Earnings Call Transcript
SuperCom Ltd (SPCB)
Earnings Call Transcript - SPCB Q3 2022
Operator, Operator
Good morning, everyone, and thank you for joining the SuperCom Third Quarter 2022 Financial Results and Corporate Update Conference Call. Please note that this conference call is being broadcast live online and is also being recorded for later playback. I will now hand the call over to Stephanie Prince from PCG Advisory.
Stephanie Prince, Moderator
Thank you, operator, 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's 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 more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recent periodic reports on Form 20-F, Form 6-K, and SuperCom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes EBITDA, a non-GAAP financial measure that is 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. Additionally, the conference call contains time-sensitive information that is accurate only as of today, October 26, 2022. 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 Trabelsi, CEO
Thank you, and good morning, everyone. Thank you for joining us today. Earlier this morning, we issued a press release on our financial results for the third quarter of 2022. You can find a copy in the Investor Relations section of our website at supercom.com. We continue to maintain our commitment to timely quarterly reporting. For our quarterly review, I'll start with a brief update on our recent business highlights, strategy, and Q3 results, followed by a Q&A session. The third quarter was a great quarter for SuperCom with 102% revenue growth year-over-year with $6.3 million in revenues in Q3. We won several important contracts in the U.S. and Europe, and we're excited about the reception and early traction of our newest product, Pure1, a highly innovative and industry-leading IPPI tracking device that I'll go into more details on in a few moments. For those new to SuperCom, since our founding in 1988, 34 years ago, SuperCom has been a trusted partner providing cutting-edge electronic and digital security solutions to dozens of governments worldwide. As part of our mission, we strive to revolutionize the public safety sector worldwide through proprietary electronic monitoring technology, data intelligence, and complementary services. We always lead with our technology. In 2022, we continued to invest heavily in research and development to ensure our products remain the most competitive in the market. We are continuing to introduce new features and technologies through our proprietary platforms, such as unique biometric and communication capabilities and much longer battery life. In parallel, we launched an entirely new solution for domestic violence. In recent years, we've become increasingly aware of the major challenges faced by nations and governments worldwide when dealing with their incarcerated populations. First, many countries face high recidivism rates, where individuals relapse into criminal behavior after completing their sentences, straining the criminal justice system. Second, overcrowding is a key contributing factor to poor prison conditions worldwide, resulting in prisoners being forced to share limited space. Third, in 2022 approximately $80 billion were spent in the U.S. to keep roughly 2.3 million people incarcerated, nearly 1% of the entire U.S. population. The negative impacts of incarceration, such as suicidal tendencies, loss of earnings, adverse health effects, and more, are estimated to be three times the cost incurred. Unfortunately, these issues aren't unique to the U.S. and are prevalent globally. It is evident that prisons are far from ideal solutions for many challenges in criminal justice. To help meet these challenges, we have leveraged our technology, services, expertise, and government security experience to focus on the public safety sector. We are seeing much success. Just in the past few weeks, we announced that we won and launched a $33 million National Electronic Monitoring project in Romania. As part of the project, SuperCom's IoT solution ensures security for those who are victims of domestic violence by providing immediate notification to the police if an offender is within a close range, thereby posing a threat to their safety. With up to 15,000 monitored offenders per month, this project will help protect many individuals, and we feel honored to have the opportunity to do this. This project alone can change so many lives. We also recently announced that SuperCom was awarded Croatia's first National Electronic Monitoring project, which has already been launched. In addition, we secured a new contract for Sweden's Juvenile National Electronic Monitoring Project. We currently hold all three Romanian National EM Contracts in Sweden. In parallel to our success in the EU, we are continuously expanding into the U.S., having won three additional contracts across three different U.S. states: Texas, Southern California, and Idaho. These wins are significant for SuperCom and further increase our footprint in the U.S. market, providing more growth potential in the future. Furthermore, the recent win in Idaho represents our third contract with certain customers in Idaho last year, enhancing our organically growing customer base and demonstrating how rapidly our technology is being adopted by adjacent customers. Our strategy has been to build amazing technology, expand our presence, and deliver outstanding services. We have successfully executed our strategy by focusing on key factors. Our proprietary electronic monitoring technology excels in competitive RFPs and supports various programs such as house arrest, GPS monitoring, rehabilitation services, and more. SuperCom has won over 50 new multiyear governmental projects since 2018. Our strong reputation and recognition as a premium provider of electronic monitoring technology and services contribute to our high win rate. With each customer win and project deployment, we further strengthen our reputation, making us even more competitive. Lastly, our strategic focus and management attention have shifted to our IoT tracking business, which generates recurring revenues in developed countries. The electronic monitoring market was valued at around $1.1 billion in 2020 and is