電子監控行業的反週期特性、公共政策逐漸轉向監控而非監禁，以及家庭暴力預防解決方案的日益普及。

We anticipate continued expansion in the US and Europe, and potential other regions. Our commitment to preserving our technological advantage, and our robust growth foundation remains steadfast as we continue to invest in these areas.

我們預計美國、歐洲以及其他潛在地區將繼續擴張。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 our operator for opening questions. Operator?

說完這些，我將把電話轉給我們的接線生來回答開場問題。操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員指示）Matthew Galinko，Maxim Group。

Hey, congrats on the strong 2024, and thanks for taking my questions. Maybe my first one is it seems like -- I think it's six consecutive quarters above 40% gross margin now. Would you be comfortable calling 40% the floor at this point, just relative to where we were a couple of years ago or do you think there's room for more volatility in the gross margin line ahead?

嘿，恭喜你在 2024 年取得好成績，謝謝你回答我的問題。也許我的第一個想法是——我認為現在已經連續六個季度毛利率超過 40%。相對於幾年前的水平，您是否願意將目前的毛利率底線定為 40%？或者您認為未來毛利率還有進一步波動的空間？

Great question. As you know, we're -- our gross margin comes with a factor of numerous projects at the same time from different regions. And we have shared, and we continue to experience, and we add more and more bracelets of monitoring into the same region. Margins improve significantly because you have the fixed cost per project of the inventory management of the deployment of the support of the training and the technology know-how servers.

好問題。如您所知，我們的毛利率來自於我們同時在不同地區開展的眾多項目。我們已經分享了，我們繼續體驗，我們在同一區域添加了越來越多的監控手環。利潤率顯著提高，因為你擁有每個專案的固定成本，包括庫存管理、培訓支援和技術訣竅伺服器的部署。

So all that is fixed and you add more and more braces to get higher margins. We have some very nice projects with the with the growing numbers currently and they're contributing to this higher gross margin. And as we as we plan into the US markets, and a lot of us on the same platform centralized through the cloud. We hope to see improved margins as numbers grow there.

因此，所有這些都已修復，您可以添加越來越多的括號來獲得更高的利潤。我們有一些非常好的項目，目前數量不斷增長，它們為更高的毛利率做出了貢獻。當我們計劃進入美國市場時，我們中的許多人都透過雲端集中在同一個平台上。我們希望隨著數量的成長，利潤率也會提高。

But currently, it's still hard to say how things will unfold as there's a lot of volatility depending on what happens with different projects. So it's hard for us to know how things will move. They can trend up and down. But over time, as our business plan unfolds, we believe that we'll have larger and larger unit numbers per customer and per region and that will drive a higher gross margins, actually, than even we have today.

但目前，仍然很難說事情將如何發展，因為不同項目的情況存在很大的波動。所以我們很難知道事情會如何發展。它們可以呈上升或下降趨勢。但隨著時間的推移，隨著我們的商業計劃的展開，我們相信每個客戶和每個地區的單位數量將越來越大，這將帶來比現在更高的毛利率。

Got it. Thank you. And I guess as a follow up, could we maybe focus a little bit more on US market? You've obviously had some pretty good success in that evolving strategy. So maybe give us an idea of what's next. Is it kind of more quota carrying sales reps and acceleration in new customers and larger customers in the US market? Or do you start competing for bigger contracts with bigger governments or just -- what do you expect to? What we expect to see from the US market in 2025?

知道了。謝謝。我想作為後續問題，我們是否可以更多地關注美國市場？顯然，您在這項不斷發展的策略中取得了相當大的成功。所以也許可以告訴我們下一步該做什麼。這是否意味著在美國市場上銷售代表的配額增加，新客戶和大客戶的加速增加？或者你開始與更大的政府競爭更大的合同，或者只是——你期望什麼？我們預期 2025 年美國市場會出現什麼情況？

Okay, so the US market, which we've started -- we started expanding significantly into as of last year and since the mid of last year so now we've already had over 20 new contracts we're continuously signing more contracts and more more partnerships to help us expand together with a local partner, which is also a very good thing.

