Q2 2024 SuperCom Ltd Earnings Call
Speaker Change: [inaudible]
Speaker Change: Ladies and gentlemen, good morning and welcome to Supercom's second quarter 2024 Financial Results and Corporate Update conference call. At this time, all participants are in a listen-only mode.
Speaker Change: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker Change: After today's presentation, there will be an opportunity to ask questions.
Speaker Change: To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2.
Speaker Change: Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes.
Ordan Trabelsi: Joining me from Supercom's leadership team is Ordan Trabelsi, Supercom's President and Chief Executive Officer.
Speaker Change: 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.
Speaker Change: Forward-looking statements involve risks, uncertainties, and other factors that may cause Supercom's actual results to differ materially from those statements.
Speaker Change: For more 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.
Speaker Change: and Supercom's press release that accompanies this call, particularly the cautionary statements in it.
Speaker Change: Today's conference call includes EBITDA, a non-GAAP financial measure that Supercom believes can be useful in evaluating its performance.
Speaker Change: You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAP.
Speaker Change: 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.
Speaker Change: Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well.
Speaker Change: The content of this call contains time-sensitive information that is accurate only as of today, August 15, 2024.
Speaker Change: 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.
Speaker Change: Thank you, operator. And good morning, everyone. Thank you for joining us today.
Speaker Change: Earlier this morning, we issued a press release of our financial results for the second quarter of 2024.
Speaker Change: You can find a copy in the investor relations section of our website at www.supercom.com
Speaker Change: Today I'll start my comments with a brief update on our recent business highlights strategy and Q2 results, followed by a Q&A session.
Speaker Change: The second quarter was an outstanding quarter for Supercount, marking our second consecutive period of remarkable net income growth, with a 183% increase quarter over quarter this time.
Speaker Change: We achieved a record-breaking high-year, high-income of $2.2 million, reflecting a $3.3 million year-to-year improvement. This is the second quarter in a row where we're breaking our record.
Speaker Change: Additionally, our cash flow to operating activity decreased by $5.3 million to positive $2 million this quarter.
Speaker Change: year over year, reflecting the strength of our operational performance. We are thrilled with this outstanding performance and look forward to maintaining this momentum in the coming quarters.
Speaker Change: During this quarter, we executed in advance the various projects in our portfolio and utilized operating leverage and prior investments in our proprietary technology to achieve a significant EBITDA increase of 83% year-over-year to $1.6 million this quarter.
Speaker Change: We're particularly proud to have successfully integrated the Tier 1 solution into multiple new markets during this period, reflecting our continued commitment to innovation and our ability to meet the evolving needs of our clients. This, along with other strategic initiatives, has positioned us to deliver sustained growth and profitability.
Speaker Change: For those new to Supercomp.
Speaker Change: Our mission is to revolutionize the public safety sector worldwide with our proprietary electronic monitoring technology, data intelligence, and suite of complementary services.
Speaker Change: With over 36 years of experience since our founding in 1988, we've been a trusted partner to dozens of national governments worldwide, providing cutting-edge electronic and digital security solutions.
Speaker Change: Our strategic blueprint is straightforward yet powerful.
Speaker Change: Lead with innovative technology. Our proprietary technology, monitoring technology, which scores highly in competitive government tenders and supports various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more.
Speaker Change: Moreover—
Speaker Change: We have recently broadened our portfolio to include advanced AI-driven analytics, which are an integration in our electronic monitoring solutions. This addition enhances our ability to provide predictive insights and improved outcomes for our clients.
Speaker Change: We're developing superior solutions. Since 2018, we've secured over 50 new multi-year government projects with the solution.
Speaker Change: [inaudible]
Speaker Change: and we deliver outstanding service.
Speaker Change: Our strategic focus on the IoT tracking business is to develop and develop markets.
Speaker Change: with opportunity is the greatest. With electronic monitoring market projected to but those reach 2.3 billion dollars by 2028. The US and Europe constitute about 95% of these markets.
Speaker Change: We continue to amplify our technological leadership with significant R&D investments, leading to the launch of advanced solutions like Geoprotective Tier 1. These offerings are already making headway in various markets, including the U.S., and are privilegeable in supercompact branches.
Speaker Change: Peer Protect is a life-saving domestic violence management solution, providing preventative measures to families suffering from domestic violence or stalking.
Speaker Change: thereby increasing their safety.
