Q1 2025 SuperCom Ltd Earnings Call
Ladies and gentlemen, good morning, and welcome to Super Com's first quarter 2025 financial results and corporate update conference call.
At this time all participants are in a listen only mode should you need assistance. Please signal a conference specialist by pressing star can you followed by zero.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.
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.
Speaker Change: Joining me from Supercuts leadership team is our entre biopsy.
Speaker Change: Super Com's, President and Chief Executive Officer.
Speaker Change: I'd like to remind you that during this call Supercomm management may be making forward looking statements, including statements that address supercomm expectations for future performance or operational results.
Speaker Change: Forward looking statements involve risks uncertainties and other factors that may cause supercomm actual results to differ materially from those statements.
Speaker Change: More information about these risks uncertainties and factors. Please refer to the risk factors described in Super comps. Most recently filed periodic reports on form 20-F, and form 6K, and Supercomm press release that accompanies this call, particularly with the cautionary statements in it.
Speaker Change: Today's conference call includes EBITDA, a non-GAAP financial measures 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.
Speaker Change: For a reconciliation of this non-GAAP financial measure to net loss of comparable GAAP financial measure. Please see the reconciliation table located in Super comps 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 may 14th 2025.
Speaker Change: 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.
Speaker Change: It is now my pleasure to turn the call over to suit Supercomm as president and CEO art Entre biopsy.
Art Entre: Thank you operator and good.
Speaker Change: Good morning, everyone.
Art Entre: And thank you for joining us today.
Art Entre: Earlier. This morning, we released our financial results for the first quarter ended March 31.
Art Entre: 2025.
Art Entre: You can find a copy of the press release and the Investor Relations section of our website at Supercomm dotcom.
Art Entre: Today I'll provide an overview of our first quarter performance and career in financial highlights followed by the Q&A session, but first I'll.
Art Entre: I'll provide a high level overview of our business and strategy.
Speaker Change: He used to report a strong start to 2025 building on our record breaking success in 2024, but even more milestone achievements this quarter. However.
Speaker Change: Working with numerous governments around the world I'm, making big changes to the way they help protect our communities. This takes time and thus our outlook is long term with many multiyear government contracts running in unison.
Speaker Change: One specific quarter.
Speaker Change: Or a small few may not suffice to understand the long term progress of our business I'll try to give a high level view for you to understand our goals, our progress and what levers to track to understand that progress going forward.
Speaker Change: At Supercomm, our mission is to revolutionize public safety through cutting edge electronic monitoring technology and data driven solutions for over three decades, we have partnered with dozens of national governments across the globe to deliver secure scalable and innovative platforms that enhance security for their country.
Speaker Change: Our focus in recent years has shifted more and more towards solutions that criminal justice and offender electronic monitoring technology with ankle bracelets.
Speaker Change: Our strategy is centered around three pillars, one innovated technology, we've invested over $40 million and our technology platforms and our proprietary solutions consistently outperformed in competitive tenders, particularly in Europe, where you've had a win rate of approximately 65%.
Speaker Change: Our platform supports critical programs, such as GPS tracking house arrest and domestic violence protection.
Speaker Change: Recently, we have also integrated AI, driven analytics to enhance predictive insights and client outcomes.
Speaker Change: Our system.
Speaker Change: The second pillar is expanding our global presence, although what presents a significant and expanding rapidly with more and more geographies adopting.
Speaker Change: Our electronic monitoring technology, our strategic focus.
Speaker Change: On the electronic monitoring market, where we see growing demand and where the market is projected to reach around $2 $3 billion by 2028.
Speaker Change: That's the way to show that the U S and Europe account for roughly 95% of this market.
Speaker Change: And our third pillar is delivering outstanding service our reputation as a trusted partner grows with each new deployment. Some of our government customers have been with us for more than 20 years, often starting with a single program and expanding into multiple solutions over time.
Speaker Change: 2018, we secured over 70 multiyear government checks across multiple regions in the past year, we've experienced accelerated expansion.
Speaker Change: We added more than 20, new contracts across North America, alongside five strategic partnerships with leading regional service providers.
