6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2017

MAGAL SECURITY SYSTEMS LTD.

(Name of Registrant)

P.O. Box 70, Industrial Zone, Yahud 5610001 Israel

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F S                                Form 40-F *

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): *

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): *

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes *                       No S

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________

This Report on Form 6-K is incorporated by reference into the Registrant's Form S-8 Registration Statements File Nos. 333-127340, 333-164696, 333-174127 and 333-190469.

Magal Security Systems Ltd.

EXPLANATORY NOTE

The following exhibit is attached:

99.1 Press Release: Magal Security Systems Ltd. Reports Fourth Quarter & Full Year 2016 Financial Results dated March 29, 2017.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MAGAL SECURITY SYSTEMS LTD.

        (Registrant)

By: /s/Saar Koursh

Saar Koursh

Chief Executive Officer

Date:  March 29, 2017

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Press Release:   Magal Security Systems Ltd. Reports Fourth Quarter & Full Year 2016 Financial Results dated March 29, 2017.

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Magal Security Systems Ltd. Reports

Fourth Quarter & Full Year 2016 Financial Results

YEHUD, ISRAEL, March 29, 2017 -- Magal Security Systems, Ltd. (NASDAQ: MAGS) today announced its financial results for the three month and full year period ended December 31, 2016. Management will hold an investors’ conference call later today (at 10am Eastern Time) to discuss the results.

FOURTH QUARTER RESULTS SUMMARY

·   Revenue grew year-over-year by 5% to $20.3 million;

·   Net income of $2.9 million, up 13% year-over-year;

·   Strong cash flow from operations generating $7.4 million;

·   Record high net cash and equivalents of $52.5 million at year-end;

·   High level of quarterly bookings including first order for Magal’s innovative border protection solution for the Israeli MOD;

FOURTH QUARTER 2016 RESULTS

Revenues for the fourth quarter of 2016 were $20.3 million, an increase of 5% compared with revenues of $19.3 million in the fourth quarter of 2015.

Gross profit for the fourth quarter of 2016 was $10.0 million, or 49.6% of revenues, compared with a gross profit of $10.9 million or 56.4% of revenues, in the fourth quarter of 2015. The change in gross margin between quarters is a function of the revenue mix between volume of projects executed, and volume of products and services sold. The gross margin in the fourth quarter of 2015 was particularly high, primarily due to a short-term project delivered in that quarter.

Operating income for the fourth quarter of 2016 was $1.5 million compared to operating income of $2.9 million in the fourth quarter of 2015.

Net income in the fourth quarter of 2016 was $2.9 million, or $0.13 per share, compared with net income of $2.5 million, or $0.15 per share in the fourth quarter of 2015.

FULL YEAR 2016 RESULTS

Revenues for the year ended December 31, 2016 were $67.8 million, a 6% increase compared with $63.7 million in 2015.

Gross profit for 2016 was $33.2 million, representing 49.0% of revenues, compared with $31.0 million, representing 48.7% of revenues in 2015.

Operating income for 2016 was $1.5 million, or 2.2% of revenues, compared with $4.4 million, or 6.9% of revenues in 2015. Operating income for the organic business increased by 3% compared with 2015. Amortization of the purchase price allocation and retention expenses related to the Aimetis acquisition amounted to $1.4 million in 2016.

Net income for 2016 was $1.0 million, or $0.06 per share, compared with $3.1 million, or $0.19 per share, in 2015.

Cash, short term deposits and restricted deposits, net of bank debt, as of December 31, 2016, were $52.5 million, or $2.29 per share, compared with cash and short term deposits, net of bank debt, of $31.2 million, or $1.93 per share, at December 31, 2015.

MANAGEMENT COMMENT

Commenting on the results, Mr. Saar Koursh, CEO of Magal, said, “2016 was an improved year for Magal, both in terms of the core financial results but especially from a strategic standpoint. In 2016, we continued to increase the portion of our higher margin product revenues, which now stands at 54% of the total. In addition, recurring revenue increased to 20% of sales and we expect these positive trends to continue into 2017. During the year, we invested significant resources in beefing up Aimetis’ sales operations in North America. While this has had a negative impact on our profitability in 2016, we believe that it will bring us strong revenue growth already in 2017 in verticals that we have not been present in yet. We have also recently seen a solid level of bookings, and our expectations for 2017 are for increased sales and operating profitability.”

Continued Mr. Koursh, “In terms of our business, we saw strong interest in our technologies and products coming from the United States in particular, in 2016. Looking ahead, given the expected increase in security spending  in the US, coupled with our strong recent experience with thousands of miles in border and perimeter security projects worldwide, and our significant product footprint in US critical assets, we feel very well positioned to grow our business in 2017.”

INVESTORS’ CONFERENCE CALL INFORMATION:

The Company will host a conference call later today, March 29, 2016, at 10:00 a.m. Eastern Time and 5:00 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

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 on the Company’s website for three months from the day after the call. The link to the replay will be accessible 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 45 years, Magal 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 PSIM (Physical Security Information Management system). The solutions leverage our broad portfolio of homegrown PIDS (Perimeter Intrusion Detection Systems), advanced VMS with native IVA and Cyber Security solutions

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.