estimated to reach $1.6 billion by 2025. The U.S. and Europe constitute 95% of this market. Recently, we have seen an increase in RFP activity in Europe, with an anticipated $200 million in upcoming bid opportunities over the next 18 months. Altogether, these successes and opportunities have resulted in a growing pipeline of business with a recurring revenue rate above 80%. More broadly, we see a global trend of governments turning to innovative solutions and alternatives to incarceration to ensure public safety. Our PureSecurity Technology solutions effectively address these trends by providing institutions with a way to enforce home confinement while easing prison overcrowding. In addition, it allows them to significantly reduce the associated costs of housing an inmate. For example, the total daily cost for monitoring an offender on home confinement through GPS monitoring is approximately $10 to $35, substantially lower than the $100 to $140 cost of daily housing in correctional facilities. More importantly, home confinement has been shown to reduce recidivism, highlighting its effectiveness in helping offenders improve their lives and make communities safer. Throughout the year, we've announced many new project wins, some in the U.S. and some in Europe, where we have been consistently displacing incumbent vendors, achieving over a 65% success rate in European competitive RFPs. We are proud to have won so many new contracts in this period, especially during times of uncertainty and volatility in the market due to the looming threat of recession and unstable geopolitics. Our business is inherently recession-resistant, and as the possibility of a potential recession increases, we have multiple tailwinds to support resilience and growth in our business. In 2022, we strengthened our operational infrastructure, grew our workforce, and maintained our technology leadership. For instance, despite ongoing instability in the global economy in recent months, we successfully finalized the development of our new product, Pure1, which we mentioned earlier. Additionally, we have refined our business plan, secured new contracts, and raised the necessary financial resources to support our company during this period of volatility and uncertainty in the capital markets. We have also expanded the company's global sales division, including a new sales team composed of industry experts as we continue to shift from passive bidding to an active outreach sales strategy. The new wins and improved sales teams are initial steps in executing the company's U.S. market expansion strategy and have already generated increased activity with existing customers, numerous new demos, and evaluations of potential new clients. As part of our growth plan, we see an opportunity to enhance our growth in the U.S. through strategic acquisitions of local electronic monitoring service providers that possess established reputations and customer bases in their respective communities. We continuously monitor the market for potential acquisitions that could create significant value by immediately expanding our market presence and providing vertical integration synergies. An example of this strategy is reflected in our $3 million acquisition of LCA back in 2016 and the immense strategic value and new project wins it has provided us. We have secured over $25 million in new projects in California since that acquisition in 2016 alone. Now, turning to our financials, I noted in our last conference call that we expect revenue from the aforementioned projects to contribute to our Q3 and Q4 financial results. I'm happy to share that we recorded a 102% year-over-year revenue growth to $6.3 million in Q3, with our IoT division serving as the primary growth engine, achieving 100% growth in the third quarter compared to the same quarter last year. Revenue from developed countries continues to rise, reflecting the completion of our five-year business plan, transitioning from unstable emerging countries to developed markets. As a reminder, our legacy business comprised onetime project revenues in Africa and South America, which sharply contrasts with our IoT tracking business in developed countries, generating recurring revenue of about 80%. Gross profit nearly doubled, increasing 96% to $2.1 million compared to $1.1 million in the third quarter of last year, driven by high growth in project volume. Compared to the same quarter last year, we increased our research and development investments by $333,000 while continuing to develop new products and improve existing ones, keeping us at the forefront of innovation and technology leadership in our industry. Our sales and marketing expenses rose by $195,000 as we implemented the company's new growth strategy, and general administrative expenses increased by $262,000 as we continue to expand our management team. The company recorded a positive EBITDA of $413,000 compared to a loss of $53,000 in the same period last year, reflecting the economies of scale associated with deploying new IoT projects and the continued shift away from our legacy business. We ended Q3 with $3.1 million in cash and cash equivalents, including approximately $1.74 million in gross proceeds raised in July due to warrants exercised by stable credit and institutional investors. This cash provides us with the liquidity needed to continue investing in sales, marketing, and R&D to drive revenue growth and expand our global footprint. In closing, as reflected in our financials, we are beginning to see a significant return on our investments in the safety sector. We believe that we are well-positioned for continued growth and capitalizing on new opportunities driven by several factors, including our strong presence and reputation in the U.S. and European markets, the countercyclical nature of our industry, policy shifts towards monitoring and alternatives to incarceration, and the return to post-COVID levels of business activity. Our recent announcements of new contracts in Europe and the U.S. are compelling examples of our successful execution of our business plan within a vertical where SuperCom is known for its strong presence and excellent reputation. With that, I'll turn the call back over to the operator to open up for questions.
