99.1
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Press Release: Magal Security Systems Ltd. Reports Fourth Quarter and Full Year 2019 Financial Results dated March 16, 2020.
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MAGAL SECURITY SYSTEMS LTD.
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(Registrant)
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By: /s/ Doron Kerbel
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Doron Kerbel
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V.P. General Counsel & Company Secretary
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EXHIBIT NO.
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DESCRIPTION
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• |
Revenue of $86.8 million, compared to $92.6 million, a 6% decline related to Integrated Solutions operations offset by growth in products sales
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• |
Operating income rose 61% to $6 million from $3.8 million
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• |
Net income attributable to Magal’s shareholders declined to $2.3 million from $2.9 million, including non-cash financial expenses of $1.7 million in 2019 comparing to non-cash financial income of $1.4
million in 2018
|
• |
EBITDA increased 17% to $8.1 million from $7 million
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• |
Revenue of $23.8 million, compared to $26.1 million, a 9% decline related to Integrated Solutions operations offset by growth in products sales
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• |
Operating income rose to $2.9 million from an operating loss of ($0.4) million
|
• |
Net income attributable to Magal’s shareholders increased to $1.8 million from a net loss of ($0.1)
million
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• |
EBITDA increased 161% to $3.4 million from $1.3 million
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• |
US: +1-877-407-9716
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• |
Israel: +1 809 406 247
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UK: 0 800 756 3429
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International: +1-201-493-6779
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Magal Security Systems Ltd.
Diane Hill, Assistant to the CEO
Tel: +972-3-539-1421
E-mail: dianeh@magal-s3.com
Web: www.magalsecurity.com
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IR Contact:
Brett Maas
Managing Partner
Hayden IR
+1 646-536-7331
Brett@HaydenIR.com
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Three Months
Ended December 31,
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Full Year
Ended December 31,
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|||||||||||||||||||||||
2019
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2018
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% change
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2019
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2018
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% change
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|||||||||||||||||||
Revenue
|
23,756
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26,105
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(9
|
)
|
86,831
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92,602
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(6
|
)
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||||||||||||||||
Cost of revenue
|
12,360
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15,503
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(20
|
)
|
48,070
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52,299
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(8
|
)
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||||||||||||||||
Gross profit
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11,396
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10,602
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7
|
38,761
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40,303
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(4
|
)
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|||||||||||||||||
Operating expenses:
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||||||||||||||||||||||||
Research and development, net
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1,540
|
1,838
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(16
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)
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6,373
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6,852
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(7
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)
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||||||||||||||||
Selling and marketing
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4,368
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4,982
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(12
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)
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16,902
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18,557
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(9
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)
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||||||||||||||||
General and administrative
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2,637
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4,217
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(37
|
)
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9,447
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11,139
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(15
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)
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||||||||||||||||
Total operating expenses
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8,545
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11,037
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(23
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)
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32,722
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36,548
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(10
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)
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||||||||||||||||
Operating income (loss)
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2,851
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(435
|
)
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6,039
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3,755
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|||||||||||||||||||
Financial income (expenses), net
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-
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670
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(1,667
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)
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1,361
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|||||||||||||||||||
Income (loss) before income taxes
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2,851
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235
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4,372
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5,116
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||||||||||||||||||||
Taxes on income
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578
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485
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1,553
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2,072
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||||||||||||||||||||
Net income (loss)
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2,273
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(250
|
)
|
2,819
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3,044
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|||||||||||||||||||
Income (loss) attributable to redeemable non-controlling interests and non-controlling interests
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490
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(150
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)
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526
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95
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|||||||||||||||||||
Net income (loss) attributable to Magal’s shareholders
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1,783
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(100
|
)
|
2,293
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2,949
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|||||||||||||||||||
Basic net income (loss) per share
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$
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0.05
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$
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(0.01
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)
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$
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0.07
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$
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0.12
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|||||||||||||||
Diluted net income (loss) per share
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$
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0.05
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$
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(0.01
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)
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$
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0.07
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$
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0.12
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|||||||||||||||
Weighted average number of shares used in computing basic net income (loss) per share
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23,153,985
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23,043,842
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23,129,394
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23,040,436
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||||||||||||||||||||
Weighted average number of shares used in computing diluted net income (loss) per share
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23,153,985
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23,043,842
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23,144,741
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23,287,752
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Three Months
Ended December 31,
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Full Year
Ended December 31,
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|||||||||||||||
2019
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2018
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2019
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2018
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% |
% |
% |
% |
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Gross margin
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48.0
