YAHUD, Israel, June 18, 2010 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd. (NASDAQ GMS: MAGS, TASE: MAGS) today announced that it has received a request from a group of shareholders that an Extraordinary General Meeting of Shareholders be convened to elect a slate of directors nominated by them. Such request is being considered by the Board of directors of Magal. The shareholders, who indicate that they own approximately 17% of the outstanding shares of the Company, are seeking to elect five individuals to the board to replace all of the current board members other than Mr. Nathan Kirsh and the Company's two outside directors that are appointed in accordance with Israeli law. The slate of directors, includes the Company's former interim CEO and president, Mr. Yoav Stern, whose employment was not extended, and other individuals associated Mr. Stern.
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 $(0.23) Three months ended March 31, 2010 % Gross margin 37.4 Research and development, net as a % of revenues 11.2 Selling and marketing as a % 24.4 of revenues General and administrative as a % of revenues 18.1 Operating margin (16.3) Net margin before tax (24.2) Net margin (24.4) CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) March 31, December 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: email@example.com Web: http://www.magal-s3.com Financial Communication Public & Investor Relations Hadas Friedman Tel: +972-3-695-4333 Ext. 6 E-mail: firstname.lastname@example.org Web: http://www.fincom.co.il
SOURCE Magal Security Systems Ltd