Operator, Operator
Your first question for today is coming from Matthew Galinko.
Unidentified Analyst, Analyst
Hi, good morning, and congrats on the strong quarter.
Ordan Trabelsi, CEO
Thank you.
Unidentified Analyst, Analyst
Can we start with maybe the U.S. win - did they result from the new sales push that you talked about that started a couple of quarters ago? Is that starting to convert into these deals or is this still the sort of deals you get by word of mouth or passive outreach?
Ordan Trabelsi, CEO
Yes, the answer is yes, it is the result of the sales force. In the U.S., the market is more fragmented instead of bidding on large projects like Romania, which are $3 million or Sweden, which is $10 million. There, we have to have feet on the ground and go opportunity-to-opportunity. Some of it comes to us by word of mouth, some of it comes from good results in our previous projects, and some comes from reaching out to new customers. Either way, we need an active sales team with a proactive strategy. They have been doing demos, evaluations, and ensuring customers understand how unique our technology is, which is leading to wins, and we've been announcing them to share with the rest of the public.
Unidentified Analyst, Analyst
Got it, terrific. And then on the domestic violence component, is there an expected launch in the U.S.? Are your salespeople having conversations about that piece? And is there early indication of interest in the U.S. market?
Ordan Trabelsi, CEO
Let me quote one of our customers, who is a service provider and a reseller around domestic violence: 'If you provide me with the domestic violence solution, I will sell it like hotcakes here in the U.S.' So if that answers your question. Many customers are waiting for it in the U.S.; many resellers are anticipating it. Our focus has naturally been to provide it first to regions with larger revenues like the $33 million project versus smaller ones. It is being adapted to meet the U.S. market needs, and then it will be spread out through California and the Midwest and other states and locations. So it's in the process, and there's very high demand for it from what we see thus far.
Unidentified Analyst, Analyst
Yes, please expand on that, if you could?
Ordan Trabelsi, CEO
Okay. So, unlike our other solutions where you have a bracelet for house arrest, domestic violence is a little different and we're the only ones who do it in the world. Our bracelet, which you may remember, has a very long battery life. If someone experiences violence in the family and files a complaint, in many countries, they have changed the law to allow for the immediate application of our bracelet. If someone, for example, hits their spouse, they get the bracelet, and any time they come within 100 meters of her, her phone will notify her and the police immediately. We are effectively and dynamically enforcing restraining orders, which has never been done before. Our people can feel safe and have peace of mind that if they complain about being hit, they will be protected with the use of this amazing technology. Others cannot implement it because their technology is too large and requires daily recharging, which does not synergize with the mobile phone like ours does. This fits perfectly with our infrastructure, and many customers are recognizing its potential. We believe it will have a significant impact on the market worldwide.
Unidentified Analyst, Analyst
That's helpful, and it sounds like a great solution. I appreciate it. My last question is about the single-piece bracelet that you mentioned is gaining some early traction. Can you elaborate on that? Where is the traction occurring, and when can we expect to see that reflected in deals that incorporate it or in the uptake within an existing deal?
Ordan Trabelsi, CEO
Yes, with the 1P unit. We have our 2P solution, which is a small bracelet that runs for a very long time without charging and communicates with the smartphone. Some customers prefer just a one-piece solution; there's no phone, just a piece of hardware on the leg. We developed that as well. We designed it to be the most cutting edge in the industry, focusing on the best features, long battery life, connectivity, and security. We launched it first at a conference in Europe earlier this year, and we have already won a project with it in Sweden that we announced earlier this year. In the U.S., it's also very exciting, and many customers are asking for it because with this, they will have a full suite of tools, including domestic violence solutions. They will have the 2P solution on the smartphone and will also need the 1P solution for alcohol monitoring and other needs. All of this works together seamlessly in the same management studio in the cloud, making it very helpful and effective for the officers utilizing this technology, as opposed to having to manage different software tools for each hardware, which can be cumbersome.
