SuperCom Secures New Contract in Virginia, Rapid U.S. Expansion Continues

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has secured a new electronic monitoring contract in Virginia, marking its 9th new U.S. state entry since mid-2024. The company will deploy its PureSecurity Electronic Monitoring technology, displacing an incumbent vendor after successfully demonstrating superior performance. This expansion follows SuperCom's strong Q1 2025 financial results, which showed record quarterly net income of $4.2 million and gross margins of 63.3%. The agreement involves transitioning the provider's current GPS electronic monitoring program to SuperCom's PureOne™ GPS tracking technology, with potential for future statewide expansion. The company will serve as the primary technology partner in Virginia, supporting both current operations and future growth opportunities.

Positive

• Record quarterly net income of $4.2 million in Q1 2025
• Strong gross margins of 63.3% in Q1 2025
• Successful expansion into 9 new U.S. states since mid-2024
• Displacement of incumbent vendor demonstrates competitive advantage
• Potential for future statewide expansion in Virginia

Negative

• None.

Insights

Technology Sector Analyst

SuperCom's expansion into Virginia strengthens recurring revenue streams while demonstrating competitive product superiority through incumbent displacement.

SuperCom's new electronic monitoring contract in Virginia represents a significant strategic win that goes beyond just geographic expansion. This marks their 9th new U.S. state entry since mid-2024, demonstrating remarkable market penetration velocity in a relatively consolidated industry.

What's particularly noteworthy is the competitive displacement dynamic. The Virginia service provider chose SuperCom after rigorous evaluation, indicating their PureOne™ GPS tracking solution offers meaningful technological advantages over the incumbent. This follows a pattern we've seen with SuperCom displacing entrenched competitors in major markets (24-year incumbent in Sweden, 20-year incumbent in Israel).

The financial dimension reinforces the company's operational momentum. Their recently reported Q1 2025 results showed $4.2 million in quarterly net income and 63.3% gross margins - exceptionally healthy profitability metrics for a technology provider, especially in the government/security sector where margins are typically compressed.

This contract structure underscores SuperCom's evolving business model. The agreement positions them as the "primary technology partner" with responsibility for both current operations and future expansion - suggesting this isn't just a one-time product sale but rather a deeper partnership with recurring revenue characteristics. The electronic monitoring market tends to generate highly predictable, multi-year revenue streams.

While the contract's exact financial value wasn't disclosed, the emphasis on full program transition indicates a complete technology replacement rather than a pilot or partial implementation, suggesting meaningful revenue potential.

Marks SuperCom's 9th New U.S. State Entry Since Mid-2024 and Displacement of Another Incumbent

TEL AVIV, Israel, May 20, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that it has successfully secured a new electronic monitoring (EM) contract with an established service provider based in Virginia to immediately deploy its PureSecurity Electronic Monitoring technology. This agreement marks SuperCom's entry into Virginia—its ninth new U.S. state since mid-2024—further expanding its national footprint and reinforcing the company's rapid expansion momentum across North America.

The provider, a seasoned player in Virginia's electronic monitoring sector with deep familiarity in competing technologies, selected SuperCom following a rigorous evaluation and hands-on testing of its solutions. By demonstrating clear advantages in performance and innovation, SuperCom successfully displaced the incumbent vendor.

The provider has committed to fully and rapidly transitioning its current GPS electronic monitoring program to SuperCom's PureOne™ GPS tracking technology. Under the agreement, SuperCom will serve as the provider's primary technology partner in Virginia, supporting both current operations and future statewide expansion, with the potential for continued growth through new business opportunities.

"We're excited that within less than a week from reporting a strong start to the year with our first quarter 2025 financial results, achieving records in quarterly net income of $4.2 million and gross margins of 63.3%, we're able to announce our expansion into the 9^th new U.S. state since last summer," said Ordan Trabelsi, President and CEO of SuperCom. "This new contract in Virginia marks another important step forward in our U.S. expansion strategy and demonstrates continued demand for our advanced GPS monitoring technology."

"After consistently displacing incumbents in recent years, such as a 24-year incumbent in Sweden and a nearly 20-year incumbent in Israel, we're proud to have once again been chosen over the incumbent vendor as we advance our U.S. expansion. As we continue executing our expansion strategy, we remain focused on entering new regions, strengthening our recurring revenue base, and supporting public safety with our proprietary, state-of-the art technology," Trabelsi concluded.

About SuperCom

Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification, and security solutions to governments and organizations, both private and public, worldwide. Through its proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries, including healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, and domestic violence prevention. For more information, please visit SuperCom's website: www.supercom.com.

Cautionary Note Regarding Forward-Looking Statements

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 or current facts. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the statements made. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the levels of consumer, business and economic confidence generally, the adverse effects of these risks on our business or the market price of our ordinary shares, and other risks and uncertainties described in the forward looking statements and in the section captioned "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2025 our reports on Form 6-K filed from time to time with the SEC and our other filings with the SEC. Except as required by law, we not undertake any 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.

Logo: https://mma.prnewswire.com/media/2076604/SuperCom_Logo.jpg

SuperCom Investor Relations:
ir@supercom.com

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SOURCE SuperCom

FAQ

What is the latest contract SuperCom (SPCB) secured in Virginia?

SuperCom secured a new electronic monitoring contract to deploy its PureSecurity Electronic Monitoring technology with an established service provider in Virginia, becoming the primary technology partner for GPS monitoring services.

How many new U.S. states has SuperCom (SPCB) expanded into since mid-2024?

SuperCom has expanded into 9 new U.S. states since mid-2024, with Virginia being the latest addition to their national footprint.

What were SuperCom's (SPCB) financial results for Q1 2025?

SuperCom reported record quarterly net income of $4.2 million and achieved gross margins of 63.3% in Q1 2025.

What technology will SuperCom (SPCB) deploy in Virginia?

SuperCom will deploy its PureOne™ GPS tracking technology, part of its PureSecurity Electronic Monitoring solution suite.

How did SuperCom (SPCB) win the Virginia contract?

SuperCom won the contract by demonstrating clear advantages in performance and innovation during a rigorous evaluation and hands-on testing process, successfully displacing the incumbent vendor.