Supercom Ltd (SPCB) 2025 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to SuperCom's first-quarter 2025 financial results and corporate update conference call. (Operator Instructions) Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. Joining me from SuperCom's leadership team is Ordan Trabelsi, SuperCom's President and Chief Executive Officer.

女士們，先生們，早安，歡迎參加 SuperCom 2025 年第一季財務業績和公司更新電話會議。（操作員指示）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，同時也會錄製以供回放。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 forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results. Forward-looking statements involve risks, uncertainties and other factors that may cause SuperCom's actual results to differ materially from those statements. For more information about these risks, uncertainties and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on Form 20-F and Form 6-K and SuperCom's press release that accompanies this call, particularly the cautionary statements in it.

我想提醒您，在本次電話會議中，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。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隨附於本次電話會議的 SuperCom 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. For a reconciliation of this non-GAAP financial measure to net loss, a comparable GAAP financial measure, please see the reconciliation table located in SuperCom's earnings press release that accompanies this call. Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.

今天的電話會議包括 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。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, May 14, 2025. 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. 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 5 月 14 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事件或情況的義務。現在我很高興將電話轉給 SuperCom 總裁兼執行長 Ordan Trabelsi。

Thank you, operator, and good morning, everyone, and thank you for joining us today. Earlier this morning, we released our financial results for the first quarter ended March 31, 2025. You can find a copy of the press release in the Investor Relations section of our website at supercom.com.

謝謝接線員，大家早安，謝謝你們今天加入我們。今天早些時候，我們發布了截至 2025 年 3 月 31 日的第一季財務業績。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。

Today, I'll provide an overview of our first quarter performance, including financial highlights followed by a Q&A session. But first, I'll provide a high-level overview of our business and strategy.

今天，我將概述我們的第一季業績，包括財務亮點，然後進行問答環節。但首先，我將對我們的業務和策略進行高層次的概述。

We're pleased to report a strong start to 2025, building on our record-breaking success in 2024 with even more milestone achievements this quarter. However, we are working with numerous governments around the world on making big changes to the way they help protect their communities. This takes time, and thus, our outlook is long term. With many multi-year government contracts running in unison, reviewing one specific quarter or a small few may not suffice to understand the long-term progress of our business. I'll try to give a high-level view for you to understand our goals, our progress, and what levers to track to understand that progress going forward.

我們很高興地報告，2025 年開局強勁，在 2024 年創紀錄的成功基礎上，本季度取得了更多里程碑式的成就。然而，我們正在與世界各地的許多政府合作，對他們保護社區的方式做出重大改變。這需要時間，因此我們的眼光是長遠的。由於許多多年期政府合約同時運行，僅審查一個特定季度或少數幾季可能不足以了解我們業務的長期進展。我將嘗試為您提供一個高層次的視角，以便您了解我們的目標、我們的進展以及需要追蹤哪些槓桿來了解未來的進展。

At SuperCom, our mission is to revolutionize public safety through cutting-edge electronic monitoring technology and data-driven solutions. For over three decades, we have partnered with dozens of national governments across the globe to deliver secure, scalable, and innovative platforms that enhance security for their country. Our focus in recent years has shifted more and more towards solutions in criminal justice and offender electronic monitoring technology with ankle bracelets.

在 SuperCom，我們的使命是透過尖端的電子監控技術和數據驅動的解決方案徹底改變公共安全。三十多年來，我們與全球數十個國家的政府合作，提供安全、可擴展和創新的平台，以增強其國家安全。近年來，我們的重點越來越多地轉向刑事司法解決方案和帶有腳踝手環的罪犯電子監控技術。

Our strategy is centered around three pillars: one, innovative technology. We've invested over $40 million in our technology platforms, and our proprietary solutions consistently outperform in competitive tenders, particularly in Europe, where we've had a win rate of approximately 65%. Our platform supports critical programs such as GPS tracking, house arrest and domestic violence protection. Recently, we have also integrated AI-driven analytics to enhance predictive insights and client outcomes in our system.

我們的策略圍繞著三大支柱：一、創新技術。我們在技術平台上投資了超過 4000 萬美元，我們的專有解決方案在競爭性招標中始終表現出色，特別是在歐洲，我們的中標率約為 65%。我們的平台支援 GPS 追蹤、軟禁和家庭暴力保護等重要項目。最近，我們還整合了人工智慧驅動的分析，以增強系統中的預測洞察力和客戶成果。

The second pillar is expanding our global presence. Our global presence is significant and expanding rapidly, with more and more geographies adopting our electronic monitoring technology. Our strategic focus on electronic monitoring market where we see growing demand and where the market is projected to reach around $2.3 billion by 2028. Estimates show that the US and Europe account for roughly 95% of this market.

第二個支柱是擴大我們的全球影響力。我們的全球影響力巨大且正在迅速擴張，越來越多的地區採用我們的電子監控技術。我們的策略重點是電子監控市場，我們看到該市場的需求不斷增長，預計到 2028 年市場規模將達到 23 億美元左右。據估計，美國和歐洲佔了該市場的約95%。

And our third pillar is delivering outstanding service. Our reputation as a trusted partner grows with each new deployment. Some of our government customers have been with us for more than 20 years, often starting with a single program and expanding into multiple solutions over time.

我們的第三個支柱是提供卓越的服務。隨著每次新的部署，我們作為值得信賴的合作夥伴的聲譽也不斷增長。我們的一些政府客戶已經與我們合作了 20 多年，通常從單一專案開始，隨著時間的推移擴展到多種解決方案。

Since 2018, we've secured over 70 multi-year government projects across multiple regions. In the past year, we've experienced accelerated expansion, whereby we added more than 20 new contracts across North America, alongside 5 strategic partnerships with leading regional service providers.

