Q2 2022 Supercom Ltd Earnings Call
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[music].
Yeah.
Ladies and gentlemen, good morning, and welcome to the Super Com second quarter, 2022 financial results and corporate update conference call.
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I would now like to turn the call over to Stephanie Prince of P. C. G.
I would now like to turn the call over to Stephanie Prince of PCG Advisory.
Thank you Holly and thank you to everyone joining us with me on the call today are Dan Trabelsi, Supercomm, President and Chief Executive Officer, I'd like to remind you that during this call Supercomm management may be making forward looking statements, including statements that address supercuts excellent.
Stephanie Prince of PCG Advisory.
Thank you, Holly, and thank you to everyone joining us. With me on the call today is Ordann Trebelci, 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.
Patients for future performance or operational results.
Forward looking statements involve risks and other factors that may cause actual results to differ materially from those statements for more information about these risks. Please refer to the risk factors described in Supercuts <unk>. Most recently filed periodic reports on form 20-F, and form 6K and supercuts.
Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Supercom's most recently filed periodic reports on Form 20F and Form 6K and Supercom's press release that accompanies this call, particularly the cautionary statements in it.
A press release that accompanies this call, particularly the cautionary statements in it.
Today's conference call includes EBITDA and non-GAAP financial measure that Supercomm 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.
Today's conference call 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 and a net loss of comparable GAAP financial measure. Please see the reconciliation table located in Supercuts earnings press release reconciliations for other non-GAAP financial measures to comparable GAAP financial measures are available there as well.
For reconciliation of this non-GAAP financial measure and a net loss, a comparable GAAP financial measure, please see the reconciliation table located in Supercon's earnings press release.
Reconciliations for other non-GAAP financial measures to comparable GAAP financial measures are available there as well.
Yeah.
The content of this call contains time sensitive information that is accurate only as of today August nine 2022, except as required by law Supercomm disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call.
The content of this call contains time-sensitive information that is accurate only as of today, August 9, 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 Supercuts, President and CEO again, trabelsi or Dan.
It is now my pleasure to turn the call over to Supercom's President and CEO , Ordan Trebelci. Ordan?
Thank you Stephanie.
Morning, everyone.
For joining us today.
Thank you, Stephanie. Thank you, Stephanie.
Earlier. This morning, we issued a press release with our financial results for the second quarter of 2022.
And good morning, everyone.
Thank you for joining us today.
Earlier this morning, we issued a press release with our financial results for the second quarter of 2022.
You can find a copy in the Investor Relations section of our website at supercuts.
We continue to maintain our commitment to time the quarterly reporting for a quarterly review I'll start with a brief update on our recent business highlights strategy and Q2 results.
You can find a copy in the investor relation section of our website at supercom.com.
We continue to maintain our commitment to timely quarterly reporting. And for our quarterly review, I'll start with a brief update on our recent business highlights, strategy, and Q2 results.
Followed by a Q&A session.
The second quarter was another good quarter for recall, we won several important contracts in the U S and Europe , we're excited.
followed by a Q&A session.
The second quarter was another good quarter for Supercom. We won several important contracts in the US and Europe and we're excited at the reception and early traction of our newest product, the Pure One.
The reception of the early traction of our newest product the pure one.
A highly innovative and best of breed one piece GPS tracking device.
Go into more details in a few moments.
A highly innovative and best of breed one piece GPS tracking device.
Those numbers are Super calls.
I'll go into more details in a few moments.
Since our founding in 1980 834 years ago, Supercomm has always been a trusted partner, providing cutting edge electronic and digital security solution the dozens of governments worldwide.
Those new to Supercom.
Since our founding in 1988, 34 years ago, Supercom has always 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 complimentary services.
As part of our mission, we strive to revolutionize the public safety sector worldwide through proprietary electronic monitoring technology, data intelligence, and complementary services.
Our strategy has always been to lead with our technology entering 2022, we continued to invest in research and development to ensure our products remain the most competitive in the market. We continue to introduce new features and technologies into our proprietary platform extending our lead in the marketplace.
Our strategy has always been to lead with our technology. Entering 2022, we continued to invest in research and development to ensure our products remain the most competitive in the market.