Speaker Change: Pure One is an all-in-one GPS tracking and co-operative monitoring solution, integrating comprehensive monitoring capabilities into a single device. Like many of our products, it offers top-notch features, placing it above the competition in most metrics.
Speaker Change: Our cloud-based software-enabled, pure security product line.
Speaker Change: has been particularly effective in monitoring offenders and managing real-time information. This real-time advantage is a game-changer.
Speaker Change: Empowering authorities with actionable insights and timely intervention to mitigate potential risks and ensure.
Speaker Change: public safety.
Speaker Change: These products have significantly expanded the company's addressable market. We've been very pleased with our reception and traction and expect them to help facilitate the accelerated expansion of SuperComm into the U.S. market and further into European countries.
Speaker Change: We fortified our operational infrastructure to support our growth and revamped our sales strategy with a proactive outreach approach. Our sales team with deep industry expertise.
Speaker Change: has been instrumental in achieving new wins at Driver Cross.
Speaker Change: Over the past month, we announced many new orders.
Speaker Change: and projects in the U.S. and Europe. Supercomics continuously displaced incumbent vendors and achieved over 65%.
Speaker Change: 65% win rate in European competitive tenders.
Speaker Change: In the European market, Supercom has secured several national tracking programs across Europe over the past two years, with bids and contracts at various stages of execution. Notably, the company's large-scale domestic violence offender tracking programs, like the one launched in Romania, have the potential to catalyze further uptakes when accessing European customers.
Speaker Change: As more European countries adopt these technologies, we anticipate a broader expansion of our solutions across the continent.
Speaker Change: In the European market, Supercom expanded its business into over 10 countries and secured significant new contracts, which are typically awarded through a competitive tender process.
Speaker Change: Besides winning new projects, we continue to execute and receive ongoing orders from our partners.
Speaker Change: Just about four weeks ago, we announced a receipt for new orders valued at over $2.9 million from European governments, totaling over $11 million in new orders from European clients.
Speaker Change: Last year, we secured a new national program with the Finnish government to deploy our domestic violence monitoring solution.
Speaker Change: The deployment of our Pure Security Suite, consisting of PureProtect, PureTrack, PureTag, and PureMonitor demonstrates the versatility and effectiveness of our solutions and underscores our leadership in the electronic monitoring space. Our collaboration with FinLend is a prime example of the confidence our clients have in SuperComm.
Speaker Change: As those who experience our services often choose to broaden their engagement with our diverse array of solutions.
Speaker Change: Notably, at the end of 2022, the company won the largest industry award of the year for National Electronic Monitoring Project in Romania, valued at $32 million.
Speaker Change: including up to 15,000 monitored offenders per month for up to six years.
Speaker Change: The project has been progressing smoothly and demonstrates substantial advancements, further extending our engagement in the country's national EM project.
Speaker Change: This large-scale project reinforces the strength of our security suite.
Speaker Change: in the mental position.
Speaker Change: as a trusted partner for Governments Worldwide.
Speaker Change: We've also launched domestic bio solutions in other European regions and have recently launched them in the U.S.
Speaker Change: While the European market continues to grow, it's important to know that the U.S. market offers an even larger opportunity, bringing approximately three to four times the size of the European market.
Speaker Change: With the introduction of our Pure One electronic monitoring product, now available in the U.S., and the expansion of our domestic violence tracking solutions, we believe Supercom is well positioned to unlock substantial growth potential in this untapped market.
Speaker Change: Although Supercom already does business in multiple U.S. states, we are actively focused on further expanding our presence in the U.S.
Speaker Change: Our wholly-owned subsidiary, LCA, located in California, is actively expanding the size and scope of existing programs, winning rebates with existing customers and winning new programs with new customers.
Speaker Change: The company strategically prioritizes Pure1's expansion to new markets and geographies. The Pure1...
Speaker Change: has already received high praise during its introduction to various regions of the USA, where it has been successfully deployed and actively utilized and monitored by the Centers. Moreover, sales activities for Pier 1 have commenced in promising new markets outside Europe and North America.
Speaker Change: Despite our long-standing presence in parts of California, the U.S. market remains largely untapped.
Speaker Change: Since we began investing in outbound sales efforts in 2022, we have secured wins in California, Idaho, Texas, Kentucky,
Speaker Change: Wyoming KDQ, the launch of Pure One in 2023 coupled with the positive feedback from initial deployments positioned us to accelerate market capture across the U.S. unlocking significance.