自 2018 年以來，我們已在多個地區獲得了 70 多個多年期政府專案。在過去的一年裡，我們經歷了加速擴張，在北美增加了 20 多個新合同，並與 5 個領先的區域服務提供者建立了戰略合作夥伴關係。

We continue to amplify our technological leadership with significant R&D investments, leading to the launch of advanced solutions like PureProtect, also branded as PureShield and PureOne. These offerings are already making headway in various markets, including the US and are pivotal in SuperCom's expansion.

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，該品牌也被稱為 PureShield 和 PureOne。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 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. PureOne is an all-in-one GPS tracking ankle bracelet 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, such as battery life, weight, and other tracking and security features.

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。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。與我們的許多產品一樣，它提供了一流的功能，在大多數指標（例如電池壽命、重量以及其他追蹤和安全功能）上都超越了競爭對手。

Our tethered ankle bracelet technology, together with our cloud-based software-enabled PureSecurity product line has been particularly effective in continuously monitoring offenders and managing real-time information. The real-time advantage is a game changer, empowering authorities with actionable insights and timely interventions to mitigate potential risks and enhance public safety.

我們的繫繩腳踝手環技術與基於雲端軟體的 PureSecurity 產品線相結合，在持續監控罪犯和管理即時資訊方面特別有效。即時優勢改變了遊戲規則，使當局能夠獲得可行的見解和及時幹預，以減輕潛在風險並增強公共安全。

Our technology is not just enabling better outcomes. It's actively redefining industry standards. We consistently displaced long-term incumbents such as a 24-year incumbent EM provider in Sweden and the nearly 20-year incumbent EM provider in Israel, both which we displaced. And in both cases, our technology edge, agility, and innovation proved decisive in the competitive tenders.

我們的技術不僅能夠帶來更好的結果。它正在積極重新定義行業標準。我們不斷取代長期在位者，例如瑞典一家在位 24 年的 EM 供應商和以色列一家在位近 20 年的 EM 供應商，這兩家供應商都被我們取代。在這兩種情況下，我們的技術優勢、敏捷性和創新性在競爭性投標中都發揮了決定性作用。

We've also helped governments establish their first-ever national electronic monitoring programs as seen in countries such as Romania, where we're supporting a program for up to 15,000 simultaneously monitored individuals; and Croatia, where we were selected to lead the country's first step into modern electronic supervision. These wins underscore the adaptability of our platform and the growing demand for comprehensive EM solutions around the world.

我們也幫助各國政府建立了第一個國家電子監控項目，例如在羅馬尼亞等國家，我們支持一個可同時監控多達 15,000 人的計劃；在克羅埃西亞，我們被選中領導該國邁向現代電子監控的第一步。這些勝利凸顯了我們平台的適應性以及全球對綜合 EM 解決方案日益增長的需求。

Our continued investment in product innovation is driving measurable market expansion. The successful adoption of PureProtect and PureOne has expanded our addressable market, supporting deeper penetration into existing geographies and entry into new ones, particularly in the US and Europe. We've also reinforced the operational infrastructure and enhanced our go-to-market approach.

我們對產品創新的持續投資正在推動可衡量的市場擴張。PureProtect 和 PureOne 的成功採用擴大了我們的目標市場，支持我們更深入地滲透現有地區並進入新地區，尤其是美國和歐洲。我們還加強了營運基礎設施並改善了我們的市場進入方式。

Our sales team with industry veterans has played a key role in securing wins in building our pipeline. In the fourth quarter, together with Electra Security, our partner, we secured a multiyear national contract with the Israel Prison Service to deploy our PureSecurity suite. The program encompasses all offender monitoring nationwide. This one follows a rigorous competitive process and replaced a provider that's held the contract for nearly two decades, underscoring our technological advantage and proven execution capability.

我們的銷售團隊由業界資深人士組成，在建立我們的管道方面發揮了關鍵作用，確保了我們的成功。第四季度，我們與合作夥伴 Electra Security 共同與以色列監獄管理局簽訂了一份多年的國家合同，以部署我們的 PureSecurity 套件。該計劃涵蓋全國範圍內的所有罪犯監控。此次合約遵循了嚴格的競爭程序，取代了已經簽訂了近二十年合約的供應商，凸顯了我們的技術優勢和經過驗證的執行能力。

As of today, over 1,200 individuals are actively monitored under this program, with that number continuing to grow as the rollout progresses. More broadly, we continue to gain momentum in competitive tenders across Europe and the US, often displacing incumbents. Our strong track record and reliable delivery remain core to our growth. We view every new deployment as a start of a long-term relationship by planting seeds in multiple regions and consistently delivering value. We've seen customers expand their engagement with us over time, often growing into multiple growing projects that span over years.

截至今天，已有超過 1,200 人根據該計劃接受主動監控，隨著計劃的推進，這一數字還將繼續增長。更廣泛地說，我們在歐洲和美國的競爭性招標中繼續獲得發展勢頭，並經常取代現有企業。我們良好的業績記錄和可靠的交付仍然是我們成長的核心。我們將每一次新的部署視為長期合作關係的開始，在多個地區播下種子並持續提供價值。我們看到客戶與我們的合作隨著時間的推移不斷擴大，通常會發展為跨越多年的多個不斷發展的項目。

In Europe, our strategic execution continues to drive long-term growth. Over the past few years, we've secured over 15 national electronic monitoring programs in Europe through competitive tenders, including large-scale domestic violence initiatives aligned with regional public safety priorities. Notably, in Romania, we were awarded the largest industry award of 2022, and over $33 million program covering up to 15,000 individuals simultaneously. This project remains active and demonstrates the scalability of our PureSecurity platform.

