HERZLIYA, Israel, March 19, 2013 /PRNewswire/ --

SuperCom Ltd (OTC: SPCBF), a leading provider of e-ID, Security, HealthCare, Homecare, and Electronic Monitoring Solutions, today announced its results for the fourth quarter and FY 2011 ended December 31, 2012.  

Financial Highlights for the FY 2012vs. FY 2011

• Revenues increased 13% to $8.94 million, compared to  $7.92 million;

• Gross Profit increased 59% to $7.3 million, compared to $4.6 million;  

• Gross Profit Margin increased to 82%, compared to 58%;

• Operating expenses increased 14% to $5.3 million, compared to $4.6 million;

• Operating income increased substantially to $2 million, compared to $54 thousand;

• Net Income increased by over 4 times, to $4.8 million, compared to $1 million;

Financial Highlights for the 4Q 2012vs.  4Q 2011

• Revenues increased 65% to $3.2 million, compared to  $1.9 million;

• Gross Profit increased 280% to $3.2 million, compared to $1.1 million;  

• Operating expenses increased 36% to $2.6 million, compared to $1.9 million;

• Operating income increased to $580 thousand, compared to a loss of $727 thousand;

• Net Income increased 55% to $1.55 million, compared to $1 million;

"We are very pleased with our performance in 2012, which was a fantastic turnaround year for us, our growth in revenue, our strong and steady profitability approaching 23% Operating Margin with operating income of $2.0 million , was a key milestone for SuperCom." commented Arie Trabelsi, CEO of SuperCom. "We are optimistic with our ability to continually build on this progress within four of the most dynamic industries in the world, as we focus on delivering value for our customers, employees and shareholders."

"In comparison to last year, we successfully expanded our gross profit margin and significantly reduced our operating expenses by implementing our restructuring plan," Mr. Trabelsi added. "These efforts positions us well to complete our process to increase our financial strength, putting us on the right path to achieve our business goals in becoming a key global player in the rapidly growing national e-ID, Electronic Monitoring for law enforcement, homecare, and healthcare arena."

  Operational Highlights for 2012

• The Company has broadened its activities. It is now providing solutions for the national electronic-ID market, electronic monitoring for law enforcement, and homecare and healthcare markets, using its proprietary RFID and Mobile technology platform;

• Increased activities in the national electronic-ID market, while populating the e-ID division with outstanding e-ID, System Architects, Sales & Marketing Experts - putting together hundreds of man-years of national ID and e-ID experience into one superior e-ID Team;

• Expanded its activities into the Community Electronics Monitoring market, creating an AM Team with outstanding and experienced executives in Law Enforcement AM, System Architecture, Mobile, Software and Sales & Marketing;

• Expanded the Company's R&D capabilities with world-class R&D experts in the area of Digital, RF, Mobile, Embedded, GUI, and Web - developing the cutting edge products and technologies;

• Enriched and expanded the capabilities of the company's PureRF™ Suite- an RFID and Mobile hardware-software hybrid tracking and monitoring platform;

"I am proud to launch the new Supercom, our new streamlined and focused structure allows us to better target lucrative and growing vertical markets", Mr. Trabelsi added. "We have also brought on board many new and highly experienced executives and market experts to support our broadening activity. Supercom today is in the strongest position it has ever been, and we look forward to continuing to unleash our potential in 2013. "

Conference Call

The Company will host a conference call today at 11:00 am EDT. To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call:

US: +1-888-668-9141 at 11:00 am Eastern Time
Israel: 03-918-0685 at 5:00 pm Israel Time

International:    +972 3 918 0685

A replay will be available on the Company's website on the day following the call.

About SuperCom

Since 1988, SuperCom has been a leading global provider of traditional & digital identity solutions, providing advanced safety, identification and security products and solutions, to Governments, private and public organizations throughout the world.  SuperCom has been inspiring governments and national agencies, to design and issue secured Multi-ID documents and robust digital identity solutions to its citizen and visitors, using SuperCom e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services.  SuperCom features a unique all-in-one field-proven RFID & mobile technology and products, accompanied with advanced complementary services for the healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, building and access automation and more.

SuperCom's website is http://www.supercom.com  

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by the Company. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements arising from the annual audit by management and the Company's independent auditors. The Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

                                                               December 31,
                                                            2012        2011
    ASSETS

    CURRENT ASSETS:
    Cash and cash equivalents                               $ 225       $ 215
    Trade receivables (net of allowance for doubtful
    accounts of $ 1,686
    and $ 134 as of December 31, 2012 and 2011,
    respectively)                                           1,598       1,542
    Deferred tax short term                                   516          -
    Other accounts receivable and prepaid expenses            311         105
    Inventories, net                                          280         269

    Total current assets                                    2,930       2,131

    SEVERANCE PAY FUND                                        203         228
    Deferred tax long term                                    517           -