Speaker Change: growth opportunities.
Speaker Change: 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 multiple new demos, resulting in a significant increase in the company's pipeline.
Speaker Change: launching our PURE1 solution.
Speaker Change: in U.S. markets in the year 2022 was a significant milestone in the U.S. expansion strategy.
Speaker Change: Entering 2024, we've already announced three new projects in North America to provide the solution. Through LCA, we want a new project in California valued up to $2 million to provide a comprehensive jail-based program focusing on reentry services for adult inmates. The award is a result of winning a formal competitive process.
Speaker Change: Moreover, LCA secured a new contract in California with an established California services provider in the judicial sector. This contract is particularly notable for Supercomp's successful displacement of long-time incumbent competitors.
Speaker Change: Finally, Supercom 1 is a new project in Canada with a well-known Canadian industry partner in the tracks and solutions sector. This project expands an existing collaboration with this long-standing partner, transitioning from providing R&D-based technology to embracing new GPS technologies.
Speaker Change: As I mentioned earlier, introducing our Pure1 solution is a game-changer in securing these contracts. It underscores our competitive edge and commitment.
Speaker Change: to delivering innovative and superior technology solutions. By securing these contracts and others, we leverage our technologies and our services and our track record experience.
Speaker Change: to win a competitive tenders
Speaker Change: And with security's conscious, we further reinforce the position of the market leader. We view our recent wins as indicators of a growing influence and expansion.
Speaker Change: potential in North America and worldwide.
Speaker Change: In conclusion on strategy, despite macroeconomic uncertainties and ongoing global challenges, including those in Israel, supercomp solution are being increasingly
Speaker Change: Relevance.
Speaker Change: We continue to see growth driven by high recidivism rates, the escalating cost of incarceration, and the surge in the adoption of victim protection solutions worldwide. The company is Pure Security Technology Solutions.
Speaker Change: has been designed to address these trends, offering new effective ways for institutions to enforce home confinement, ease prison overcrowding, and lower costs significantly. For example,
Speaker Change: Monitoring an offender on home confinement or GPS call.
Speaker Change: about $10.00 to $35.00 a day, which is 90% less than the $100.00 to $140.00 daily cost at a correctional facility. Moreover,
Speaker Change: Home confinement helps reduce repeat offenses, highlighting its effectiveness in helping offenders improve their lives and communities.
Speaker Change: As we've mentioned in previous calls, we believe there is also an opportunity to enhance our U.S. growth through strategic acquisitions of local electronic monitoring services providers with a strong reputation and customer base in the local markets.
Speaker Change: We constantly monitor the market's potential acquisitions that generate significant value by immediately expanding market presence and providing vertical integration synergies.
Speaker Change: Our acquisition of LCA in 2016 for $3 million is a great example.
Speaker Change: The successful acquisition has proven to be a great strategic value throughout the over $35 million.
Speaker Change: of new projects that's generated since then in California alone.
Speaker Change: I'll now turn to the financials. During our previous conference call, I mentioned that we anticipated contributing to our financials results in the subsequent orders as our ongoing projects mature.
Speaker Change: I'm delighted to share that we've substantially improved our financial and operating results. Our gross margin improved by 20.4 percentage points to 49.6% year-over-year. Moreover, our operating income improved by $1 million, reaching $0.4 million.
Speaker Change: A significant year-to-year turnaround from an operating loss of $1.7 million, driven by the substantial rise in our gross profit.
Speaker Change: Our non-Gapman income surged by 874% year-over-year to $3.3 million, reflecting the benefits operating leverage associated with higher revenues and continued progress in our IoT projects.
Speaker Change: This quarter's results highlight our ability to seize the high margin potential of our project portfolio through successful execution and progression in different stages of these projects, showcasing our focus on sustained growth and profitability.
Speaker Change: Our momentum is also evidenced by our improved cash flows from operating activities, which increased by $5.3 million year-over-year to $2 million in operating cash this quarter from negative $3.3 million in Q2 of last year.
Speaker Change: The following is a comparison between the financial results of the second quarter of 2024 and the second quarter of 2023.
Speaker Change: Gross profit increased by 65.2% to $3.79 compared to $2.39 reflecting the progress we've maintained across our project, where margins typically enhance as projects mature.
Speaker Change: Typically.
Speaker Change: Initial project stages incur higher expenses, while advanced stages yield higher gross margins, causing fluctuations in our gross profit depending on project and revenue composition and deployment stages.