在歐洲，我們的策略執行持續推動長期成長。過去幾年，我們透過競爭性招標在歐洲獲得了超過 15 個國家的電子監控項目，其中包括與區域公共安全優先事項一致的大規模家庭暴力舉措。值得注意的是，在羅馬尼亞，我們獲得了 2022 年最大的行業獎項，以及一項超過 3,300 萬美元的計劃，同時覆蓋多達 15,000 人。該專案仍然活躍，並展示了我們的 PureSecurity 平台的可擴展性。

Another great example of our long-term expansion strategy, which reflects the strength of our reputation, is Sweden. Since our initial award from the Ministry of Justice in 2019, we've been selected again and again by Swedish government agencies, including the Swedish Police Authority and juvenile justice system. This ongoing trust reflects our consistent delivery and the high level of satisfaction with our technology and support.

瑞典是我們長期擴張策略的另一個很好的例子，它體現了我們良好的聲譽。自 2019 年首次獲得司法部獎項以來，我們已多次被瑞典政府機構選中，包括瑞典警察局和青少年司法系統。這種持續的信任反映了我們始終如一的交付以及對我們的技術和支援的高度滿意。

We also expanded in Finland with the national deployment of our domestic violence solution and recently launched our third national project in Latvia, awarded via formal tender to support the state police with offender compliance and victim protection. In parallel, we continue to actively run programs in other European countries such as Denmark and Bulgaria and continue to receive follow-on orders from existing European partners. These follow-ons highlight the reliability of our technology and the strength of our relationships. And as governments increasingly adopt proactive monitoring policies, we believe our proven model positions us well for sustained success in the region.

我們還在芬蘭擴大了我們的家庭暴力解決方案的部署，並最近在拉脫維亞啟動了我們的第三個國家項目，該項目通過正式招標授予，旨在支持國家警察遵守罪犯規定並保護受害者。同時，我們繼續積極在丹麥和保加利亞等其他歐洲國家開展項目，並繼續從現有的歐洲合作夥伴那裡獲得後續訂單。這些後續行動凸顯了我們技術的可靠性和我們關係的強度。隨著各國政府越來越多地採取主動監測政策，我們相信，我們行之有效的模式將使我們在該地區取得持續的成功。

While Europe maintains an important -- remains an important growth driver, the US market presents an even greater long-term opportunity, projected to grow to 6x the size of the European market in coming years. With the launch of PureOne and our domestic violence solutions, we believe SuperCom is well positioned to unlock substantial growth potential in this untapped market.

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會，預計未來幾年將達到歐洲市場的 6 倍。隨著 PureOne 和我們的家庭暴力解決方案的推出，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。

From the research that shows 2.3 billion total market size expected in 2028, the US market is 6x that of Europe in the estimates. And also, although SuperCom already does business in multiple US states, we're actively focused on further expanding our presence in the US market. Our subsidiary, LCA, continues to grow in California through new contracts and rebids, while our nationwide expansion strategy has gained significant traction.

研究表明，預計 2028 年的總市場規模將達到 23 億美元，美國市場將是歐洲市場的 6 倍。此外，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市場的影響力。我們的子公司 LCA 透過新合約和重新投標繼續在加州發展，同時我們的全國擴張策略也獲得了顯著的進展。

Since mid-2024, we've secured over 20 new electronic monitoring contracts, entered 8 new US states and formed 5 new strategic partnerships with regional service providers to accelerate market access. Through a mix of direct government contracts and partner-led deployments, we've established a presence in key new states, including Utah, Kentucky, Alabama, South Dakota, Arizona, Ohio and others.

自 2024 年中期以來，我們已獲得 20 多個新的電子監控合同，進入 8 個新的美國州，並與 5 個區域服務提供者建立了新的戰略合作夥伴關係，以加快市場准入。透過直接政府合約和合作夥伴主導的部署，我們在猶他州、肯塔基州、阿拉巴馬州、南達科他州、亞利桑那州、俄亥俄州等主要新州建立了業務。

We are also expanding into Wisconsin, Minnesota and Michigan through the Midwest-focused partnership and launched a GPS modernized initiative in Canada with a long-standing provider. These wins demonstrate our growing ability to displace legacy vendors and deliver recurring revenue from both urban and rural jurisdictions.

我們還透過以中西部為重點的合作夥伴關係將業務擴展到威斯康辛州、明尼蘇達州和密西根州，並與一家長期供應商在加拿大啟動了 GPS 現代化計劃。這些勝利表明我們取代傳統供應商並從城市和農村管轄區獲得經常性收入的能力日益增強。

Our strong technology capabilities, coupled with our proactive go-to-market approach, continue to differentiate SuperCom and competitor bids. Our expanded sales organization has driven a sharp increase in demos, pilot programs and qualified opportunities, resulting in the growing US pipeline of recurring revenue opportunities. With sustained demand and good execution, we believe we are well positioned to further scale our US footprint throughout 2025 and beyond.

我們強大的技術能力，加上積極主動的行銷策略，繼續使 SuperCom 在與競爭對手的競標中脫穎而出。我們擴大的銷售組織推動了演示、試點計畫和合格機會的急劇增加，從而導緻美國經常性收入機會管道不斷增長。憑藉持續的需求和良好的執行力，我們相信我們有能力在 2025 年及以後進一步擴大我們在美國的業務。

One of our advantages in the US is a centralized system on the cloud, centralized inventory management and a 24/7 service and support center, which supports active projects nationwide. This structure significantly improves operational efficiency and lowers costs compared to Europe, where projects typically require country-specific servers, local language adaptations, and decentralized support. As a result, we're able to launch programs in the US more quickly and more cost effectively, whether at small scale or statewide, giving us greater flexibility and faster time to revenue, along with higher potential margins.