We continue to introduce new features and technologies into our proprietary platform, creating our lead in the marketplace.
R&D teams continue to innovate and disrupt the status quo, whether it's new features and biometric capabilities battery life and communications capabilities or entirely new solutions for domestic violence alcohol monitoring and smartphone electronic monitoring within dense parts of monitor urban areas and subways.
Our R&D teams continue to innovate and disrupt the status quo, whether it's new features in biometric capabilities, battery life, and communications capabilities, or entirely new solutions for domestic violence, alcohol monitoring, and smartphone electronic monitoring within dense, parts and monitor, urban areas, and subways.
In recent years, we've become more and more aware of the immense challenges that nations and governments worldwide face when dealing with their offender population.
In recent years, we've become more and more aware of the immense challenges that nations and governments worldwide face when dealing with their offender population.
First many countries suffer from high recidivism rates were persons relapse to more criminal behavior after finishing their sentence.
first.
Many countries suffer from high recidivism rates, where persons relapse to more criminal behavior after finishing their sentence.
Clogs, the criminal Justice system.
Second.
Prison overcrowding as one of the key contributing factors to poor precedent conditions worldwide.
This clogs the criminal justice system.
Second.
Prison overcrowding is one of the key contributing factors to poor prison conditions worldwide, resulting in prisoners sleeping in shifts on top of each other or sharing beds.
<unk> and prisoner sleeping and shift on top of each other or sharing the bet.
Third.
2022.
About $80 billion spend in the U S to keep roughly $2 3 million people incarcerated.
Third.
In 2022, about $80 billion was spent in the U.S. to keep up to 2.3 million people incarcerated, nearly 1% of the entire U.S. population.
1% of the entire U S population.
Beyond that.
<unk> cost of incarceration.
Such as lost earnings adverse health effects and more are estimated at three times these direct cost figures.
Beyond that, the societal cost of incarceration.
such as lost earnings, adverse health effects, and more, are estimated at three times these direct cost figures.
Unfortunately, these issues arent you need to the U S. On our prevailing globally. It is evident that prisons are far from ideal for solving the many challenges and criminal justice to help meet these challenges we have leveraged our technology and services expertise in government securities and excellent team to focus on the public safety sector.
Unfortunately, these issues aren't unique to the US and are prevailing globally. It is evident that prisons are far from ideal for solving the many challenges in criminal justice.
To help meet these challenges, we have leveraged our technology and services, expertise in government security, and excellent team to focus on the public safety sector.
We're seeing much success and in just the past few weeks, we announced three additional new contracts across three different U S States, Texas, South, California, or California, and Idaho.
We're seeing much success and in just the past few weeks we've announced three additional new contracts across three different US states, Texas, South California, and Idaho.
Just this morning.
The fourth contract win this time in.
In the U S state of Kentucky.
And just this morning, we announced the fourth contract win, this time...
This is a great one for <unk>.
The new partnership with a leading probation service provider to facilitate our strategic expansion into the southeast U S.
in the US state of Kentucky.
This is a great one for Supercom. I just did a partnership with a leading probation service provider to facilitate our strategic expansion into the Southeast UX.
Furthermore, the recent one in Idaho represents our third one third new customer in Idaho invest in a year.
Furthermore, the recent win in Idaho represents our third win and third new customer in Idaho in less than a year. U MO View
Adding to our organically growing customer base and signaling to just how rapidly the other trials you could spread to new adjacent customers.
adding to organically growing customer base and signaling to just how rapidly our technology can spread to new adjacent customers.
Alongside our expansion in the U S. Recently also announced two new contracts in Europe .
Alongside our expansion in the US, we have recently also announced two new contracts in Europe .
We were awarded Croatia's first national electronic monitoring projects.
who were awarded Croatia's first.
We have already launched.
National electronic monitoring project.
And we secured a new contract for Sweden juvenile national electronic monitoring project the third.
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 contract in Sweden.
And final remaining national contracts in Europe or in Sweden.
Apologies all three are currently held by Super Bowl.
Our strategy has been to build a major technology expand our presence at.
