The shares of SuperCom Ltd. (NASDAQ: SPCB) rose this morning as the premarket opened. Last observed hovering around $3.07, the SPCB stock has gained 111.72% in pre-trades. A trade of 33M shares of SuperCom stock took place before the regular session started. News of winning a contract from the Israeli government caused a rise in the SPCB stock.
The contract was awarded for what?
Providing advanced safety, identification, and security/security solutions for governments, organizations, both public and private, since 1988, SuperCom has been a global provider of traditional and digital identity solutions. SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to their citizens and visitors with its proprietary e-government platforms and innovative solutions for traditional and biometric enrollment, personalization, issuance and border control services.
The Israeli government has awarded the PureHealth Coronavirus (COVID-19) Quarantine Compliance Solution to SuperCom, announced the company in a press release today.
Furthermore, the tender includes PureTag as well as the PureCare mobile phone and other complementary services, such as installation, training for users, customer support, monitoring and reporting. Initially the project will be a three-month project with an option of being extended to 36 months with contracts expected to be signed next week, for the initial term of 3 months.
SuperCom expects to generate approximately $3 million in recurring revenues per month for the project, billed at a per-unit per-day rate. However, actual usage may impact revenue.
How SuperCom won the contract?
Prior to this program, SuperCom completed a pilot program with a 91% success rate. SuperCom’s PureCare program offered those arriving at the airport at the time the project began a 10- to 14-day home quarantine program. In response to a new law passed by Israel’s Parliament, SuperCom was awarded a government competitive bid. The law will set new guidelines for quarantine compliance with help from technological solutions.