SENSTAR TECHNOLOGIES CORPORATION YAHUD, Israel, May 26, 2015 /PRNewswire/ -- Magal Security Systems, Ltd. (NASDAQ NMS: MAGS) today announced its financial results for the three month period ended March 31, 2015. Management will hold an investors' conference call later today, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel time, to discuss the results.
FIRST QUARTER 2015 RESULTS SUMMARY
Revenues for the first quarter of 2015 were $11.8 million, a decrease of 6% compared with revenues of $12.5 million in the first quarter of 2014.
Gross profit in the first quarter of 2015 was $4.4 million, or 37.7% of revenues, an increase of 8.5% compared to gross profit of $4.1 million, or 32.7% of revenues, in the first quarter of 2014. The increase in the gross margin between quarters is a function of the changes in the revenue mix as well as the mix between projects executed and products sold between the quarters.
Operating loss in the first quarter of 2015 was $1.2 million compared to an operating loss of $2.3 million in the first quarter of 2014.
Net loss in the first quarter of 2015 was $450 thousand, or $0.03 per share, compared with a net loss of $2.0 million, or $0.12 per share, in the first quarter of 2014.
Cash, short term deposits and restricted deposits, net of bank debt, as of March 31, 2015, were $29.9 million, or $1.83 per share, compared with cash, short term deposits and restricted deposits, net of bank debt of $28.0 million, or $1.73 per share, on December 31, 2014.
MANAGEMENT COMMENT
Commenting on the results, Mr. Saar Koursh, CEO of Magal, said, "Our results are subject to seasonal patterns and the particularly harsh winter weather in North America affected our results in the first quarter. The main highlight of my first few weeks at Magal has been our first major order for a security system combining and integrating both physical as well as logical cyber security."
Continued Mr. Koursh, "I have recently gotten to know the employees and management team at Magal. I have been impressed by the skilled workforce and believe there is untapped inherent potential. Magal has some exciting homeland security technologies and I see inter-company synergies which I intend to explore and improve. My goal ahead is to cement Magal's position as the homeland security provider with leadership in perimeter security technologies."
INVESTORS' CONFERENCE CALL INFORMATION:
The Company will host a conference call later today, May 26, 2015, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel time.
To participate, please call one of the following teleconferencing numbers:
US: 1 888 668 9141; Israel: 03 918 0610; UK: 0 800 917 5108; Intl.: +972 3 918 0610
If you are unable to connect using the toll-free numbers, please try the international dial-in number.
A replay of the call will be available from the day after the call for three months. The link to the replay will be accessible from Magal's website at: www.magal-s3.com.
ABOUT MAGAL S(3
)Magal S3 is a leading international provider of solutions and products for physical and cyber security, as well as safety and site management. Over the past 45 years, Magal S3 has delivered tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 80 countries - under some of the most challenging conditions.
Magal S3 offers comprehensive integrated solutions for critical sites, managed by Fortis4G - our 4th generation, cutting-edge PSIM+SIEM platform. The solutions leverage our broad portfolio of homegrown Perimeter Intrusion Detection Systems (PIDS), advanced outdoors CCTV / IVA technology and Cyber Security solutions.
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.
