Click here to close now.




















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
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.