Speaker Change: We continue to amplify our technological leadership with significant R&D investments leading into the launch of advanced solutions like pure protect also branded as pure shield and pier. One these offerings are already making headway in various markets, including the U S and our pivotal and Supercars expansion.
Speaker Change: Sure protect our pure shield is a lifesaving domestic violence monitoring solutions.
Speaker Change: Providing preventive measures to families suffering from domestic violence or stocking, thereby increasing their safety.
Speaker Change: Pier one is it all in one GPS tracking ankle bracelet monitoring solution integrating comprehensive monitoring capabilities into a single device like many of our products. It offers top knock features.
Have you seen it above the competition, most roderick's such as battery life.
Speaker Change: <unk>.
And other tracking and security features are tethered ankle brace that technology together with our cloud based software enabled to your security product line has been particularly effective and continuously monitoring offenders and managing real time information. The real time advantage is a game changer, empower and authorities with actionable insights and timely interventions to mitigate potential risk.
Speaker Change: And it has public safety.
Speaker Change: Are there technologies, not just enabling better outcomes, it's actively redefining industry standards, we consistently displaced long term incumbent such as a 24 year incumbent provider in Sweden, and the near the 20 year incumbent in provider in Israel.
Speaker Change: Would you be displaced.
Speaker Change: And in both cases, our technology, our technology edge agility and innovation proved decisive and the competitive tenders.
Speaker Change: We've also help government established our first ever national electronic monitoring programs in countries, such as Romania, where we're supporting a program for up to 15000 simultaneous monitored individuals' and Croatia, where we were selected to lead the country's first step into modern electronic supervision.
Speaker Change: These wins underscore the adaptability of our platform and the growing demand for a comprehensive E M solutions around the world.
Speaker Change: Our continued investment in product innovation is driving measurable market expansion. The successful adoption of pure protect from tier one has expanded our addressable market support and deeper penetration into existing geographies and entry into new ones, particularly in the U S and Europe.
Speaker Change: We've also reinforced the operational infrastructure and enhance our go to market approach.
Speaker Change: Our sales team with industry Veterans has played a key role in securing wins in building our pipeline.
Speaker Change: In the fourth quarter.
Speaker Change: Together with electric security our partner, we secured a multiyear national contract with Israel prison service to deploy our pure security suite. The program encompasses all offender monitoring nationwide. This win follows a rigorous competitive process and replaced a provider that has held the contract for nearly two decades.
Speaker Change: Underscoring, our technological advantage and proven execution capability.
Speaker Change: As of today over 1200 individuals' are actively monitor under this program with that number continuing to grow as a rollout progresses.
Speaker Change: More broadly we continue to gain momentum in competitive tenders across Europe, and the U S. Often displacing incumbents, our strong track record and reliable delivery remain core to our growth. We view every new deployment as a start of a long term relationship by planting seeds in multiple regions and consistently deliver.
Speaker Change: And value.
Speaker Change: Customers expand their engagement with us over time, often growing into multiple growing projects that span over years.
Speaker Change: In Europe.
Speaker Change: Execution continues to drive long term growth over the past few years you've secured.
Speaker Change: Over the past years has secured over 15 national electronic monitoring programs in Europe through competitive tenders, including large scale domestic violence initiatives align with regional public safety priorities, notably Intermedia. We were awarded the largest industry award of 2022 and over 33 million dollar program covering up to 15.
Speaker Change: Individuals' simultaneously. This project remains active and demonstrates the scalability of our pure security platform.
Speaker Change: Another Great example of our long term expansion strategy, which reflects the strength of our reputation and Sweden.
Speaker Change: Since our initial award from the Ministry of Justice in 2019, we have been selected again and again.
Speaker Change: Nice to be this government agencies.
Speaker Change: Including the Swedish police authority and juvenile Justice system. This ongoing trustful flex, our consistent delivery and the high level of satisfaction with our technology and support.
Speaker Change: Also expanded in Finland, with a national deployment of our domestic violence solution and recently launched our third National project in Latvia awarded by a formal tender to support the state police with vendor compliance and victim protection.
Speaker Change: In parallel we continue to actively run programs in other European countries, such as Denmark in Bulgaria and continue to receive follow on orders from existing European partners. These.
