The Israeli Technology Company Supercom stood out yesterday in trading on Nasdaq when its stock jumped 62.4% in a huge trading cycle relative to the average. The background for the jump is a large contract it won in Europe: Supercom reported that it won, together with its business partner, a contract in the amount of 33 million dollars with the government of a country from the European Union, in the framework of which it will provide solutions Electronic surveillance. Supercom’s PureSecurity solutions will be used by that country for surveillance needs to prevent domestic violence, GPS tracking of criminals and house arrest monitoring. The contract includes software, products and services for a period of five years.
Supercom is a provider of solutions in the fields of smart certificate production, development and electronic control. The company is managed by Ordan Trabalsi, and his father Arie Trabalsi is its largest shareholder, holding 18.1% of the shares.
CEO Ordan Trabalsi said that the company is excited about winning the largest contract in Europe this year in this field. “This competitive tender is the first among several tenders for large state projects in the European Union that are expected to be completed in 2022 and 2023, and their total scope is over 200 million dollars. We believe that our reputation as a leading solution provider in the field will lead to more wins in the future,” added Trevalsi.
Even after the increase in the share price, the market value of Supercom is modest and stands at 13 million dollars. Supercom’s stock has lost over 80% of its value since March 2021 – at that time it announced that it had won a project by the Israeli government to monitor the health of quarantined persons returning from abroad, against the background of the Corona epidemic. Supercom was supposed to supply (together with Electra) electronic bracelets to enforce the quarantine, but later She claimed that the bracelets were never put into use and she sued the state for its investment in the project and the reputational damage it suffered.
In 2021, Supercom’s revenues were $12.3 million and it recorded a net loss of $10.1 million. At the end of that year, it employed 114 employees, of which 53 were in Israel and Europe and 61 were in the US.