SuperCom Ltd. (SPCB) Earnings Call Transcript & Summary

Ladies and gentlemen, good morning, and welcome to SuperCom's Fourth Quarter and Year-End 2022 Financial Results and Corporate Update Conference Call. [Operator Instructions] I'd now like to turn the call over to Stephanie Prince of PCG Advisory. Stephanie, over to you.

Thank you, Jenny, and thank you to everyone joining us. With me on the call today is Ordan Trabelsi, SuperCom's President and Chief Executive Officer. I'd like to remind you that during this call, SuperCom management may be making forward-looking statements, including statements that address SuperCom's expectations for future performance or operational results. Forward-looking statements involve risks, uncertainties and other factors that may cause SuperCom's actual results to differ materially from those statements. For information about these risks, uncertainties and factors, please refer to the Risk Factors described in SuperCom's most recently filed periodic reports on Form 20-F and Form 6-K and SuperCom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call also includes EBITDA, a non-GAAP financial measure that SuperCom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, a comparable GAAP financial measure, please see the reconciliation table located in SuperCom's earnings press release that accompanies this call. Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, April 20, 2023. Except as required by law, SuperCom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to SuperCom's President and CEO, Ordan Trabelsi. Ordan?

Just checking Ordan. Are you on mute?

Yes. Yes. Thank you. Sorry about that. Thank you, Stephanie, and good morning, everyone, and thank you for joining us today. Earlier this morning, we issued a press release with our financial results for the fourth quarter and year ended 2022. You can find a copy of the Investor Relations section on website at supercom.com. Today, we also may comment to a brief update on our recent business highlights and strategy and Q4 and 2022 results, followed by Q&A session. So we come out of a great year in 2022. Annual revenues increased by 44% to $17.7 million, and the company reached a positive EBITDA in both the third and fourth quarters after years of investment in our leading IoT technology. We also improved our operating cash flow significantly from an operating cash use of 9.4 million in 2021 to 4.7 million in 2022, roughly half, reflecting positive cash flow generation from new and old projects. During this past year, we won several important contracts in the U.S. and Europe, valued over $40 million in total, and we're excited about the opportunities we see ahead. I'll go more in details in a few moments. Those new to SuperCom. SuperCom's mission, is to revolutionize the public safety sector worldwide, the proprietary electronic monitoring technology, data intelligence and complementary services. Over the past 34 years, since founding in 1988, we've been a trusted partner in dozens of governments worldwide, providing them with cutting-edge electronic and digital security solutions. Our strategy has been to lead with our technology, develop top-notch solutions, expand our presence and deliver outstanding services. We successfully executed our strategy by focusing on the following key factors. Our proprietary electronic monitoring technology scores highly in competitive RFP and supports various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more. SuperCom has won over 50 new multiyear governmental projects since 2018. And just in the past year alone, we announced project wins, valued at over $40 million. Our strong application and recognition of a premium provider of electronic monitoring technology and services also contributes to our win rate. With each new customer win and project deployment, we'll further strengthen our application and competitive position. Third is manage a strategic focus and attention to our IoT tracking business in developed countries where the opportunity is the greatest. The electronic monitoring market is estimated to reach roughly $2.1 billion by 2026, up from $1.2 billion in 2021. The U.S. and Europe constitute about 95% of the market. In Europe, there recently has been an increase in our [indiscernible] activity with over $200 million of project bid opportunities in the past 18 months. Although these successive opportunities have resulted in a growing pipeline of business that is an average of high-recurring revenue rate, after installation, in 2022, we continue to invest in R&D to ensure our products remain the most competitive in the market and continue to introduce new features of technology to our proprietary platforms, such as results. We successfully finalized development and deployment of two new products, one of which is called PureProtect, a life-saving domestic violence monitoring solution. This groundbreaking product has undergone rigorous testing and has already been successfully implemented in multiple projects, including a $33 million project in Romania, significantly expanding the company's addressable market. Another new product launch this year is the PureOne, it's an all-in-one ankle-bracelet monitoring solution that integrates companies and adds the monitoring capabilities into a single device with lightweight design, longer battery life, high precision and future-proof features. The PureOne offers a more efficient and effective electronic monitoring solution. This product also [indiscernible] solution, such as many regions in the U.S. We've been very pleased with its early reception and traction of our newest products and expect them to facilitate the rapid expansion of