Supercom Ltd (SPCB) 2026 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to SuperCom's first quarter 2026 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.

各位女士、先生，早安，歡迎參加 SuperCom 2026 年第一季財務業績與公司最新進展電話會議。[Operator Instructions] 請本次通話的與會者注意，本電話會議的音訊正透過網際網路進行即時直播，並同時錄音以供日後回放。與我一同出席 SuperCom 管理團隊的有 SuperCom 總裁兼執行長 Ordan Trabelsi。

I'd like to remind you that during this call, SuperCom management may be making forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results. Forward-looking statements involve risks, uncertainties and other factors that may cause SuperCom's actual results to differ materially from those statements. 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.

提醒各位，在本次通話期間，SuperCom 管理層可能會作出前瞻性陳述，包括涉及 SuperCom 對未來表現或營運結果之預期的陳述。前瞻性陳述涉及風險、不確定性及其他因素，可能導致 SuperCom 的實際結果與該等陳述存在重大差異。關於這些風險、不確定性及因素的更多資訊，請參閱 SuperCom 最近提交之 Form 20-F 與 Form 6-K 定期報告中所述的風險因素，以及隨本次通話一併發布的 SuperCom 新聞稿，特別是其中的警示性陳述。

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.

今天的電話會議包含 EBITDA 及非 GAAP 財務衡量指標，SuperCom 認為這些指標有助於評估其績效。您不應將此等補充資訊孤立看待，或視為依 GAAP 編製之結果的替代。關於該非 GAAP 財務衡量指標與淨損（可比較之 GAAP 財務衡量指標）之調節，請參閱隨本次通話一併發布之 SuperCom 財報新聞稿中的調節表。

Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, May 14, 2026. 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.

其他非 GAAP 財務衡量指標與可比較之 GAAP 財務衡量指標的調節亦可於該處取得。本次通話內容包含具時效性的資訊，僅於今日（2026 年 5 月 14 日）為準確。除法律要求外，SuperCom 不承擔任何公開更新或修訂任何資訊以反映本次通話後發生之事件或情況的義務。

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

現在很榮幸將電話會議交由 SuperCom 總裁兼執行長 Ordan Trabelsi。

Thank you, operator, and thank you, everyone, for joining today. Since we just had an earnings conference call 2 weeks ago, we're going to keep today's call shorter with a brief overview of the business financials and then open it up for Q&A. For those of you who are new to SuperCom, we provide electronic monitoring and public safety technology to local and national governments around the world.

謝謝主持人，也謝謝各位今天的參與。由於我們在兩週前才剛舉行過一次財報電話會議，今天我們將縮短會議時間，先簡要概述業務財務狀況，接著開放問答。對於初次認識 SuperCom 的朋友，我們為全球各地的地方與國家政府提供電子監控與公共安全科技。

For over 3 decades, we have partnered with national governments across the globe to deliver secure, scalable and innovative technology solutions. In recent years, our focus has shifted sharply towards criminal justice, where we leverage our proprietary PureSecurity product suite, where we invested over $45 million for offender electronic monitoring, including domestic violence prevention technology and alcohol detention through lightweight ankle braces with extraordinarily long battery life and other connected monitoring devices and capabilities.

三十多年來，我們與全球各國政府合作，提供安全、可擴展且具創新性的科技解決方案。近年來，我們的重心大幅轉向刑事司法領域，並運用我們的專有 PureSecurity 產品組合；我們已投入超過 4,500 萬美元於受監管者的電子監控，包括家暴防治技術與酒精拘禁（透過輕量化且具超長電池續航的腳踝電子腳環），以及其他連網監控裝置與能力。

Two weeks ago, we reported our financials for fiscal year 2025, which reflected the completion of a very successful four-year transformation, representing a compounded annual growth rate in revenues of approximately 30% in our electronic monitoring business and a CAGR of approximately 47% in company EBITDA, reaching an annual 2025 EBITDA level of $9.4 million from $2 million in 2021. We also reduced our debt in this period by approximately 45% and lowered our blended interest rate from double digits to slightly below 6% as well as increased our cash and short-term deposit balance to over $12 million.

