6-K 1 form6k.htm Unassociated Document

 

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934


Dated: November 30, 2004


SUPERCOM LTD.

Millennium Bldg.
3 Tidhar Street, P.O.B. 2094
Raanana 43665 Israel


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-Fx     Form 40-Fo

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
 
Yes o     No x

 
     
 

SUPERCOM LTD.
Form 6-K
 
TABLE OF CONTENTS
 
 

      Page   
Financial Statements for Quarter Ended September 30, 2004
        
Consolidated Balance Sheets as of September 30, 2004 (unaudited)
    
1-2
  
Consolidated Statements of Operations
    
3
  
Consolidated Statements of Cash Flows
    
4
  
         
Signatures
    
5
  
Exhibit Index
    
6
  






     
 


SUPERCOM LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands


   
December 31,
  
September 30,
  
   
2003
  
2004
  
       
Unaudited
  
ASSETS
              
               
CURRENT ASSETS:
              
Cash and cash equivalents
  
$
1,912
  
$
2,374
  
Restricted cash deposits
    
681
    
1,405
  
Short-term deposit
    
1,196
    
-
  
Marketable debt securities
   
117
    
-
  
Trade receivables (net of allowance for doubtful accounts of $ 3,333 at December 31, 2003 and September 30, 2004)
    
1,808
    
2,073
  
Other accounts receivable and prepaid expenses
    
680
    
815
  
Inventories
    
3,236
    
2,890
  
               
Total current assets
    
9,630
    
9,557
  
               
LONG-TERM INVESTMENTS:
              
Long term trade receivables
    
364
    
276
  
Investment in an affiliate and others
   
275
    
275
  
Severance pay fund
   
333
    
374
  
               
     
972
    
925
  
               
PROPERTY AND EQUIPMENT, NET
   
1,676
    
1,894
  
               
INTANGIBLE ASSETS
    
156
    
109
  
               
   
$
12,434
  
$
12,485
  




The accompanying notes are an integral part of the consolidated financial statements.


   1  
 

SUPERCOM LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share amounts


   
December 31,
  
September 30,
  
   
2003
  
2004
  
       
Unaudited
  
LIABILITIES AND SHAREHOLDERS' EQUITY
          
           
CURRENT LIABILITIES:
              
Short-term bank credit and current maturities of long-term loan
  
$
2,131
  
$
1,713
  
Trade payables
    
1,085
    
814
  
Employees and payroll accruals
    
161
    
168
  
Accrued expenses and other liabilities
   
822
    
1,382
  
               
Total current liabilities
    
4,199
    
4,077
  
               
LONG-TERM LIABILITIES:
              
Long-term loan, net of current maturities
   
187
    
80
  
Accrued severance pay
    
436
    
491
  
               
Total long-term liabilities
    
623
    
571
  
               
SHAREHOLDERS' EQUITY:
             
Share capital:
             
Ordinary shares of NIS 0.01 par value -
              
Authorized: 26,500,000 shares at December 31, 2003 and September 30, 2004; Issued and outstanding: 12,906,872 and 16,996,287 shares at December 31, 2003 and September 30, 2004, respectively
    
40
    
50
  
Additional paid-in capital
    
25,814
    
28,363
  
Deferred stock compensation
    
-
    
(11
)
Accumulated deficit
    
(18,242
)
  
(20,565
)
               
Total shareholders' equity
    
7,612
    
7,837
  
               
   
$
12,434
  
$
12,485
  




The accompanying notes are an integral part of the consolidated financial statements.


  2   
 

SUPERCOM LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share amounts


   
Nine months ended
September 30,
  
Three months ended
September 30,
  
   
2003
  
2004
  
2003
  
2004
  
   
Unaudited
  
Revenues
  
$
5,126
  
$
3,891
  
$
1,221
  
$
1,407
  
Cost of revenues
    
2,147
    
2,361
    
643
    
797
  
                           
Gross profit
   
2,979
    
1,530
    
578
    
610
  
                           
Operating expenses:
                          
Research and development
    
709
    
618
    
244
    
241
  
Selling and marketing, net
    
1,880
    
1,715
    
333
    
586
  
General and administrative
    
1,369
    
1,383
    
430
    
439
  
                           
Total operating expenses
    
3,958
    
3,716
    
1,007
    
1,266
  
                           
Operating loss
    
(979
)
  
(2,186
)
  
(429
)
  
(656
)
Financial expenses, net
    
(153
)
  
(117
)
  
(7
)
  
(40
)
Other income (expenses), net
    
(49
)
  
(20
)
  
(8
)
  
33
  
                           
Net loss
  
$
(1,181
)
$
(2,323
)
$
(444
)
$
(663
)
                           
Basic and diluted net loss per share
  
$
(0.09
)
$
(0.17
)
$
(0.03
)
$
(0.04
)
                           
Weighted average number of Ordinary shares used in computing basic and diluted net loss per share
    
12,706,339
    
13,738,139
    
12,706,339
    
15,194,476
  


The accompanying notes are an integral part of the consolidated financial statements.
 