All three are currently held by Supercom.
And deliver outstanding services.
Our strategy has been to build amazing technology, expand our presence.
We believe that our growing success is based on these key factors, including.
expand our presence, and deliver outstanding services.
We believe that a growing success is based on these key factors.
Our proprietary electronic monitoring technology, which scores very highly in competitive rfps and support.
is based on these key factors, including...
a proprietary electronic monitoring technology, which scores very highly in competitive RFPs and supports various programs such as house arrest, GPS monitoring, rehabilitation services, and more. EECOM is one of the 40 new multi-year government projects since 2018.
Various programs such as house arrest GPS monitoring rehabilitation services and more Supercar was one of our 40, new multiyear government projects in 2018.
Our strong reputation and recognition as a premium provider of electronic module technology and services contributes to our win rate as well, we operated a small niche market where customers know one another and having a solid reputation is that is an essential factor.
Our strong reputation and recognition as a premium provider of electronic technology and services contributes to our win rate as well. We operate in a small niche market where customers know one another, and having a solid reputation is an essential factor in this business when selecting a vendor. Each customer won, and Project Deployed further strengthens our reputation, making us even more competitive.
Business when selecting a vendor each customer one project deployed further strengthens our reputation making us even more competitive in addition.
We acquired an electronic monitoring and criminal Justice business in 2016 named LCA headquartered in Oakland, California, with a strong presence in the state since 1991.
In addition, we acquired an electronic monitoring and criminal justice business in 2016 named LCA, headquartered in Oakland, California, with a strong presence in the state since 1991. Through this acquisition and integration, the large reference-based relationships and experience we inherited in California have allowed us to enter the region with our new technology and capabilities, effectively unleashing valuable synergies and launching a continuous stream of new multi-year recurring revenue projects.
This acquisition integration the large reference based relationships and experience we inherited in California have allowed us to enter the region with our new technologies and capabilities.
Effectively unleashing valuable synergies and launching a continuous stream of new multiyear recurring revenue projects.
This acquisition, we have won over $25 million worth of new projects in California.
Since this acquisition, we have won over $25 million worth of new projects in California.
Well positioned for growth into more locations and larger projects.
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We are now well positioned for growth into more locations and larger projects.
Our strategic focus our manager's attention.
Shifting to focus on our Iot tracker business with recurring revenues in developed countries. This coincides with the increased number of Rfps and procurement activity with potential government Iot customers.
Bye.
Our strategic focus and managers' attention has shifted to focus on our IoT tracking business.
with recurring revenues in developed countries. This coincides with the increased number of RFPs and procurement activity with potential government IoT tracking customers.
This increase reflects the growth of the electronic monitoring market, which was valued at about $1 $1 billion in 2020 and is estimated to reach $1 6 billion.
This increase reflects the growth of the electronic monitoring market, which was valued at about $1.1 billion in 2020 and is estimated to reach $1.6 billion.
By 2025 U S and Europe constitute about 95% of this market in Europe .
dollars by 2025. The US and Europe constitute about 95 percent of this market. In Europe , we have recently seen an uplift in RFP activity with over 200...
<unk> seen an uplift in RFP activity with over 200.
And upcoming project opportunities expected in the upcoming 18 months.
million dollars in upcoming project bid opportunities expected in the upcoming 18 months.
Broadly, we see a global trend of government turning to innovative solutions alternatives to incarceration to ensure public safety and our pure security technology solution provided an effective way for institutions enforced home confinement, while using overcrowding and prison.
Broadly, we see a global trend of government turning to innovative solutions.
alternative to incarceration to ensure public safety. And our peer security technology solution provide an effective way for institutions to enforce home confinement while using overcrowding in prison.
In addition, it allows them to reduce the associated cost of housing and it made significantly for example, the total daily costs were monitoring and offender and holds in finance or GPS monitoring is approximately $10 $35 a day.
In addition, it allows them to reduce the associated cost of housing and inmate significantly.
For example, the total daily cost for monitoring an offender on home and finance or GPS monitoring is approximately $10 to $35 a day.
Substantially lower than the 100 to $140 a day costs.