兩週前，我們公布了 2025 會計年度財務結果，反映我們完成了一項非常成功的四年轉型：在電子監控業務方面，營收複合年成長率（CAGR）約 30%；公司 EBITDA 的 CAGR 約 47%，EBITDA 由 2021 年的 200 萬美元提升至 2025 年全年 940 萬美元。我們亦在此期間將負債降低約 45%，並將加權平均利率由兩位數降至略低於 6%；同時將現金與短期存款餘額提高至超過 1,200 萬美元。

Entering 2026, we are pleased to begin with record gross profit, record operating income and record EBITDA of $3.3 million for the first quarter of the year, reflecting continued execution across our business and the scalability of our recurring revenue model.

進入 2026 年，我們很高興以創紀錄的毛利、創紀錄的營業利益，以及第一季創紀錄的 EBITDA 330 萬美元作為開端，反映我們在各項業務上的持續執行力，以及經常性收入模式的可擴展性。

We continue expanding in Europe with two new national contracts, including a $17 million national contract for Sweden's Ministry of Justice. And at the same time, our US electronic monitoring technology annualized recurring revenue or ARR run rate has expanded by over 180% year-over-year from May 2025, reflecting the accelerated impact of a rapid deployment and expanding customer footprint across the United States.

我們持續在歐洲擴張，新增兩項國家級合約，其中包括與瑞典司法部簽訂的 1,700 萬美元國家級合約。同時，我們在美國的電子監控科技年化經常性收入（ARR）run rate 較 2025 年 5 月年增超過 180%，反映快速部署所帶來的加速效應，以及在美國各地持續擴大的客戶版圖。

Year-over-year financial highlights from our Q1 report compared to the same period last year are summarized as follows: Revenue increased 8% to $7.6 million from $7.05 million. Gross profit increased 8% to $4.8 million from $4.5 million, an over 10-year record. Gross margin remained robust at slightly above 63%. Operating income increased to $1.23 million from $1.21 million, another over 10-year record. Excluding the extraordinary financial gains of $4.1 million recorded in Q1 2025, our GAAP net income surged to $1.33 million in Q1 '26 from $0.1 million in Q1 2025. These gains are related to conversions of debt to equity and negotiated premium prices of up to $43 per share done in Q1 2025.

我們第一季報告相較去年同期的年增財務重點摘要如下：營收成長 8%，由 705 萬美元增至 760 萬美元。毛利成長 8%，由 450 萬美元增至 480 萬美元，創逾 10 年新高。毛利率維持強勁，略高於 63%。營業利益由 121 萬美元增至 123 萬美元，再創逾 10 年新高。若排除 2025 年第一季認列的 410 萬美元一次性（非經常性）財務收益，我們的 GAAP 淨利在 2026 年第一季由 2025 年第一季的 10 萬美元大幅躍升至 133 萬美元。該等收益與 2025 年第一季進行的債轉股及協商溢價（每股最高 43 美元）有關。

Excluding the extraordinary financial gains of $4.1 million recorded in Q1 '25, again, non-GAAP net income surged 155% to $2.78 million in Q1 '26 from $1.1 million in Q1 '25. EBITDA increased 32% to $3.34 million from $2.53 million, another over 10-year record. GAAP EPS was roughly $0.24. Non-GAAP EPS was $0.61. Cash and cash equivalents increased to roughly $11 million and book value of equity increased to $45.6 million from $43.5 million at the end of 2025.

