SuperCom (SPCB) Provides Q3, FY17 Outlook

SuperCom (NASDAQ: SPCB) provided preliminary selected financial results for the third quarter 2016 and guidance for the full year of 2017. Upon completion of the full year 2016 audit, SuperCom will report financial results for the third quarter 2016, together with the full year 2016 audited financial statements. These results are expected to be released in April 2017, along with an investor conference call to discuss the results and outlook for 2017. The Company will therefore not host a conference call today.

A complex 2016 financial audit, which includes for the first time SuperCom's four new subsidiaries acquired in 2016, is in its late stages. This audit, while not yet complete, has potential to impact certain elements of the Q3 financial report, hence management has decided to release only selected financial results which are not likely to be affected by audit completion. Based on preliminary estimates, revenue for the third quarter of 2016 is expected to be in the range of $5.3 to $5.7 million (*** consensus is $6M). Gross Profit margin, is expected to be in the range of 37-38%. R&D operating expenses are expected to be approximately $1.4 million.

The above assessment for the third quarter of 2016 is based on the Company's initial analysis and is subject to change as the full year audit and finalization of results continues.

"Our financial performance in 2016 was impacted by the significant restructuring efforts taken including acquisition and integration of four companies with different product lines which complemented our existing business lines and end markets," commented Mr. Arie Trabelsi, President and Chief Executive Officer of SuperCom. "However, thanks to these efforts we have constructed four evolved inter-connected divisions of e-Gov, IoT, Cyber Security, and Secured Connectivity, as a foundation for a strong 2017. Our strategic position in each field, consisting of a large customer base of loyal customers, proprietary and competitive technologies, and recurring revenues together with optimization of operational cost structures, provides us confidence in our growth for 2017 and increased visibility which we can start to share via a financial outlook."

"We are encouraged by our large customer base globally including presence in the US, Latin America, Europe, Asia and Africa. And we are happy with the increased stability derived from the diversity of this customer base and our wide array of product offerings," Mr. Arie Trabelsi concluded.

Financial Outlook

Based on the current information available to the Company, management believes that revenue for the full year 2017 will surpass $35 million, an increase compared to 2016 and 2015. The majority of revenue is expected to be derived from North and South America and Europe.

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