YEHUD, Israel, April 13, 2020 /PRNewswire/ -- Magal Security
Systems, Ltd. (Nasdaq: MAGS), a leading international provider of
comprehensive physical, video and access control security products
and solutions, as well as critical site management, announced today
that in response to the rapidly evolving global situation related
to the impact of global spread of the Coronavirus (COVID-19), Magal
has implemented a number of key initiatives focusing on the safety
of its key stakeholders while also providing for business
continuity and opportunity.
Mr. Dror Sharon, Chief Executive
Officer of Magal, said, "Our first priority is protecting our
employees while managing our business through the crisis and
ensuring that we can return to efficient operations once the
situation recovers. In response, we have implemented key
initiatives to manage the business through the current
uncertainties and the possible long-term economic impact."
Continued Mr. Sharon, "We are well positioned to withstand the
impact of the crisis given our strong performance in recent years,
our healthy backlog, strong balance sheet with approximately
$50 million of cash and cash
equivalents and no debt. We are closely monitoring our bookings log
and delivery schedules. Our goal is to mitigate, as much as
possible, the impact of COVID-19 on our financial results, monitor
our costs and maintain profitability while positioning the Company
for recovery and growth."
SUMMARY OF KEY INITIATIVES
Protect our employees
- Global teams monitoring local health and safety directives and
implementing necessary guidelines and best practices in all
workplaces.
- All our employees, with a few exceptions whose presence is
necessary for production, operations and performance of projects,
are working remotely.
- We believe that employee retention is essential for the
Company's recovery post-crisis.
Maintain ongoing operations in production, R&D, sales,
support
- Currently, both of our main production facilities are operating
as usual. Senstar in Canada and
Magal in Israel are considered
vital workplaces, since both are suppliers and service providers
for ministries of defense and energy critical sites.
- We are closely monitoring our supply chain and to date, have
not seen shortages. However, some materials and finished products
are taking longer to receive and shipping expenses are
increasing.
- Completion of certain projects and installation work will be
delayed due to flight and inland travel restrictions as well as the
inability to access certain sites.
- While Magal's project sales team is continuing to meet remotely
with end-users, mainly government entities, there has been a pause
in the initiation of new projects. To date we have not seen a
slow-down in proposals and quotes from our Senstar sales team, but
it is too soon to tell if this will continue in Q2, or if these
proposals and quotes will materialize into sales.
- Senstar customer support is currently provided remotely, with
on-site support being postponed. In Israel, as well as, in Kenya and Mexico, support is currently being provided.
We anticipate that due to the dynamics of the governmental measures
in those geographies such support may be restricted. In
Israel, there is almost no
interruption in our performance of IMOD related projects.
Reduce expenditures
- Salary increases and recruitments have been postponed.
- As of mid- March, all employees were put on a four-day work
week, with extended vacation periods for Passover and Easter.
- Non-essential expenses were put on hold.
- Negotiating with service providers for cost savings across the
board.
- Studying and applying to various governmental relief programs
as applicable per each geography.
Magal's current plan assumes that the Company will return to
normal operations by the end of June or by early July, while the
economic impact may continue longer. Due to the speed of the spread
of COVID-19, there is uncertainty around its impact on our
financial and operating results, which we cannot reasonably
estimate at this time. We expect to provide an update in our Q1
2020 earnings release.
About Magal Security Systems, LTD.
Magal is a leading international provider of comprehensive
physical, video and access control security products and solutions,
as well as site management. Over the past 45 years, Magal has
delivered its products as well as tailor‐made security solutions
and turnkey projects to hundreds of satisfied customers in over 80
countries ‐ under some of the most challenging conditions. Magal
offers comprehensive integrated solutions for critical sites,
managed by Fortis4G ‐ our 4th generation, cutting‐edge physical
security information management system (PSIM). The solutions
leverage our broad portfolio of home‐grown PIDS (Perimeter
Intrusion Detection Systems), Symphony ‐ our advanced VMS (Video
Management Software) with native IVA (Intelligent Video Analytics)
security solutions.
Forward Looking Statements
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. In
addition, and as mentioned in this press release, there is
uncertainty about the spread of the Coronavirus and the impact it
will have on the Company's operations, the demand for Company's
products, global supply chains and economic activity in
general.
For more information:
Magal Security
Systems Ltd.
Diane Hill, Assistant
to the CEO
+972-3-539-1421
dianeh@magal-s3.com
www.magalsecurity.com
|
IR
Contact:
Brett Maas
Managing
Partner
Hayden IR
+1
646-536-7331
Brett@HaydenIR.com
|
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SOURCE Magal Security Systems Ltd