再次強調，若排除 2025 年第一季認列的 410 萬美元一次性財務收益，非 GAAP 淨利在 2026 年第一季年增 155%，由 2025 年第一季的 110 萬美元增至 278 萬美元。EBITDA 成長 32%，由 253 萬美元增至 334 萬美元，再創逾 10 年新高。GAAP 每股盈餘（EPS）約為 0.24 美元；非 GAAP EPS 為 0.61 美元。現金及約當現金增加至約 1,100 萬美元，股東權益帳面價值由 2025 年底的 4,350 萬美元增至 4,560 萬美元。

As you've noticed, significant improvements in profitability. I want to give a brief -- some more color on the -- what's driving this profitability. Beyond the clear benefits from economies of scale and operating leverage, our improvements in profitability are being driven also by the following: Firstly, consolidation activities in Europe. As you know, our projects in Europe are in many different countries. And historically, we team up with a local partner who would handle the training, the language, the on-country presence, the deployment on on-premise services and others. And we continue to consolidate and centralize our operations in Europe.

如各位所見，獲利能力顯著改善。我想簡要補充一些背景，說明是什麼在推動這些獲利提升。除了規模經濟與營運槓桿帶來的明顯效益外，我們的獲利改善亦由以下因素驅動：第一，歐洲的整併活動。如各位所知，我們在歐洲的專案分布於多個不同國家。過去我們通常與當地合作夥伴合作，由其負責訓練、語言、在地人員配置、專案部署的地端（on-premise）服務等。我們正持續在歐洲推動營運整併與集中化。

We established a central European hub in Romania for logistics, equipment handling, shipments and RMA. We're also expanding our scope by taking over more IT and more support responsibilities directly, reducing our reliance on local partners and improving our margins. We now provide also our own 24/7 multi-sphere technology support across projects, centralizing these functions is significantly improving margins across contracts.

我們在羅馬尼亞建立了歐洲中央樞紐，負責物流、設備處理、出貨與 RMA（退貨授權）。我們也透過直接承接更多 IT 與支援責任來擴大範疇，降低對當地合作夥伴的依賴並改善毛利。我們現在亦在各專案中提供自有的 24/7 多領域技術支援；將這些職能集中化，正顯著提升各合約的毛利。

We're also leveraging AI to accelerate development, introduce new automations, improve operational efficiency and reduce costs across development and customer operations. Our new products and technology advances can reduce costs dramatically given improved architectures requiring less labor in replacement, support and other processes that overhead the cost for our business.

我們也運用 AI 加速開發、導入新的自動化、提升營運效率，並降低開發與客戶營運的成本。我們的新產品與技術進展，透過更佳的架構、在更換、支援及其他流程上所需人力更少，可大幅降低成本，而這些流程原本會構成我們業務的間接成本負擔。

And our expansion to the US The expansion in the US market is in itself an improvement to profitability because everything is centralized to the cloud in English and usually consisting of simple product mix as opposed to Europe, which has a lot of different products, project deployment and language complexities in the national projects. As we enter and grow US electronic monitoring technology revenues, more profitability is expected to improve.

以及我們在美國的擴張。美國市場的擴張本身也能提升獲利能力，因為一切都集中於雲端、以英文運作，且產品組合通常較為單純；相較之下，歐洲的國家級專案涉及多種不同產品、專案部署與語言複雜度。隨著我們切入並擴大美國電子監控科技營收，預期獲利能力將進一步提升。

Our US growth and expansion was one of the central developments in recent years. Since mid-2024, we have signed more than 40 new electronic monitoring contracts, entered 16 new states and built 17 new service provider partnerships. There is an inherent lag between the contract signing and revenue recognition.

我們在美國的成長與擴張是近年來的核心發展之一。自 2024 年年中以來，我們已簽署超過 40 份新的電子監控合約，進入 16 個新州，並建立 17 個新的服務供應商合作夥伴關係。合約簽署與營收認列之間存在固有的時間落差。

In some of these contracts, it takes up to 6 months or more to fully deploy since they have to swap out their existing units and this could take time. Sometimes they just swap out organically to avoid the installer overhead such that every new offender is put on SuperCom technology and as existing offenders end their monitoring terms, the incumbent provider's tech is returned and replaced by SuperCom's technology for the next offender with the same unit.