Speaker Change: These follow ons highlights the reliability of our technology and the strength of our relationships.
Speaker Change: And as governments increasingly adopt proactive monitoring policies, we believe our proven model positions us well for sustained success in the region.
Speaker Change: While you're maintains an important.
Speaker Change: Remains an important growth driver the U S market presents an even greater long term opportunity.
Speaker Change: Projected to grow to six times the size of the European market in coming years.
Speaker Change: With the launch.
Speaker Change: Pier, one and our domestic violence solutions, we believe supercomm is well positioned to unlock substantial growth potential in this untapped market.
Speaker Change: From the research that shows a $2 3 billion.
Speaker Change: The total market size expected in 2028.
Speaker Change: The U S market is six times that of.
Speaker Change: Europe and the estimates.
Speaker Change: And also all those to become already does business in multiple U S. States. We're actively focused on further expanding our presence in the U S market. Our subsidiary LCA continues to grow in California through new contracts and rebates, while our nationwide expansion strategy has gained significant traction since mid 2024, we've secured over 20, new electronic monitoring contracts.
Speaker Change: Entered eight new U S states and forms five.
Speaker Change: New strategic partners ships was original service provider, so accelerated market access through.
Through a mix of direct government contracts and partner led deployments, we've established our presence in key new states, including Utah, Kentucky, Alabama, South Dakota, Arizona, Ohio, and others. We are also expanding into Wisconsin, Minnesota, and Michigan to the Midwest focused partnership and launches GPS modernized initiative in Canada with longstanding provider.
Speaker Change: These wins demonstrate our growing ability to displace legacy vendors and deliver recurring revenue from both urban and rural jurisdictions.
Speaker Change: Our strong technology capabilities.
Speaker Change: Cobalt with our proactive go to market approach continues to differentiate supercomm and competitive bids our expanded sales organization has driven a sharp increase in demos pilot programs in qualified opportunities, resulting in the growing U S pipeline of recurring revenue opportunities with sustained demand and good execution. We believe we are well positioned to further scale our U S footprint.
Speaker Change: Throughout 2025 and beyond.
Speaker Change: One of our advantages in the U S. As a centralized system on the cloud centralized inventory management and a $24 seven service and support center, which supports active projects nationwide.
Speaker Change: This structure significantly improves operational efficiency and lowers costs compared to Europe, where projects typically require a country specific servers local language adaptations and decentralized support as a result, we're able to launch programs in the U S more quickly and more cost effectively.
Speaker Change: Whether it's small scale or statewide, giving us greater flexibility and faster time to revenue.
Speaker Change: Along with higher potential margins.
Speaker Change: Despite macroeconomic uncertainties and ongoing global challenges, including those in Israel Supercomm solutions are becoming increasingly relevant we continue to see growth driven by high recidivism rates, the escalating cost of a concentration and a surge in the adoption of victim protection solutions worldwide.
Speaker Change: The company is pure security technology solutions have been designed to address these trends offer in an effective way for institutions to enforce home confinement east prison overcrowding and lower cost significantly.
Speaker Change: For example, monitoring and offender on home confinement or GPS.
Speaker Change: Cost about 10% to $35, a day, which is 90% less than the 100 to $140 a day costs at a correctional facility in the U S. Moreover, home confinement helps reduce repeat offenses.
Speaker Change: Highlighting its effectiveness in helping offenders and improve their lives and communities.
Speaker Change: In parallel we continue to evaluate strategic acquisition opportunities in the U S market.
Speaker Change: Wiring established local service providers can expand our footprint, our footprint unleash synergies and enhanced vertical integration of <unk>.
Speaker Change: One example is our 2016 acquisition of LCA.
Speaker Change: In California, which has since generated over $35 million and project wins in California alone.
I'll now turn to the financials, considering this quarter Q1 in comparison to the same period last year.
Speaker Change: I'm pleased to report another strong quarter of financial performance, reflecting the maturing of our project portfolio disciplined execution and operating leverage across geographies note that since our projects are mostly multiyear contracts. This can create variability on a quarterly basis. So trends are best understood in the context of a broader multiyear.