supermarket also in the U.S. market. In 2022, we not only maintained our technological advantage but also invested in enhancing our operational infrastructure and expanding our workforce. Furthermore, we've altered the company's global sales efforts by recruiting of new sales team members with industry expertise to drive our shift from [indiscernible]. Throughout the year, we announced many new project wins in the U.S. and Europe [indiscernible] incumbent vendors with over 65% win rate in European competitive RFPs. [indiscernible] so many new contracts in a short period, especially during economic uncertainty and market volatility due to the looming threat of recession and unstable geopolitics. Our business is resistant in nature and as the possibility of potential recession increases, we have multiple tailwinds to support our growth. As many of you have heard, we described before, these global factors include [indiscernible] rates of roughly 75% [indiscernible] and high incarceration costs. In 2020, the U.S. alone spent over $80 billion to approximately to 2.3 million people incarcerated, which equates to nearly 1% of the entire U.S. population. For those reasons, among others, we see a growing global trend of government turning to innovative solutions [indiscernible] incarcerations to ensure public safety, and our PureSecurity technology solutions have been designed to address those trends. PureSecurity provides an effective way for institutions to enforce home confinement while easing [indiscernible]. For example, the total daily cost for monitoring an offender at home [indiscernible] GPS monitoring is approximately $10 to $35 a day compared to the much higher cost of $100 to $140 a day at a correctional facility. Most importantly, home confinement has been shown to reduce [indiscernible] highlighting its effectiveness in helping offenders improve their lives and communities. On top of these growth drivers, we have witnessed a surge in the adoption of victim protection solutions worldwide, which align perfectly with our strategic plan and the launch of our new product, PureProtect. During the past year, we extended our bridges across Europe by winning significant new contracts, which, as I mentioned, are typically awarded through a competitive RFP process. SuperCom now does business in over 10 countries across Europe, and we look forward to increasing that number in the years ahead. Revenue from European countries increased by 230% to $9.6 million from $2.9 million in 2021 and accounted for roughly 54% of our sales mix in 2022. We won the largest industry award of the year for National Electronic Monitoring Project in Romania, valued at $33 million, inclusive of 15,000 monitored events per month. Our domestic violence solution with PureProtect is expected to enhance the security of many families as part of this project. We go to 15,000 per month over 6 years. Just a few weeks ago, we announced that we had received a $7.1 million follow-on order. The second order under the contract, which files an initial order of over $8.1 million back in 2022. We've also launched a domestic violence solution in other regions in Europe and are planning to launch it in the U.S. soon. In Israel, there's potential for new domestic violence projects as well as the government is trying to pass a law requiring domestic violence offenders to be monitored [indiscernible]. Finland was one of the most recent project launches. The $3.6 million National Electronic Monitoring Project was supported by the national government to deploy Supercom's PureSecurity Electronic Monitoring Suite. Earlier this year, we also won contracts in Sweden and Croatia. SuperCom was awarded Croatia's first National Electronic Monitoring Project, which we have already launched. And we secured a new contract for Sweden's Juvenile National Electronic Monitoring Project, the third and final remaining national EM project in Sweden, which are now all held by SuperCom. We've also been working to increase our business in the U.S. We're proud to have made good progress towards our goals of multiple projects in California, Idaho, Texas [indiscernible] 2022. For example, in the fourth quarter, Leaders in Community Alternatives or LCA, our wholly owned subsidiary based in California, won a new project contract valued at approximately $4.25 million with the Northern California county to provide adult reentry services. LCA provided services in this county for many years, including adult day reporting services and electronic monitoring. The new products [indiscernible] contracted reentry services to include [indiscernible] including case management, substance use education, job preparedness and [indiscernible] risk reduction. This program was already launched in Q1 of 2023. The recent one in Idaho, represents our third win and third new customer in Idaho in less than a year, which adds to our organically growing customer base. These wins also clearly illustrate how rapidly our technology can spread to adjacent new customers. SuperCom now does business in multiple U.S. states with U.S. revenue now accounting for 39% of our sales mix in 2022. Also, in the fourth quarter, SuperCom data protection and security subsidiary called Safend, received 2 orders totaling approximately $870,000. The first value [indiscernible] from a government security agency to renew and expand their cybersecurity protection programs. The others value at $600,000 and it's for license fees for additional seat expansion and recurrent maintenance fee 50,000 seats. [indiscernible] products have been around for years and a promising outlook has continued. The rapid advance of digital technology has led to an alarming rise in cybersecurity threats, making cybersecurity solutions more crucial than ever before. As a result, Safend products are in high demand as they offer effective protection against cyber attacks. Our new strategic sales team and new wins have been the first steps in executing the company's U.S. market expansion strategy and have already driven increased activity with existing customers and numerous new demos and evaluations in the potential ones. And as we talked about before, we believe there is also an opportunity to enhance our U.S. growth through strategic acquisitions of local electronic monitoring service providers with a strong reputation and a customer base in the respective local markets. