Welcome!

News Feed Item

Magal Security Systems Reports Second Quarter 2014 Financial Results

YAHUD, Israel, Sept. 4, 2014 /PRNewswire/ -- Magal S3 Ltd. (NASDAQ GMS: MAGS) today announced its financial results for the three and six month periods ended June 30, 2014. Management will hold an investors' conference call later today, at 10 a.m. Eastern Time and 5 p.m. Israel time, to discuss the results.

SECOND QUARTER 2014 RESULTS SUMMARY

Revenues for the second quarter of 2014 increased 33% to $16.2 million from $12.2 million for the second quarter of 2013 and increased 30% from $12.5 million in the first quarter of 2014. 

Gross profit in the quarter was $7.1 million, or 43.6% of revenues, an increase of 45% compared to gross profit of $4.9 million, or 39.8% of revenues in the second quarter of 2013. The variance in the gross margin between the quarters reflects changes between products and projects in the revenue mix.

Operating loss in the quarter was $0.6 million, compared to an operating loss of $1.1 million in the second quarter of 2013. Operating expenses increased in the quarter, primarily due to an increase in sales and marketing and R&D expenses. Marketing and sales expenses increased to $4.5 million in the quarter from $3.1 million in the second quarter of 2013 due to the launch of a number of new products during the quarter and the purchase of a fiber-optic security business in the United States early in the second quarter.

Financial expenses in the quarter amounted to $641 thousand compared to financial income of $411 thousand in the second quarter of 2013.

Net loss in the quarter was $1.1 million or $0.07 per share, compared with a net loss of $0.7 million, or $0.04 per share, in the second quarter of 2013.

Cash and short term deposits net of bank debt, as of June 30, 2014, were $27.4 million, or $1.69 per share, compared with cash and short term deposits net of current bank debt of $36.3 million, or $2.25 per share, on December 31, 2013. The decrease in the cash level was primarily due to the net investment and purchase of a fiber-optic security business in the United States, as well as cash used in continuing operations.

MANAGEMENT COMMENT

Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, "Our second quarter results demonstrate a solid improvement in revenue sequentially and over the comparable period last year. We also increased our operating expenses, primarily in marketing and sales as well as in R&D. This increase was driven in part by our acquisition of fiber optic sensor technology, our continued investment in our CyberSeal subsidiary, as well as the launch of some new products. We currently see many opportunities in our end markets and we intend to capitalize on them. We launched several important homeland security perimeter products during the quarter- FlexZone, RoboGuard and a high-end sensor, Fensor. CyberSeal is also currently in the process of launching new logical security products, which we believe will lead to long-term growth."

Continued Mr. Livneh, "I continue to expect that the second half of 2014 will show significant growth over the first half, leading to a profitable second half."

INVESTORS' CONFERENCE CALL INFORMATION

The Company will host a conference call later today, September 4, 2014, at 10 a.m. Eastern Time and 5 p.m. Israel time.

To participate, please call one of the following teleconferencing numbers:

US: 1 888 668 9141; Israel: 03 918 0609; UK: 0 800 917 5108; Intl.: +972 3 918 0609

Please begin placing your calls a few minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number. A replay of the call will be available from the day after the call for three months. The link to the replay will be accessible from Magal's website at: www.magal-s3.com.

ABOUT MAGAL S3

Magal S3 is a leading international provider of solutions and products for physical and cyber security, as well as safety and site management. Over the past 42 years, Magal S3 has delivered tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 80 countries - under some of the most challenging conditions.

Magal S3 offers comprehensive integrated solutions for critical sites, managed by Fortis4G - our 4th generation, cutting-edge hybrid PSIM with SEIM (Physical Security Information Management system integrated with Security Information & Event Management). The solutions leverage our broad portfolio of homegrown PIDS (Perimeter Intrusion Detection Systems), advanced outdoors CCTV / IVA technology and Cyber Security solutions.

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.

FOR MORE INFORMATION:


Magal S3 Ltd.