Speaker Change: Period.
Speaker Change: Let's look at the quarterly performance of Q1 2025.
Speaker Change: Revenue increased to seven point over $5 million up from $6 $85 million driven.
Speaker Change: Driven by new contract wins and continued expansion across both U S and European programs as well as email.
Speaker Change: Profit increased to four point or $6 billion.
Speaker Change: A 17, 8% increase from 3.7 hundred $9 million in the same period last year.
Speaker Change: Gross margin improved significantly to 63, 6% compared to 55, 3%.
Speaker Change: This significant margin expansion of nearly 8% reflects improved scale and favorable revenue mix from projects operating income doubled year over year to $1 million to $2 million up from 0.7 $2 million with operating margin improving to 17, 3% compared to 10, 5% last year.
Speaker Change: We also reported GAAP net income of four point to $3 million, a substantial improvement from zero point $8 million last year.
Speaker Change: This growth was driven by contributions from new projects and improved revenue mix ongoing operational efficiencies and the positive impact of strategic deals with our debt holders, which together for further strengthen our capital structure.
Speaker Change: On a non-GAAP basis, net income totaled $5 to $4 million up from $1 $35 billion last year.
Speaker Change: EBITDA for the quarter reached $2 $5 million compared with $2 million last year, representing a 25% year over year increase in what make marking our 11th consecutive quarter of positive EBITDA and further demonstrating the strength and consistency of our core operations.
Speaker Change: GAAP earnings per share was $1 $2 compared to 0.8 dollars in Q1 of 'twenty four.
Speaker Change: Adjusted for a split and non-GAAP EPS was $1 $5 compared to $1 four in Q1 of 'twenty four.
Speaker Change: Again adjusted for reverse split.
Speaker Change: From the balance sheet perspective, we ended the quarter with stronger position long term loans were reduced to $24 $2 million.
Speaker Change: <unk> from $29 7 million at the year end and from $34 3 million in Q1 last year, reflecting the total reduction or $10 million year over year.
Speaker Change: This is achieved through a debt to equity exchanges at premiums of <unk>.
Speaker Change: Up to over 100% above market price and an amendment to our senior debt agreement, which extended maturity to December 2008.
Speaker Change: December 2020, and lowered our interest rate.
Speaker Change: Following the reduction of debt raised over $16 million of gross proceeds, including 6 million through a registered direct offering and $10 2 million from warrant exercises its a solid cash position with cash and cash equivalents increasing to $17.1 million.
Speaker Change: Up from $3 2 million at year end 2024, working capital increased to $38 9 million compared to $22 6 billion at year end as well.
Speaker Change: In closing I want to thank our global team for their continued commitment and execution. We've entered entered 2025 with strong momentum.
Speaker Change: Delivering record financial results accelerating expansion in key markets and further validating the effectiveness of our solutions.
Speaker Change: As governments seek smarter more humane and more cost effective alternatives to incarceration supercomm is uniquely positioned to lead.
Speaker Change: <unk> proven technology growing contract base and scalable infrastructure provide us a strong foundation to continue our growth across U S Europe and beyond.
Speaker Change: And to better understand our progress we encourage stakeholders attract several key indicators our win rate in competitive tenders expansion into new geographies and new projects from existing customers.
Speaker Change: Another important thing to remember is project mix. This quarter gross margin reached 63, 3%, reflecting reflecting the increasing contribution of higher margin programs, while not yet are set steady states. It offers a blimp.
Speaker Change: Into our long term profitability potential.
Speaker Change: Where projects tend to achieve higher margins over time as they mature and grow.
Speaker Change: We remain focused on advancing public safety, creating long term value and building on the consistent progress. We've achieved in recent years with that I'll turn the call over to the operator to.
Speaker Change: 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.
Speaker Change: If you were 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 then two.
Speaker Change: One moment please for the first question.
Speaker Change: And once again that will be star one on your phone today, if you wish to ask a question first.
Matthew: Our first question today is coming from Matthew <unk> from Maxim Group.
Speaker Change: Matthew Your line is nice.
Matthew: Hi, Thanks for taking my questions.
