SuperCom has published its unaudited financial reports for the fourth quarter of 2006 and the year as whole.
The company – a provider of incident management and active RFID solutions – saw revenue for 2006 rise to US$8.8 million, an increase of 4% from US$8.5 million in 2005. Gross margin for the year rose to 60% of revenues, compared with 46% in 2005. Net income for the year came to US$5.4 million (US$0.22 per share), reflecting the capital gain associated with the sale of its eID business to On Track Innovations (OTI).
Its fourth quarter operating results made positive reading, with revenue totalling US$2.4 million, representing a 48% increase from US$1.6 million in the fourth quarter of 2005. Net income for the quarter was US$7.9 million (US$0.32 per share), compared with a net loss of US$966,000 (US$0.05 per share) for the same period of 2005.
During the quarter, the company also recorded a capital gain of US$10.5 million associated with the sale of assets of its e-ID division to OTI.
“The fourth quarter was a period of significant strategic progress as we repositioned the company and began to ramp up our IRMS solutions and Active RFID tracking business,” says Eyal Tuchman, chief executive officer of SuperCom. “The transactions that we completed during the past several months have transformed our balance sheet and business model dramatically and will provide the funds we need to build both of these businesses to their full potential.”