Speaker Change: As the project pipeline matures, we expect an upward trend in gross margins based on our evolving project portfolio. As we deploy additional braces in regions where we run existing projects on our existing infrastructure, the contribution margins for each additional braces can be as high as 70% or more.
Speaker Change: We observed a slight increase in operating expenses this quarter, which balanced the increase in gross profit. These expenses are primarily aimed at supporting the future growth of our pipeline, maintaining our technological edge, and ensuring high levels of client satisfaction.
Speaker Change: We increased R&D expenses by $150,000 as we continue to develop and launch new features and improve existing products to meet the needs of new and existing clients, ensuring that we remain at the forefront of innovation and technology leadership in our space.
Speaker Change: In addition, our sales and marketing expenses increased by $130,000 to support Project WIN and new territories and fields, such as domestic violence prevention.
Speaker Change: We plan to continue to invest in our sales and marketing as well as R&D to expand our global footprint and execute our business plan.
Speaker Change: EPS improved by 27 cents to positive 6 cents from a negative EPS of negative 21 cents.
Speaker Change: in the former year.
Speaker Change: Companies EBITDA improved by 83% to $1.6 million this quarter compared to $0.9 million reflecting the benefits of operating leverage associated with higher revenues.
Speaker Change: Deploying new advocacy projects to continue progress in the phases of our ongoing projects. This achievement underscores our focus on sustained growth and profitability.
Speaker Change: Our net income improved by $3.3 million to a new record profit of $2.2 million from a net loss of $1.1 million last year. And our non-GAAP net profit improved by $3 million to a $3.3 million profit
Speaker Change: this quarter from 0.3 million last year.
Speaker Change: Positive non-GAAP EPS improves a positive 9 cents compared to non-GAAP EPS of 7 cents last year.
Speaker Change: Additionally, we've made considerable strides in reducing our long-term liabilities by $4.5 million year-over-year, which includes multiple exchanges with our creditors of debt to equity at negotiated premium prices up to 100% premium to market price.
Speaker Change: Our operating cash flow has improved by $5.2 million year-over-year, and our cash position grew by $4.1 million to $5.7 million quarter-over-quarter.
Speaker Change: supported by a successful close of a $2.9 million public offering, as well as $2 million in positive operating cash flows this quarter.
Speaker Change: This marks our highest recorded cash position in the past few years. We remain focused on reducing our need for external funding to continue to win and execute new projects.
Speaker Change: These improvements further strengthen our financial foundation to support our ongoing growth initiative and strategic investment.
Speaker Change: imposing
Speaker Change: I'd like to thank our global teams for the hard tireless work to achieve our company's record-setting performance once again.
Speaker Change: has developed the right technology and products to help criminal justice systems for clients overcome challenges and make better use of the over $80 billion spent annually in the USA on operating rehabilitation centers and prisons.
Speaker Change: With research showing an approximately 75% recidivism rate in the USA, there is significant room for improvement when effective programs and technology are deployed.
Speaker Change: We're excited about the growth we are experiencing and about the growing demand for our products.
Speaker Change: After several years through which we transitioned from a legacy business to the IOT, tracking or vendors business, we're happy to show the shift in nice growth in revenue and profit. We believe that we're well positioned for continued expansion by capitalizing on the many new opportunities that lay before us.
Speaker Change: [inaudible]
Speaker Change: Anticipate the same.
Speaker Change: growth by expanding our market share in the U.S. and Europe.
Speaker Change: A commitment to preserving our technology advantages and robust growth foundations remains steadfast as we continue to invest and investible support the expansion into more locations.
Speaker Change: With that, I'll turn the call over.
Speaker Change: to the operator to open for questions.
Speaker Change: Operator.
Speaker Change: Thank you. Ladies and gentlemen, if you 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.
Speaker Change: If your question has been answered and you wish to withdraw your question, you may do so by pressing star 2.
Speaker Change: [inaudible]
Speaker Change: Thank you for watching this video.
Speaker Change: Your first question for today is from Matthew Galenko with Maxim Group.
Matthew Galenko: Good morning. Thanks for taking my questions.
Matthew Galenko: maybe if we could morning um so I guess congrats on the on the strong quarter
Speaker Change: In terms of the, I think you mentioned adding to sales and marketing. I think we see that in this quarter's operating expenses.
