99.1
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Press Release: Magal Security Systems Reports Second Quarter 2016 Financial Results dated August 31, 2016.
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MAGAL SECURITY SYSTEMS LTD. | |||
(Registrant)
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|||
By: |
/s/ Saar Koursh
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||
Saar Koursh
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|||
Chief Executive Officer
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EXHIBIT NO.
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DESCRIPTION
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99.1
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Press Release: Magal Security Systems Reports Second Quarter 2016 Financial Results dated August 31, 2016.
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· | The results include the newly acquired video surveillance subsidiary, Aimetis; |
· | Revenues of $13.6 million, up 8% over the prior quarter; |
· | Increase in operating expenses primarily due to the Aimetis acquisition; |
· | Net cash and equivalents of $22.9 million at quarter-end; |
Magal S3 Ltd.
Saar Koursh, CEO
Tel: +972 3 539 1421
Assistant: Ms. Elisheva Almog
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 |
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||||||||||
2015
|
2016
|
% change
|
2015
|
2016
|
% change
|
|||||||||||||||||||
Revenue
|
$
|
15,697
|
$
|
13,629
|
(13.2
|
)
|
$
|
27,455
|
$
|
26,232
|
(4.5
|
)
|
||||||||||||
Cost of revenue
|
8,420
|
7,562
|
15,742
|
13,919
|
||||||||||||||||||||
Gross profit
|
7,277
|
6,067
|
(16.6
|
)
|
11,713
|
12,313
|
5.1
|
|||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Research and development, net
|
1,117
|
1,980
|
77.3
|
2,034
|
3,256
|
60.1
|
||||||||||||||||||
Selling and marketing
|
3,314
|
4,435
|
33.8
|
6,211
|
7,041
|
13.4
|
||||||||||||||||||
General and administrative
|
1,472
|
1,879
|
27.6
|
3,289
|
3,620
|
10.1
|
||||||||||||||||||
Total operating expenses
|
5,903
|
8,294
|
40.5
|
11,534
|
13,917
|
20.7
|
||||||||||||||||||
Operating income (loss)
|
1,374
|
(2,227
|
)
|
179
|
(1,604
|
)
|
||||||||||||||||||
Financial expenses, net
|
929
|
303
|
254
|
556
|
||||||||||||||||||||
Income (loss) before income taxes
|
445
|
(1,924
|
)
|
(75
|
)
|
(2,160
|
)
|
|||||||||||||||||
Taxes on income
|
205
|
122
|
207
|
349
|
||||||||||||||||||||
Net income (loss)
|
240
|
(2,046
|
)
|
(282
|
)
|
(2,509
|
)
|
|||||||||||||||||
Income (loss) attributable to non-controlling interests
|
50
|
(34
|
)
|
(22
|
)
|
(21
|
)
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|||||||||||||||||
Net income (loss) attributable to Magal shareholders'
|
190
|
(2,012
|
)
|
(260
|
)
|
(2,488
|
)
|
|||||||||||||||||
Basic net earnings (loss) per share
|
$
|
0.01
|
$
|
(0.12
|
)
|
$
|
(0.02
|
)
|
$
|
(0.15
|
)
|
|||||||||||||
Diluted net earnings (loss) per share
|
$
|
0.01
|
$
|
(0.12
|
)
|
$
|
(0.02
|
)
|
$
|
(0.15
|
)
|
|||||||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
|
16,355,984
|
16,398,872
|
16,312,711
|
16,398,872
|
||||||||||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
|
16,387,165
|
16,398,872
|
16,312,711
|
16,398,872
|
||||||||||||||||||||
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||||||||||
2015
|
|
2016
|
2015
|
2016
|
|
|||||||||||||||||||
%
|
%
|
%
|
%
|
|||||||||||||||||||||
Gross margin
|
46.4
|
44.5
|
42.7
|
46.9
|
||||||||||||||||||||
Research and development, net as a % of revenues
|
7.1
|
14.5
|
7.4
|
12.4
|
||||||||||||||||||||
Selling and marketing as a % of revenues
|
21.1
|
32.5
|
22.6
|
26.8
|
||||||||||||||||||||
General and administrative as a % of revenues
|
9.4
|
13.8
|
12.0
|
13.8
|
||||||||||||||||||||
Operating margin
|
8.8
|
N/A
|
0.7
|
N/A
|
||||||||||||||||||||
Net margin
|
1.2
|
N/A
|
N/A
|
N/A
|
December 31,
|
June 30,
|
|||||||
2015
|
2016
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
27,319
|
$
|
12,707
|
||||
Short-term bank deposits
|
3,055
|
6,030
|
||||||
Restricted deposits
|
786
|
4,181
|
||||||
Trade receivables, net
|
13,706
|
10,576
|
||||||
Unbilled accounts receivable
|
5,597
|
5,091
|
||||||
Other accounts receivable and prepaid expenses
|
2,107
|
3,781
|
||||||
Inventories
|
7,879
|
7,845
|
||||||
Total current assets
|
60,449
|
50,211
|
||||||
LONG TERM INVESTMENTS AND RECEIVABLES:
|
||||||||
Long-term trade receivables
|
617
|
493
|
||||||
Long-term deposits and restricted bank deposits
|
136
|
128
|
||||||
Severance pay fund
|
1,761
|
1,735
|
||||||
Deferred income taxes
|
1,055
|
384
|
||||||
Total long-term investments and receivables
|
3,569
|
2,740
|
||||||
PROPERTY AND EQUIPMENT, NET
|
5,415
|
5,560
|
||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
|
5,563
|
17,966
|
||||||
TOTAL ASSETS
|
$
|
74,996
|
$
|
76,477
|
December 31,
|
June 30,
|
|||||||
2015
|
2016
|
|||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
3,185
|
$
|
3,268
|
||||
Customer advances
|
2,520
|
4,369
|
||||||
Other accounts payable and accrued expenses
|
10,748
|
10,553
|
||||||
Total current liabilities
|
16,453
|
18,190
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term bank debt and other long-term payables
|
15
|
459
|
||||||
Deferred income taxes
|
173
|
177
|
||||||
Accrued severance pay
|
2,660
|
2,638
|
||||||
Total long-term liabilities
|
2,848
|
3,274
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Share Capital: Ordinary shares of NIS 1 par value -
|
||||||||
Authorized: 39,748,000 shares at December 31, 2015 and June 30, 2016; Issued and outstanding: 16,398,872 shares at December 31, 2015 and 16,424,872 shares at June 30, 2016
|
4,968
|
4,975
|
||||||
Additional paid-in capital
|
69,888
|
70,136
|
||||||
Accumulated other comprehensive loss
|
(1,850
|
)
|
(664
|
)
|
||||
Foreign currency translation adjustments (stand alone financial statements)
|
406
|
792
|
||||||
Accumulated deficit
|
(17,629
|
)
|
(20,117
|
)
|
||||
Total shareholders' equity
|
55,783
|
55,122
|
||||||
Non-controlling interest
|
(88
|
)
|
(109
|
)
|
||||
TOTAL SHAREHOLDERS' EQUITY
|
55,695
|
55,013
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
74,996
|
$
|
76,477
|