好的，所以我們已經開始了美國市場——我們從去年開始大幅擴張，從去年年中開始，現在已經有超過 20 份新合同，我們正在不斷簽署更多合同和更多合作夥伴關係，以幫助我們與當地合作夥伴共同擴張，這也是一件非常好的事情。

These partnerships and so far, the deployments are going well. We're getting good feedback and technology is a great fit, and we didn't expand as much early in previous years because our technology is more focused on the European market. And now we adapted some of it like the pure one to the US market.

到目前為止，這些合作夥伴關係和部署進展順利。我們得到了良好的回饋，技術也非常契合，前幾年我們並沒有進行太大的擴張，因為我們的技術更專注於歐洲市場。現在我們將其中的一些產品（例如純正的產品）調整到適合美國市場。

So all of that is going well as we continue to expand into more locations and bring on more partners, we're going to grow also the size of the projects. As you remember, probably in Europe we started with small projects over $100,000, $200,000, $400,000 and then we grew to $2 million and $4 million. And now, one of our latest ones is over $33 million. So same thing in the US, we're starting with small and going up to mediocre and then over time to larger and larger.

所以所有一切都進展順利，隨著我們繼續擴展到更多地點並引入更多合作夥伴，我們的專案規模也將擴大。您可能還記得，在歐洲，我們從 10 萬、20 萬、40 萬美元以上的小型專案開始，然後發展到 200 萬美元和 400 萬美元。現在，我們最新的一個項目價值超過 3300 萬美元。在美國也是一樣，我們從小規模開始，逐漸發展到中等規模，然後隨著時間的推移，規模越來越大。

So we'll see that continue to progress over the coming years. We had a passive bidding strategy in Europe. We didn't have as much of a big sales team in the US It's more fragmented So we actually have more people that are coer carrying, as you mentioned before, together with sales support.

因此，我們將看到未來幾年這一進程繼續推進。我們在歐洲採取的是被動競標策略。我們在美國沒有那麼多的大型銷售團隊，它更加分散，所以實際上我們有更多的人負責核心業務，正如您之前提到的，還有銷售支援。

So we're actively in pilots and demos and the pipeline continues to evolve as we're doing that throughout the US market.

因此，我們正在積極進行試點和演示，隨著我們在整個美國市場進行這些活動，管道也在不斷發展。

All right, thank you. And last question for me is on the opportunity to consolidate some of the partners in the US market. Is that something that you see as being a -- more of a possibility, especially with your debt starting to come down and break even cash getting pretty close, or, what do you think the Likelihood of, deals closing in the next 18 months looks like, or what are the biggest barriers to executing on that?

好的，謝謝。對我來說，最後一個問題是關於鞏固美國市場部分合作夥伴的機會。您是否認為這是一種更有可能的事情，特別是當您的債務開始下降並且收支平衡越來越接近時，或者，您認為未來 18 個月內完成交易的可能性有多大，或者執行交易的最大障礙是什麼？

Okay, great question, thank you. We've mentioned in the past, just to give everyone context, some of these partnerships with local value added resellers. They'll provide the services they'll take our technology or a competitor technology and provide the services, and they'll aggregate maybe 10 to 30 counties because some of these small counties -- it's hard for them to do everything themselves, and they go to a local player who does that for them.

好的，這個問題問得好，謝謝。我們過去曾提到過，只是為了讓大家了解背景，其中一些是與當地加值經銷商建立的合作關係。他們將提供服務，採用我們的技術或競爭對手的技術並提供服務，他們將聚集大約 10 到 30 個縣，因為其中一些小縣很難自己做所有事情，所以他們會去找當地的公司來為他們做這些事情。

So we sell to these partners already. And there's interesting opportunities with acquiring them. We did it once in California in 2016 and it worked very well because you replace their technology with our technology, which is newer, and also creates a lot of synergies in, significant profit quickly, but also it opens up your ability to grow that business with the newest technology in that region. So there certainly are opportunities and we have been discussing this at some level over the past over the recent years it's -- we've -- as you've seen, we also had a big focus on trying to grow our organic operations, reduce our debt, strengthen our balance sheet, and we've been doing that, and that of course makes it easier for us to complete these deals. So it makes them more likely.

