Boston, MA 09/03/2014 (wallstreetpr) – The state, society, government and companies are posed with various threats every day. Supercom Ltd (NASDAQ:SPCB) and other security related companies are there to help out the different participants in dealing with unseen threats. The need for protection is on the rise, and it is a good sign for security-related companies.
The financial statistics
The strong performance of SuperCom is reflected in its second-quarter results. It posted the second quarter revenue of $7.1 million, up 274% from a year earlier. Almost 60% to 80% of the second quarter revenue is recurring that is resulting from existing contracts and initiating new contracts. It received four new contracts in year 2014, the deal value of which amounts to $54.6 million. Supercom Ltd (NASDAQ:SPCB) reported EBITDA of $2.6 million comparable to $0.5 million last year. Earnings rose by 217% to $0.19 per share.
The excellent performance
SuperCom second quarter performance reflects the growth in the industry. Further, the smart ID acquisition done in 2013 has started reaping benefits for the company. With new contracts in hand, Supercom Ltd (NASDAQ:SPCB) is standing firm to make most of the positive momentum. Its product offering is available for all the sectors including schools, healthcare, governments and various businesses.
Mobile money market
SuperCom is shifting its focus on the new segment which is none other than Mobile money market. It represents a new growth opportunity for security-related firms. Supercom Ltd (NASDAQ:SPCB) aims to provide bank accounts to customers who don’t have one. It is especially important in the developing countries where the bank branches lack retail infrastructure.
The scope
Supercom Ltd (NASDAQ:SPCB) wants to launch a new technology that will help the government to offer mobile banking solutions to citizens. It will be functional on all phones and will complement all providers. There are as many as 2.5 billion people in developing countries that don’t have bank accounts. Also, the mobile transactions are expected to grow at 35% annually by year 2017, signaling a strong growth opportunity for SuperCom.