Unidentified Analyst, Analyst
Got it, thank you.
Operator, Operator
Your next question for today is coming from Ken Weiner.
Unidentified Analyst, Analyst
Yes hi, good morning. The first thing I wanted to ask you about was the listing requirements?
Ordan Trabelsi, CEO
Yes, and what is the question?
Unidentified Analyst, Analyst
Well, basically, I think you're deficient in meeting the exchange's listing requirements.
Ordan Trabelsi, CEO
Okay, yes, let me answer if I understand your question correctly. We have not met the $1 minimum requirement from the NASDAQ Exchange, and we have essentially until December 13 to correct that. We are taking the proper measures. It's more of an operational issue in order to get this done, and we are on it. We expect to have this resolved in time.
Unidentified Analyst, Analyst
Well, when you say it's an operational issue, I mean the stock is $0.26, and you say your requirement is $1. So - how do you fill the gap?
Ordan Trabelsi, CEO
We don't control the stock price, and if the stock price doesn't reach the required level. We also have an ability to do a reverse split to adjust the stock price that way to meet the requirements before December 13.
Unidentified Analyst, Analyst
Okay. And secondly, obviously, it's a tough market out there, but the company has a market cap of $9 million. I've been a stockholder of the company for some time and own a fair amount of shares. What are your thoughts on that and what one can do to explain your story better, so maybe more people can get interested in the stock?
Ordan Trabelsi, CEO
Right, good question. In the past, we had more time to meet with more investors, attend conferences, and engage more with institutions and get the word out there. Lately, we've been extremely busy, as you can see, and we are focusing first on our operations. That's how we've been winning these new projects. We just announced a few weeks ago the largest project in Europe this year, a $33 million project that we just announced in this quarter, which doubled our revenues from last year and the previous quarter. The stock has not adjusted. Does that mean the market is valuing us correctly? I think not, but that creates opportunities for investors to come in at this time and hopefully grow with the company as the stock eventually adjusts to its proper value. I'm currently at a conference in California where I'll be meeting investors all day. We will try to integrate these conferences and communications with investors as much as we possibly can. However, our primary focus will be on operations, as creating long-term value for the company is more important than maintaining the immediate stock price at every moment.
Unidentified Analyst, Analyst
No, I agree with that. But so let's talk about going forward. I mean, it seems like this quarter was a breakthrough for you. It seems that you're gaining traction, and you're hitting some of the goals you set out. Is the quarter an aberration? Or do you expect future growth in the coming quarters?
Ordan Trabelsi, CEO
I don't think it's an aberration. I believe we have a strategy to grow our revenues from where they've been. At a high level, we had a business of e-Gov, which had revenues of close to $30 million, while IoT was close to nothing. We've grown that to nearly $10 million while e-Gov was in decline, and our strategy is to keep on growing that in the tens of millions of dollars. We don't think this growth is something unique that will not recur in the future. That being said, we don't control the growth in every quarter, as it depends on the timelines set by our government customers. We are dependent on them choosing when to launch contracts and complete significant milestones. We've launched a project in Romania, and we continue to do work in the coming quarters, but we cannot predict exactly what work will be done in each quarter, as that also depends on our customers. Furthermore, we are bidding on many projects around the world in Europe and the U.S., and we expect to win many of them. As we win, they will layer on to our recurring revenue base, which is already over 80%, and continue to grow our revenues. So our strategy is consistent with growing our presence, which will in turn grow our revenues. This quarter serves as a nice example for people to see what can happen, and we have much more to achieve that will have an immediate impact on our profitability, thanks to operating leverage. We don't need to significantly grow our operating cost structure to add more projects and more units.
Unidentified Analyst, Analyst
What about the debt maturities? Are you able to service the debt? And how are the priorities on the debt?
Ordan Trabelsi, CEO
The majority of our debt is due around December 2024. We believe our creditors understand our vision and are confident in it, collaborating with us to adjust the structure and requirements to align with the company's goals. We will be able to manage the debt over time. While it is not our immediate focus, as we are primarily concentrated on growth, we will eventually handle it, and our creditors share this belief.
Unidentified Analyst, Analyst
And the last question is, what are your terms of the contract? What is your accounts receivable total right now?
Ordan Trabelsi, CEO
Let's refer to the press release, but it's around $13 million. I believe it's approximately $13 million; I have to check the exact number.
Unidentified Analyst, Analyst
So if you're selling $6 million and you have accounts receivable of $13 million, then what are your terms?