Alright: Alright, congrats on the.
Alright: Great results in the first quarter can you maybe touch on where you think.
Alright: R&D focus is at this point I know you kind of led with.
Your win rate and how your technology is just better than most of the competitors you go into tenders against but.
Alright: How do you maintain that going forward and what sorts of work do you do to make sure that you have an edge.
Alright: Okay.
Alright: Okay Great question.
Alright: One of the things that we've been adding on recently is the integration of AI, Let me started describing and we hope to improve on that we're improving the quality of our GPS our solutions in terms of reliability many of our competitors can't track effectively.
Alright: Underground and subways are within cities because of the interference we use a genesis so we integrate our many other.
Alright: Location protocols as well and that helps us track within cities within buildings underground and so we continue to improve on that we also improve our.
Alright: The battery life are our solutions are a battery life for abrasives can reach up to one year, whereas many of our competitors only have one or two days battery life. So we continue to add onto our existing solutions, while adding additional features and also looking at new solutions, which will help complement the needs of our customer our customers reliability is.
Alright: Also an important factor, which we continue to improve on from every additional project that we deploy.
Alright: Got it.
Alright: I guess the follow up.
Alright: Maybe can you give us a big picture.
Alright: <unk> view of how the U S opportunity is shaping up and how important is that your.
Continuing to add new stage and geographies within the U S market.
Alright: That's a win.
Speaker Change: Utah sort of support additional lindon, Utah, or how does that kind of expansion where.
Alright: Okay.
Alright: Great question and.
Alright: It's important to understand the difference in the U S market in Europe in Europe, we entered through National projects, Rfps, which are sometimes more defined in size. It's much more competitive there is the longer a competitive process and where they evaluate you a more in depth.
Alright: On a national scale and the size of the project is pretty much well defined at the beginning they they typically add or many times, we see them add additional projects because they like our relationship and what we're doing is as we've seen in Sweden and Finland.
Alright: But the size is better defined and the U S. It's much more fragmented we see county level state.
Alright: State level, there's a through resellers and value added providers, just federal level projects and what we're doing in the U S. At this point is mainly trying to plant seeds, we're trying to find more seats and more locations in more states and more providers and they see our technology and they like it and they choose to to added to their portfolio to select us and that that could start with.
Alright: Under units and grow to 500 units thousand units and more it depends.
Alright: Which opportunity in which geography, you're at so for us to grow over the long term.
Alright: It's important for us to plan our ceded into.
Alright: Our presence in as many places as possible and together over time as we've seen they use our technology, they like them more and more and they expand and expand and expand our go over long term to have.
Alright: Larger projects and more numerous projects in many regions throughout the world and that is by expanding our presence and by deploying our technologies and our capabilities into every region was expanded in and by deploying effectively that's how you grow the programs.
Speaker Change: Thank you closed in the states.
Speaker Change: To add onto that in the states in the counties is a small niche industry everyone talks to one another so at the beginning in Europe was harder for us via projects or Lithuanian Latvia, which are hundreds of thousands of hours that we grew the projects a $7 million in Sweden or over $33 million and in Romania. Similarly in the U S. We're still on the smaller size and as the.
Speaker Change: They get to see as I understand how well we perform against the larger projects and it expands from word of mouth and it the organic expansion becomes much more significant as.
Speaker Change: We continued to deliver good results and good technology.
Speaker Change: Okay.
Speaker Change: Thank you and once again.
Speaker Change: If you do wish to ask a question on today's call that will be star one on your phone at this time once again Thats Star one if you wish to ask a question on today's call.
Speaker Change: We will hold for more questions.
Speaker Change: And once again that is star one on your phone at this time, if you wish to ask a question.
Speaker Change: And once again its star one if you wish to ask a question on today's call.
Speaker Change: And we did have a follow up coming from Matthew.
Speaker Change: Matthew Your line is live.
Speaker Change: Thanks for taking my follow up question.
Speaker Change: You know I know or I think watching the.
Speaker Change: <unk>.
Speaker Change: Oh on election in Romania.
Speaker Change: Sort of what the outcome is there and I'm curious.
Speaker Change: How you are looking at that in there.
