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.
MANAGEMENT COMMENT
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: elishevaa@magal-s3.com E-mail: magal@ccgisrael.com
Web: http://www.magal-s3.com
SOURCE Magal Security Systems Ltd
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