Magal Announces Receipt of a Request to Convene an Extraordinary General Meeting of Shareholders to Elect a New Slate of Directors
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 protected]
Web: http://www.magal-s3.com
Financial Communication Public &
Investor Relations
Hadas Friedman
Tel: +972-3-695-4333 Ext. 6
E-mail: [email protected]
Web: http://www.fincom.co.il
SOURCE Magal Security Systems Ltd
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