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration synergies. Our acquisition of LCA in 2016 for $3 million is a great example [indiscernible] one-time revenues with very strategic synergies on the top line and from a cost perspective. Safend solutions has led to over $30 million in new projects [indiscernible]. I'll now turn over to financials. During our previous conference call, I mentioned that we were anticipating contribution to our financial results in Q4 and the projects we discussed. I'm delighted to share that our revenue has recorded a remarkable year-over-year growth of 69%, amounting to $5.1 million in the fourth quarter. Moreover, our annual revenue growth increased by 44% to $17.7 million in 2022, with our IoT division being the primary growth engine. To put things into perspective, while the global electronic monitoring market growth was approximately 10% in 2022, SuperCom's IoT revenues achieved a staggering 76% growth during the same period. This growth is a testament [indiscernible] market prefers our solutions over the alternatives. Furthermore, we are proud to announce our return to positive EBITDA in the third and fourth quarter and we achieved an EBITDA of $400,000 in the third quarter and $770,000 in the fourth quarter of 2022 and positive EBITDA in 2022 altogether, which resulted from targeted spending and high year-over-year increase in revenue. Revenue from developed countries continues to increase, reflecting the completion of our transition plan to transform our business from an unstable emerging countries to developed countries. As a reminder, the legacy business comprised of one-time project revenues in Africa and South America, with sometimes hard collectibility accounts, which is [indiscernible] high recurring revenue, high collectibility and high predictability with multiyear government contracts. Gross profit increased by 3% to $6.4 million compared to $6.2 million in the year before. These increases concurrent with the increase in cost of goods, which resulted from supporting the launch phase of the mentioned new projects, typically, in the initial stages of projects tend to incur higher expenses while the more advanced stages yield higher gross margins. As a result, our gross profit fluctuates depending on the composition of our project portfolio and the distribution of project deployment [indiscernible], short-term decrease in gross profit accompanied by an increase in income and signifying participation of long-term growth and gross profit is, of course, contingent upon ever-evolving composition of our full project portfolio. Equipment purchase for the years ended December 31, 2022 and '21 amounted to $524,000 and $946,000, respectively. It's worth noting that the inventory from previous years was helpful in our business in 2022 as well. We increased our annual research and development expenses by $650,000 while we continue to develop and launch new products and improve existing ones, keeping us at the edge of innovation and technology leadership in our space. In addition, our annual sales and marketing expenses increased by $1 million to support the company's new productive growth strategy and general and administrative funds increased by $1 million. We continue to expand our management and finance teams. Our cash, cash equivalents and restricted cash balance at the end of 2022 was $4.5 million compared to $4.6 million at the end of '21. Our cash position is stable, but our credit facility is in place and reduce our cash needs for cash, we continue to win and see larger projects such as we saw in 2022, where our cash use went down from $9.4 million to roughly 4.7% when compared to the previous year. In addition, the company had one-time expenses of roughly $1.1 million, driven mainly by reorganization expenses pertaining to the legacy business and allowance of doubtful debt. The company had an operating loss of $6 million versus an operating loss of $6.7 million in the previous year. In closing, we're excited about the growth we are experiencing and about the growing demand for our products. After 5 years in which we transition from our legacy business to the IoT business, we finally see the shift to growth in revenue for the second year in a row and believe that we're well positioned for continued growth by capitalizing on the many opportunities before us. These are being driven by multiple factors, including our strong presence and reputation in the U.S. and European markets, the countercyclical nature of electronic monitoring industry, the growing public policy shift to monitoring [indiscernible] incarceration and the return to pre-COVID levels of this activity. We anticipate sustained growth by further expanding our market share in the U.S. and Europe, our commitment to preserving our technological advantage [indiscernible] foundation remains steadfast as we continue to invest in these areas. With that, I'll turn the call over to operator to open for questions. Operator?

