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 May 2008
MAGAL SECURITY SYSTEMS LTD.
(Name of Registrant)
P.O. Box 70, Industrial Zone, Yahud 56100 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 [X] 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 [X]
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
F-3 Registration Statements File Nos. 333-9050 and 333-123265 and Form S-8
Registration Statement File No. 333-06246.
Magal Security Systems Ltd.
6-K Items
1. Press Release re Magal Presents 86% YoY Revenue Increase in First Quarter
2008 dated May 5, 2008.
ITEM 1
Press Release Source: Magal Security Systems Ltd
Magal Presents 86% YoY Revenue Increase in First Quarter 2008
Monday May 5, 7:00 am ET
Revenues Reach Record Level of $26 Million for the First Quarter
YAHUD, Israel, May 5 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd.
(Nasdaq GM: MAGS; TASE:MAGS) today announced its consolidated financial results
for the three month period ended March 31, 2008.
Revenues for the first quarter of 2008 increased 86% reaching US$26.3 million,
compared to US$14.1 million in the first quarter of 2007. Effective September 1,
2007, Magal's financial statements consolidate the results of the European
integration company acquired in August 2007. Following the sale of Magal's U.S.
based video monitoring business operated by Smart Interactive Systems Inc. in
December 2007, the results of this business for the first quarter of 2007, were
reclassified as discontinued operations.
Gross profit for the first quarter of 2008 increased by 52% over the first
quarter of 2007, reaching US$9.7 million, or 36.8% of revenues. Gross margin for
the quarter was adversely affected by the ongoing weakening of the US dollar
against the Israeli Shekel as well as the shift in revenue mix towards larger
scale integration projects.
Operating expenses for the first quarter of 2008 totalled US$8.4 million,
compared to US$5.5 million in the first quarter 2007. Operating expenses, as a
percent of revenues, decreased to 31.9%, from 38.8% last year.
The operating expenses for the quarter included a US$1.0 million amortization of
intangible assets relating to the recently acquired European subsidiary.
Operating expenses for the quarter were also adversely affected by the
devaluation of the US dollar against the Israeli Shekel and the Canadian Dollar,
increasing operating expenses by approximately US$0.6 million for the quarter.
Operating income for the first quarter of 2008 increased 43% reaching US$1.3
million, compared to US$0.9 million in the first quarter of 2007.
Financial expenses for the first quarter of 2008 totalled US$1.0 million,
compared to $0.3 million for the first quarter of 2007. Financial expenses for
the quarter included $0.6 million resulting from the ongoing weakening of the US
dollar.
Net income from continued operation for the first quarter of 2008 was flat,
compared to net income from continued operation of US$0.5 million at the first
quarter of 2007. Net loss, including discontinued operations, totalled US$0.2
million, compared with net income of US$0.3 million in the first quarter of
2007. Diluted loss per share for the first quarter totalled US$0.02 per share
compared to diluted earnings of US$0.03 per share in the same quarter of last
year.
"Once again we presented strong revenue growth this quarter. This is in line
with our long term strategic plan of acquiring new complimentary companies and
activities; penetrating new territories; and targeting larger scale projects. We
expect this trend to continue in the quarters to come," commented Mr. Izhar
Dekel, CEO of Magal. "Despite our strong revenue growth, our results this
quarter were adversely affected by several items including the weakening of the
US dollar, several one-time expenses and change in our revenue mix. Looking
ahead we expect to continue generating growth in line with our long term plan
and believe our results will better reflect this growth in quarters to come."
The Company will be hosting its quarterly conference call later today at 9:00am
ET. On the call, management will review and discuss the first quarter 2008
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: 1-866-229-7198
UK Dial-in Number: 0-800-032-3367
Israel Dial-in Number: 03-918-0688
International Dial-in Number: +972-3-918-0688
at: 9:00 am Eastern Time; 6:00 am Pacific
Daylight Time; 4:00 pm Israel Time
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. 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.