At a correctional facility.
substantially lower than the 100 to 140 dollars a day cost.
More importantly, how can pilot has been shown to reduce recidivism highlight.
$240 a day cost at a correctional facility.
Highlighting its effectiveness in helping offenders improve their lives and making communities safer.
More importantly, home confinement has been shown to reduce recidivism.
highlighting this effectiveness and helping offenders improve their lives and making communities.
effectiveness in helping offenders improve their lives and making communities safer.
The demand for our vendors electronic monitoring solutions is growing as it is.
Most of the dimension challenges throughout the year, we have announced many new project win some in the U S and some in Europe , where we have been continuously displaced incumbent vendors with an over 65% win rate and the European competitive rfps.
The demand for our fender's electronic monitoring solution is growing as it solves most of the mentioned challenges. Throughout the year, we have announced many new project wins, some in the US and some in Europe , where we have been continuously displacing incumbent vendors with an over 65% win rate in the European competitive RFPs.
We are proud to have won so many new contracts in such a short period, especially.
Especially in times of uncertainty and volatility in the market due to the looming threat of recession and unstable geopolitics, our business is recession resistant in that nature.
We are proud to have won so many new contracts in such a short period.
especially in times of uncertainty and volatility in the market due to the looming threat of recession and unstable geopolitics.
The possibility of a potential recession increases the multiple tailwind to support resilience and growth.
Our business is recession resistant in that nature.
And as the possibility of a potential recession increases, we have multiple tailwinds to support resilience and growth.
In our business and market.
Entering 2022, we continue to strengthen our operational infrastructure grow our workforce and maintain our leadership in technology.
in our business and market.
Enter in 2022, we continue to strengthen our operational infrastructure, grow our workforce, and maintain our leadership in technology.
For example, I missed the ongoing instability in the global economy in the past few months, we successfully finalized the development of a new product the pier one.
For example, amidst the ongoing instability in the global economy in the past few months, we successfully finalized the development of a new product, the Pure One.
Which we mentioned earlier. In addition, we owned our business plan secured new contracts and raise the needed financial resources to support our company during the time of volatility and uncertainty in the capital markets. We've also invested a lot.
which we mentioned earlier. In addition, we owned our business plan, secured new contracts, and raised the needed financial resources to support our company during the time of volatility and uncertainty in the capital markets. We've also invested a lot of thought and time into our corporate culture.
And time into our corporate culture.
And are proud of the high quality of our employee base and high retention rates.
We pride ourselves in our ability to retain valuable engineering staff, while facing competition from some of the largest global tech companies in the World, which also based in Tel Aviv.
and are proud of the high quality of our employee base and high retention rates.
We provide ourselves and our ability to retain valuable engineering staff while facing competition from some of the largest global tech companies in the world, which are also based in Tel-Adiv.
And we grew our R&D team significantly in the past year.
We are also strengthen the company's global sale division recruiting a new VP of sales and several sales managers industry experience.
And we grew our R&D team significantly in the past year.
We have also strengthened the company's global sales division, recruiting a new VP of sales and several sales managers industry experience.
As you continue shifting from passive bidding.
Outreach sales strategy.
as you continue shifting from passive bidding to an active outreach sales strategy.
We continue to invest in R&D division recruiting new experienced engineers product managers quality assurance and support personnel to serve the growing government customer base for a leading state of the art technology.
We continue to invest in R&D divisions, including new experienced engineers, product managers, quality assurance, and support personnel to serve the growing government customer base for our leading state-of-the-art technology. These investments have driven increased activity with existing customers and numerous new demos and evaluations of potential new ones.
Investments have driven increased activity with existing customers and numerous new demos and evaluations with potential new ones.
The new wins and our improved sales team are the first steps in executing the company's U S market expansion strategy. We also considered.
The new wins and our improved sales team are the first steps in executing the company's U.S. market expansion strategy. We also consider a strategic acquisition of resellers in key locations as part of our core.
<unk> acquisition of resellers in key locations as part of our growth plan.
We believe theres opportunity to enhance our growth in the U S strategic acquisitions of local electronic monitoring service providers have developed a strong reputation and customer base and their respective local communities. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration synergies and example of this.