[Operator Instructions] Your first question is coming from Matthew Galinko of Maxim Group.

All right. Great. Congrats on a really strong close to the year and the growth we're seeing. I'd like to touch on sales and marketing, particularly, I know you were up year-over-year for the full year. But if we kind of look at the sequential pattern, you're down to sort of the run rate you were at the end of '21. So I'm just curious if -- why are we seeing that decline in the back half in sales and marketing spending? And does that tell us anything about waiting investment in the initiatives in the U.S.? Or is that still full steam ahead?

Great question. Let me just open up some of the financials from last year because you're talking about comparison to the first quarter of 2021.

Yes. Or even if you look sort of sequentially from Q3 '22 to Q4 '22 or from Q2 '22 to Q4 '22, you'll see that sort of step-down over a couple of quarters?

So in terms of marketing, it does depend on the projects that we're trying to secure, not just the fixed cost. As you might think of a normal sales team because the commissions also fall into. So when a new project is this one because we have a higher commission payments to our sales team. And also if we have any partnerships or other companies that are working with us, there's also expenses around that. That being said, our sales and marketing expenses are on average, relatively stable. We did hire new salespeople. So there's expansion in our sales and marketing expenses compared to, let's say, the beginning of 2021 or 2020. And we continue to expect to invest in sales and marketing in the U.S. and Europe. That being said, we're also going to look for opportunities to optimize our costs with our consideration for goal of improved profitability and lower cash use as we see the trend that we're exemplifying already from 2021 to 2022 to use that operating cash and we're keeping that in mind as we continue to grow our strategy throughout the world.

Got it. And then I guess a follow-up question on that last point. Obviously, very strong performance on the EBITDA line in the second half of '22 and very strong revenue performance throughout the year. I know you're not guiding to it, but is it reasonable for us to expect EBITDA? Or is it a target to be EBITDA positive in 2023?

We were EBITDA positive, as you know, as well, roughly $400,000 and $770,000 in Q3 and Q4. We try to maintain EBITDA productivity even though we are aware of those fluctuations because of the project nature of our business. So in Romania, Q3 and Q4, the launch of the project and there's a lot of revenue associated with it. We announced another order of $7 million earlier this year in 2023, and that can create some fluctuations in revenues how we fall between the quarters. And accordingly, that can create the fluctuation to EBITDA. So while the EBITDA can fluctuate between the quarters, when we look at an annual basis over a long-term basis, we try to stay above [indiscernible] EBITDA positive. And as we continue to maintain more steady revenues and revenue growth, we will also look for additional profit to optimize our expenses. We have the natural operating leverage baked in because we have the same fixed expenses for customer support and inventory management and project deployment, whether it's a $30 million project or a $2 million project, as the project sizes grow, we're seeing improvements and growth in our potential contribution for each unit that's deployed. It's not yet reflected in the gross margins, the financials because we're in early stages of Romania where the gross margins are lower because there's a lot of installations and deployment of IT. But the projects will continue, and that will be less of the prevailing revenue mix, and that will allow for increases of gross margin for that project specifically. Based on how other projects will fall into the mix, we'll see how the gross margin evolves altogether and as well as the EBITDA, which we hope to maintain positive, even though it's not a clear guidance because we're still more guided by our long-term goals to expand our market presence and get closer and closer to leader position as a player in the EM market.

[Operator Instructions] We have another question in from Matthew Galinko. Matthew, your line is live.

All right. Thanks. I wanted to ask about the competitive environment, particularly in Europe, where I know you've talked about some large opportunities in the pipeline. Has it intensified in recent quarters? Do you feel like you still have an edge to maintain the sort of win rates you've seen in the last couple of years?