所以我們已經向這些合作夥伴銷售產品了。收購它們會帶來有趣的機會。2016 年，我們在加州做過一次，效果非常好，因為我們用自己的技術取代了他們的技術，我們的技術更新，而且能夠產生很多協同效應，快速獲得可觀的利潤，同時也能讓你利用該地區的最新技術發展業務。所以機會肯定存在，而且我們在過去幾年中也一直在某種層面上討論這個問題——正如你所看到的，我們也非常注重嘗試擴大我們的有機運營，減少我們的債務，加強我們的資產負債表，我們一直在這樣做，這當然使我們更容易完成這些交易。因此，這更有可能發生。

We're still dependent on the price, and fit, and we have to see that due diligence we see that everything makes sense for us. And it's a good synergistic fit for us, but it does certainly the stronger balance sheet makes it easier -- also makes it easier to win larger projects because when you're looking at the very large projects when you have a small cash base and a lot of debt, it was harder in the past and now it's becoming easier together with a positive net income. That's also going to help us on various opportunities. So the general direction, the financial direction of the company and the and the balance sheet is helping us on multiple fronts.

我們仍然依賴價格和適合度，我們必須進行盡職調查以確保一切對我們來說都是合理的。這對我們來說是一個很好的協同效應，但更強勁的資產負債表確實讓事情變得更容易——也讓贏得更大的項目變得更容易，因為當你在考慮非常大的項目時，如果你的現金基礎很小而債務很多，過去會比較困難，但現在加上正的淨收入，情況就變得更容易了。這也將幫助我們抓住各種機會。因此，公司的整體方向、財務方向和資產負債表在多個方面為我們提供了幫助。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

[Greg Mesna], Kingswood Partners.

[Greg Mesna]，Kingswood Partners。

Yes, thank you. Question on your entry into the US market, obviously that's a key cornerstone of your strategy now and I'm wondering how you're addressing the recent tariff situation as far as supply chain product mix, hardware versus software. Just kind of give us give us an overview of that thanks.

是的，謝謝。關於您進入美國市場的問題，顯然這是您現在策略的一個重要基石，我想知道您如何應對最近的關稅形勢，就供應鏈產品組合、硬體和軟體而言。請給我們一個概述，謝謝。

Okay. But it's a great question, to say that that that our manufacturing for our products is done currently, and the manufacturing is done in Israel. We supply from various regions and we have actually production here. We've done that we changed that throughout COVID. We know how to produce in other places as well, but throughout COVID and we're requested to create a lot of bracelets also for COVID confinement we developed that ability here in Israel.

好的。但這是一個很好的問題，我們的產品目前是在以色列製造的。我們從不同地區供貨，並且實際上在這裡生產。我們已經做到了這一點，並且在整個 COVID 期間改變了這一點。我們也知道如何在其他地方生產，但在整個 COVID 期間，我們也被要求為 COVID 隔離製作大量手環，我們在以色列開發了這種能力。

So we're doing from Israel and the US, it's still to be seen what the tariffs would be like, and we also have abilities to do some of the manufacturing in the US. But as things evolve in in the coming, let's say weeks and months, we'll have more updates as we see how things resolve on tariffs between Israel and the US and our strategies around that. But currently a big portion of our operations is in the US and the rest of the -- for in that regard so we don't expect something very high, but we'll see how that falls out.

因此，我們在以色列和美國開展業務，關稅情況還有待觀察，我們也有能力在美國進行部分製造。但隨著未來幾週和幾個月事態的發展，我們將看到以色列和美國之間的關稅問題如何解決以及我們圍繞該問題的戰略如何實施，屆時我們將會有更多更新。但目前我們的業務很大一部分在美國和其他國家——因此，我們對此的期望不會很高，但我們會看看結果如何。

Thank you. Also -- to also to on that to remind you, a big part of our services software as a service you know we have the monitoring software and that's what they're paying for and they a lot of them lease the bracelets rather than just selling hardware components. So will help as well.

謝謝。另外——也要提醒您，我們的服務軟體即服務的很大一部分，您知道我們有監控軟體，這就是他們付費購買的，他們中的許多人都租賃手環，而不僅僅是銷售硬體組件。所以也會有幫助。

Good point. Thank you.

說得好。謝謝。

Thank you, and that does conclude today's Q&A session. At this time, I will pass the call back to Ordan for closing remarks.

謝謝，今天的問答環節到此結束。現在，我將把電話轉回給奧爾丹，請他作最後發言。

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

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

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。