    PROPERTY AND EQUIPMENT, NET                                93          96

    Total assets                                          $ 3,743     $ 2,455

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share data

                                                             December 31,
                                                           2012         2011
    LIABILITIES AND SHAREHOLDERS'

    CURRENT LIABILITIES:
    Short-term bank credit                               $ 101        $ 112
    Trade payables                                       1,780        2,439
    Employees and payroll accruals                         138          139
    Accrued expenses and other liabilities                 777        2,164
    Convertible bonds                                        -        2,519
    Short-term loan and others                               -          456

    Total current liabilities                            2,796        7,829

    LONG-TERM LIABILITIES:

    Accrued severance pay                                  236          227

    Total long-term liabilities                            236          227

    COMMITMENTS AND CONTINGENT LIABILITIES

    SHAREHOLDERS':
    Share capital:

    Ordinary shares of NIS 0.0588235 par value -
    Authorized 52,000,000 shares as of December 31,
    2012;
    Issued and outstanding: 36,769,757 and 12,035,272
    shares as of December 31, 2012 and 2011,
    respectively                                           574          192
    Additional paid-in capital                          43,518       41,713
    Amount of liability extinguished on account of
    shares                                                 127          819
    Accumulated deficit                                (43,508)     (48,325)

    Total shareholders' equity (deficiency)                711       (5,601)

    Total liabilities and shareholders'                $ 3,743      $ 2,455

                                                      Year ended

                                                     December 31,
                                            2012          2011         2010

    Revenues                             $ 8,940       $ 7,922       $ 7,389
    Cost of revenues                       1,619         3,306         2,057
    Gross profit                           7,321         4,616         5,332

    Operating expenses:
    Research and development                 313           462           386
    Selling and marketing                  3,060         3,505         4,405
    General and administrative               857           732         1,985
    Other (income) expenses                1,085          (137)         (396)
    Total operating expenses               5,315         4,562         6,380

    Operating (loss) income                2,006            54        (1,048)
    Financial (expenses) income, net       1,805           990          (678)

    Income (loss) before income tax        3,811         1,044        (1,726)
    Income tax                             1,006           (25)          (50)

    Net income (loss) from continuing
    operations                             4,817         1,019        (1,776)
    Loss from discontinued operations          -             -          (189)

    Net income (loss)                    $ 4,817       $ 1,019      $ (1,965)

    Earnings (loss) per share from
    continuing operations:
    Basic                                 $ 0.18        $ 0.11       $ (0.29)
    Diluted                               $ 0.13        $ 0.09       $ (0.29)

    Loss per share from discontinued
    operations basic and diluted:              -             -       $ (0.03)

    Net earnings (loss) per share:
    Basic                                 $ 0.18        $ 0.11       $ (0.32)
    Diluted                               $ 0.13        $ 0.09       $ (0.32)

    Weighted average number of ordinary
    shares used in computing basic
    earnings (loss) per share         27,475,448     9,126,327     6,177,862
    Weighted average number of ordinary
    shares used in computing diluted
    earnings (loss) per share         34,664,459    11,710,254     6,177,862

                                      3 months ended           3 months ended
                                          Dec-31                   Sep-30
                                  2012             2011        2012     2011
                                   U.S. dollars in thousands, except share data

    REVENUES                       3,214          1,942       1,786       1,942
    COST OF REVENUES                  (2)           800         489         735

    GROSS PROFIT                   3,216          1,142       1,297       1,207
    OPERATING EXPENSES:
    Research and development          98             90          73          92
    Selling and marketing          1,073            884         523         907
    General and administrative       193            111         173         170
    Other (income) expense         1,272            784           -           -
    Total operating expenses       2,636          1,869         769       1,169

    OPERATING (LOSS) INCOME          580           (727)        528          38
    FINANCIAL (EXPENSES)
    INCOME , NET                     (54)         1,734         (13)       (259)
    INCOME BEFORE INCOME TAX         526          1,007         515        (221)

    INCOME TAX                     1,024             (2)         (5)         (9)
    NET INCOME (LOSS) FROM
    CONTINUING OPERATIONS          1,550          1,005         510        (230)
    LOSS FROM DISCONTINUED
    OPERATIONS                         -              -           -           -

    NET INCOME (LOSS) FOR THE
    PERIOD                         1,550          1,005         510        (230)

    NET INCOME (LOSS) PER
    SHARE:
    Basic                           0.04           0.08        0.02       (0.02)
    Diluted                         0.04           0.07        0.02       (0.02)

    Weighted average number of
    ordinary shares used in
    computing basic income
    (loss) per share             35,932,478  12,027,005  22,265,685   9,807,753

    Weighted average number of
    ordinary shares used in
    computing diluted income
    (loss) per share             40,703,682  15,300,482  26,299,289   9,807,753

Corporate relations Contacts:
Taly Gudovich
Corporate Relations, SuperCom Ltd.
Tel: +972-9-889-0850
taly@supercom.com

Investor Relations Contacts:
Ehud Helft & Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
supercom@ccgisrael.com

SOURCE SuperCom Ltd.