SuperCom Secures New Electronic Monitoring Contract in Alabama, Expanding State Footprint

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has secured a new electronic monitoring contract with a community corrections agency in Alabama, marking its second agency win in the state this year. The contract involves deploying SuperCom's PureSecurity™ Suite and PureOne™ GPS solution, following a recurring revenue model based on daily active units.

The company has demonstrated strong growth, securing over 30 new contracts and entering 11 new states since mid-2024. SuperCom reported impressive financial performance with record first-half net income of $5.3 million and a 61.2% gross margin. The contract was awarded through direct agency process, based on a strong referral from an existing customer in the region.

Positive

• Record first-half net income of $5.3 million
• Strong gross margin of 61.2%
• Secured over 30 new contracts since mid-2024
• Expanded into 11 new states
• Recurring revenue model based on daily active units

Negative

• None.

Insights

Government Contracts Analyst

SuperCom expands Alabama footprint with second electronic monitoring contract, showing strong momentum in U.S. growth strategy with recurring revenue potential.

This new contract with an Alabama community corrections agency represents meaningful business expansion for SuperCom in the electronic monitoring (EM) space. The deal structure follows a recurring revenue model based on daily active units, creating predictable, sustainable income streams with built-in expansion potential as program requirements evolve.

What's particularly notable is the customer acquisition pattern emerging in SuperCom's business development strategy. This second Alabama agency win came through a direct agency process based on a strong referral from an existing customer, demonstrating the network effect that's driving their regional growth. This referral-based expansion has been replicated across multiple states including California, West Virginia, and Kentucky, suggesting the company's technology and service quality are creating genuine customer satisfaction.

The financial context makes this win more significant. SuperCom reports $5.3 million in record first-half net income with an impressive 61.2% gross margin, indicating the business model is achieving both growth and profitability simultaneously. Their U.S. expansion strategy appears to be gaining meaningful traction with over 30 new contracts and entry into 11 new states since mid-2024, displacing incumbent vendors in the process.

Each contract win strengthens SuperCom's competitive position in the corrections technology market, where reputation and proven performance drive procurement decisions. The PureSecurity Suite deployment, including their proprietary PureOne GPS solution, further entrenches their technology ecosystem within government agencies, creating additional switching costs for customers and potentially leading to expanded service adoption over time.

Second Alabama Agency Win This Year Reflects Strong Customer Satisfaction, Technology Performance, and Trusted Execution

TEL AVIV, Israel, Aug. 20, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today it has secured a new electronic monitoring (EM) contract with a community corrections agency in Alabama. This agreement was awarded through a direct agency process and will involve the deployment of SuperCom's advanced PureSecurity™ Suite, including its proprietary PureOne™ GPS solution. The contract follows a recurring revenue model based on daily active units, with potential for expansion as program requirements evolve.

This marks SuperCom's second agency win in Alabama since entering the state earlier this year, awarded based on a strong referral from an existing customer in the region and highlighting the Company's growing reputation for high-quality service and innovative monitoring technology. Through this contract, the agency will deploy SuperCom's PureSecurity™ Suite solutions to improve supervision, strengthen compliance, and advance public safety outcomes across the region.

"Securing a second win in Alabama within a short timeframe validates the strength of our technology, the satisfaction of our existing customers, and the growing network effect we're seeing in states where we operate," said Ordan Trabelsi, President and CEO of SuperCom. "Being recommended by a current client is one of the strongest validations of our work—and it's a pattern we've seen in California, West Virginia, Kentucky, and beyond, where early wins have translated into sustained regional growth."

"This milestone further reinforces our successful U.S. expansion strategy. Since mid-2024, we've secured over 30 new contracts, entered 11 new states, and displaced multiple incumbent vendors," Trabelsi added. "Our momentum is supported by strong financial results, including record first-half net income of $5.3 million and 61.2% gross margin. As we continue to expand our presence and help agencies enhance public safety, we remain committed to disciplined execution and customer success," Trabelsi concluded. "Each successful rollout solidifies our position as a trusted public safety partner and drives our global strategy forward."

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 do 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.

SuperCom Investor Relations:
ir@supercom.com

Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg

 

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SOURCE SuperCom

FAQ

What is the new contract SuperCom (SPCB) secured in Alabama?

SuperCom secured an electronic monitoring contract with a community corrections agency in Alabama, deploying their PureSecurity™ Suite and PureOne™ GPS solution with a recurring revenue model based on daily active units.

How many contracts has SuperCom (SPCB) secured since mid-2024?

SuperCom has secured over 30 new contracts and entered 11 new states since mid-2024, demonstrating significant expansion in their U.S. operations.

What was SuperCom's (SPCB) financial performance in the first half of 2025?

SuperCom reported record first-half net income of $5.3 million and achieved a strong gross margin of 61.2%.

How did SuperCom (SPCB) win the new Alabama contract?

SuperCom won the contract through a direct agency process, based on a strong referral from an existing customer in the region.

What solutions will SuperCom (SPCB) deploy in the Alabama contract?

SuperCom will deploy their PureSecurity™ Suite, including their proprietary PureOne™ GPS solution, to improve supervision, strengthen compliance, and advance public safety outcomes.