For more information:
Magal S3 Ltd. GK Investor Relations
Ehud Helft/Kenny Green
Saar Koursh, CEO Tel: (US) +1 646 201 9246
E-mail: magal@gkir.com
Tel: +972 3 539 1421
Assistant: Ms. Elisheva Almog
E-mail: elishevaa@magal-s3.com
Web: www.magal-s3.com
---
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS expressed in thousands of US$)
Three Months Ended
March 31,
2015 2014 % change
---- ---- --------
Revenue 11,758 12,509 (6)%
Cost of
revenue 7,322 8,421 (13.1)%
----- -----
Gross
profit 4,436 4,088 8.5%
Operating expenses:
Research
and
development,
net 917 1,252 (26.8)%
Selling and
marketing 2,897 3,390 (14.5)%
General and
administrative 1,817 1,760 3.2%
Total
operating
expenses 5,631 6,402 (12)%
----- -----
Operating
income
(loss) (1,195) (2,314)
Financial
expenses
(income),
net (675) (399)
---- ----
Income
(loss)
before
income
taxes (520) (1,915)
Taxes on
income
(income
tax
benefits) 2 47
--- ---
Net income
(loss) (522) (1,962)
==== ======
-Income (
loss)
attributable
to non-
controlling
interests 72 (13)
--- ---
Net income
(loss)
attributable
to Magal
shareholders' (450) (1,975)
==== ======
Basic net
earnings
(loss) per
share (0.03) (0.12)
===== =====
Diluted net
earnings
(loss) per
share (0.03) (0.12)
===== =====
Weighted
average
number of
shares
used in
computing
basic net
earnings
(loss) per
share 16,269,439 16,147,522
========== ==========
Weighted
average
number of
shares
used in
computing
diluted
net
earnings
(loss) per
share 16,269,439 16,147,522
========== ==========
Three Months
Ended March 31,
---------------
2015 2014
% %
--- ---
Gross
margin 37.7 32.7
Research
and
development,
net as a %
of
revenues 7.8 10.0
Selling and
marketing
as a % of
revenues 24.6 27.1
General and
administrative
as a % of
revenues 15.5 14.1
Operating
margin na na
Net margin na na
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2015 2014
---- ----
CURRENT ASSETS:
Cash and
cash
equivalents $25,419 $21,602
Short-
term
bank
deposits 6,000 8,001
Restricted
deposits 241 2,844
Trade
receivables,
net 14,850 20,875
Unbilled
accounts
receivable 4,454 4,093
Other
accounts
receivable
and
prepaid
expenses 1,854 2,102
Inventories 7,655 8,147
Deferred
income
taxes 632 625
--- ---
Total
current
assets 61,105 68,289
------ ------
LONG TERM INVESTMENTS AND
RECEIVABLES:
Long-
term
trade
receivables 144 232
Long-
term
deposits
and
restricted
bank
deposits 119 134
Severance
pay
fund 2,197 2,187
Deferred
income
taxes 503 463
--- ---
Total
long-
term
investments
and
receivables 2,963 3,016
----- -----
PROPERTY
AND
EQUIPMENT,
NET 5,803 6,111
----- -----
OTHER
INTANGIBLE
ASSETS,
NET 1,606 1,847
----- -----
GOODWILL 4,287 4,496
----- -----
TOTAL
ASSETS $75,764 $83,759
======= =======
March 31, December 31,
2015 2014
---- ----
CURRENT LIABILITIES:
Short-term bank credits $ - $2,571
Current maturities of long-
term bank debt 500 500
Trade payables 3,909 6,272
Customer advances 1,768 1,262
Other accounts payable and
accrued expenses 11,525 11,879
------ ------
Total current liabilities 17,702 22,484
------ ------
LONG-TERM LIABILITIES:
Long-term bank debt and
other long-term payables 1,279 1,406
Deferred income taxes 171 193
Accrued severance pay 3,681 3,719
Total long-term liabilities 5,131 5,318
----- -----
SHAREHOLDERS' EQUITY
Share Capital: Ordinary
shares of NIS 1 par value
-
Authorized: 39,748,000 shares at
March 31, 2015 and December 31,
2014; Issued and outstanding:
16,306,672 shares at March 31,
2015 and 16,269,022 shares at
December 31, 2014 4,943 4,935
Additional paid-in capital 69,355 69,174
Accumulated other
comprehensive income 137 2,041
Foreign currency
translation adjustments
(stand alone financial
statements) (157) 632
Accumulated deficit (21,220) (20,770)
------- -------
Total shareholders' equity 53,058 56,012
Non controlling interest (127) (55)
---- ---
TOTAL SHAREHOLDERS' EQUITY 52,931 55,957
------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $75,764 $83,759
======= =======
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SOURCE Magal Security Systems, Ltd.
