Accueil Ernstrade Bourse Actualite Stock

plus500

 

Nasdaq


Magal is a leading international provider of solutions and products for physical and video security solutions, as well as site management. Over the past 45 years, Magal has delivered its products as well as tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 80 countries – under some of the most challenging conditions.
Magal offers comprehensive integrated solutions for critical sites, managed by Fortis4G – our 4th generation, cutting-edge PSIM (Physical Security Information Management system). The solutions leverage our broad portfolio of homegrown PIDS (Perimeter Intrusion Detection Systems), advanced VMS (Video Management Software) with native IVA (Intelligent Video Analytics) Security solutions.

http://www.magal-s3.com/

Magal Security Systems Ltd. Reports Third Quarter 2017 Financial Results

        
YEHUD, Israel, Nov. 16, 2017 /PRNewswire/ -- Magal Security Systems, Ltd. (NASDAQ: MAGS) today announced its financial results for the three and nine month period ended September 30, 2017. Management will hold an investors' conference call later today (at 10am Eastern Time) to discuss the results.

THIRD QUARTER RESULTS SUMMARY

Revenue of $13.7 million, up 3% sequentially;
Breakeven on EBITDA compared with a loss of $1.2 million in the prior quarter;
Operating expenses have narrowed significantly;
Net loss of $0.2 million in the quarter, significant improvement versus net loss of $3.3 million in prior quarter
Net cash and equivalents of $48.0 million at quarter-end;
Strong bookings in the third quarter;
Expect sequential revenue growth for the fourth quarter.
THIRD QUARTER 2017 RESULTS

Revenues for the third quarter of 2017 were $13.7 million. This represents a decrease of 36% compared with revenues of $21.3 million in the third quarter of 2016 and an increase of 3% compared with revenues of $13.3 million in the prior quarter.

Gross profit for the third quarter of 2017 was $6.5 million (47.7% of revenues). This is compared with $10.9 million in the third quarter of 2016 (51.1% of revenues) and $6.7 million in the prior quarter (50.2% of revenues). The variation in margin between quarters is reflective of the product mix sold in the quarter which had a comparatively higher portion projects during the quarter.

Operating expenses in the quarter were $7.1 million. This is an improvement compared with $9.3 million in expenses in the third quarter of 2016 and $8.3 million in the prior quarter. The reduction in expenses is primarily due to the steps taken earlier in the year, including the amalgamation of the Aimetis and Senstar subsidiaries in North America.

Operating loss for the third quarter of 2017 was $0.5 million. This is compared to an operating income of $1.6 million in the third quarter of 2016 and an operating loss of $1.7 million in the prior quarter. 

Net loss in the third quarter of 2017 was $0.2 million, or $0.01 per share, compared with a net income of $0.6 million, or $0.04 per share in the third quarter of 2016 and a net loss of $3.3 million, or $0.14 per share in the prior quarter. 

EBITDA in the third quarter of 2017 was at breakeven. This is compared to an EBITDA of $2.1 million in the third quarter of 2016 and a negative $1.2 million in the prior quarter.

Cash, short term deposits and restricted deposits, as of September 30, 2017, were $48.0 million, or $2.09 per share, compared with cash, short term deposits and restricted deposits of $47.9 million, or $2.08 per share, as of March 31, 2017.

MANAGEMENT COMMENT

Commenting on the results, Mr. Saar Koursh, CEO of Magal,said, "While we showed a slight improvement in revenue over the previous quarter, our North American operations continued to be impacted this quarter by delays in security spending. On the positive side, we see a start of a recovery in North America. Globally, we have seen solid growth in order levels in the third quarter and beyond. Just to highlight, we recently announced a number of orders amounting to around $9 million for airport security solutions as well as orders to protect correctional facilities. We have already started deliveries on these orders and we expect to recognize revenues in the fourth quarter and next year. We also expect further orders for our turn-key security solutions to materialize in the near future."

Continued Mr. Koursh, "We have put much effort in improving our profitability on both the operational and gross margin levels. Our efforts have enabled us to enhance some inter-company synergies, while significantly reducing our operating expenses by almost a quarter versus last year and 15% versus the previous quarter. Our efforts led to a return to breakeven on the EBITDA level this quarter. We expect to continue our sequential revenue growth into the fourth quarter."

INVESTORS' CONFERENCE CALL INFORMATION:

The Company will host a conference call later today, November 16, 2017, at 10a.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

If you are unable to connect using the toll-free numbers, please try the international dial-in number.

A replay link of the call will be available from the day after the call from Magal's website.

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 filed with the Securities and Exchange Commission.

Information with Regard to non-GAAP Financial Measures

The Company presents its financial statements in accordance with U.S. GAAP. Magal's management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. EBITDA is provided in this press release and the accompanying supplemental information because management believes this non-GAAP measure is useful for investors and financial institutions as it facilitates operating performance comparisons from period to period. As presented in this release, the term EBITDA consists of net profit (loss) according to U.S. GAAP, excluding net financing expenses, taxes, depreciation and amortization.  EBITDA should not be considered in isolation or as a substitute for net profit (loss) or other statement of operations data prepared in accordance with GAAP as a measure of profitability. A reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.

Copyright  2010 Ernstrade.com