Welcome!

Microsoft Cloud Authors: Liz McMillan, David H Deans, Automic Blog, Pat Romanski, Janakiram MSV

News Feed Item

Magal Security Systems Reports: Third Quarter 2012 Financial Results

YAHUD, Israel, November 29, 2012 /PRNewswire/ --

Magal S3 Ltd. (NASDAQ GMS: MAGS) today announced its financial results for the three and nine month period ended September 30, 2012. Management will hold an investors' conference call later today, at 9:00 a.m. Eastern Time and 4:00 p.m. Israel time, to discuss the results.

THIRD QUARTER 2012 RESULTS SUMMARY

Revenues for the third quarter of 2012 were $23.5 million, a decrease of 15% compared with revenues of $27.7 million in the third quarter of 2011. The third quarter of 2011 was exceptional due to a particularly large project in Africa, that was delivered within a short period of time. On a sequential basis, revenues in the third quarter of 2012 increased by 43% compared with $16.4 million in the second quarter of 2012.

Gross profit in the third quarter was $9.7 million, or 41.3% of revenues, a decrease of 26% compared to gross profit of $13.1 million, or 47.2% of revenues, in the third quarter of 2011. The higher gross profit in the third quarter of 2011 was due to the large project in Africa. Gross profit in the third quarter of 2012 increased 34% compared to gross profit of $7.2 million, or 44.1% of revenues in the second quarter of 2012. The variance in the gross margin between quarters reflects changes between products and projects in the revenue mix.  

Operating profit in the third quarter was $1.7 million, or 7.3% of revenues, compared to an operating profit of $5.6 million, or 20.4% of revenues, in the third quarter of 2011 and operating profit of $474 thousand, or 2.9% of revenues, in the second quarter of 2012.

Net income in the third quarter was $1.8 million, or $0.11 per share, compared with net income of $7.1 million, or $0.61 per share, in the third quarter of 2011 and net income of 938 thousand, or $0.06 per share in the second quarter of 2012.

Cash and short term deposits, net of current bank debt, as of September 30, 2012, increased to $39.2 million, or $2.44 per share, compared with cash and short term deposits, net of current bank debt, of $32.5 million, or $2.06 per share, on December 31, 2011.

MANAGEMENT COMMENT

Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal said, "We have shown continued sequential improvements in revenue throughout 2012 and have continued to build our profitability throughout the year. While our results in the second half of last year were exceptionally good due to the short delivery timeframe of the Africa Cup of Nations project, we are now executing on a much improved business platform than in previous years. We are very proud of our achievements and in the solid turnaround of our business over the past two years."  

Continued Mr. Livneh, "During the quarter, we continued to progress on a strategic basis which we believe assures our long-term future. We began offering cyber protection solutions by teaming with other technology companies to deliver turnkey cyber security solutions for critical sites in addition to the physical security we already provide. This enables us to offer a fully integrated suite of protection for customers in both the physical and online worlds. We have also continued to focus on cementing our presence in various key strategic regions globally. As always, we continue to look for other adjacent and synergistic markets that we can enter and bring significant value. With close to $40 million in net cash, our strong and growing cash levels provide us with greater flexibility and we are in a strong position to capitalize on opportunities as they may arise."

INVESTORS' CONFERENCE CALL INFORMATION:

The Company will host a conference call later today, November 29, 2012, at 9:00 a.m. Eastern Time and 4:00 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 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.

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

About Magal S3

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

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


 

MAGAL S3 LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

                             Nine Months                      Three Months
 
                         Ended September 30,               Ended September 30,
 
                                             %                             %
                         2012        2011 change       2012        2011  change
    Revenue           $55,470     $54,860    1.1    $23,490     $27,660  (15.1)
    Cost of
    revenue            32,085      30,805    4.2     13,797      14,608    (5.6)
 
    Gross profit       23,385      24,055   (2.8)     9,693      13,052   (25.7)
    Operating
    expenses:
    Research and
    development,
    net                 3,113       2,918    6.7      1,043       1,000     4.3
    Selling and
    marketing          12,575      12,382    1.6      4,581       5,645   (18.8)
    General and
    administrative      5,366       6,251  (14.2)     2,347       3,073   (23.6)
    Other income            -      (2,310)                -      (2,310)
    Total
    operating
    expenses           21,054      19,241    9.4      7,971       7,408     7.6
 