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40.6
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44.6
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43.5
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||||||||||||
Research and development, net as a % of revenues
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6.5
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7.0
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7.3
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7.4
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||||||||||||
Selling and marketing as a % of revenues
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18.4
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19.1
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19.5
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20.0
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||||||||||||
General and administrative as a % of revenues
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11.1
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16.2
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10.9
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12.0
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||||||||||||
Operating margin
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12.0
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-
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7.0
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4.1
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||||||||||||
Net margin
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7.5
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-
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2.6
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3.2
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Three Months
Ended December 31,
|
Full Year
Ended December 31,
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|||||||||||||||
2019
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2018
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2019
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2018
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GAAP Net income
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2,273
|
(250
|
)
|
2,819
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3,044
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|||||||||||
Less:
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||||||||||||||||
Financial income (expenses), net
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-
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670
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(1,667
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)
|
1,361
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|||||||||||
Taxes on income
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578
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485
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1,553
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2,072
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Depreciation and amortization
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(509
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)
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(1,722
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)
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(2,100
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)
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(3,224
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)
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EBITDA
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3,360
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1,287
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8,139
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6,979
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December 31,
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December 31,
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|||||||
2019
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2018
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|||||||
CURRENT ASSETS:
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Cash and cash equivalents
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$
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34,531
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$
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38,665
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||||
Short-term bank deposits
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16,749
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13,150
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||||||
Restricted deposits
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324
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3,135
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||||||
Trade receivables, net
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18,697
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14,176
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||||||
Unbilled accounts receivable
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8,897
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6,050
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||||||
Other accounts receivable and prepaid expenses
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4,510
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4,126
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||||||
Inventories
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12,605
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13,863
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||||||
Total current assets
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96,313
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93,165
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||||||
LONG TERM INVESTMENTS AND RECEIVABLES:
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Long-term deposits, restricted bank deposits and other long-term accounts receivable and prepaid expenses
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134
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146
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||||||
Severance pay fund
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1,363
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1,289
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||||||
Deferred tax assets
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4,215
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3,459
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||||||
Total long-term investments and receivables
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5,712
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4,894
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||||||
PROPERTY AND EQUIPMENT, NET AND OPERATING LEASE RIGHT-OF-USE ASSETS
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9,748
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6,347
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||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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15,276
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14,765
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||||||
TOTAL ASSETS
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$
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127,049
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$
|
119,171
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December 31,
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December 31,
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|||||||
2019
|
2018
|
|||||||
CURRENT LIABILITIES:
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||||||||
Trade payables
|
$
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5,438
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$
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6,359
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||||
Customer advances
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5,587
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10,170
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||||||
Deferred revenues
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2,558
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2,387
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||||||
Other accounts payable and accrued expenses
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14,609
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13,226
|
||||||
Short-term operating lease liabilities
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919
|
-
|
||||||
Total current liabilities
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29,111
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32,142
|
||||||
LONG-TERM LIABILITIES:
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||||||||
Deferred revenues
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1,769
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1,344
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||||||
Deferred tax liabilities
|
178
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182
|
||||||
Accrued severance pay
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2,251
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2,181
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||||||
Long-term operating lease liabilities
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2,515
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-
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||||||
Other long-term liabilities
|
371
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351
|
||||||
Total long-term liabilities
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7,084
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4,058
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||||||
Redeemable non-controlling interest
|
3,048
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1,755
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||||||
SHAREHOLDERS' EQUITY
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||||||||
Share Capital: Ordinary shares of NIS 1 par value -
|
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Authorized: 39,748,000 shares at December 31, 2019 and December 31, 2018; Issued and outstanding: 23,153,985 shares at December 31, 2019 and 23,049,639 shares at December 31, 2018
|
6,750
|
6,721
|
||||||
Additional paid-in capital
|
95,071
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94,205
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||||||
Treasury shares
|
(375
|
)
|
-
|
|||||
Accumulated other comprehensive loss
|
(627
|
)
|
(1,827
|
)
|
||||
Foreign currency translation adjustments (stand-alone financial statements)
|
5,924
|
2,795
|
||||||
Accumulated deficit
|
(18,961
|
)
|
(20,678
|
)
|
||||
Total shareholders' equity
|
87,782
|
81,216
|
||||||
Non-controlling interest
|
24
|
-
|
||||||
TOTAL SHAREHOLDERS' EQUITY
|
87,806
|
81,216
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
127,049
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$
|
119,171
|