Eitan Livneh, CEO

Tel: +972 3 539 1421

Assistant: Ms. Elisheva Almog

E-mail: [email protected]   

Web: www.magal-s3.com  

GK Investor Relations
Ehud Helft/Kenny Green

Tel: (US) +1 646 201 9246
E-mail: [email protected]  

 

** Financial Tables to Follow **

 




MAGAL S3 LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All numbers except EPS expressed in thousands of US$)



Six Months

Ended June 30,


Three Months

Ended June 30,



2014


2013

% change


2014


2013

% change

Revenue

$28,753


$25,685

11.9


$16,244


$12,231

32.8

Cost of revenue

17,587


15,862

10.9


9,166


7,360

24.5











Gross profit

11,166


9,823

13.7


7,078


4,871

45.3

Operating expenses:










   Research and development, net

2,500


1,931

29.5


1,248


962

29.7

   Selling and marketing

7,880


6,305

25


4,490


3,092

45.2

   General and administrative

3,701


3,553

4.2


1,941


1,893

2.5

Total operating expenses, net

14,081


11,789

19.4


7,679


5,947

29.1











Operating loss

(2,915)


(1,966)



(601)


(1,076)


Financial expense (income), net

242


(258)



641


(411)












Loss before income taxes

(3,157)


(1,708)



(1,242)


(665)












Income tax expense 

(6)


84



(53)


51












Net loss

(3,151)


(1,792)



(1,189)


(716)












Less - loss attributable to non-controlling interests

50


-



63


-












Net loss attributable to Magal shareholders'

(3,101)


(1,792)



(1,126)


(716)












Basic net loss  per share

$(0.19)


($0.11)



$(0.07)


($0.04)












Diluted net loss per share

$(0.19)


($0.11)



$(0.07)


($0.04)












Weighted average number of shares used in computing basic net loss per share

16,147,522


 

16,130,366



16,147,522


 

16,147,522












Weighted average number of shares used in computing diluted net loss per share

16,147,522


 

16,130,366



16,147,522


 

16,147,522























Six Months
Ended June 30



Three Months
Ended June 30



2014

%


2013

%



2014

%


2013

%












Gross margin

38.8


38.2



43.6


39.8


Research and development, net as a % of revenues

8.7


7.5



7.7


7.9


Selling and marketing as a % of revenues

27.4


24.5



27.6


25.3


General and administrative  as a % of revenues

12.9


13.8



11.9


15.5


Operating margin

(10.1)


(7.7)



(3.7)


(8.8)


Net  margin

(10.8)


(7.0)



(6.9)


(5.9)














MAGAL S3 LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)



June 30,


December 31,


2014


2013

CURRENT ASSETS:




Cash and cash equivalents

$18,971


$32,235

Short-term bank deposits

10,229


6,147

Restricted deposits

6,153


6,101

Trade receivables, net

16,243


12,634

Unbilled accounts receivable

2,416


2,388

Other accounts receivable and prepaid expenses

3,269


2,379

Inventories

8,585


8,352

Deferred income taxes

595


599





Total current assets

66,461


70,835





 

LONG TERM INVESTMENTS AND RECEIVABLES:








Long-term trade receivables

474


690

Long-term deposits and restricted bank deposits

63


35

Severance pay fund

2,586


2,589

Deferred income taxes

47


46





Total long-term investments and receivables

3,170


3,360





PROPERTY AND EQUIPMENT, NET

7,051


7,280





GOODWILL AND OTHER INTANGIBLE ASSETS, NET

10,730


6,312





TOTAL ASSETS

$87,412


$87,787





CURRENT LIABILITIES:








Short-term bank credits

$5,819


$5,764

Current maturities of long-term bank debt

500


506

Trade payables

4,607


3,916

Customer advances

5,140


4,226

Other accounts payable and accrued expenses

9,423


9,431

Deferred income taxes

54


34





Total current liabilities

25,543


23,877





LONG-TERM LIABILITIES:




Long-term bank debt and other long-term payables

1,668


1,912

Deferred income taxes

1,252


301

Accrued severance pay

4,185


4,157





Total long-term liabilities

7,105


6,370





SHAREHOLDERS' EQUITY




Ordinary shares of NIS 1 par value - Authorized: 39,748,000 shares at




    June 30, 2014 and December 31, 2013;




 Issued and outstanding: 16,147,522 shares at June 30, 2014




    and 16,147,522 shares at December 31, 2013

4,901


4,901

Additional paid-in capital

68,596


68,371

Accumulated other comprehensive income

6,966


7,114

Foreign currency translation adjustments (Company's stand alone  




   financial statements)

1,597


1,349

Accumulated deficit

(27,281)


(24,180)





Total shareholders' equity

54,779


57,555

Non controlling interest

(15)


(15)





TOTAL SHAREHOLDERS' EQUITY

54,764


57,540





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$87,412


$87,787

 

SOURCE Magal S3 Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...