  3   


 SUPERCOM LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Nine months ended
September 30,
  
Three months ended
September 30,
  
   
2003
  
2004
  
2003
  
2004
  
   
Unaudited
  
Cash flows from operating activities:
                          
Net loss
  
$
(1,181
)
$
(2,323
)
$
(444
)
$
(663
)
Adjustments to reconcile net loss to net cash used in operating activities:
                          
Depreciation and amortization
    
280
    
324
    
91
    
157
  
Accrued severance pay, net
   
14
    
14
    
4
    
8
  
Amortization of deferred stock compensation
    
26
    
7
    
-
    
2
  
Decrease (increase) in trade receivables
    
(1,580
)
  
(177
)
  
69
    
(246
)
Decrease (increase) in other accounts receivable and prepaid expenses
    
(80
)
  
(85
)
  
(156
)
  
114
  
Decrease (increase) in inventories
    
86
    
276
    
(160
)
  
(54
)
Increase (decrease) in trade payables
    
289
    
(271
)
  
(5
)
  
(219
)
Increase (decrease) in employees and payroll accruals
    
28
    
32
    
(14
)
  
(24
)
Increase in accrued expenses and other liabilities
   
631
    
253
    
28
    
415
  
Others
    
2
    
6
    
(4
)
  
(1
)
                           
Net cash used in operating activities
   
(1,485
)
  
(1,944
)
  
(591
)
  
(511
)
                           
Cash flows from investing activities:
                          
Proceeds from sale of property and equipment
    
1
    
-
    
-
    
-
  
Purchase of property and equipment
    
(48
)
  
(425
)
  
(17
)
  
(140
)
Short-term deposits matured
    
-
    
1,196
    
-
    
601
  
Investment in short-term deposits
    
(2,525
)
  
-
    
(1,734
)
  
-
  
Proceeds from redemption of marketable debt securities
    
440
    
110
    
105
    
-
  
Restricted cash deposits, net
    
(336
)
  
(724
)
  
(321
)
  
(971
)
                           
Net cash provided by (used in) investing activities
    
(2,468
)
  
157
    
(1,967
)
  
(510
)
                           
Cash flows from financing activities:
                          
Short-term bank credit, net
    
1,081
    
(503
)
  
313
    
52
  
Issuance expenses related to conversion of loan into shares
    
-
    
(1
)
  
-
    
-
  
Proceed from a private placement, net
    
-
    
2,766
    
-
    
1,991
  
Issuance of shares
    
-
    
9
    
-
    
9
  
Receipt of long-term loan
    
250
    
400
    
83
    
-
  
Repayment of long-term loan
    
(288
)
  
(422
)
  
(113
)
  
(185
)
                           
Net cash provided by financing activities
    
1,043
    
2,249
    
283
    
1,867
  
                           
Increase (decrease) in cash and cash equivalents
    
(2,910
)
  
462
    
(2,275
)
  
846
  
Cash and cash equivalents at beginning of period
    
4,567
    
1,912
    
3,932
    
1,528
  
                           
Cash and cash equivalents at end of period
  
$
1,657
  
$
2,374
  
$
1,657
  
$
2,374
  

Supplemental disclosure of non-cash investing activities:
                          
Transfer of inventory to property and equipment
  
$
-
  
$
70
  
$
-
  
$
-
  
                           
Conversion of loan to ordinary shares
  
$
-
  
$
25
  
$
-
  
$
-
  
                           
Other accounts receivable on issuance of shares
 
$
-
  
$
50
  
$
-
  
$
50
  
                           
Accrued expenses related to issuance of shares
  
$
-
  
$
307
  
$
-
  
$
307
  


The accompanying notes are an integral part of the consolidated financial statements.

   4  
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

SUPERCOM LTD.


By:    


/s/ Eyal Tuchman
Eyal Tuchman
Chief Financial Officer


Date: November 30, 2004


 
   5  
 

EXHIBIT INDEX


 
Exhibit No.
  
Exhibit
99.1
  
Press Release dated November 30, 2004


  6