SuperCom, Ltd.

Ladies and gentlemen, good morning and welcome to Supercom's first quarter 2023 financial results and corporate update conference call. At this time, all participants are on a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's 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. I'd now like to turn the call over to Stephanie Prince of PCG Advisory.

Thank you, Matthew, and thank you to everyone joining us. With me on the call today is Ordann Trebelsi, 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. Forward-looking statements may involve risks, uncertainties, and other factors that may cause Supercom's actual results to differ materially from those statements. For more information about these risks, uncertainties, and factors, please refer to the risk factors described in Supercom's most 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. 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 reconciliation of this non-GAAP financial measure in a net loss, a comparable GAAP financial measure, please see the reconciliation table located in Supercom's earnings press release that accompanies this call. Reconciliations for other non-GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time-sensitive information that is accurate only as of today, May 15, 2023, except as required by law Supercom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Supercom's President and CEO, Ordan Trabelsi. Ordan?

Thank you, Stephanie. Good morning, everyone. Thank you for joining us today. Earlier this morning, we issued a press release of our financial results for the first quarter of 2023. The final copy in the legislation section of our website at triplecom.com. Today I'll start my comments with a brief update on a recent business highlight, strategy, and Q1 results, followed by a Q&A session. Supercom had a great start to the year with a strong first quarter. We achieved record-breaking revenue of $6.4 million, representing a 109% year-over-year growth in quarterly revenue, marking three consecutive quarters of very high year-over-year revenue growth. It's the highest revenue figure we've achieved in a single quarter, since 2018, and we're thrilled with this outstanding performance and look forward to maintaining this momentum in coming quarters. During the quarter, we executed and advanced on various projects in our portfolio, such as the $33 million national EM project in Romania, utilized operating leverage and prior investments in our proprietary technology to achieve positive EBITDA for the third consecutive quarter. For those new to Supercom, our mission is to revolutionize the public safety sector worldwide through proprietary electronic monitoring technology, data intelligence, and complementary services. Over the past 35 years, since our founding in 1988, we've been a trusted partner to dozens of governments worldwide, providing them with cutting-edge electronic and digital security solutions. Our strategy has been to leave without technology, develop top-notch solutions, expand our presence, and deliver outstanding services. We've successfully executed that strategy by focusing on the following key factors. Our proprietary electronic monitoring technology scores highly and competitive RFPs, and supports various programs such as house arrest, GPS monitoring, rehabilitation services, domestic violence prevention, and more. Supercom has run over 50 new multi-year government projects since 2018. And just in the past year alone, we announced launches of new projects valued at over $40 million. Our strong reputation and recognition as a premium provider of electronic monitoring technology and services also contributes to our win rate. With each new customer win and project deployment, to further strengthen our reputation, technology offering, and competitive position. Third is our strategic focus and attention to our IoT tracking business in developed countries, where the opportunity is the greatest. The electronics monitoring market is estimated to reach $2.1 billion in 2026, up to $1.2 billion in 2021. The U.S. and Europe constitute about 95% of these markets. In Europe, there's recently been an increase in our activity with numerous new projects that opportunities in the past 18 months. Altogether, these successes and opportunities have resulted in a growing pipeline of projects. Last year, we continued to invest in R&D to ensure our product remains the most competitive in the market and continuously introduced new features and technologies through our proprietary platforms. As a result, we successfully finalized the development and deployment of two new products. One is the life-saving PeerProtect for domestic violence monitoring, which was successfully implemented in multiple projects, including a $33 million project national EM project in Romania, with a focus on protection from domestic violence. The other is an all-in-one ankle brace and monitoring solution called Pure One. Both products have been well received and significantly expanded the company's adjustable market. We are confident that both products will facilitate superconductive expansion into the U.S. market. In recent quarters, we not only maintained our technological advantage, but also invested in enhancing our operational infrastructure and expanding our workforce. Furthermore, we've also accompanied global sales efforts by recruiting new sales team members with industry expertise to drive our shift from passive bidding to an active outreach sales strategy. Throughout the year, we've announced many new project wins in the U.S. and Europe, where Supercom has been continuously displacing incumbent vendors with an over 65% win rate in European competitive RFPs. We're proud to have won so many new contracts in such a short period of time, especially during economic