Speaker Change: Do you expect to add more like quota carrying sales reps for the U.S. market or what sorts of investments are you making or do you plan to make in the U.S.?
Speaker Change: That was the first part of the question for the quota, I think it was for the quota carrying part.
Speaker Change: Thank you all for listening.
Speaker Change: Yeah, it really just focused on what the investments are that you'll plan to make. I think you mentioned that there's like $150,000 increase sequentially of spend in sales and marketing. So, I guess between that and, you know, you're, yeah.
Speaker Change: Ordan Trabelsi, or Dan Trabelsi, or Dan Trabelsi?
Speaker Change: Sorry, go ahead.
Speaker Change: I guess really the focus of the question is about what your plans are there for the second half of the year and particularly if you're adding to the sales force or what the investments are.
Dan Trabelsi: In general, we're seeing good traction in the U.S. In Europe , we've been winning a lot of projects just by bidding remotely. We haven't had much of a co-occurring sales team in the European market. We bid on a national level. In the U.S., it's more fragmented, and while there is
Dan Trabelsi: RFP related wins that are possible through state tenders and others. A lot of it is going through the resellers or through the county agencies.
Dan Trabelsi: For that we also leverage
Dan Trabelsi: quote unquote a caring salespeople. We started
Dan Trabelsi: We started with explaining the team, and that means...
Speaker Change: Actual Horticain itself first in and the support behind the person and the tech support call center and monitor and support everything that is related to deploying the services
Speaker Change: We continue to invest in that and we expect, as sales grow, to continue to bring on more personnel. We do it in a gradual fashion so that we can see that things are going effectively and people are utilizing it.
Speaker Change: their resources properly and grow their sales.
Speaker Change: We've also added in Q3 more people to the sales team in the U.S. and there's expectations for a little bit more addition by the end of the year. And that should support our growth for the coming years and together with that.
Speaker Change: people, but step by step.
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Speaker Change: Hello?
Speaker Change: [inaudible]
Speaker Change: Your next question for today is from Ken Weiner with Alton Capital.
Speaker Change: Yeah, hi. Good morning.
Speaker Change: You know, I've been a stockholder in the company for a long time, and
Speaker Change: Uh...
Speaker Change: I don't really understand, you know, a couple of things.
Speaker Change: First of all, what is the long-term debt due? I mean, you have that $29 million in long-term debt. What are the dates of that?
Speaker Change: for the due dates on that.
Speaker Change: Sorry, do you get further about which part of that?
Speaker Change: The long-term debt level.
Speaker Change: Yeah, so our in our latest filings, we announced that the senior desk reporters is
Speaker Change: is due at the end of 2025, and we've extended that maturity date several times. We expect to extend it more towards
Speaker Change: for later years, and the sub-debt is subordinated to Fortress. It's required to be paid after debt is paid.
Speaker Change: Thank you for watching this video.
Speaker Change: Who would have seen that additional effect?
Speaker Change: What is the amount of the debt with Fortress?
Speaker Change: The fortress is roughly $18,000.
Speaker Change: and the rest is a sub-debt and that is expected probably going to be amended to 28 or 29.
Speaker Change: Based on our expectations and our negotiations with them, it's been amended a few times. It's something that we've had for a long time and we have a good relationship with them.
Speaker Change: They seem to believe in the prospects of the company to allow us to pay that in the future.
Speaker Change: And what interest rate do you pay on that?
Speaker Change: It fluctuates. It fluctuates based on the EBITDA levels but the normal is LIBOR plus certain percentage points.
Speaker Change: Your next question is a follow-up question from Matthew Galenko.
Matthew Galenko: Thanks for taking my follow-up. Maybe as a follow-up on the debt, it sounds like, I think you mentioned you were able to exchange a portion of the long-term debt into a good swap for equity.
Matthew Galenko: Is there potential to do more of that or can you just talk about, you know, your strategy for managing the debt balance?
Speaker Change: Yeah, so our debt, we've had a good relationship with our lenders over the years. The fortune starts from 2018.
Speaker Change: I think we've amended it several times, and also with the sub-debt, we were able to, over the past year, negotiate some exchanges at premium prices, some up to 100% premium to market.
Speaker Change: which we think is beneficial for shareholders, of course, with such premiums. They allow us to reduce our debt balance and without using our actual operating cash. So there is opportunity for more of that in the coming years. And together with that, we expect maturity to be pushed.
Speaker Change: to end 2028.