Speaker Change: Is there a risk if it goes in one direction or the other or would.
Speaker Change: Would you say the program is fairly popular across the political spectrum in that country.
Speaker Change: Can you repeat the last part I just had a hard time hearing you were asking about Romania, and the political atmosphere, there, but what was the second part of the question Yeah I guess.
Speaker Change: Do you is your sense that there is support for the program.
Speaker Change: Regardless of the outcome of the election in a fairly popular program in the country.
Yeah. So the program has been actually been going very well and the deployment is even it's.
It's been faster than you expected.
It's supported by the major parties, it's mandated by the U M. So does it your directive to implement domestic violence, there they pretty much have to do it the situation of the elections.
Speaker Change: Could impact our various additional programs, but the existing program is going very well and.
Speaker Change: And as a very much needed.
Speaker Change: And we see that from the from the responses from the customer.
Speaker Change: Got it thank you.
Speaker Change: Thank you and once again, if there were any other questions. At this time. Please press star one on your film that's Star one.
Speaker Change: If you wish to ask a question at this time.
Speaker Change: And the next question is coming from and shapes.
Dan: And that is a private investor Dan your line of lives.
Speaker Change: Dan Your line is live. Please go ahead with your question.
Speaker Change: Hey can you guys hear me now sorry, I think I was on mute yes.
Speaker Change: Yes go ahead.
Speaker Change: Okay, Great Hey, Oregon.
Speaker Change: A wonderful quarter with wonderful to see the gross profit and the margins increase and trending up.
Speaker Change: A couple of questions for you one more strategically.
Speaker Change: Strategically with the U S market.
Speaker Change: What percentage of <unk>.
Speaker Change: Opportunities do you see supercomm working through a reseller or service provider versus doing direct is it almost all through another agency or a service provider or a reseller.
Speaker Change: It's a great question and then the U S. It's different from from from Europe, because in Europe, but theres different languages different laws and it's.
Speaker Change: You have to adapt.
Speaker Change: Strategic location, we typically have a local provider that helps us partnership.
Speaker Change: To handle all these different projects with the different environments in the U S.
Speaker Change: We're very familiar.
With the environment there, it's all in English and the programs run pretty similar.
Speaker Change: All run on the same cloud software, where you would typically bring in the value added resellers. When the customer is looking for also services human services, not just X technology services like someone to meet the offender to put the brakes on the offender to check up on them and what we've seen in the U S. As some of the larger.
Speaker Change: Counties in agencies and states they have their own.
Speaker Change: Officers, who run these programs, but the smaller ones.
Speaker Change: It's hard for them to understand the different technologies to stay up to date. So they outsource everything also the also the services human services and also technology services and then you see these value added resellers aggregate them. That's what we saw in a L. T. A when we did that acquisition in 2016, we've got very we've got very close to understand the market.
Speaker Change: From a very detailed matter on the different counties and the needs and that's how we adopted our solution for the U S and we've been expanding.
Speaker Change: Also directly.
Speaker Change: Many of our contracts and also we're now expand starting to expand also through our value added resellers, but it's valuable to be able to offer.
Speaker Change: So many different solutions, whether it's you know a GPS or alcohol monitoring our house arrest or domestic violence and services if needed.
Speaker Change: And so forth that's how that's how we we opened up the market and what you're able to axis.
Speaker Change: A much bigger opportunity.
Speaker Change: Great and if I can infer from your comments on this call and from from a previous call that you you guys are looking at possibly strategic acquisitions of additional service providers or some park potential partnerships with other service providers that exist.
Speaker Change: Here in the U S.
Speaker Change: Yes, yes.
Speaker Change: We've done the deal in 2016 and worked very well for us and we work with.
Speaker Change: We know them well we work with are just recently in the last year, we signed up five new <unk>.
Speaker Change: Service providers and we as we work with them and we see they're operation, sometimes it's a great opportunity for acquisition. Because then they give you presence physical presence of personnel in that location and you know.
Speaker Change: Nothing like having a person's there that are close to the government customers that know of the rfps coming out that have good relationships and are able to offering a more comprehensive solutions also the synergies are almost immediate because all of these are companies. They procure their hardware and software technologies from vendors in the field is roughly 10 player.