Ordan Trabelsi, CEO
Well, it works a little differently. The accounts receivable for this quarter were $13.7 million. Typically, we have large project deployments, and when we deploy a large project, we get paid upon reaching certain milestones. Thus, we recognize some of the revenue as a percentage of completion. For example, we could deploy a lot of work in one quarter and recognize some revenue for that work, yet we still don't get paid. It's not overdue; it simply hasn't been billed yet - it’s unbilled revenue. Most of our customers in the U.S. and Europe are timely payers. This is one of our goals for moving to developed countries, moving away from Africa and South America, where we experienced more delays. Some of our trade receivables still stem from those legacy revenues from the e-Gov business. Some have been written off and discounted, but the new revenues from the IoT tracking business have been timely.
Unidentified Analyst, Analyst
And when do you start to recognize revenues for the big contract that you landed for $33 million?
Ordan Trabelsi, CEO
We already have started recognizing revenue, as you will see, the go-live was in early October. It’s one of the fastest go-live projects in the world in this space, in a brand-new country that hasn't had experience with electronic monitoring. We are excited to support them in launching such a significant project quickly without previous experience in electronic monitoring. This is a great win for us and for them. We're adding this capability to our skill set for future projects. Not just great technology and services, but also effective execution with very timely deployment.
Unidentified Analyst, Analyst
When dealing with governments, does your financial condition or stock price inhibit landing deals?
Ordan Trabelsi, CEO
Typically, when they first discuss this with us, we get comfortable. If they have technical limitations, we can team up with other vendors. They usually have a local partner who speaks the language and works with the government. These partners are generally larger companies like telecom or IT providers. We collaborate with them to present a strong case.
Operator, Operator
Your next question is coming from an indiscernible source.
Unidentified Analyst, Analyst
Congratulations on the Romanian win; I know how valuable that is to your business. Regarding the revenues generated, were any revenues from that project actually recognized in the third quarter - the $6.3 million? How much was that, and how much cash?
Ordan Trabelsi, CEO
Yes, we can't share those numbers at this point. We're not releasing revenues per project. I don’t have that information available, but we did start recognizing revenue in Q3 and will continue recognizing it in subsequent quarters. The cash flow from the projects began only in October, so it takes a little time for cash inflow, and we also need to meet certain milestones to get paid.
Unidentified Analyst, Analyst
Was the Romanian project the biggest driver of the increase sequentially? The receivables went up by about $1.2 million sequentially. Is Romania the biggest driver of that?
Ordan Trabelsi, CEO
I think it's fair to say that Romania is the biggest driver of the change this quarter. It’s the largest project we have, and we just launched it, so it impacted all metrics, including accounts receivable.
Unidentified Analyst, Analyst
What about gross margins for the nine-month period? So year-to-date, you have a 33% increase, give or take on the top line, but gross profit was essentially flat. Can you provide background on the impact of some of these new projects on your gross margins, and where you think the gross margin percentage could stabilize?
Ordan Trabelsi, CEO
I'll start with the end. If you look at the cost structure of our hardware, the data costs, and cloud costs, the contribution margin of every additional bracelet exceeds 50%. Over time, with economies of scale and operating leverage, those margins will improve. During new project deployments, we incur costs related to hardware procurement, server setup, and communication, which usually have lower margins compared to established projects. For instance, deployment and setup labor do not yield 50% margins. Therefore, while we are launching new projects, especially the significant contracts, it has impacted margins temporarily. In time, as we transition back into the regular flow of recurring revenues, margins will rise again.
Unidentified Analyst, Analyst
Regarding domestic violence, which looks like a highly lucrative new market for you, is this included in the Romania project? How many other jurisdictions are you involved in that include this domestic violence application?
Ordan Trabelsi, CEO
Off the top of my head, there are at least one or two other countries in Europe currently using domestic violence technology. I would prefer not to specify the names to avoid inaccuracies. In the U.S., several states and counties are inquiring about it. We just haven't fully adjusted it for the U.S. market yet, as it requires technology, legislative nuances, and processes. We believe this is a significant opportunity that can distinguish us in the market and excite us about future growth.
Unidentified Analyst, Analyst
That sounds promising. And lastly, regarding the e-Gov contracts, you had a press release about a $1.7 million contract. I recall you mentioned having difficulties collecting receivables from e-Gov customers in the past.