在其中一些合約中，由於他們必須汰換既有設備，完整部署可能需要長達 6 個月或更久，這可能需要時間。有時他們會採取自然汰換以避免安裝人力成本，也就是每位新受監控者都改用 SuperCom 技術；而當既有受監控者的監控期限結束時，原供應商的設備會被回收，並由 SuperCom 的技術替換，供下一位使用同一設備的受監控者使用。

Hence, when we announced new projects in 2024, or 2025, there's a lag until you see it. And in 2026 in Q1, we've seen this nice growth in ARR, which continues to improve as the months go by in the year. We're experiencing acceleration in our expansion numbers here. Our SuperCom electronic monitoring technology quarterly recurring revenues for the first quarter in the US increased approximately 88% for the whole first quarter, while as of May 2026, the annualized recurring revenue run rate grew by over 180% compared to May of 2025.

因此，當我們在 2024 年或 2025 年宣布新專案時，會有一段時間落差，直到你在數字上看到成果。而在 2026 年第一季，我們看到 ARR 出現良好的成長，且隨著年度月份推進持續改善。我們在此的擴張數據正呈現加速。我們 SuperCom 電子監控技術在美國第一季的季度經常性收入於整個第一季約增加 88%；而截至 2026 年 5 月，年化經常性收入（ARR）執行率相較於 2025 年 5 月成長超過 180%。

As you may have noticed, the majority of our revenues are still coming from the EMEA region, Europe, Israel. And a lot of our projects there are from the over 15 national project wins that we have announced in recent years. They provide a strong base for continued growth. And with an active and growing pipeline of meaningful opportunities, customer relationships are very sticky.

如你可能已注意到，我們的大部分營收仍來自 EMEA 地區，也就是歐洲與以色列。而我們在那裡的許多專案，來自近年來我們宣布贏得的超過 15 個國家級專案。它們為持續成長提供了強勁基礎。並且在一個活躍且持續成長、具實質意義機會的案源管線支持下，客戶關係非常黏著。

And our expansion, we displaced very long-term incumbents such as a 25-year incumbent in Sweden and over 20-year incumbents in Israel and Germany and also successfully entered brand-new EM countries like Romania, where we won the country's first electronic monitoring contract with an initial value of over $33 million in 2022.

在我們的擴張中，我們取代了非常長期的既有供應商，例如瑞典 25 年的既有供應商，以及以色列與德國超過 20 年的既有供應商；同時也成功進入全新的電子監控（EM）國家，例如羅馬尼亞，我們於 2022 年贏得該國第一份電子監控合約，初始價值超過 3,300 萬美元。

In Sweden, we recently won national project with initial value of over $17 million with substantial opportunity for expansion beyond that. This brings us over $25 million in aggregate initial value of contracts we won in Sweden in electronic monitoring. Several years back, we started off with projects of $100,000 in Lithuania and Latvia.

在瑞典，我們近期贏得一個國家級專案，初始價值超過 1,700 萬美元，且在此之上仍有可觀的擴張機會。這使我們在瑞典電子監控領域所贏得合約的初始價值合計超過 2,500 萬美元。幾年前，我們在立陶宛與拉脫維亞是從 10 萬美元的專案起步。

And since then, we've been growing in scale to $3.6 million in Finland, another $7 million in Sweden, another $17 million in Sweden, $33 million in Romania. As we grow up the ladder, we hope to win larger and larger opportunities. And we know that in the market, there are many out there, including an opportunity that we're expecting to come up in Italy for expected over $20 million and opportunity over GBP 150 million expected to come out as the initial RFP sometime in 2027.

自那之後，我們的規模成長至芬蘭 360 萬美元、瑞典另外 700 萬美元、瑞典再另外 1,700 萬美元、羅馬尼亞 3,300 萬美元。隨著我們逐步往上，我們希望能贏得越來越大的機會。我們也知道市場上還有許多機會，包括我們預期義大利將出現一個預估超過 2,000 萬美元的機會，以及一個預期超過 1.5 億英鎊的機會，預計在 2027 年某個時間以初始 RFP 的形式釋出。

With that, I'd like to turn the call over to operator for any questions from our participants at this time.