我們在美國的一個優勢是雲端集中系統、集中庫存管理以及全天候服務和支援中心，支援全國範圍內的活躍項目。與歐洲相比，這種結構顯著提高了營運效率並降低了成本，在歐洲，專案通常需要特定國家的伺服器、當地語言適應和分散支援。因此，我們能夠在美國更快、更經濟地啟動項目，無論是小規模還是全州範圍，從而為我們帶來更大的靈活性和更快的收入時間，以及更高的潛在利潤率。

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 a surge in the adoption of victim protection solutions worldwide. 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.

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採用率的激增推動著增長。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。

For example, monitoring an offender on home confinement or GPS costs about $10 to $35 a day, which is 90% less than the $100 to $140 a day cost at a correctional facility in the US. Moreover, home confinement helps reduce repeat offenses, highlighting its effectiveness in helping offenders improve their lives and communities. In parallel, we continue to evaluate strategic acquisition opportunities in the US market. Acquiring established local service providers can expand our footprint, unleash synergies and enhance vertical integration.

例如，監控一名在家監禁的罪犯或使用 GPS 監控一名罪犯每天的費用約為 10 至 35 美元，比美國懲教機構每天 100 至 140 美元的費用低 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。同時，我們繼續評估美國市場的策略性收購機會。收購成熟的本地服務提供者可以擴大我們的業務範圍、釋放協同效應並增強垂直整合。

A proven example is our 2016 acquisition of LCA in California, which has since generated over $35 million in project wins in California alone. I'll now turn to the financials, considering this quarter Q1 in comparison to the same period last year. I'm pleased to report another strong quarter of financial performance, reflecting the maturing of our project portfolio, disciplined execution and operating leverage across geographies. Note that since our projects are mostly multiyear contracts, this can create variability on a quarterly basis, so trends are best understood in the context of a broader multiyear period. Let's look at the quarterly performance of Q1 2025.

一個證明的例子是我們在 2016 年收購了加州的 LCA，自此之後僅在加州就贏得了超過 3500 萬美元的項目。現在我將討論財務狀況，並將本季第一季與去年同期進行比較。我很高興地報告本季財務表現再次表現強勁，這反映出我們專案組合的成熟、嚴格的執行以及跨地區的營運槓桿。請注意，由於我們的專案大多是多年期合約，這可能會產生季度變化，因此最好在更廣泛的多年期背景下理解趨勢。讓我們來看看2025年第一季的季度表現。

Revenue increased to $7.05 million, up from $6.85 million, driven by new contract wins and continued expansion across both US and European programs as well as EMEA. Gross profit increased to $4.46 million, a 17.8% increase from $3.79 million in the same period last year. Gross margin improved significantly to 63.6% compared to 55.3%. This significant margin expansion of nearly 8% reflects improved scale and favorable revenue mix from projects.

收入從 685 萬美元增至 705 萬美元，這得益於新合約的簽訂以及美國、歐洲和中東及非洲地區項目的持續擴張。毛利增至446萬美元，較去年同期的379萬美元成長17.8%。毛利率由55.3%大幅提升至63.6%。利潤率大幅提升近 8%，反映出規模的擴大和專案收入結構的改善。

Operating income doubled year-over-year to $1.22 million, up from $0.72 million, with operating margin improving to 17.3% compared to 10.5% last year. We also reported GAAP net income of $4.23 million, a substantial improvement from $0.8 million last year. This growth was driven by contributions from new projects and improved revenue mix, ongoing operational efficiencies and the positive impact of strategic deals with our debt holders, which together further strengthened our capital structure. On a non-GAAP basis, net income totaled $5.24 million, up from $1.35 million last year. EBITDA for the quarter reached $2.5 million compared with $2 million last year, representing a 25% year-over-year increase and marking our 11th consecutive quarter of positive EBITDA and further demonstrating the strength and consistency of our core operations.

營業收入年增一倍至 122 萬美元，高於去年的 72 萬美元；營業利潤率從去年的 10.5% 提高至 17.3%。我們也報告了 GAAP 淨收入 423 萬美元，較去年的 80 萬美元大幅提高。這一增長得益於新項目的貢獻、收入結構的改善、持續的營運效率以及與債權人達成的策略交易的正面影響，這些因素共同進一步加強了我們的資本結構。以非公認會計準則計算，淨收入總計 524 萬美元，高於去年的 135 萬美元。本季的 EBITDA 達到 250 萬美元，而去年同期為 200 萬美元，年成長 25%，這是我們連續第 11 個季度實現正 EBITDA，進一步證明了我們核心業務的實力和一致性。

GAAP earnings per share was $1.2 compared to $0.8 in Q1 of '24, adjusted for reverse split and non-GAAP EPS was $1.5 compared to $1.4 in Q1 of '24, again, adjusted for reverse split. From the balance sheet perspective, we ended the quarter with a stronger position. Long-term loans were reduced to $24.2 million, down from $29.7 million at the year-end and from $34.3 million in Q1 last year, reflecting a total reduction over $10 million year-over-year.

