Senstar Technologies Reports Third Quarter 2022 Financial Results

RAMAT GAN, Israel, Dec. 22, 2022 /PRNewswire/ -- Senstar Technologies (NASDAQ: SNT), a leading international provider of comprehensive physical, video, and access control security products and solutions, today announced its financial results for the three and nine months ended September 30, 2022. Management will hold an investors' conference call later today (at 10 a.m. Eastern Time) to discuss the results.

Business Highlights (all comparisons are for Q3 2022 versus Q3 2021):

• Third quarter revenue was $9.7 million compared with $9.3 million.
• Net income from continuing operations was $1.2 million compared to $44,000.
• EBITDA from continuing operations was $1.5 million compared with $1.1 million.
• Cash and cash equivalents of $15.2 million, or $0.65 per share, and zero debt as of September 30, 2022.

Mr.Dror Sharon, Chief Executive Officer of Senstar Technologies, stated, "Third quarter revenue of $9.7 million was up 5% over the year ago quarter, and our bookings were particularly strong compared to last year, despite longer sales cycles across the industry. Strength in our Canadian and European businesses is balancing contract award delays for government projects in the U.S. and in Asia Pacific due to prolonged lockdowns related to COVID. Importantly, projects have been postponed and not cancelled, and we are optimistic about the opportunities in our pipeline. We have a strong backlog that we expect to deliver over the next 12 months and are in negotiations for several larger projects that we expect to close in the coming months."

Third Quarter 2022 Results Summary

Revenue for the third quarter of 2022 was $9.7 million, an increase of 5.1% compared with $9.3 million in the third quarter of 2021. Third quarter gross profit was $6.0 million, or 61.1% of revenue, compared with $5.6 million, or 60.7% of revenue. The increase in gross margin was primarily due to a shift in the mix of products sold during the quarter.

Operating expenses for the third quarter of 2022 were $4.82 million, essentially flat compared to $4.85 million in the prior year's third quarter.

Operating income was $1.1 million for the third quarter of 2022 compared to $0.8 million in the third quarter of 2021.

Financial income was $0.2 million compared to financial expense of ($0.4) million in the third quarter of 2021.

Income from continuing operations was $1.2 million in the third quarter of 2022 compared to $44,000 in the year-ago quarter.

Net income in the third quarter of 2022 was $1.3 million or $0.06 per share compared to a net loss of ($0.2) million, or ($0.01) per share in the third quarter of last year. Our net loss in the 2021 period includes a net loss from discontinued operations of ($0.3) million.

EBITDA from continuing operations for the third quarter was $1.5 million versus $1.1 million for the third quarter of 2021.

Cash and cash equivalents and restricted cash as of September 30, 2022, were $15.2 million, or $0.65 per share, compared with $26.4 million, or $1.13 per share, at December 31, 2021. The decline in cash and cash equivalents reflects the significant reduction in other accounts payable and accrued expenses and increased inventories and accounts receivable. 

Earnings Conference Call Information:

To participate, please use one of the following teleconferencing numbers. The call will begin promptly at 10 a.m. Eastern Time; 5 p.m. Israel Time; 3 p.m. UK Time. The Company requests that participants dial in 10 minutes before the conference call commences and use the conference ID number 13734956.

Participant Dial-in Numbers:

Toll Free:                    1-877-407-9716
Toll/International:       1-201-493-6779
Israel Toll Free:           1 809 406 247
UK Toll Free:              0 800 756 3429

The conference call will also be available via a live webcast at https://viavid.webcasts.com/starthere.jsp?ei=1589326&tp_key=1f5be66cc4.

Replay Dial-in Numbers:

Toll Free:                     1-844-512-2921
Toll/International:       1-412-317-6671
Replay Pin Number:    13734956

A replay of the call will be available on December 22, 2022, after 1 p.m. Eastern time through January 5, 2023, at 11:59 p.m. Eastern time, and available on the Senstar Technologies website at https://senstartechnologies.com/earnings-calls/.

About Senstar Technologies

With innovative perimeter intrusion detection systems (including fence sensors , buried sensors , and above ground sensors ), intelligent video-management , video analytics , and access control , Senstar offers a comprehensive suite of proven, integrated solutions that reduce complexity, improve performance and unify support. For 40 years, Senstar has been safeguarding people, places and property for organizations around the world, with a special focus in utilities , logistics , correction facilities , and energy markets.

For more information, visit the Company's website at www.senstartechnologies.com.

Use of Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents the Non-GAAP presentation of EBITDA. This non-GAAP measure is not in accordance with, nor is it a substitute for, a GAAP measure. The Company uses EBITDA to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table below.

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 and other reports filed with the Securities and Exchange Commission. In addition, there is uncertainty about the spread of the COVID19 virus and the impact it will have on the Company's operations, the demand for the Company's products, global supply chains and economic activity in general.

For more information:

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SOURCE Senstar Technologies Ltd.