Speaker Change: Got you. Okay. And I guess another question on the cash flow. I think it was...
Speaker Change: You are from 1.6 or 2 million.
Speaker Change: Inflow from operations.
Speaker Change: Just curious as...
Speaker Change: If we expect what, sorry? If we set the operating cash flow?
Speaker Change: Yeah. Operating. Yeah. Do you expect to be positive on operating cash flow this year?
Speaker Change: As you saw, we had a great quarter with 2 million.
Speaker Change: dollar of cash generated. There are some fluctuations because it depends on the deployments of the customer, so it's hard for us.
Speaker Change: to know for certain. But so far things are going good. We certainly have seen improvements in operating cash flow over the past three years.
Speaker Change: From 21, I think it was negative 9 million, and then went down to 4, and continued to go down in 2023. And now we're seeing strong, positive cash flow.
Speaker Change: the Q2. Things sometimes fall differently between the quarters and it's hard to tell how the whole year will fall, but as you can see the trend is certainly very positive.
Speaker Change: Got it. Great. And then as we think about the second half of the year, obviously, it was a very strong first half and.
Speaker Change: Last year was a very strong second half. You mentioned the $11 or $12 million or so that you have in orders already for the back half year, but I'm just curious how investors should be thinking about
Speaker Change: the trajectory here in the back half of the year. Do you think you could kind of match the first half for revenue? Is there enough in the pipeline to just sort of have a flat first half to second half comparison? Or just generally, how should we be thinking about second half revenue?
Speaker Change: I love your questions. We're currently not getting guidance. And we haven't for the last few years because of the somewhat
Speaker Change: variable nature of the project deployments, which are not only in our control.
Speaker Change: So far, things have been going well over the past year, and we've had a nice growth in 21, 11.7 to 12.5 to 22 to
Speaker Change: Sorry, from 12.5 and 21 to 22, 16 or 17 million to 26 million, and things have been falling nicely.
Speaker Change: If things continue with our existing customers and new ones, of course there's room for more growth, but at this point we're still not getting guidance, particularly for which quarters and how things will fall.
Speaker Change: All right, thank you. And one final question for me is on the expansion of your U.S.
Speaker Change: sales operation. How long does it take for, you know, a new person to, you know, be productive and sell their
Speaker Change: kind of, so start capturing it.
Speaker Change: It's a great question. Typically, if it's a new salesperson, it's a company and they don't have the infrastructure, it could take them six months.
Speaker Change: to nine months to start to get going.
Speaker Change: But with that, for us, a lot of these sales people are...
Speaker Change: They are veterans and they have a good experience in the industry, they already know.
Jordan Trabelsi: Jordan Trabelsi
Speaker Change: That being said, some of the projects, as you know, the big RFPs, the government competitive processes, sometimes take 6 months to 18 months. So for those large projects, regardless if the person is there or not, it's going to take a little bit of time.
Speaker Change: But in the U.S. it's nice because you have the large ones, but also the small fragmented ones, and you also have resellers. Sometimes someone just goes up to a reseller that they know.
Speaker Change: and offer our technology. They'll take it in to try it, compare it to what they have.
Speaker Change: And if they like it, they'll buy it. So the Pure One is a great solution for the U.S. market, tailored and designed for the U.S. market. It boasts some of the best features around in terms of weight, battery usage, battery life, capabilities.
Speaker Change: and communications abilities antennas. And right now we're seeing people like it a lot and we hope and expect to be announcing.
Speaker Change: more and more wins in the US market based off of that solution. They'll start with small to medium size, and if it's anything like Europe, that will grow from medium to large. Just like the ladder that we saw in Europe, where we started with projects that were $100,000.
Speaker Change: in revenues over five years and you know so one of the recent projects that we won was $33 million dollars in revenues in Romania.
Speaker Change: Great. Thank you.
Speaker Change: Thank you.
Speaker Change: Once again, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: Thank you.
Speaker Change: [inaudible]
Speaker Change: Unknown Attendee, Ordan Trabelsi, Supercom
Speaker Change: As a reminder, if you would like to ask a question, please press star 1.
Speaker Change: Attendee, Ordan Trabelsi, Supercom, Ordan Trabelsi, Supercom, Ordan Trabelsi, Ordan
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Speaker Change: As a reminder, if you would like to ask a question, please press star 1.
Speaker Change: I want to thank you all for participating in today's call and for the interest.