根據反向分割調整後，GAAP 每股收益為 1.2 美元，而 24 年第一季為 0.8 美元；非 GAAP 每股收益為 1.5 美元，而 24 年第一季為 1.4 美元。同樣，根據反向分割調整後。從資產負債表的角度來看，我們在本季結束時處於更強勁的地位。長期貸款減少至 2,420 萬美元，低於年底的 2,970 萬美元和去年第一季的 3,430 萬美元，年減 1,000 多萬美元。

This was achieved through debt-to-equity exchanges at premiums of up to over 100% above market price and an amendment to our senior debt agreement, which extended maturity to December 2028 and lowered our interest rate. Following the reduction of debt, we raised over $16 million of gross proceeds, including $6 million through a registered direct offering and $10.2 million from warrant exercises, leading to a solid cash position with cash and cash equivalents increasing to $17.1 million, up from $3.2 million at year-end 2024.

這是透過債轉股實現的，溢價高達市場價格的 100% 以上，並修改了我們的優先債務協議，將到期日延長至 2028 年 12 月並降低了我們的利率。減少債務後，我們籌集了超過 1,600 萬美元的總收益，其中包括透過註冊直接發行籌集的 600 萬美元和透過認股權證行使籌集的 1,020 萬美元，從而使現金狀況保持穩健，現金和現金等價物從 2,024 年底的 320 萬美元增加到 1,710 萬美元。

Working capital increased to $38.9 million compared to $22.6 million at year-end as well. In closing, I want to thank our global team for their continued commitment and execution. We've entered 2025 with strong momentum, delivering record financial results, accelerating expansion in key markets, and further validating the effectiveness of our solutions. As governments seek smarter, more humane and more cost-effective alternatives to incarceration, SuperCom is uniquely positioned to lead. Our proven technology, growing contract base and scalable infrastructure provide us a strong foundation to continue our growth across the US, Europe, and beyond.

營運資金也從年底的 2,260 萬美元增加到 3,890 萬美元。最後，我要感謝我們全球團隊的持續承諾和執行。我們以強勁的勢頭邁入2025年，取得了創紀錄的財務業績，加速了關鍵市場的擴張，並進一步驗證了我們解決方案的有效性。當政府尋求更聰明、更人道、更具成本效益的監禁替代方案時，SuperCom 具有獨特的領導地位。我們成熟的技術、不斷增長的合約基礎和可擴展的基礎設施為我們在美國、歐洲及其他地區的持續發展奠定了堅實的基礎。

And to better understand our progress, we encourage stakeholders to track several key indicators, our win rate in competitive tenders, expansion into new geographies and new projects from existing customers. Another important thing to remember is project mix. This quarter, gross margin reached 63.3%, reflecting the increasing contribution of high-margin programs. While not yet our set steady state, it offers a glimpse into our long-term profitability potential, where projects tend to achieve higher margins over time as they mature and grow. We remain focused on advancing public safety, creating long-term value and building on the consistent progress we've achieved in recent years.

為了更好地了解我們的進展，我們鼓勵利益相關者追蹤幾個關鍵指標，即我們在競爭性投標中的中標率、向新地區的擴張以及來自現有客戶的新項目。要記住的另一件重要的事情是專案組合。本季毛利率達63.3%，反映出高利潤項目的貢獻不斷增加。雖然尚未達到我們設定的穩定狀態，但它讓我們得以一窺我們的長期獲利潛力，隨著專案的成熟和發展，它們往往會實現更高的利潤率。我們將繼續致力於提高公共安全，創造長期價值，並在近年來取得的持續進步的基礎上再接再厲。

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

說完這些，我將把電話轉給接線生來回答問題。操作員？

(Operator Instructions) Matthew Galinko, Maxim Group.

（操作員指示）Matthew Galinko，Maxim Group。

Hi, thanks for, taking my questions. Ordan, congrats on the great results in the first quarter. Can you maybe touch on where your R&D focus is at this point? I know you kind of led with your win rate and how your technology is just better than most of the competitors you go into tenders against. But how do you maintain that going forward? And what sorts of work do you do to make sure that you have an edge?

你好，謝謝你回答我的問題。Ordan，恭喜您第一季的出色業績。您能否談談您目前的研發重點是什麼？我知道你們在中標率方面處於領先地位，而且你們的技術比參加投標的大多數競爭對手都要好。但今後您要如何保持這種狀態呢？您做哪些工作來確保自己具有優勢？

Okay, great question. One of the things that we've been adding on recently is the integration of AI that we started describing, and we hope to improve on that. We're improving the quality of our GPS solution in terms of reliability. Many of our competitors can't track effectively underground in subways or within cities because of interference.

好的，好問題。我們最近添加的功能之一是我們開始描述的人工智慧集成，我們希望對此進行改進。我們正在提高 GPS 解決方案的可靠性。由於幹擾，我們的許多競爭對手無法在地鐵或城市內進行有效地下追蹤。

We use GNSS, and we integrate many other location protocols as well, and that helps us track within cities, within buildings, underground. And so we continue to improve on that. We also improve the battery life of our solutions. Our battery life for our bracelets can reach up to one year, whereas many of our competitors only have one- or two-days' battery life.

我們使用 GNSS，並整合許多其他定位協議，這有助於我們在城市、建築物和地下進行追蹤。因此我們會繼續改進。我們也延長了解決方案的電池壽命。我們的手環電池壽命可達一年，而許多競爭對手的電池壽命只有一兩天。

So we continue to add on to our existing solutions while adding additional features and also looking at new solutions, which will help complement the needs of our customers. Reliability is also an important factor, which we continue to improve on from every additional project that we deploy.

因此，我們繼續完善現有的解決方案，同時添加額外的功能並尋找新的解決方案，這將有助於滿足客戶的需求。可靠性也是一個重要因素，我們在部署的每個附加項目中都不斷改進這一點。

Got it. I guess the follow-up, maybe can you give us a big picture view of how the US opportunity is shaping up? And how important is it that you're continuing to add new states and geographies within the US market? Does the win in Utah sort of support additional wins in Utah? Or how does that kind of expansion work?