Magal trades under the symbol MAGS in the U.S. on the Nasdaq Global Market and
in Israel on the Tel-Aviv Stock Exchange (TASE).
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 FOLLOW-
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in
thousands of US$)
Quarter Ended March 31,
2008 % 2007 (* % % change
Of Of
revenues revenues
Revenues 26,290 100% 14,113 100% 86.3%
Cost of revenues 16,608 63.2% 7,732 54.8% 114.8%
Gross profit 9,682 36.8% 6,381 45.2% 51.7%
Operating expenses:
Research and development, net 1,625 6.2% 1,454 10.3% 11.8%
Selling and marketing 4,236 16.1% 2,709 19.2% 56.4%
General and administrative 2,095 8.0% 1,316 9.3% 59.2%
Special post employment 438 1.7% -
benefit
Total operating expenses 8,394 31.9% 5,479 38.8% 53.2%
Operating income 1,288 4.9% 902 6.4% 42.8%
Financial expenses, net 984 3.7% 303 2.1% 224.8%
Income from continuing 304 1.2% 599 4.2% (49.2%)
operations before income
taxes
Income tax net 292 1.1% 148 1.0% 97.3%
Net Income from continuing 12 0.0% 451 3.2% 62.1%
operations
Net loss from discontinued 248 0.9% 153 1.1% 62.0%
operations
Net income (loss) (236) (0.9%) 298 2.1%
Basic and diluted net
earnings per share from
continuing operations 0.00 0.05
Basic and diluted loss per
share from discontinued
operations (0.02) (0.02)
Basic and diluted net
earnings (loss) per share (0.02) 0.03
(*Reclassified
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2008 2007
CURRENT ASSETS:
Cash and cash equivalents 15,559 9,814
Marketable securities 9,452 9,464
Short term bank deposits 11,243 11,220
Trade receivables 15,394 26,623
Unbilled accounts receivable 13,856 4,003
Other accounts receivable and prepaid 5,371 6,976
expenses
Deferred income taxes 2,043 1,847
Inventories 19,633 23,816
Total current assets 92,551 93,763
Long term investments and receivables:
Long-term trade receivables 2,012 2,019
Long-term loans 868 808
Long-term bank deposits 1,832 1,846
Escrow deposit 2,071 4,442
Severance pay fund 2,777 2,765
Total long-term investments and 9,560 11,880
receivables
PROPERTY AND EQUIPMENT, NET 8,640 8,429
OTHER ASSETS, NET 19,191 13,755
ASSETS ATRIBUTED TO DISCONTINUED 120 244
OPERATION
Total assets 130,062 128,071
CURRENT LIABILITIES:
Short-term bank credit 19,419 16,434
Current maturities of long-term bank 4,303 4,303
debt
Trade payables 7,154 7,344
Deferred income taxes 778 687
Other accounts payable, accrued 22,499 24,791
expenses and customer advances
Total current liabilities 54,153 53,559
LONG-TERM LIABILITIES:
Long-term bank debt 2,895 3,095
Deferred income taxes 1,503 - 1,218
Accrued severance pay 4,005 3,873
Total long-term liabilities 8,403 8,186
LIABILITIES ATRIBUTED TO DISCONTINUED 400 849
OPERATION
SHAREHOLDERS' EQUITY 67,106 65,477
TOTAL LIABILITIES AND SHAREHOLDERS' 130,062 128,071
EQUITY
Total bank debt to total 0.40 0.36
capitalization
Current ratio 1.71 1.75
[end_table]>
Contacts:
Company Investor Relations
Magal Security Systems, Ltd GK Investor Relations
Lian Goldstein, CFO Ehud Helft/Kenny Green
Tel: +972-3-5391444 Tel: +1-646-201-9246
Fax: +972-3-5366245 E-mail: info@gkir.com
E-mail: lian@magal-ssl.com
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/ Izhar Dekel
---------------
Izhar Dekel
Chief Executive Officer
Date: May 5, 2008