We believe there is an opportunity to enhance our growth in the US through strategic acquisitions of local electronic monitoring service providers. We have developed a strong reputation and customer base in their respective local communities. We constantly monitor the market for potential acquisitions that could generate significant value by immediately expanding market presence and providing vertical integration synergies.
Strategy as reflected through our $3 million acquisition of LCA.
An example of this strategy is reflected through our $3 million acquisition of LCA.
California in 2016, and then strategic value of New project wins, that's provided us.
in California in 2016. And then that strategic value, a new project wins, it has provided us.
Turning to the financials and as we mentioned before we are dedicated.
Turn to the financials.
The transition away from the legacy business to our new focus on the Iot tracking business such as public safety.
And as you mentioned before, we are dedicated.
the transition away from the legacy business to our new focus on the IFC tracking business that serves public safety.
Government customers in developed countries with every quarter that passes as we get closer to achieving our goal and expect to be perfect.
government customers in developed countries. With every quarter that passes, we get closer to achieving our goal and expect to be.
Reflecting our annual financial results by the end of the year.
Nevertheless.
affected our annual financial results by the end of the year.
Kyle.
Going through this transition process, we were able to demonstrated stable performance and we believe that we're well positioned for future growth from our Iot Division last year for.
Nevertheless.
while still going through this transition process. We were able to demonstrate stable performance and we believe that we're well positioned for future growth from our IoT division. Last year.
For the first time in five years, we achieved growth in annual revenues.
For the first time in five years, we achieved growth in annual revenues.
Overcoming the decline of legacy business and the second quarter of 2022, as well we were able to offset the declines in legacy business with higher growth from Iot tracking business jet.
overcoming the decline of a legacy business.
And in the second quarter of 2022 as well, we were able to offer the decline in legacy business with higher growth from the IoT tracking business.
<unk> generated a total.
Year over year and sequential quarterly revenue growth in Q2 of 2022.
generating a total
year-over-year and sequential quarterly revenue growth in Q2 of 2022.
Since you only recently won the numerous projects I mentioned earlier, we expect the revenue from that will begin to contribute to our financial results.
Since we only recently won the numerous projects I mentioned earlier, we expect that revenue from that will begin to contribute to our financial results.
In Q3 Q4.
Quarters following from there.
As a reminder, the legacy business was comprised of one time project revenues in Africa.
in Q3, Q4, and...
orders following from there.
As a reminder, the RET legacy business was comprised of one-time project revenues in Africa and South America, which is a sharp contrast to our IoT tracking business in developed countries with better payments.
South America, which is in sharp contrast to our Iot tracking business in developed countries with better payments.
And collections that has recurring revenue of approximately 82%.
In the past few years.
and collections that has recurring revenue of approximately 83 percent.
Revenue in the second quarter of 2022 was $3 $2 million.
in the past few years.
A 4% increase compared with the corresponding period last year and a five five.
Revenue in the second quarter of 2022 was $3.2 million.
5% increase.
a 4% increase compared with the corresponding period last year and a 5.5% increase.
Compared with the first quarter of 2022.
Again this quarter the division grew faster than the decline in legacy business.
compared with the first quarter of 2022.
Again, this quarter, RIT divisions grew faster than the kind in legacy business.
Gross margin of 40%.
Complaint compared to 58% in the second quarter of last year, which reflects the hyphen transitional cost required with the appointment of a new Iot projects I haven't the startup.
Gross margin of 40%.
compared to 68% in the second quarter of last year, which reflects the high transitional costs required with deployment of new IoT projects ahead of the startup of the associated recurring revenue streams.
The associated recurring revenue streams.
And added to the complexity.
We're in the process of startup several new projects in different locations at the same time in addition.
and add into the complexity.
We are in the process of starting several new projects in different locations at the same time. In addition, global supply chain disruptions.
Supply chain disruptions.
We have temporarily increased material and shipping costs further impacting our gross margins temporarily.
have temporarily increased material and shipping costs, further impacting our gross margins temporarily.