接下來，我想把電話會議交給接線員，讓參與者此時提出任何問題。

(Operator Instructions)

（接線員指示）

Matthew Galinko, Maxim Group.

Matthew Galinko，Maxim Group。

Hey, thanks for taking my questions. Maybe firstly, can you expand a little bit on what the competitive environment looks like today and winning clearly a lot in the US and Europe. So are you seeing anybody new? Or can you go over what's supporting your ability to win these greenfield opportunities and displace the incumbents?

嗨，謝謝讓我提問。首先，也許你能多談一點目前的競爭環境是什麼樣子，你們顯然在美國與歐洲贏得了很多案子。所以你們有看到任何新進者嗎？或者你能說明一下，是什麼在支撐你們贏得這些綠地（greenfield）機會並取代既有供應商？

Hey Matthew, great question. We just announced 4 new county wins, contracts in New York. We displaced 3 incumbents. These are established industry veterans. There's still roughly 10 players in the industry globally. There's high barriers to entry. You can't enter if you haven't shown experience and references for 5, 10 years in the industry. So that keeps the industry kind of barrier even though it continues to grow.

嗨 Matthew，這是個很好的問題。我們剛宣布在紐約贏得 4 個新的郡（county）合約。我們取代了 3 家既有供應商。這些都是業界資深的老牌業者。全球大約仍有 10 家業者。進入門檻很高；如果你沒有在這個產業 5 年、10 年的經驗與參考案例，你就無法進入。因此即使產業持續成長，這仍使得產業存在某種進入障礙。

We displaced three different incumbents. And usually, we score much higher in technology. In Europe, we were doing this on a national level with long-term evaluation processes, which took months and months. And in the US, a lot of it is through live demos and trials. They take our equipment, they run it, they compare it to what they have. And as you saw, we had 100% conversion in these four opportunities that we faced in New York and many others around the US, we have very high conversion rates. And we believe it's because of our technology and our good track record.

我們取代了三家不同的既有供應商。而通常我們在技術面得分高出許多。在歐洲，我們是在國家層級透過長期的評選流程來做到這點，流程往往耗時數月又數月。在美國，很多是透過現場展示與試用。他們拿我們的設備去運行，並與他們現有的設備比較。正如你所見，我們在紐約面對的這四個機會中達到 100% 的轉換率；在美國各地的許多其他案子中，我們也有非常高的轉換率。我們相信這是因為我們的技術與良好的實績。

In New York, for example, we had an initial county give very strong references to these four new counties. So we're doing good work, good deployments. Those references are coming to new customers, and that together with the trial demos and the technology capabilities are helping us to win new projects in the US and in Europe. And I remind you that in Europe, we had over 65% win rate in RFPs. In the US, in a lot of these direct counties, we're even seeing higher numbers than that. And it's still early on. We'll see how this rolls out for the rest of our expansion into the US market.

以紐約為例，我們先前的一個郡提供了非常強的推薦給這四個新郡。因此我們做得很好、部署也很到位。這些推薦帶來新客戶；再加上試用展示與技術能力，正幫助我們在美國與歐洲贏得新專案。我也提醒你，在歐洲我們在 RFP 的得標率超過 65%。在美國，許多這類直接面向郡的案子，我們甚至看到比那更高的數字。而這仍在早期階段。我們將觀察這在我們後續擴張美國市場的過程中如何發展。

Thanks. And then I think you shared a 180% growth rate in ARR for the US market. Can you just mention whether that includes or excludes services delivered by LCA? Or is that purely from the new initiative in the US.

謝謝。接著我想你提到美國市場 ARR 成長率 180%。你能否說明那是否包含或不包含由 LCA 提供的服務？還是那純粹來自你們在美國的新計畫？

So it's a great question. And in the US, as you might remember, we have a lot of our revenues coming from California from our LCA business. What's new in the recent year, 1.5 years is us providing our PureSecurity technology to customers in the US and these increases in ARR numbers are of that technology. So SuperCom's ARR technology and SuperCom's electronic monitoring technology, they are not the recurring revenues at LCA, which have been running for many years, which include a lot of services as well. This is only for EM technology.