Great question. What we've been seeing over the past few years since we won in Romania, which we didn't even expect because there's a new project for them and new projects for Croatia. So besides the existing projects that are running that we try to win by displacing a competitor, new ones keep arising, and they reach out to us usually through local companies. And we're still considered a player with great technology and a very strong momentum in the market. As we mentioned, our -- our IoT revenues grew by 76% year-over-year, where the market grew by 10%. So we're still -- reputation is still very strong, and our technology still scores very highly. We don't see -- even though the competition sometimes invest in R&D and developing new products, we haven't seen much of a threat from a technology perspective or a technology scoring perspective. Our challenges and competitiveness is of the best players that have a very comfortable position in a country where they've been for 5, 10, 15, 20 years. I'm talking about more of the operations side, having the officers get a company with new technology, the new processes with a new company, a new vendor, that is more of a hurdle for us in actual technology scores because we still have the newest features and risk capabilities, the best performance, the best metrics, and we continue to invest and continue to come up with new products, as we mentioned earlier. PureOne and PureProtect new products and brand-new products this year, which are leaders in the industry. And yes, 2players also in the industry have emerged in the last year, 2 large players and that we believe that makes it easier for us to compete with a little bit less stress on pricing and variability because they would have to have 2 bids into the competition; we only have one. So we maintain the competitive advantage as discussed, we have the new products. And the PureOne is actually an important product for us in completing a gap, so to speak, in our product portfolio because in the U.S., a lot of the vendors focus on the one-piece solution. They haven't yet introduced solutions with a smart phone, with communications with other capabilities that smart phone offers and judges and counties and other small regions in the U.S. are less familiar with the new technology of the smart phone integrated in these kind of solutions, so they ask for a one-piece solution. So we developed a one-piece solution for them similar to the old architecture, but we made it in our version with longest battery life and lightest weight and mobile battery charging and more capabilities and slick design. So that really helped us in terms of our competitive edge on the product front what we were missing. And on the areas where we have been for many years like the house arrest and GPS monitoring and a domestic violence, we maintained a strong leading position, we believe...

Got it. Maybe last one for me is a little bit of maybe a 2-part question. You mentioned continuing to invest in R&D and product. Do you anticipate or is it reasonable to expect that you'll have more products that roll out in the next year or 2 that you expect to either capture new customers with or upselling to existing customers? Is that something that you could kind of continue to grow wallet share if it makes sense to ask it that way [indiscernible]?

Okay. Yes, we do expect to have new products and new generations of our existing products. It does depend on the projects that we win. For example, we won the Sweden's Ministry of Justice project a few years ago, a $7 million project and they required also inmate tracking in the prison [indiscernible] in prison and when they go holidays or weekends sometimes with their families, they would track them in the city, outside the prison facility. In some areas, they want an alcohol monitoring where we monitor alcohol in some [indiscernible] Romania, which we had, and we, of course, enhanced also to support a project of such a size [indiscernible] but also to integrate the new capabilities that we saw our customers were interested in from our previous deployments of domestic clients around the world. So as we run more projects, we continue to develop our platform and that same platform goes with us or when we bid on other new projects. Now the other thing you mentioned, which is important is multiple modules to the same customer. So some of these customers with house arrest or GPS monitoring or alcohol monitoring or domestic violence but then they expand into other capabilities because typically, once the government is running this kind of solution, there's no reason to only have one program. There's only reason to only have house arrest. You have house arrest and people are required to stay at home, but some are able to also go to work and with their families and they're not at risk. So they're okay without the GPS monitoring. Some are not even on house arrest [indiscernible] orders again close to wife or whatever the victim. So each of these programs, while they have different applications and they're all in the criminal justice say, umbrella, they're all -- they're very useful in different manners. And once you have a platform deployed, it's very, very easy to add additional products. The cost is lower and also the relationship is there with the customer. So as we've done, and we've been doing this for 34 years at SuperCom [indiscernible] E-government identification space, we would do driver licenses and then passports and visas. And at some point, we even tried to integrate payments and other solutions. So once we get our foot in the door, so to speak, we look to expand with additional modules. And now we have so many different modules and programs that we can offer to our customers. So a lot of the revenues and the wins that we've announced are the first module or the first one or 2. And over the years, they extend and then we expect the SuperCom customers to grow in revenues and also new customers to opt in for a more holistic solution with more capabilities, more cost savings for them and better security for [indiscernible] and their communities.

Got it. Last question, really around -- you talked a little bit about electronic monitoring being countercyclical or having some countercyclical tailwinds. Anything specific you could point to conversations with customers or just broadly in talking to existing or pipeline customers, is there a sense that municipalities and governments are increasingly recognizing the cost of not being in an EM program? Or anything you could point to there would be great.

And what did you say? Are customers experiencing the cost of...

Right. Yes. So to the extent that being -- if EM is attractive alternative to incarceration on a cost -- from a cost perspective, are you seeing additional interest due to the environment we're in today?

