YAHUD, Israel, May 31, 2011 /PRNewswire-FirstCall/ -- Magal S3 Ltd. (NASDAQ GMS: MAGS, TASE: MAGS) today announced its financial results for the three month period ended March 31, 2011. Management will hold an investors' conference call later today, at 10:30am Eastern Time and 5:30pm Israel time, to discuss the results.
FIRST QUARTER 2011 RESULTS SUMMARY
Revenues for the first quarter of 2011 totaled $11.5 million, an increase of 18% compared to the $9.8 million reported in the first quarter of 2010.
Gross profit for the first quarter of 2011 was $4.6 million, or 39.9% of revenues. This is an increase of 26% compared to a gross profit of $3.7 million, or 37.4% of revenues as reported for the first quarter of 2010.
Operating loss for the first quarter of 2011 was reduced to $1.2 million compared with an operating loss of $1.6 million as reported in the first quarter of 2010.
Financing expenses in the quarter amounted to $155,000 compared to $769,000 in the first quarter of 2010. Financing expenses in the quarter were influenced by the changes in the exchange rates of the Israel shekel, Mexican Pesos and Canadian Dollar against the US Dollar.
Taxes on income in the quarter were $200,000 compared with no tax expense in the first quarter of 2010. The relatively high tax expense in the quarter compared with prior quarter was due the fact that some of the Company's subsidiaries were profitable in the quarter.
Net loss for the first quarter of 2011, was $1.6 million, compared with net loss of US$2.4 million in the first quarter of 2010.
Net loss per share in the first quarter of 2011 was $0.15, compared with net loss per share of $0.23 in the same period last year.
Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said,
"The first quarter of the year is seasonally the weakest, but we are pleased in the improvement over last year's results and it is a good base on which to start 2011. In the past few months we have won a number of key tenders for contracts in some important emerging regions. As we begin to execute on these projects, we expect to see the revenues and increasing contribution to our results in the upcoming quarters. Having proven our capabilities, we will continue to compete in further tenders and we look forward to winning further business in the coming quarters."
INVESTORS' CONFERENCE CALL INFORMATION:
The Company will host a conference call later today, May 31, 2011, at 10:30am Eastern Time.
To participate, please call one of the following teleconferencing numbers. 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.
US: 1-866-229-7198 ; Israel: 03-918-0687 ; UK: 0-800-404-8418 ; Intl.: +972-3-918-0687
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 security, safety and site management solutions and products (NASDAQ: MAGS).
Over the past 40 years, Magal S3 has delivered tailor-made solutions to hundreds of satisfied customers in over 80 countries.
Magal S3 offers a broad portfolio of unique products used to protect sensitive installations in some of the world's most demanding locations and harshest climates. This portfolio covers the following three categories:
- Perimeter Intrusion Detection Systems (PIDS) - a variety of smart barriers and fences, fence mounted detectors, virtual gates, buried and concealed detection systems
- Close Circuit TV (CCTV) - a comprehensive management platform with a leading Intelligent Video Analysis (IVA) and Video Motion Detection (VMD) engine
- Physical Security Information Management (PSIM) - an open site management system that enhances command, control and decision making during both routine operations and crisis situations
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.
** Financial Tables to Follow ** MAGAL S3 LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (All numbers except EPS expressed in thousands of US$) Three months Ended March 31, 2011 2010 % change Revenue $11,540 $9,774 18.1 Cost of revenue 6,932 6,114 13.4 Gross profit 4,608 3,660 25.9 Operating expenses: Research and 1,017 1,096 (7.2) development, net Selling and marketing 3,226 2,233 44.5 General and 1,594 1,926 (17.3) administrative Total operating 5,837 5,255 11.1 expenses Operating loss (1,229) (1,595) Financial expense, net (155) (769) (79.8) Loss from continuing operations before income taxes (1,384) (2,364) Income tax (200) - Net loss (1,584) (2,364) Less: net income ( attributable to non-controlling - 16 interest Loss attributable to (1,584) (2,380) Magal shareholders Basic and diluted loss per share from continuing operations $(0.15) $(0.23) Three months Ended Dec. 31, 2011 2010 % % Gross margin 39.9 37.4 Research and development, net as a % of revenues 8.8 11.2 Selling and marketing 28.0 22.8 as a % of revenues General and 13.8 19.7 administrative as a % of revenues Operating margin (10.6) (16.3) Net margin (13.7) (24.4) MAGAL S3 LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) March 31, December 31, 2011 2010 CURRENT ASSETS: Cash and cash equivalents $ 15,080 $ 16,596 Restricted deposit 2,800 2,692 Trade receivables 13,260 15,106 Unbilled accounts receivable 3,220 2,927 Other accounts receivable and prepaid expenses 3,266 2,417 Deferred income taxes 559 474 Inventories 10,778 10,340 Total current assets 48,963 50,552 Long term investments and receivables: Long-term trade receivables 1,789 1,568 Long-term bank deposits 4,337 2,196 Severance pay fund 2,192 2,148 Total long-term investments and receivables 8,318 5,912 PROPERTY AND EQUIPMENT, NET 7,060 6,794 OTHER INTANGIABLE ASSETS, NET 215 213 GOODWILL 2,121 2,026 Total assets $66,677 $65,497 CURRENT LIABILITIES: Short-term bank credit $7,758 $9,327 Current maturities of long-term bank debt 355 503 Trade payables 3,596 3,937 Customer advanced 4,494 2,428 Other accounts payable, accrued expenses and 9,233 7,745 customer advances Major Share holder loan 10,070 - Total current liabilities 35,506 23,940 LONG-TERM LIABILITIES: Long-term bank debt 68 50 Major Share holder loan - 9,907 Deferred income tax 199 190 Accrued severance pay 3,473 3,394 Total long-term liabilities 3,740 13,541 SHAREHOLDERS' EQUITY 27,431 28,016 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $66,677 $65,497 Total bank debt to total 0.30 0.35 capitalization Current ratio 1.38 2.11 For more information: Magal S3 Ltd. CCG Investor Relations Eitan Livneh, CEO Ehud Helft/Kenny Green Tel: +972-3-539-1421 Tel: (US) +1-646-201-9246 Assistant: Ms. Elisheva Almog Int'l dial: +972-3-607-4717 E-mail: email@example.com E-mail: firstname.lastname@example.org Web: http://www.magal-s3.com
SOURCE Magal Security Systems Ltd
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