During the quarter, we increased our research and development spending by $340000 and continued working on the development of new products.
During the quarter, we increased our research and development spending by $340,000 and continued working on the development of new products.
And improving existing products, which keeps us at the edge of innovation.
Acknowledged leadership in our space, our sales and marketing expenses increased by $380000 to support.
and improving existing products, which keeps us at the edge of innovation.
and technology leadership in our space. Our sales and marketing expenses increased by $380,000 to support
The company's new practice growth strategy in general and administrative expenses decreased by $370000 as we continued to expand our management and global team the.
the company's new proactive growth strategy and general and administrative expenses decreased by $370,000 as we continue to expand our management and global team.
The company had an EBIT loss of $721000 compared to a profit of $684000, reflecting the transitional costs associated with deployment of the new Iot projects ahead of the associated recurring revenue streams from a temporarily higher costs of material and shipping due to the disruptions in the global supply chain.
The company had an EBITDA loss of $721,000 compared to a profit of $284,000, reflecting the transitional cost associated with deployment of the new IoT project.
ahead of the associated recurring revenue streams and the temporarily higher cost of material and shipping due to the disruptions of the global supply chain.
We ended the second quarter with $3 $9 million in cash.
<unk> includes cash from the approximate.
We ended the second quarter with $3.9 million in cash.
For $65 million in gross proceeds you raised and registered direct offering with a single credit investor in March 'twenty to 'twenty two.
which includes cash from the approximate.
$4.65 million in gross proceeds we raised in registered direct offering with a single accredited investor in March of 2022. We also successfully closed another small capital raise of $1.75 million in gross proceeds.
We also successfully closed another small capital raise of $1 $75 million in gross proceeds.
In July just last month, despite the challenging market.
Conditions.
in July , just last month, despite the challenging market.
This cash provides us with liquidity, we need to continue investing in sales and marketing and R&D to drive revenue growth and expand our global footprint.
condition.
This cash provides us with the liquidity we need to continue investing in sales and marketing and R&D to drive revenue growth and expand our total footprint.
At closing.
With a strong presence and reputation in both the U S and European markets, We believe that we're well positioned for continued growth.
They're closing.
With a strong presence and reputation in both the US and European markets, we believe that we're well positioned for continued growth.
And capitalizing on new opportunities and coupled with the counter cyclical nature of our industry public policy shift to monitoring instead of incarceration and returning the post corona levels of business activity. We expect these drivers to fuel our business growth going forward.
capitalizing on new opportunities.
And coupled with the counter-cyclical nature of our industry, public policy shifts to monitoring instead of incarceration, and returning to post-corona levels of business activity, we expect these drivers to view our business growth going forward. Our recent announcement of new contracts in Europe and the US are compelling examples of our successful business plan.
Announcement of new contracts in Europe , and the U S are compelling examples of our successful business plan execution with a vertical in which we have a strong presence and an excellent reputation.
execution with a vertical in which we have a strong presence and an excellent reputation.
And with that I'll turn the call over to the operator to open the call for questions.
And with that, I'll turn the call over to the operator to open the call for questions.
Operator.
Ladies and gentlemen, if you risk wish to ask a question on today's call you will need to press Star then the number one on your telephone if you are using a speakerphone. Please pick up your handset before entering your request and speaking on the call.
Operator.
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If your question has been answered and you wish to withdraw your question.
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One moment please for the first question.
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Once again, if there are any questions or comments. Please press star one on your phone at this time.
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Yeah.
There are no questions in queue at this time I would like to remind everyone. If there is a question. Please press star one on your phone at this time.
questions in queue at this time. I would like to remind everyone if there is a question please press star 1 on your phone at this time.
There appear to be no questions in queue.
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Okay.
Thank you all for participating in today's call.
And for your interest in <unk>, we look forward to sharing our progress on our next conference calls filings and press releases. Thank you very much and have a good day.
I want to thank you all for participating in today's call.
and for your interest in Supercom. We look forward to sharing our progress on our next conference call, spiraling and press releases. Thank you very much and have a good day.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your lines at this time and have a wonderful day.
Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.
For your participation.
Sure, that's 583763.