As earnings season hits its stride, companies big and small are generally impressing with reports from the last quarter. In a sign that security and identity is at a premium, SuperCom (NASDAQ:SPCB) had its best revenue quarter ever, news that is making it one of the best performing stocks trading on the NASDAQ exchange.
The Israel-based global provider of traditional and digital identity solutions said that revenue during the quarter ended September 30, 2017 surged by 89 percent to a record $9.6 million from $5.1 million in the year prior quarter.
Gross profits ballooned 201 percent from $1.7 million to $5.1 million, while adjusted net profit, which excludes one-time and special items, came in at $1.6 million, or 11 cents per share, reversing from an adjusted net loss of $2.5 million ($0.17 per share) in Q3 2016. Gross margin jumped from 33% to 53%.
Financials were much improved for the first nine months of 2017 versus the same period in 2016. Revenue rose 59% to $25.5 million from $15.9 million.
After sitting with an adjusted net loss of $4.4 million, or 29 cents per share, at the end of September last year, the company is in the black this year with an adjusted net profit of approximately $700,000, or 5 cents per share. The profitability was underscored by gross margin improving from 24% to 46%.
SuperCom president and chief executive Arie Trabelsi said the organic growth and improved financials over the last three quarters are reflective of the enhanced business model put into effect last year. Trabelsi added that he expects the positive momentum to continue throughout Q4 and into 2018.
Shares of SPCB jumped following the report, surging from Friday's close at $2.73 to gain 46.2% at $3.99 with two hours left in the trading day. Shares even hit $4.29 in intraday trading, marking the highest level for the stock since April 2016.