知道了。我想接下來的問題，您能否給我們一個關於美國機會如何形成的整體概況？繼續在美國市場拓展新的州和地區有多重要？猶他州的勝利是否支持猶他州取得更多勝利？或者這種擴充是如何實現的？

Great question. And it's important to understand the difference in the US market and Europe. In Europe, we entered through national projects, RFPs, which are sometimes more defined in size. It's much more competitive.

好問題。了解美國市場和歐洲市場的差異非常重要。在歐洲，我們透過國家計畫（RFP）進入，這些計畫的規模有時更為明確。競爭更加激烈。

There's a longer competitive process where they evaluate you more in depth on a national scale. And the size of the project is pretty much well defined at the beginning. They typically add -- or many times, we see them add additional projects because they like our relationship and what we're doing as we've seen in Sweden or in Finland. But the size is better defined. In the US, it's much more fragmented.

競爭過程會更長，他們會在全國範圍內對你進行更深入的評估。而專案的規模在一開始就已經定義得非常明確了。他們通常會增加——或者很多時候，我們看到他們增加額外的項目，因為他們喜歡我們的關係以及我們所做的事情，就像我們在瑞典或芬蘭看到的那樣。但尺寸定義得更清楚。在美國，情況更加分散。

We see county level, state level through resellers and value-added providers. There's federal level projects. And what we're doing in the US at this point is mainly trying to plant seeds. We're trying to plant more seeds in more locations in more states with more providers, and they see our technology and they like it and they choose to add it to their portfolio or to select us. That could start with 100 units and grow to 500 units, 1,000 units and more. It depends which opportunity and which geography you're at.

我們透過經銷商和增值供應商了解縣級、州級的情況。有聯邦級的項目。目前我們在美國所做的主要是播種。我們正嘗試在更多州的更多地點與更多供應商合作，他們看到我們的技術並喜歡它，並選擇將其添加到他們的產品組合中或選擇我們。一開始可能只有 100 個單位，然後逐漸增加到 500 個單位、1,000 個單位甚至更多。這取決於你的機會和你所處的地理位置。

So for us to grow over the long term, it's important for us to plant our seed and our presence into as many places as possible. And together, over time, as we've seen, they use our technology. They like it more and more, and they expand and expand and expand.

因此，為了我們的長期發展，我們必須在盡可能多的地方播下我們的種子並發揮我們的存在。正如我們所見，隨著時間的推移，他們開始使用我們的技術。他們越來越喜歡它，並且不斷擴大它。

Our goal over the long term is to have larger projects and more numerous projects in many regions throughout the world, and that's by expanding our presence and by deploying our technologies and our capabilities into every region we've expanded in. And by deploying effectively, that's how you grow the programs. In the states -- to add on to that, in the states and the counties, it's a small niche industry. Everyone talks to one another.

我們的長期目標是在世界許多地區開展更大、更多的項目，這是透過擴大我們的影響力並將我們的技術和能力部署到我們擴張到的每個地區。透過有效部署，這就是發展專案的方式。在美國——更確切地說，在各州和各縣，這是一個小眾產業。每個人都互相交談。

So at the beginning in Europe was harder for us. We have projects that were Lithuania and Latvia, which were hundreds of thousands of dollars. Then we grew to projects of $7 million in Sweden or over $33 million in Romania. Similarly, in the US, we're still on the smaller size and as they get to see us and understand how well we perform, we get into larger projects, and it expands from word of mouth and the organic expansion becomes much more significant as we continue to deliver good results and good technology.

因此，一開始在歐洲對我們來說比較困難。我們在立陶宛和拉脫維亞有項目，價值數十萬美元。隨後，我們在瑞典的計畫規模擴大到 700 萬美元，在羅馬尼亞的計畫規模超過 3,300 萬美元。同樣，在美國，我們的規模仍然較小，但當他們看到我們並了解我們的表現時，我們就會參與更大的項目，並透過口耳相傳不斷擴大，隨著我們繼續提供良好的結果和良好的技術，有機擴張變得更加重要。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) Matthew Galinko.

（操作員指示）Matthew Galinko。

Thanks for taking my follow up question. I know we're, I think, watching the follow-on election in Romania to see sort of what the outcome is there. And I'm curious how you're looking at that. Is there a risk if it goes in one direction or the other? Or is there -- would you say the program is fairly popular across the political spectrum in that country?

感謝您回答我的後續問題。我知道我們正在關注羅馬尼亞的後續選舉，看看結果會如何。我很好奇你是如何看待這一點的。如果朝某個方向發展，是否有風險？或者——您是否認為該計劃在該國各個政治派別都相當受歡迎？

Can you repeat the last part? I just had a hard time hearing. You're asking about Romania and the political atmosphere there. But what was the second part of the question?

你能重複最後一部分嗎？我只是聽不清楚。您問的是羅馬尼亞及其政治氣氛。但問題的第二部分是什麼？

Yes. I guess, do you -- is your sense that there's support for the program regardless of the outcome of the election? And is it a fairly popular program in the country?

是的。我想，您是否認為無論選舉結果如何，該計劃都會得到支持？這個項目在國內是否比較受歡迎？

Yes. The program has actually been going very well, and the deployment has even -- has been faster than even expected. It's supported by the major parties. It's mandated by the EU. So there's EU directive to implement domestic violence there.