這是個很好的問題。在美國，如你可能記得，我們有相當多的營收來自加州的 LCA 業務。過去一年到一年半的新變化，是我們向美國客戶提供 PureSecurity 技術，而這些 ARR 的成長數字就是來自該技術。因此是 SuperCom 的 ARR 技術與 SuperCom 的電子監控技術；它們不是 LCA 那些已運行多年的經常性收入（其中也包含許多服務）。這裡僅指 EM 技術。

Yeah. Okay, I appreciate that. That's helpful. And then maybe one last question for me, and then I'll jump back in the queue. You highlighted a couple of the large European national programs that are coming up for bid. Can you talk about how SuperCom is maybe positioned differently from the last time these programs were up for bid? And do you think you have a stronger chance of winning them this time around?

了解。好的，我很感謝，這很有幫助。最後也許再問一個問題，然後我就回到排隊序列。你提到幾個即將招標的大型歐洲國家級計畫。你能談談 SuperCom 相較於上一次這些計畫招標時，現在的定位有何不同嗎？你認為這次你們贏得它們的機會更大嗎？

It's a great question. So in England, the project is very large. As I said before, we're expecting it to come out next year, a very large budget. In the past, we competed for this, and we didn't win first place, even though we did do well on a lot of the scoring. Some of the things that we dealt with was our weak balance sheet and financial position and low references.

這是個很好的問題。英格蘭的專案非常大。如我先前所說，我們預期它會在明年釋出，預算非常可觀。過去我們曾參與競標，但我們沒有拿到第一名，儘管在許多評分項目上表現不錯。我們當時面臨的一些問題是資產負債表較弱、財務狀況較弱，以及參考案例較少。

So back then, we had less references and also other vendors tried to point to the fact that the company had maybe only a few million dollars of cash, a market cap of $4 million, a lot of debt, high interest rates and the stability of the company was that question. Today, our balance sheet is much stronger. We have a much larger reference base. The company is much more stable. We have a lot of cash on hand. I think they'll make it much easier this time around with that England opportunity.

當時我們的參考案例較少，且其他供應商也試圖指出公司可能只有幾百萬美元現金、市值 400 萬美元、負債很多、利率很高，公司的穩定性因此受到質疑。今天，我們的資產負債表強健得多。我們的參考案例基礎大幅擴大。公司也更穩定。手上有大量現金。我認為這些因素將使我們這次在英格蘭機會上的競標容易得多。

And there's many other ones, like we said, Italy and other countries we haven't entered yet. But as we continue to deploy more projects in Europe, we not only continue to deploy more projects in those regions like we saw in Sweden, it's the first contract already, but we also increase our opportunity and our capability to win other projects in other regions in Europe, similarly, as we're going to be seeing in the US as well.

而且還有許多其他國家，如我們所說的義大利以及其他我們尚未進入的國家。但隨著我們在歐洲持續部署更多專案，我們不僅會在那些地區持續部署更多專案——就像我們在瑞典看到的，那已經是第一份合約——同時也會提升我們在歐洲其他地區贏得其他專案的機會與能力；同樣地，這也將會在美國發生，我們也將會看到。

(Operator Instructions)

（接線員指示）

Greg Mesniaeff, Kingswood Capital.

Greg Mesniaeff，Kingswood Capital。

Thank you. Hi, Ordan. Two quick questions. Can you share with us the percentage of your revenues in the first quarter that came from the US and how that has trended versus last year?

謝謝。嗨，Ordan。兩個簡短問題。你能否與我們分享第一季營收中來自美國的比例，以及相較去年這個趨勢如何？

I don't have the exact percentages, but it's been similar to what you see on the annual report. The US is still much smaller than Europe because of the project size, but the numbers coming from the SuperCom technology are growing very fast, and that -- if that growth continues, of course, the US will be much more substantial. And we expect over time, the US to actually grow past Europe because the market in the US is $1.8 billion by 2028 compared to $300 million in Europe.