Ordan Trabelsi, CEO
Not this one. This contract has been great. Our focus has shifted away from e-Gov, particularly regarding customers that present collection challenges. We aim to ensure stricter conditions for cash flows. They need to pay upfront for equipment as leverage in negotiations.
Unidentified Analyst, Analyst
Thank you, congratulations on what seems to be some positive steps forward.
Ordan Trabelsi, CEO
Thank you very much.
Operator, Operator
Your next question is from Mike Walters. Mike, you are now live.
Unidentified Analyst, Analyst
Hello Ordan, you hear me?
Ordan Trabelsi, CEO
Yes. Good morning, Mike.
Unidentified Analyst, Analyst
I wanted to congratulate you on the excellent quarter. I truly admire everything you do and represent. I have just a few questions. I really appreciate your enthusiasm; I watched your webcast and noticed your smile. Everything you say is really impressive. I have a question about the collection challenges.
Ordan Trabelsi, CEO
I believe in what we're doing.
Unidentified Analyst, Analyst
I can sense your attitude. I wanted to ask about the numerous contract wins you've had over the past year. Are some of the revenues from the $33 million contract included in this quarter? Or will there be more included in the fourth quarter?
Ordan Trabelsi, CEO
Maybe I need to clarify which 10 contracts you're referring to. We have many contracts in different locations.
Unidentified Analyst, Analyst
Yes, I know. I was referencing the multiple contracts in the United States and the numerous ones going throughout 2022. And are they recurring?
Ordan Trabelsi, CEO
Yes, let me clarify. Since 2018, we’ve won 50 new projects, starting with smaller ones, $100,000, $300,000 projects, and growing to $1.8 million, $3.7 million in projects across various Countries, including Canada, Denmark, and Sweden. We intend to keep growing the scale of contracts, and we just won the $33 million contract, the largest project in the past decade. Each project we win includes a recurring revenue component, although the composition of revenues can vary. For instance, in the U.S., much of our billing is per unit per day, while in Europe, it may include upfront purchases. We are consistently launching projects every month or two, which adds to our recurring revenue base. The growth may appear to slow due to our transition from the e-Gov legacy business, which was about $30 million back in 2015, but we will continue to launch projects and reflect that volume of revenue in the coming quarters.
Unidentified Analyst, Analyst
Awesome. In the webcast, you mentioned that electronic monitoring works well on land and underground, but do you ever face issues in dark areas, such as low reception zones?
Ordan Trabelsi, CEO
That's a great question. No communication system is perfect. However, it's critical for our business plan to stay ahead of the competition. Many others have developed proprietary tracking technology for years, but we integrate location services from major companies and ensure accuracy. If you're underground, we don't rely on GPS but utilize WiFi networks to track individuals. In buildings, we employ low-frequency signals to locate people accurately within structures, surpassing the usual constraints others face. We have been developing our location technology since 2005, and we blend all these innovations into our proprietary solution. Customers are often impressed with our tracking capabilities, and this builds trust, allowing us to win more contracts.
Unidentified Analyst, Analyst
Awesome, it's very exciting like Star Trek stuff! This seems to suggest there's a vast need for continuous monitoring, not only of people but also places and things. Do you foresee this being limited to offenders?
Ordan Trabelsi, CEO
I believe in focusing. While we can theoretically track various entities (livestock, equipment, etc.), we must concentrate on our core competencies in a $1.6 billion industry. Our current solutions can disrupt this industry, and we need to fully harness this market before branching out. We have a long road ahead; our recent revenue was $12 million while still growing and capturing market share. Our efforts should focus on the public safety sector; only once we dominate there should we consider expansion into other sectors.
Unidentified Analyst, Analyst
Regarding biometrics, how extensive is your capability? Can you measure heartbeats and similar metrics?
Ordan Trabelsi, CEO
Great question. In terms of applications, we have access to any technology generally available to wearables. However, our focus right now is efficiently monitoring offenders with our existing services. We aren't currently measuring heart rates, but we are capable if we decide to expand our applications in the future.
Unidentified Analyst, Analyst
Okay, I appreciate your time; I have many more questions. Congratulations to both you and the SuperCom team!
Ordan Trabelsi, CEO
Thank you very much. Have a great day.
Operator, Operator
Thank you all for participating in today's call and for your interest in SuperCom. We are doing big things and making a significant impact, and we look forward to sharing our progress in our next conference call, filings, and press releases. Thank you, and have a good day. Thank you, ladies and gentlemen. This does conclude today's event. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.