是的。該計劃實際上進展非常順利，部署甚至比預期的還要快。它得到了各主要政黨的支持。這是歐盟的授權。因此，歐盟指令在那裡實施家庭暴力。

They pretty much have to do it. The situation with the elections could impact various additional programs, but the existing program is going very well and is very much needed, and we see that from the responses from the customer.

他們幾乎必須這麼做。選舉情況可能會影響各種附加計劃，但現有計劃進展順利，而且非常必要，我們從客戶的反應中看到了這一點。

Got it. Thank you.

知道了。謝謝。

(Operator Instructions) [Dan Shaits], Private Investor.

(操作員指示)[Dan Shaits]，私人投資者。

Hey, can you guys hear me now? Sorry, I think I was on mute.

嘿，你們現在聽得到我說話嗎？抱歉，我想我剛才靜音了。

Yes, go ahead.

是的，請繼續。

Okay, great. Hey, Ordan, wonderful quarter, wonderful to see the gross profit and the margins increase and trending up. A couple of questions for you, one more strategically with the US market, what percentage of opportunities do you see SuperCom working through a reseller or service provider versus doing direct? Is it almost all through another agency, a service provider, or a reseller?

好的，太好了。嘿，奧爾丹，這是一個非常棒的季度，很高興看到毛利和利潤率不斷增加並呈上升趨勢。我問您幾個問題，其中一個是關於美國市場的戰略問題，您認為 SuperCom 透過經銷商或服務提供者開展業務的機會與直接開展業務的機會相比有多少比例？幾乎都是透過其他代理商、服務提供者或經銷商嗎？

It's a great question. And in the US, it's different from Europe. And because in Europe, there's different languages, different laws and it's -- you have to adapt to each location. We typically have a local provider that helps us, partnership, to handle all these different projects with the different environments. In the US, we're very familiar with the environment there.

這是一個很好的問題。美國的情況與歐洲不同。因為在歐洲，有不同的語言、不同的法律，所以你必須適應每個地方。我們通常會有一個本地供應商來幫助我們合作處理不同環境下的所有這些不同項目。在美國，我們非常熟悉那裡的環境。

It's all in English, and the programs run pretty similar, and they all run on the same cloud software. We typically bring in the value-added resellers when the customer is looking for also services, like human services, not just like technology services, like someone to meet the offender to put the bracelet on the offender, to check up on them. And what we see in the US is some of the larger counties and agencies and states, they have their own officers who run these programs, but the smaller ones, it's hard for them to understand the different technologies to stay up to date. So they outsource everything, also the services, the human services and also technology services.

它們全部都是英文的，程式運作起來也非常相似，而且都在同一個雲端軟體上運作。當客戶需要服務時，我們通常會引入加值經銷商，例如人工服務，而不僅僅是技術服務，例如有人與罪犯見面，為罪犯戴上手環，並對他們進行檢查。我們在美國看到的是，一些較大的縣、機構和州都有自己的官員來運行這些項目，但較小的機構很難了解不同的技術以保持最新狀態。因此，他們將一切外包，包括服務、人力服務和技術服務。

And then you see these value-added resellers aggregate them. That's what we saw in LCA when we did that acquisition in 2016. We got very close and understood the market from a very detailed matter on the different counties and the needs, and that's how we adopted our solution for the US, and we've been expanding also directly with many of our contracts. And also, we're now starting to expand also through value-added resellers.

然後你會看到這些加值經銷商將它們聚合在一起。這就是我們在 2016 年收購 LCA 時看到的情況。我們非常仔細地了解了不同國家和需求的市場，這就是我們為美國採用解決方案的方式，而且我們也透過許多合約直接擴大了業務。此外，我們現在也開始透過加值經銷商進行擴張。

But it's valuable to be able to offer so many different solutions, whether it's GPS or alcohol monitoring or house arrest or domestic violence and services if needed and so forth. That's how we open up the market and we are able to access a much bigger opportunity.

但能夠提供如此多不同的解決方案是很有價值的，無論是 GPS 還是酒精監控、軟禁還是家庭暴力以及必要時的服務等等。這就是我們開拓市場並獲得更大機會的方式。

Great. And if I can infer from your comments on this call and from a previous call that you guys are looking at possibly strategic acquisitions of additional service providers or some potential partnerships with other service providers that exist here in the US.

偉大的。如果我能從您在本次電話會議和先前電話會議中的評論推斷出，你們正在考慮對其他服務提供者進行策略性收購，或與美國現有的其他服務提供者建立潛在的合作夥伴關係。

Yes. We've done the deal in 2016. It worked very well for us. And we work -- we know the industry well, and we work with -- just recently, in the last year, we signed up five new service providers. And as we work with them and we see their operations, sometimes it's a great opportunity for acquisition because then they give you presence -- physical presence of personnel in that location.

是的。我們在 2016 年完成了這筆交易。它對我們來說非常有效。我們非常了解這個行業，我們與 5 家新的服務提供者合作。當我們與他們合作並了解他們的營運時，有時這是一個很好的收購機會，因為他們會給你提供人員在那個位置的實際存在。

And nothing like having persons there that are close to the government, customers that know of the RFPs coming out, that have good relationships and are able to offer more comprehensive solutions. Also, the synergies are almost immediate because all these companies, they procure their hardware and software technologies from vendors in the field.

沒有什麼比擁有與政府關係密切的人員、了解即將發布的 RFP 的客戶、與客戶保持良好關係並能夠提供更全面的解決方案更好的了。此外，協同效應幾乎是立竿見影的，因為所有這些公司都是從該領域的供應商購買硬體和軟體技術。

There's roughly 10 players in the field. And we would, upon acquisition, be able to replace to put our technology, so very nice synergies there off the bat. And also on top line, now that they have our technology, which usually scores very well in the competitive tenders, as you see, they're able to go to existing customers, offer more capabilities, better technology and also grow their top line.