我沒有確切的百分比，但大致與你在年報中看到的相近。由於專案規模的關係，美國目前仍遠小於歐洲；但來自 SuperCom 技術的數字成長非常快，而——如果這種成長持續下去，當然，美國將會變得更為重要。我們也預期隨著時間推移，美國實際上會成長到超過歐洲，因為美國市場到 2028 年將達 18 億美元，而歐洲約為 3 億美元。

Great. And can you give us an update on the Romania situation?

很好。那你能否更新一下羅馬尼亞的情況？

Can you elaborate when you say on the Romania situation?

你說羅馬尼亞的情況時，能否再具體說明一下？

Well, you had quite a bit of business there. And is that still continuing at the same run rate? Or has it slowed down temporarily? Or like what's the-

嗯，你們在那裡有相當多的業務。那目前是否仍以相同的運行速度持續？還是暫時放緩了？或者像是——

Okay. Great. Great. So we won the Romania project in 2022 over $33 million. And like in many projects, when we do good work, the deployment is faster than originally expected, and they deployed relatively fast and ordered a lot of units. Last year, there was a decline from that specific customer, and we described that without that decline, the growth last year would have been approximately 40% for the business because of everything else that was happening.

好的。很好，很好。所以我們在 2022 年贏得了羅馬尼亞專案，金額超過 3,300 萬美元。就像許多專案一樣，當我們做得好時，部署速度會比原先預期更快；他們部署得相對快，也訂購了大量設備。去年，來自該特定客戶的業務有所下滑；我們也說明過，如果沒有那個下滑，因為其他所有事情的推動，去年整體業務成長本來約可達 40%。

Romania this year continues to work. We're getting new orders right now, and we'll see what size those orders will come out for the year. But it's still active customers of ours and satisfied customer. The ordering levels can move around based on their own needs.

羅馬尼亞今年仍在持續運作。我們現在正在收到新的訂單，至於今年這些訂單的規模會是多少，我們還要再看。但他們仍是我們的活躍客戶，也是滿意的客戶。訂購量會依他們自身需求而有所波動。

But like we've seen with any other customers that we -- either we displaced or that we have for many years, once you have a customer, they stay if you're doing a good job, they stay with you for a very long time and continue to order more units and add more programs and more capabilities. So right now, we have been receiving orders from Romania, and we're supplying them as we speak. We're working on supplying those orders.

但就像我們在其他任何客戶身上看到的——無論是我們取代了原供應商的客戶，或是我們合作多年的客戶——一旦你擁有客戶，只要你做得好，他們就會長期與你合作，並持續訂購更多設備、增加更多方案與更多功能。因此目前我們一直在收到來自羅馬尼亞的訂單，我們也正在供貨。我們正在處理並供應這些訂單。

And Ordan, when you get follow-on orders, I'm assuming the margin profile is better. Is that right?

Ordan，當你們拿到後續追加訂單時，我假設毛利結構會更好。是這樣嗎？

Yes, it's a great point. As we progress -- within any project, as we progress further and further, the margins are better. And a lot of the projects we have today are later stage, and that's why you're seeing improved profitability in general. But at the beginning, you have a lot of training and installations and development and adjustments and slowly in the server farms and then afterwards, just additional units with high contribution margins.

是的，這點說得很好。隨著我們在任何專案中——進展越來越深入，毛利會更好。我們目前很多專案都處於較後期階段，這也是你看到整體獲利能力改善的原因。但在一開始，你會有大量的培訓、安裝、開發與調整，並逐步建置伺服器機房；之後則主要是追加設備，且具有很高的貢獻毛利。

And that's why it's so interesting in the US market because in a way, it's one deployment on the cloud in English. And even those different counties and different regions, it's all on the same platform and has a higher gross margin, and it's all charged per unit per day. And in essence, it's easier to track in a consistent manner. It's much more diversified. And so we're very excited about the expansion to the US

這也是為什麼美國市場如此有趣，因為某種程度上，它是在雲端以英文進行的一次性部署。即便是不同郡、不同地區，也都在同一平台上，且毛利率更高，並且是按每台設備每天計費。本質上，更容易以一致的方式追蹤，也更加分散。因此我們對於拓展到美國感到非常興奮。

Got it.

