-3x Short Magnificent 7 ... (BIT:MAGS)
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YAHUD, Israel, May 1 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd. (Nasdaq NM:MAGS; TASE:MAGS) today announced its consolidated financial results for the three-month period ended March 31, 2006.
Revenues for the first quarter of 2006 reached US$13.5 million, a decrease of 1.9 percent from the first quarter of 2005. Operating income reached US$479,000 and net income reached US$149,000, a decrease of 50.7 percent and 49.5 percent respectively from the first quarter of 2005. Compared with the fourth quarter of 2005, revenues decreased by 33 percent, operating income decreased by 58 percent and net income decreased by 80 percent.
Operating expenses for the first quarter of 2006 reached US$5.2 million, about the same as in the first quarter of last year and decreased by 24.5 percent from the fourth quarter of 2005.
Diluted earnings per share for the first quarter reached US$0.01, a decrease of 66.7 percent from the same period of last year.
Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said, "Revenues for the first quarter of 2006 were in the upper range of our estimate of between $12.5 to $14 million that we provided in our press release of April 7, 2006. Historically, our first quarter is the weakest quarter of the year."
Mr. Jacob Even-Ezra continued, "The decrease in revenues in the first quarter was also affected by the previously reported termination of an agreement by a European customer and due to a number of orders that we expected to obtain in the first quarter that were delayed to subsequent quarters."
Mr. Even-Ezra concluded, "Despite the first quarter results and based on the current backlog, management remains confident that the Company will have a good year in 2006, with revenue growth over 2005."
The Company will be hosting its quarterly conference call at 10:00am EST. On the call, Mr. Jacob Even-Ezra, Chairman of the Board & CEO, and Mrs. Raya Asher, CFO, will review and discuss the first quarter 2006 results. They will then be available to answer questions. To participate, please call one of the following teleconferencing numbers. Please begin placing your calls 5 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 Dial-in Number: 1-866-860-9642
Canada DDial-in Number: 1-866-485-239
ISRAEL Dial-in Number: 03-918-0610
INTERNATIONAL Dial-in Number: +972-3-918-0610
At:
10:00am Eastern Time
7:00am Pacific Time
5:00pm Israel Time
The call will also be broadcast live on the web, and can be accessed through a link on Magal's website. A replay of the call will be available for three months from the day after the call. The webcast and the replay will both be accessible from Magal's website at: http://www.magal-ssl.com/.
About Magal Security Systems, Ltd.:
Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies video monitoring services through Smart Interactive Systems, Inc., a subsidiary in the U.S. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Israeli-based Magal has subsidiaries in the U.S., Canada, the U.K., Germany, Romania, Mexico and an office in China.
Magal trades under the symbol MAGS in the U.S. on the Nasdaq National Market since 1993 and in Israel on the Tel-Aviv Stock Exchange (TASE) since July 2001.
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.
Contacts:
Company Investor Relations
Magal Security Systems, Ltd GK Investor Relations
Raya Asher, CFO Ehud Helft/Kenny Green
Tel: +972-3-5391444 Tel: +1-866-7046710
Fax: +972-3-5366245 E-mail:
E-mail:
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(All numbers except EPS expressed in
thousands of US$)
Quarter ended
March 31
_______________________
2006 2005(*) %
_______________________
change
Revenues $13,472 $13,726 -1.9
Cost of revenues 7,763 7,459 4.1
__________ _________
Gross Profit 5,709 6,267 -8.9
__________ _________
Operating expenses:
Research & development, net 1,200 1,156 3.8
Selling & marketing, net 2,583 2,726 -5.3
General & administrative 1,447 1,413 2.4
__________ _________
5,230 5,295 -1.2
__________ _________
Operating income 479 972 -50.7
Financial expenses, net 154 329 -53.2
__________ _________
Income from continuing operations 325 643 -49.5
before taxes on income
Taxes on income 153 318 -51.9
__________ _________
Income from continuing operations 172 325 -47.1
Loss on discontinued operations, net 23 30 -23.3
__________ _________
Net income 149 $ 295 -49.5
__________ _________
Basic net earnings per share $ 0.01 $ 0.03
__________ _________
Diluted net earnings per share $ 0.01 $ 0.03
__________ _________
Weighted average ordinary shares
outstanding
(in thousands) 10,375 8,672
__________ _________
Weighted average ordianry shares
outstanding,
assuming dilution (in thousands) 10,462 8,675
__________ _________
(*)Reclassified
Quarter Ended March 31,
_______________________
2006 2005
_______________________
Gross Margin (%) 42.4 45.7
Research & development net as a % of 8.9 8.4
Revenues
Selling & Marketing as a % of Revenues 19.2 19.9
General & Administrative as a % of 10.7 10.3
Revenues
Operating margin (%) 3.6 7.1
Net income margin (%) 1.1 2.1
Total Bank Debt to Total Capitalization 0.36 0.38(**)
Current Ratio 2.22 2.12(**)
**) as of December 31, 2005
MAGAL SECURITY SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2006 2005
___________ __________
CURRENT ASSETS:
Cash and cash equivalents $11,514 $10,099
Short term bank deposits 14,032 17,053
Trade receivables 20,743 24,912
Unbilled accounts receivable 10,904 11,252
Other accounts receivable 2,326 2,221
Deferred income taxes 973 910
Inventories 13,305 10,888
___________ __________
Total current assets 73,797 77,335
___________ __________
Long term investments and trade receivables:
Long-term trade receivables 315 290
Long-term bank deposits and structure notes 1,800 1,800
Severance pay fund 2,052 2,126
___________ __________
Total long term investments and trade 4,167 4,216
___________ __________
receivables
PROPERTY AND EQUIPMENT, NET 16,101 15,587
___________ __________
OTHER ASSETS, NET 5,363 5,365
___________ __________
Total assets $99,428 $102,503
___________ __________
CURRENT LIABILITIES:
Short-term bank credit 16,942 18,068
Current maturities of long-term bank loans 3,647 3,647
Trade payables 4,668 6,360
Other accounts payable and accrued expenses 7,925 8,486
___________ __________
Total current liabilities 33,182 36,561
___________ __________
LONG-TERM LIABILITIES:
Long-term bank loans 1,617 1,653
Accrued severance pay 2,187 2,131
Long-term liability in respect of forward 13 50
___________ __________
contracts
Total long terms liabilities 3,817 3,834
___________ __________
SHAREHOLDERS' EQUITY 62,429 62,108
___________ __________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $99,428 $102,503
___________ __________
DATASOURCE: Magal Security Systems Ltd.
CONTACT: Company, Magal Security Systems, Ltd, Raya Asher, CFO, Tel:
+972-3-5391444, Fax: +972-3-5366245, E-mail: ,
Investor Relations, GK Investor Relations, Ehud Helft/Kenny Green, Tel:
+1-866-7046710, E-mail: ,