TEL AVIV - SuperCom (NASDAQ:SPCB), a global provider of secure solutions for various sectors, including e-Government and cybersecurity, announced today that its subsidiary, Leaders in Community Alternatives (LCA), has been awarded a new contract in California.
The project, valued at up to $2 million, is aimed at reducing recidivism through a comprehensive jail-based re-entry program for adult inmates.
The contract, won through a competitive bidding process, is structured as a three-year initial term with two optional one-year extensions. It is expected to generate annual recurring revenues of around $400 thousand for SuperCom. The project is scheduled to launch in the summer of 2024, following the completion of the county's customary approval process and contract negotiations.
Ordan Trabelsi, President and CEO of SuperCom, expressed enthusiasm about the expansion into a new county and emphasized the company's commitment to enhancing public safety. He highlighted the importance of collaboration with local behavioral health providers to amplify the impact of the project.
SuperCom, established in 1988, has been providing a range of security, identification, and safety solutions to governments and organizations worldwide. Its services include traditional and digital identity solutions, border control services, and a suite of RFID & mobile technology products.
LCA, a private criminal justice organization in California, has been offering community-based services and electronic monitoring programs for over 28 years. The organization's treatment services are based on evidence and best practices, focusing on breaking the cycle of recidivism with a holistic approach to treatment.
The announcement of this new project comes with the usual cautionary note regarding forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.
This report is based on a press release statement from SuperCom.
InvestingPro Insights
As SuperCom (NASDAQ:SPCB) secures a new contract to support its mission in reducing recidivism through innovative programs, the company's financial health and market performance provide additional context for investors.
With a market capitalization of just $1.66 million, SuperCom operates with a significant debt burden, which is a critical factor to consider. This is reflected in the company's negative P/E ratio of -0.44, indicating that it is not currently profitable.
Despite these challenges, analysts tracking SuperCom have identified potential for sales growth in the current year, which could be a positive sign for the company's future performance. This optimism is tempered by the fact that SuperCom trades at a low Price / Book multiple of 0.28, which could suggest that the market has not yet recognized the company’s potential value or that there are underlying concerns about its assets.
Investors should note that SuperCom has experienced a significant return over the last week, with a price total return of 7.54%. This recent uptick could be a reflection of market reactions to new developments, such as the announcement of the California contract.
Still, the bigger picture shows that the stock has taken a considerable hit over the last six months, with a price total return of -54.41%, highlighting the volatility and risks associated with this investment.
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