了解。

Thanks, Ordan.

謝謝你，Ordan。

Thank you.

謝謝。

And that does conclude our Q&A session today. At this time, I will pass the call back to Ordan for closing remarks.

那麼，今天的問答環節到此結束。此時我將把電話交回 Ordan 作結語。

Okay. Please pause. We just got a couple of more questions in. The next question is coming from Song Lim from Sapience Investments.

好的。請稍等。我們剛又收到幾個問題。下一個問題來自 Sapience Investments 的 Song Lim。

Hi, Ordan. Thanks for taking my call. Given the AI, how AI has been impacting the tech industry, could you give us more color on how that impacted your company and your industry?

嗨，Ordan。謝謝接聽。鑑於 AI 以及 AI 對科技產業的影響，你能否更詳細說明這對你們公司與你們產業造成了哪些影響？

Right. So we did -- I did share on the prepared remarks that we're using AI also in our ongoing operations and development, logistics and our processes to help improve profitability. But also, we've been integrating AI into our technology offerings, and that's at various stages in its life cycle. We gave one update a couple of years back, and we plan to give another update on this. But that's also something that through our offerings, we plan to also leverage the power of AI for some meaningful things, and we'll give future updates on that.

好的。所以我們確實——我在事先準備的發言中也分享過，我們也在持續營運與開發、物流以及流程中使用 AI，以協助提升獲利能力。同時，我們也一直在把 AI 整合進我們的技術產品中，而這在其生命週期的不同階段。我們在幾年前提供過一次更新，也計畫再提供一次更新。但這也是我們計畫透過產品，去運用 AI 的力量做一些有意義的事情；我們未來會再更新。

And I noticed that I only have annual figures for your free cash flow or your cash flow numbers. Could you -- but not on a quarterly basis. And I've realized that in the past couple of financial years, free cash flow has been negative, and I think operating cash flow as well. Could you give us more color on that with cash flows going forward?

我注意到我只有你們自由現金流或現金流量的年度數字，但沒有季度數字。而且我發現過去幾個財年，自由現金流是負的，我想營運現金流也是。你能否就未來的現金流走勢提供更多說明？

Yes. Regarding cash flows, we -- it depends on the mix of projects. You see, when we have projects like Romania producing the majority of the revenues because of the nature of purchase there, higher cash flows, but margins are lower than other projects like in the US where it's recurring revenue and you're manufacturing more and receiving cash over time. So there's a mix. And based on the revenue mix, you'll see a shift in cash use and profitability margins.

可以。關於現金流，我們——這取決於專案組合。你看，當我們有像羅馬尼亞這樣的專案、因其採購性質而貢獻了大部分營收時，現金流會更高，但毛利會低於像美國那樣的其他專案；美國是經常性收入，你需要製造更多，並隨時間逐步收款。所以這之間有組合差異。根據營收組合，你會看到現金使用與獲利毛利率的變化。

(Operator Instructions)

（接線員指示）

Okay, and there were no other questions at this time. At this time, I'll hand the call back to Gordon for closing remarks.

好的，目前沒有其他問題。此時我將把電話交回 Gordon 作結語。

Thank you, operator. I want to thank all of you also for participating in today's call and for your interest in SuperCom. We look forward to sharing our progress on our next conference call, filings and press releases. Thank you very much, and have a good day.

謝謝你，接線員。我也要感謝各位參與今天的電話會議，以及對 SuperCom 的關注。我們期待在下一次電話會議、申報文件與新聞稿中與各位分享我們的進展。非常感謝，祝各位有美好的一天。

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

謝謝。今天的會議到此結束。各位現在可以掛線。祝各位有美好的一天。感謝各位的參與。