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: firstname.lastname@example.org Web: http://www.magal-s3.com Financial Communication Public & Investor Relations Hadas Friedman Tel: +972-3-695-4333 Ext. 6 E-mail: email@example.com Web: http://www.fincom.co.il
SOURCE Magal Security Systems Ltd