For more information:

Magal Security Systems  Ltd. Saar Koursh, CEO Tel: +972 3 539 1421 E-mail: elishevaa@magal-s3.com Web:www.magal-s3.com   GK Investor Relations Ehud Helft / Gavriel Frohwein Tel: (US) +1 646 688 3559 E-mail: magal@gkir.com

* Tables to follow *

MAGAL  SECURITY SYSTEMS LTD.

 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended December 31,									Full Year Ended December 31,
	2015			2016			% change			2015			2016			% change
Revenue		19,270			20,252			5.1			63,736			67,825			6.4
Cost of revenue		8,407			10,216						32,722			34,570
Gross profit		10,863			10,036			(7.6	)		31,014			33,255			7.2
Operating expenses:
Research and development, net		1,749			1,735			(0.8	)		4,814			6,779			40.8
Selling and marketing		4,107			5,050			(23.0	)		14,785			17,536			18.6
General and administrative		2,085			1,728			(17.1	)		7,026			7,445			6.0
Total operating expenses		7,941			8,513			7.2			26,625			31,760			19.3
Operating income		2,922			1,523						4,389			1,495
Financial income (expenses), net		(138	)		(456	)					642			(591	)
Income before income taxes		3,060			1,979						5,031			904
Taxes on income (tax benefit)		544			(874	)					1,923			(122	)
Net income		2,516			2,853						3,108			1,026
Loss attributable to non-controlling interests		(21	)		(17	)					(33	)		(3	)
Net income attributable to Magal shareholders'		2,537			2,870						3,141			1,029
Basic net earnings per share	$	0.15		$	0.13					$	0.19		$	0.06
Diluted net earnings per share	$	0.15		$	0.13					$	0.19		$	0.06
Weighted average number of shares used in computing basic net earnings per share		16,386,698			22,723,656						16,347,948			17,999,779
Weighted average number of shares used in computing diluted net earnings per share		16,401,525			22,741,110						16,410,711			18,031,433

	Three Months Ended December 31				Full Year Ended December 31,
	2015 %		2016 %		2015 %		2016 %
Gross margin		56.4		49.6		48.7		49.0
Research and development, net as a % of revenues		9.1		8.6		7.6		10.0
Selling and marketing as a % of revenues		21.3		24.9		23.2		25.9
General and administrative  as a % of revenues		10.8		8.5		11.0		11.0
Operating margin		15.2		7.5		6.9		2.2
Net  margin		13.2		14.2		4.9		1.5

MAGAL SECURITY SYSTEMS LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)

	December 31,		December 31,
	2015		2016
CURRENT ASSETS:
Cash and cash equivalents	$	27,319	$	19,692
Short-term bank deposits		3,055		31,036
Restricted deposits		786		1,809
Trade receivables, net		13,706		13,702
Unbilled accounts receivable		5,597		4,232
Other accounts receivable and prepaid expenses		2,107		2,751
Inventories		7,879		6,818
Total current assets		60,449		80,040
LONG TERM INVESTMENTS AND RECEIVABLES:
Long-term trade receivables		617		308
Long-term deposits and restricted bank deposits		136		126
Severance pay fund		1,761		1,321
Deferred income taxes		1,055		2,114
Total long-term investments and receivables		3,569		3,869
PROPERTY AND EQUIPMENT, NET		5,415		5,301
INTANGIBLE ASSETS, NET		1,313		4,933
GOODWILL		4,250		11,850
TOTAL ASSETS	$	74,996	$	105,993

	December 31,			December 31,
	2015			2016
CURRENT LIABILITIES:
Trade payables	$	3,185		$	4,040
Customer advances		2,520			5,602
Other accounts payable and accrued expenses		10,748			11,646
Total current liabilities		16,453			21,288
LONG-TERM LIABILITIES:
Deferred revenues		-			472
Deferred income taxes		173			167
Accrued severance pay		2,660			2,089
Other long-term liabilities		15			59
Total long-term liabilities		2,848			2,787
SHAREHOLDERS' EQUITY
Share Capital: Ordinary shares of NIS 1 par value -
Authorized: 39,748,000 shares at December 31, 2015 and December 31, 2016; Issued and outstanding: 16,398,872 shares at December 31, 2015 and 22,894,348 shares at December 31, 2016		4,968			6,679
Additional paid-in capital		69,888			93,441
Accumulated other comprehensive loss		(1,850	)		(1,923	)
Foreign currency translation adjustments (stand alone financial statements)		406			412
Accumulated deficit		(17,629	)		(16,600	)
Total shareholders' equity		55,783			82,009
Non-controlling interest		(88	)		(91	)
TOTAL SHAREHOLDERS' EQUITY		55,695			81,918
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	74,996		$	105,993