Yes. Well, first of all, as you mentioned and we talked about it for a while, there's roughly 90% savings, such as $80 billion operating prisons in the U.S. in 2020, it would have been [indiscernible] house arrest, and not everyone is a good fit for house arrest, but a vast majority of the big population is offenders, which could be great for a program like this. So there is definitely the element of cost savings and also the element of reducing recidivism because right now, I look at the prison, they sometimes become more knowledgeable in community crime. And then when they return into society, they don't have the proper branch services and proper company society, they end up recommitting crimes and the rate is over 75%. We have been able to -- on various programs in EM world, you see that go down to 35%. So there is -- beyond the cost, there's a general improvement in public safety. When I say countercyclical, yes, when the markets are looking into looming with recession, we're trying to save costs that you see that with corporations and also with the government entities. We certainly look at this is as a viable opportunity for saving cost, but also with countercyclical and redundant and resiliency and we saw that also in COVID because people have to -- there has to be criminal justice services and you have to continue to retain offenders. So it's a potential service set, as you might say. So even if there is a recession one day, putting aside the fact that the recession could lead to lower economic situation for many families and more crime, which would actually [indiscernible] offenders. That's one opportunity. But at the least, it will continue running as is. So all these programs almost that we see around the world, whether it's in Europe or the U.S., they started in 2004 and right now 100 or 1,000x larger than they were back then over the last 19, 20 years. They've grown a lot and continue to grow through various market cycles through 2008, 2010, through COVID, and we expect that to continue. So for -- it is interesting that investors talk to us sometimes, we're looking for some diversity in the portfolio is going to be a little less sensitive to the macro economy. This is a great opportunity for them because we have to continue monitoring offenders. Criminal justice industry has to continue running. It's a cost saving and also -- which is unfortunate recession and low economic status families could lead to more crime in community and then we have a bigger role to help prevent the crime and help monitoring these offenders.

Your next question is coming from [indiscernible] a private investor.

Yes. Thanks. My name is [indiscernible]. First of all, I want to congratulate you for the great quarter and a great year. And I wanted to ask you, you raised money at the last quarter. Do you have -- do you think you have enough money to continue on [indiscernible]?

Yes. Good question. And I talked about this on the script and on the Q&A. We still have a negative cash burn from operations, cash use. In 2021, we added $9.4 million. That was a decrease of $4.7 million in 2022. And that's because of these projects that are generating positive cash flow, we expect to continue to generate positive cash flow and some of these other projects in Sweden and Denmark. And as we continue to add more projects of positive cash flows from them with overcome any fixed costs that we have from being a public company or just running the digitalization. Well, so at that stage, we'll be cash flow positive. And we hope to achieve that. But meanwhile, we raised some cash and our balance is good and it gives us the ability to launch more projects and to support existing ones, sorry, for the near future. And so over time, we'll expect to have a lower need for operating cash support from the market. And it will depend on what kind of projects we launch. If we have over $200 million in our pipeline, some of these are massive projects and some require working capital increases, if you're deploying a project of $100 million or more in size, some more working capital than what we have today. But I think if that happens, the market will be happy to support our growing working capital needs at that time.

Okay, great. And another follow-up question. Do you have any [indiscernible] anything in the market about the company wants to buy you?

Can you repeat that? Are there any negotiations about companies wanting to buy us?

Are you on the shelf? I mean other companies maybe want to buy you, maybe other safety company or, I don't know, security company maybe they want to buy you. Do you talk with any companies about it?

So we are currently not on the shelf. We have not put ourselves out there for acquisition. We think we have a good opportunity going forward. We're trying to capitalize on it [indiscernible]. That being said, because we continuously win against many of our competitors, there's been, let's say, vague discussions from various sources of potential interest to buy SuperCom, but it's not something that we have pursued extensively or looked into because we're really focused on our current organic growth in our business plan and prospects.

[Operator Instructions] Okay. Ordan, I think we have no more in the queue now. I can hand back over to you for any closing remarks.

Yes. Thank you, operator, and I want to thank all of you for participating in today's call and for your interest in SuperCom. Please contact us directly if you have any additional questions or through IR. We look forward to sharing our progress with you on our next conference call, filings and press releases. Thank you once again, and have a great day.

Thank you very much, everybody. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.