SuperCom Wins New Contract Valued at up to $2.5 million in North California

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) has secured a new contract in Northern California through its subsidiary Leaders in Community Alternatives (LCA) to provide reentry services for justice-involved individuals. The contract, valued at up to $2.5 million, spans five years with a three-year initial term and two one-year extension options, expected to generate approximately $500,000 in annual recurring revenue. LCA will deliver comprehensive reentry programming including case management, employment support, and behavioral health referrals as alternatives to incarceration. This win follows SuperCom's recent expansion, having secured over 20 direct agency contracts, 9 new service provider agreements, and expansion into 10 new states, strengthening their position in the U.S. public safety market.

Positive

• New contract valued at up to $2.5 million over five years with $500,000 in annual recurring revenue
• Expansion of existing presence in California market through long-term customer relationship
• Part of larger growth with over 20 direct contracts, 9 new service provider agreements, and expansion into 10 new states
• Contract won through competitive bid process, demonstrating strong market position

Negative

• Contract value is relatively modest compared to company size
• Revenue generation dependent on optional extensions for years 4 and 5

Insights

Government Technology Analyst

SuperCom secured a $2.5M reentry services contract in Northern California, generating $500K annual recurring revenue and strengthening its U.S. market position.

SuperCom's subsidiary LCA has won a $2.5 million contract in Northern California to provide reentry services for justice-involved individuals. The five-year agreement (three-year initial term with two one-year extensions) is expected to generate approximately $500,000 in annual recurring revenue - a valuable predictable income stream that enhances financial stability.

This contract win demonstrates three key strengths: customer retention, competitive differentiation, and strategic expansion. LCA's established presence in this county validates their service quality, having successfully delivered electronic monitoring and reentry programs previously. Winning through a competitive bidding process further validates their value proposition in reducing recidivism and promoting community safety.

The contract scope includes critical services like case management, employment support, and behavioral health referrals - positioning SuperCom at the intersection of technology and human services within the criminal justice system. This aligns with modern criminal justice reform approaches that prioritize rehabilitation over incarceration.

This win builds on SuperCom's recent momentum, which includes securing over 20 direct agency contracts, 9 new service provider agreements, and expansion into 10 additional states. This geographic diversification reduces dependency on any single market while creating growth opportunities across the U.S. public safety sector.

The recurring revenue model from this and similar contracts provides SuperCom with increased financial predictability, while their established footprint in California creates opportunities for additional contract expansions in a large, influential market.

Expected to Generate Approximately $500,000 in Annual Recurring Revenue and Reinforces SuperCom's Position in U.S. Public Safety Market

TEL AVIV, Israel, June 11, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that its wholly-owned subsidiary, Leaders in Community Alternatives (LCA), has been awarded a new contract in Northern California to provide justice-involved individuals with reentry services. The contract is valued at up to $2.5 million over a five-year period consisting of a three-year initial term and two optional one-year extensions.

This win follows a formal competitive bid administered by the county, reaffirming the county's confidence in LCA's ability to deliver high-quality services that reduce recidivism and promote community safety. LCA has provided services in this county for many years, including electronic monitoring services and a variety of reentry service programs. 

Under the contract, LCA will deliver reentry programming as a community-based alternative to incarceration, providing services such as case management, employment support, and behavioral health referrals. These services are designed to promote stability, accountability, and long-term success for participants. The contract reinforces SuperCom's reputation as a trusted provider of public safety solutions in California and across the nation.

"We are pleased with this award for another contract in North California, reinforcing our presence and reputation as prominent electronic monitoring and rehabilitation services provider in the region. It is a testament to the competitive advantage of our customized offerings and the effective, long-term relationships with our customers. We attribute this success also to our track record of creating customized offerings that best suit the needs of public agencies to address specific criteria related to reducing recidivism, improving outcomes, and ultimately changing behavior," commented Ordan Trabelsi, President and CEO of SuperCom.

"Building on our recent momentum—securing over 20 direct contracts with agencies, signing 9 new service provider agreements, and expanding into 10 new states—our continued contract wins in California offer a glimpse to the long-term value that can be realized across new regions. This value stems from delivering exceptional technology and services while fostering trusted relationships in the public safety sector," 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

About Leaders in Community Alternatives, Inc. (LCA) 

LCA is one of California's leading private criminal justice organizations, providing community-based services and electronic monitoring programs to government agencies for over 33 years. LCA's treatment services are evidence-based and built on best practices designed to break the cycle of recidivism. LCA offers a holistic approach with programs addressing cognitive and behavioral issues and alcohol and substance abuse. Geared towards individuals involved in cases with criminal and family courts, LCA offers proven solutions for governmental institutions across California in addressing realignment strategies and plans. LCA's website: http://www.lcaservices.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.

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

SuperCom Investor Relations:
ir@supercom.com

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SOURCE SuperCom

FAQ

What is the value of SuperCom's (SPCB) new contract in Northern California?

The contract is valued at up to $2.5 million over a five-year period, with expected annual recurring revenue of approximately $500,000.

What services will SuperCom provide under the new Northern California contract?

SuperCom's subsidiary LCA will provide reentry services including case management, employment support, and behavioral health referrals as alternatives to incarceration.

How long is the term of SuperCom's (SPCB) new California contract?

The contract has a three-year initial term with two optional one-year extensions, for a total potential duration of five years.

What is SuperCom's recent expansion track record in the US market?

SuperCom has secured over 20 direct contracts with agencies, signed 9 new service provider agreements, and expanded into 10 new states.

Who is Leaders in Community Alternatives (LCA) and how are they related to SuperCom?

LCA is SuperCom's wholly-owned subsidiary and one of California's leading private criminal justice organizations, providing community-based services and electronic monitoring programs for over 33 years.