場上大約有 10 名球員。收購完成後，我們就能替換掉我們的技術，從而從一開始就產生非常好的綜效。從營收角度來看，現在他們有了我們的技術，而且我們的技術通常在競爭性投標中得分很高，正如你所見，他們能夠面向現有客戶提供更多功能、更好的技術，同時還能增加營收。

So if the price is right, let's say, then there's some interesting opportunities there. And we look at that closely. And over time, we'll see if it makes sense to do that again like we did in 2016.

因此，如果價格合適，那麼就存在一些有趣的機會。我們對此進行了仔細的觀察。隨著時間的推移，我們將看看是否有必要像 2016 年那樣再次這樣做。

Great. And then I guess extending on that a little bit, it sounds like you recently did -- we raised some additional capital. We're sitting on a significant amount of cash on the books now that's -- and we've reduced our long-term debt. But that's now -- they're actually not too far apart from each other. If you looked at the long-term debt versus the cash on the books, we're only slightly negative, where previously, we had significant net debt. What are -- do you have specific plans?

偉大的。然後我想稍微延伸一下，聽起來你最近確實籌集了一些額外的資金。我們現在帳面上有大量現金——而且我們已經減少了長期債務。但現在——它們實際上彼此相距不太遠。如果你將長期債務與帳面現金進行比較，你會發現我們的負債僅略為負，而之前我們的淨負債卻相當可觀。有什麼具體計劃嗎？

We're also receiving. Sorry, I just want to say we're also receiving -- we're receiving interest on the cash, which is close to the level of interest that we're paying on the loans, which is also interesting. Yeah, but --

我們也收到了。抱歉，我只想說我們也收到了——我們收到了現金利息，這接近我們支付的貸款利息水平，這也很有趣。是的，但是--

Kind of offsetting each other.

有點互相抵消。

Yes.

是的。

Okay. Do you have specific plans with that cash for use? I'm assuming you do. Otherwise, you wouldn't have done that.

好的。您對於這筆現金有什麼具體的使用計畫嗎？我假設你會的。否則你就不會這麼做。

Yeah. Our plans with the cash balance is to allow for increases in working capital when we need them, projects like Romania and others that we're looking to and hopefully will win over time. Once you win it, you have a very short period of time to deploy tons and tons of units. And so it's hard in that process to go secure a loan or some other type of financing. You don't know exactly where the stock is going to be there at the time and where the market is going to be.

是的。我們對現金餘額的計劃是，在需要時增加營運資金，例如羅馬尼亞和其他我們正在考慮的項目，並希望這些項目能夠隨著時間的推移而成功。一旦你獲勝，你就只有很短的時間來部署大量的部隊。因此，在此過程中很難獲得貸款或其他類型的融資。你無法確切知道當時股票的價格以及市場價格。

So it's good to have that as we continue to see more and more demand from customers around the world. And we also -- the potential acquisitions is also something that we'd be able to implement more effectively with this cash balance. So it's both but in general, for strategic growth of the business and to be able to respond to various needs and changes as our relationships in the market evolve.

因此，我們很高興看到來自世界各地的客戶的需求日益增長。而且，我們也可以利用這些現金餘額更有效地實施潛在的收購。所以總的來說，這兩者都是為了業務的策略性成長，並且能夠隨著我們在市場中的關係的發展而回應各種需求和變化。

Okay. Makes perfect sense. One last thing. What is the -- if we're fully diluted, what's the fully diluted share count as of the end of the first quarter?

好的。非常有道理。最後一件事。如果我們完全稀釋，那麼截至第一季末的完全稀釋股份數量是多少？

Mr. Shaits, I don't have the exact number at the end of the first quarter, but we filed recently a filing to register all the warrants that we issued. And that had the count roughly 4.5 million.

謝茨先生，我沒有第一季末的確切數字，但我們最近提交了一份文件來登記我們發行的所有認股權證。這樣總數就大約是 450 萬了。

4.5 million?

450萬？

Okay, yeah, at the date of the filing. Yeah, just recently.

好的，是的，在提交申請之日。是的，就在最近。

Okay, that's -- I'll check that out. That's all I have.

好的，那是——我會檢查一下。這就是我所擁有的一切。

Okay, thank you.

好的，謝謝。

(Operator Instructions) And there were no other questions from the lines at this time. At this time, we'll pass the call back to Ordan for closing remarks.

（接線員指示）此時線路上沒有其他問題。現在，我們將把電話轉回給奧爾丹，請他作結束語。

I just want to update one thing on the last question. You asked about the fully diluted. The 4.5 million that we filed is more or less outstanding. The exact number is on filing. On top of that, there's additional 700,000 -- a little bit over 700,000 of warrants, and they're at a [13.50] exercise price. So the diluted will be the combination of both. Thank you.

我只想更新最後一個問題。您詢問的是完全稀釋的情況。我們提交的 450 萬美元或多或少尚未償還。確切數字已歸檔。除此之外，還有額外的 70 萬張 - 略多於 70 萬張的認股權證，行使價為 [13.50]。因此稀釋後將是兩者的結合。謝謝。

And there were no other questions at this time, Ordan. And Ordan, any further closing comments?

目前沒有其他問題，奧爾丹。Ordan，還有其他結束語嗎？

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

是的。就是這樣。我要感謝大家參加今天的電話會議以及對 SuperCom 的關注。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 at this time, and have a wonderful day. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開連接，並享受美好的一天。感謝您的參與。