YAHUD, Israel, June 9, 2010 /PRNewswire-FirstCall/ -- Magal
Security Systems Ltd. (NASDAQ GMS: MAGS, TASE: MAGS) today
announced its consolidated financial results for the three month
period ended March 31, 2010.
Revenues for the first quarter of 2010 totaled US$9.8 million and gross profit for the first
quarter of 2010 was US$3.7 million,
or 37.4% of revenues. Operating loss for the first quarter of 2010
was US$1.6 million. Financing
expenses in the three months ended March 31,
2010 amounted to US$0.8
million. As a result, the net loss for the first quarter of
2010 was US$2.4 million, or
$0.23 per share.
Commenting on the results, Mr. Eitan
Livneh, President and CEO of Magal, said, "Two weeks ago we
announced the implementation of the second phase of our
restructuring plan, which is designed to enable our company to
execute on its new strategic plan and cope with global trends,
specifically the European economic slowdown. Our strategic intent
is to expand the international sensor sales and refocus on projects
in preferred regions. As part of this plan, we announced internal
organizational changes, as well as a workforce reduction in
Israel. We anticipate that these
changes will be reflected in Magal's financial results in the
second half of 2010.
"Looking ahead, we intend to introduce an advanced fence mounted
security sensor with the capability to pin-point intruders in the
second half of 2010 and to continue to build on our success with
the Fortis in the Safe City and other home land security
applications. We also intend to improve our capabilities in the
Intelligent Video Analytics space and introduce a new IP (Internet
Protocol) version of our Dream Box. I and the rest of the
management team at Magal remain enthusiastic about the company's
future," concluded Mr. Livneh.
The Company will host a conference call today at 10am ET. On the call, management will review and
discuss the results and will be available to answer investor
questions.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at least
10 minutes before the conference call commences. If you are unable
to connect using the toll-free numbers, please try the
international dial-in number.
US Dial-in Number: 1-888-668-9141
Israel Dial-in Number: 03-918-0609
UK Dial-in Number: 0-800-917-5108
International Dial-in Number: +972-3-918-0609
at 10:00 am Eastern Time;
7:00 am Pacific Time; 3:00pm UK Time; 5:00
pm Israel Time
A replay of the call will be available from the day after the
call. The link to the replay will be accessible from Magal's
website at: http://www.magal-s3.com.
About Magal S3
Magal S3 is a leading international provider of security, safety
and site management solutions and products (NASDAQ: MAGS).
Over the past 40 years, Magal S3 has delivered tailor-made
solutions to hundreds of satisfied customers in over 80
countries.
Magal S3 offers a broad portfolio of unique products used to
protect sensitive installations in some of the world's most
demanding locations and harshest climates. This portfolio covers
the following three categories:
- Perimeter Intrusion Detection Systems (PIDS) - a variety of
smart barriers and fences, fence mounted detectors, virtual gates,
buried and concealed detection systems
- Close Circuit TV (CCTV) - a comprehensive management
platform with a leading Intelligent Video Analysis (IVA) and Video
Motion Detection (VMD) engine
- Physical Security Information Management (PSIM) - a
proprietary site management system that enhances command, control and
decision making during both routine operations and crisis situations
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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in
thousands of US$)
Three months
ended March 31,
2010
Revenues 9,774
Cost of revenues 6,114
Gross profit 3,660
Operating expenses:
Research and
development, net 1,096
Selling and marketing 2,389
General and
administrative 1,770
Total operating expenses 5,255
Operating loss (1,595)
Financial expenses, net 769
Loss before income taxes (2,364)
Income tax -
Net loss (2,364)
Less: net income
attributable to
non-controlling interest 16
Net income (loss)
attributable to Magal
Ltd. shareholders (2,380)
Basic net loss per share
from $(0.23)
Three
months
ended March
31, 2010
%
Gross margin 37.4
Research and development,
net as a % of revenues 11.2
Selling and marketing as a %
of revenues 24.4
General and administrative
as a % of revenues 18.1
Operating margin (16.3)
Net margin before tax (24.2)
Net margin (24.4)
CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
December
March 31, 31,
2010 2009
CURRENT ASSETS:
Cash and cash equivalents $ 7,486 $ 11,869
Short term bank deposits 1,804 1,807
Restricted deposit 3,027
Trade receivables 10,682 12,328
Unbilled accounts receivable 6,830 5,892
Other accounts receivable and prepaid 3,984 1,573
expenses
Deferred income taxes 280 272
Inventories 10,954 10,912
Total current assets 45,047 44,653
Long term investments and receivables:
Long-term trade receivables 1,690 1,753
Long-term loan 200 200
Long-term deposits 24 40
Severance pay fund 2,356 2,476
Total long-term investments and 4,270 4,469
receivables
PROPERTY AND EQUIPMENT, NET 9,196 9,178
OTHER ASSETS, NET 257 269
GOODWILL 2,012 2,053
ASSETS ATTRIBUTABLE TO DISCONTINUED - 28
OPERATIONS
Total assets $60,782 $60,650
CURRENT LIABILITIES:
Short-term bank credit $ 7,955 $ 8,234
Current maturities of long-term bank debt 661 1,824
Trade payables 2,593 4,018
Other accounts payable and accrued 14,984 10,110
expenses
Total current liabilities 26,193 24,186
LONG-TERM LIABILITIES:
Long-term bank debt 384 548
Accrued severance pay 3,479 3,562
Total long-term liabilities 3,863 4,110
LIABILITIES ATTRIBUTABLE TO DISCONTINUED - 45
OPERATIONS
SHAREHOLDERS' EQUITY 30,726 32,309
TOTAL LIABILITIES AND SHAREHOLDERS' $60,782 $60,650
EQUITY
Total bank debt to total 0.29 0.33
capitalization
Current ratio 1.72 1.85
For more information:
Magal Security Systems Ltd.
Ilan Ovadia, CFO
Tel: +972-3-539-1444
E-mail: ilano@magal-s3.com
Web: http://www.magal-s3.com
Financial Communication Public & Investor Relations
Hadas Friedman
Tel: +972-3-695-4333 Ext. 6
E-mail: hadas@fincom.co.il
Web: http://www.fincom.co.il
SOURCE Magal Security Systems Ltd