    Operating
    income              2,331       4,814             1,722       5,644
    Financial
    income, net           480         829                38       1,227
 
    Income before
    income taxes        2,811       5,643             1,760       6,871
 
    Income tax
    expense
    (benefit)              44          55               (23)       (199)
 
    Net income          2,767       5,588             1,783       7,070
 
    Basic net
    earnings per
    share               $0.17       $0.52             $0.11       $0.61
 
    Diluted net
    earnings per
    share               $0.17       $0.52             $0.11       $0.61
 
    Weighted
    average number
    of shares used
    in computing
    basic net
    earnings per
    share          15,974,044  10,794,696        16,053,490  11,579,325
 
    Weighted
    average number
    of shares used
    in computing
    basic net
    earnings per
    share          16,012,647  10,794,696        16,066,440  11,579,325

                       Nine Months ended              Three Months ended
                         September 30,                   September 30,
                         2012        2011                2012      2011
 
                            %           %                 %         %
 
    Gross margin         42.2        43.8              41.3      47.2
    Research and
    development,
    net as a % of
    revenues              5.6         5.3               4.4       3.6
    Selling and
    marketing as a
    % of revenues        22.7        22.6              19.5      20.4
    General and
    administrative
    as a % of
    revenues              9.7        11.4              10.0      11.1
    Operating
    margin                4.2         8.8               7.3      20.4
    Net margin            5.0        10.2               7.6      25.6
 


MAGAL S3 LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)

                                                      
                                               September 30,   December 31,
                                                       2012           2011
    CURRENT ASSETS:
    Cash and cash equivalents                       $38,154        $32,622
    Short-term bank deposit                           3,779          3,005
    Restricted deposit                                2,453          2,299
    Trade receivables, net                           12,089         13,230
    Unbilled accounts receivable                      2,819          4,855
    Other accounts receivable and prepaid expenses    4,025          5,438
    Deferred income taxes                               546            508
    Inventories                                       9,827          9,664
    Total current assets                             73,692         71,621
 
    Long term investments and receivables:
    Long-term trade receivables                       1,158          1,423
    Long-term deposits and restricted bank
    deposits                                              6          2,202
    Severance pay fund                                2,071          2,121
    Total long-term investments and receivables       3,235          5,746
 
    PROPERTY AND EQUIPMENT, NET                       6,668          6,460
 
    OTHER INTANGIABLE ASSETS, NET                       176            190
 
    GOODWILL                                          2,000          1,970
 
    Total assets                                    $85,771        $85,987
 
    CURRENT LIABILITIES:
    Short-term bank credit                           $5,115         $5,357
    Current maturities of long-term bank debt            32             33
    Trade payables                                    7,155          6,724
    Customer advances                                 4,827          5,877
    Other accounts payable and accrued expenses      10,157         13,137
    Total current liabilities                        27,286         31,128
 
    LONG-TERM LIABILITIES:
    Long-term bank debt                                  40             38
    Deferred income taxes                               205            205
    Accrued severance pay                             3,083          3,605
    Total long-term liabilities                       3,328          3,848
 
    SHAREHOLDERS' EQUITY
    Ordinary shares of NIS 1 par value -
    Authorized: 39,748,000 shares at
    September 30, 2012 and December 31, 2011;
    Issued and outstanding: 16,053,490 shares at
    September 30, 2012
    and 15,819,822 shares at December 31, 2011        4,877          4,813
    Additional paid-in capital                       65,999         64,920
    Accumulated other comprehensive income            5,383          4,486
    Foreign currency translation adjustments
    (Company's stand alone
    financial statements)                               (58)           603
    Accumulated deficit                             (21,044)       (23,811)
    TOTAL SHAREHOLDERS' EQUITY                       55,157         51,011
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $85,771        $85,987


For more information:

Magal S3 Ltd.
Eitan Livneh, CEO
Tel: +972-3-539-1421
Assistant: Ms. Elisheva Almog
E-mail: [email protected]    
Web: http://www.magal-s3.com 

CCG Investor Relations
Ehud Helft/Kenny Green
Tel: (US) +1-646-201-9246
E-mail: [email protected]

SOURCE Magal Security Systems 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.

@ThingsExpo Stories
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...