Speaker Change: In the field and we would upon acquisition to be able to replace to put our technology. So very nice synergies there off the bat and also on top line now that they have our technology, which usually scores very well on the competition competitive tenders as you see they are able to go to existing customers offer more capabilities better technology and also grow their topline so.
Speaker Change: If the price is right. Let's say then that then there is some interesting opportunities there and we we look at that closely and over time, we'll see if it makes sense to do that is again like we did in 2016.
Speaker Change: Great.
Speaker Change: And then I guess extending on that a little bit.
Speaker Change: It sounds like you recently did a we raise some additional capital we're sitting on a significant amount of cash on the books now that's out there and we have reduced our long term debt, but that's now they're actually not too far apart from each other if you looked at the long term debt versus the cash on the books, we're only slightly negative whereas previously we had.
Speaker Change: Significant.
Speaker Change: Net debt.
Speaker Change: What are do you havent receiver plant also receive them.
Speaker Change: I just want to say, we're also receiving we're receiving our interest on the cash.
Speaker Change: Which is close to the level of interest that we're paying on the loans.
Speaker Change: Okay.
Speaker Change: It's also interesting, but kind of offsetting each other.
Speaker Change: Yes, yes, Okay do you have specific plans with that cash for us I'm, assuming you do otherwise you wouldn't have.
Speaker Change: Uh huh.
Speaker Change: <unk> done that.
Speaker Change: Yeah, the plans of the with the cash balances.
Speaker Change: To allow for increases in working capital when we need them.
Speaker Change: Like Romania and others.
Speaker Change: But we're looking to and hopefully will win over time.
Speaker Change: Once you win it you have a very short period of time to deploy tons and tons of units.
Speaker Change: And so it's it's hard in that process to go secure alone or some other type of financing you don't know exactly where the stock is going to be there.
Speaker Change: The time, so where the market is going to be so it's good to have that as we continue to see more and more demand from customers around the world and we also are the potential acquisitions is also something that we'd be able to implement.
Speaker Change: To implement more effectively with this cash balance so it was both but in general for strategic growth.
Speaker Change: The business and to be able to to respond to various needs and changes as are our relationships in the market evolves.
Speaker Change: Okay.
Speaker Change: Perfect sense.
Speaker Change: One last thing what is the if we're fully dilutive whats the fully diluted share count as of the end of the.
Speaker Change: First quarter.
Speaker Change: [laughter].
Speaker Change: I'm sure I don't have the exact number of down in first quarter, but are we filed recently.
Speaker Change: Uh huh.
If I recently filing.
Speaker Change: To register a older warrants that we issued and that had the counts roughly a four five.
Speaker Change: Four $5 million okay.
Speaker Change: Yeah.
Speaker Change: The date of the filing.
Speaker Change: Just recently.
Speaker Change: Okay, that's I'll check that out that's all I have.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you and once again, if there were any other questions on todays call. Please press star one on your phone at this time Thats Star one if there were any other questions at this time.
Speaker Change: And there were no other questions from the lines at this time at this time, we will pass the call back to <unk> for closing remarks.
Speaker Change: So what I'll tell you one thing Oh on the last question you asked about the.
Speaker Change: The fully diluted the four five that we filed as a more or less the outstanding exact numbers on filing.
Speaker Change: On top of that there are additional 700000 and a little bit over 700000 of of warrants.
And they're at a $30 $50 exercise price so the diluted will be the.
Speaker Change: Combination of both.
Speaker Change: Yeah.
Speaker Change: Thank you and there were no other questions at this time or time.
Speaker Change: And on any further closing comments.
Speaker Change: Yeah. So that's it I want to thank all of you for participating in today's call and for your interest in Supercomm. Please contact US directly if you have any additional questions. We look forward to sharing our progress with you.
Speaker Change: On our next conference calls filings and press releases, Thank you and have a good day.
Speaker Change: Okay.
Speaker Change: Thank you. This does conclude today's conference you may disconnect at this time and have a wonderful day. Thank you for your participation.
Speaker Change: Goodbye.