I think MMBG recently posted that the Safend assets were bought out of BK by an outfit called Supercom in Isreal.
You know damn well the Safend guys and the Supercom guys know each other. Well, read a few excerpts from the class actoin suit pending against Supercom and see if anything looks vaguely familiar to you. Bolds are mine, italics are either italicized in the original file or indicate quotes from co. rep. Seriously, do these all read the same arvard Business Review articles, hang out at the same cigar bars, and plot how to screw naive investors out of their life savings??
...defendant Arie Trabelsi, who had joined SuperCom as its
Chief Executive Officer...In addition to Arie Trabelsi, SuperCom executives also include his wife, Tsviya
Trabelsi, who serves as Chairperson of the SuperCom Board of Directors, his son Ordan Trabelsi,
who serves as President of SuperCom in the United States, and his other son Barak Trabelsi, who
serves as Vice President of the Company’s M2M division.
4. Unfortunately for investors, SuperCom has fallen far short of its "aim" of "increasing
[its] transparency" with "new investors." Instead, the family-dominated Company has employed
subterfuge to raise capital from the U.S. capital markets at fraud-inflated prices.
When SuperCom finally disclosed its preliminary third quarter 2015 results for the
period ended September 30, 2015 on November 30, 2015, two months after the end of that quarter ,
the Company acknowledged once again significantly missing its own revenue target, this time
disclosing that the Company only expected third quarter 2015 revenues to come in at $5.5-$6.1
million, less than half of the $13.38 million the Company had led the investment community to
expect, and also acknowledging that it would be forced to slash its fiscal year 2015 revenue and
earnings guidance. Once again the Company blamed the miss on purported revenue that it claimed
could not be recognized during the quarter – despite its prior adamant claims to having a strong and
broadening pipeline – disclosing that its "financial performance in the third quarter and full-year
were impacted by [its] inability to recognize more than $10 million of revenues that were expected
this year, mainly due to delays associated with foreign government customers," and acknowledging
that the Company would not see the $10 million until 2016, if ever . The Company also disclosed
that its newly appointed Acting CFO would need until at least December 2015 to reconcile the
Company's financial reporting and formally report its third quarter 2015 financial results.
12. On this news, the price of SuperCom common stock plummeted by more than $3 per
share, or 40%, from its close of $7.70 per share on November 27, 2015 .
Later that day, SuperCom held a conference call with analysts and investors to
discuss the earnings release and the Company’s operations. During the conference call, defendants
Arie Trabelsi, Ordan Trabelsi and Simona Green made positive statements about the strength of the
Company's ongoing business metrics and financial prospects. Specifically referencing the status of
the signing of new government contracts during his opening remarks, defendant Ordan Trabelsi
emphasized that the Company was on track in those negotiations to meet its annual targets, stating in
pertinent part as follows:
We continue to be encouraged by the number, quality, stage, size and time of opportunities we have in our sales pipeline. Today we have a large amount of open proposals in various stages in many countries around the globe and we believe we are well positioned to achieve our stated goal to secure at least one to three new deployment contracts a year also in 2015 .
The number of advanced paged tenders in our pipeline increased during the first quarter which adds to our confidence. In addition, and as a result of successful integration of SuperCom and the SmartID division in 2014, the current deployment of multiple, significant new projects in parallel and our healthy balance sheet and growth prospects, we are now well positioned to work on larger tenders, which as two standalone businesses were not previously in the position to handle. Based on our success in 2014 and our current visibility following the close of the first quarter, we remain optimistic about SuperCom's future in our fast growing market .
Later on in the conference call, responding to an analyst's inquiry as to why
SuperCom was not raising its guidance in light of the "very bullish" comments its executives were
then making concerning its purportedly having "more contract wins coming in," defendant Ordan
Trabelsi stated that the Company’s guidance was "conservative," stating in pertinent part as follows:
Our guidance is on a conservative nature. We like to take in account that we have very high visibility for like wins in 2014 that are being deployed, recurrent revenues and other things . There are very large vendors out there and some were performing very well off and when those are, if and when those are finalized we will announce those and that will exceed our guidance first, so we don’t take guidance into account at this stage .
...SuperCom issued a press release announcing that it intended
to offer and sell an undisclosed number of its ordinary shares in an underwritten public offering. In
its press release, SuperCom stated that the offering would be completed pursuant to a previously
filed shelf registration statement and that "[t]he Company intend[ed] to use the net proceeds from
th[e] offering for general corporate purposes, including working capital," and that it might "also use
a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or
businesses that complement its business"
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