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Magal Security Systems (NASDAQ:MAGS) ($5.10; $117.1M market cap), a leading international provider of solutions and products for physical and video security solutions, announced a $13 million contract as a subcontractor for Toyota Tsusho Corporation. Magal will provide Toyota Tsusho Corporation and its end customer - a major international sea port in East-Africa, with a fully integrated turnkey security solution.
Quotes from management:
"We are proud to have been selected by Toyota Tsusho Corporation, to deliver our integrated security solutions. We are proud and honored to team with a global leader such as Toyota Tsusho Corporation, for such a major security project. I am confident that this partnership will be a successful one."
Although there is no timetable on how long this contract will take to fill, we still view it as significant as it is nearly a quarters’ worth of revenues.
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MAGS ($6.00) - Reports Q3 2016 results:
Quotes from management:
"We are pleased with these results, growing our top line and demonstrating a fair profitability level. These results support our expectations that the second half of 2016 will be better than the first half. In particular, we saw broad strength across our product portfolio as well as within our focus region, in North America. We see further potential in this region, with investments in critical sites and border security."
"We are strongly encouraged by the support of our shareholders who participated in our rights offering, which significantly strengthened our balance sheet. This will enable us to take advantage of many of the opportunities we are seeing in our end markets," continued Mr. Koursh.
We plan to be on the conference call at 10 am EST.
Comments & Business Outlook
Fourth Quarter 2011 Results
Revenues in the fourth quarter of 2011 increased year-over-year by 122.9% to a record $33.7 million , compared with $15.1 million in the fourth quarter of 2010.
Net income in the quarter was $4.3 million , compared with a net loss of $1.5 million in the fourth quarter of 2010.
Earnings per share in the fourth quarter of 2011 were $0.27 , compared with a net loss per share of $0.14 in the same period last year.
Commenting on the results, Mr. Eitan Livneh , President and CEO of Magal , said, "I am very proud of our 2011 results, which reflect strong improvement across all financial parameters. We achieved an all-time record in revenues and net income, generating significant positive operating cash flow of $20.4 million ."
Continued Mr. Livneh, "Our success is the result of the strenuous efforts we have made over the past two years in transitioning Magal into a leader in delivering full-scale homeland security projects. Our two-pronged strategy is to strengthen and build on our market leadership in PIDS products, while at the same time establishing a strong local presence in various key geographic areas. A recent example of this strategy can be found in our announcement concerning our new joint venture in India . Our now exceptionally strong balance sheet, with $32.5 million in net cash, opens many new growth avenues for us enabling both organic investments and synergistic acquisitions."
Mr. Jacob Perry , Chairman of the Board of Magal added , "I would like to congratulate the management team as well as all the employees at Magal on a highly successful and profitable year. Magal has built a strong brand and reputation in the developing regions of Africa , Latin America and Asia . The successful conclusion of projects in those regions places Magal in a strong position to compete for large projects and opportunities, and we look forward to continued success in the future."
Comments & Business Outlook
YEHUD, Israel , January 23, 2012 /PRNewswire/ --
Magal Security Systems Ltd. (NASDAQ GMS: MAGS) today announced that it has won a US$2.1 million contract to supply and install multi-layer Perimeter Intrusion Detection Systems (PIDS) for two new high security prisons in Latin America .
The multi layered solutions are mostly based on Magal's core products: volumetric covert buried cable detection systems, microwaves systems, fence mounted cable sensors and several third party complementary products. The contract also includes integration through Magal's proprietary control system and into a third party software system.
"In 2011, we saw substantial revenue growth in Latin America over the previous year," commented Mr. Eitan Livneh , President and CEO of Magal S3. " This new win is an excellent start to what we expect will be another good year for Magal in this strategic region."
Comments & Business Outlook
YAHUD, Israel , January 17, 2012 /PRNewswire/ --
Magal Security Systems, Ltd. (NASDAQ GM: MAGS) today announced that it received $1.2 million of orders for critical infrastructure in the Far East.
The first order is for a project to protect the perimeter and outdoors of a chemical industrial site. The project is based on an integrated CCTV solution with day and night cameras and Maestro DB - an advanced Video Management Software (VMS) with powerful Intelligent Video Analytics (IVA), optimized for outdoor security applications. Completion of the project is expected in 2012.
The second order is for multilayered PIDS (Perimeter Intrusion Detection System) solutions to secure two nuclear facilities, consisting of the Yael taut wire system, a fence mounted microphonic cable system and MagBar - a robust smart grid, used to secure water canals in order to complement the full security belt around sensitive sites.
Eitan Livneh , President and CEO of Magal S3 , commented: "Managers of Critical Infrastructure in mitigating the risks to their strategic services and their exposure to environmental catastrophes are now installing several layers of diverse technologies, which is exactly where we excel."
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Comments & Business Outlook
We will actively track the Magal Security Systems (NASDAQ:MAGS) story $3.40 to see if the company has orchestrated a financial turnaround. The company has had a history of reported repeated quarterly losses ( around 11). However, this morning the company reported very strong numbers.
Third Quarter 2011 Results
Revenues for the third quarter of 2011 increased 107% to a record $27.7 million . This is compared with $13.4 million , of revenues in the third quarter of 2010.
Gross profit in the quarter was $13.1 million , or 47.2% of revenues. This is an increase of 142% compared to gross profit of $5.4 million , or 40.4% of revenues in the third quarter of 2010.
Operating profit in the quarter was $5.6 million compared to an operating loss of $0.8 million in the third quarter of 2010. During the quarter, the Company recorded a $2.3 million arbitration award arising from the unwarranted cancellation of a contract entered into in 2006 with a customer in Eastern Europe .
Financial income in the quarter amounted to $1.2 million compared to financial income of $97,000 in the third quarter of 2010.
The company reported a tax benefit of $ 199,000 in the quarter compared with a tax expense of $66,000 in the third quarter of 2010.
Net income in the quarter was $7.1 million . This is compared with a net loss of $799,000 in the third quarter of 2010.
Net income per basic and fully diluted share in the third quarter of 2011 was $0.61 , compared with a net loss per basic share of $ 0.08 in the same period last year.
Cash and cash equivalents as of September 30, 2011 , were $33.8 million , or $2.14 per basic share, compared with $22.4 million or $2.12 per basic share as of June 30, 2011 .
GeoTeam ® Note : 2011 vs. 2010 Third Quarter Adjusted EPS was $0.30 vs. ($0.08).
MANAGEMENT COMMENT
Commenting on the results, Mr. Eitan Livneh , President and CEO of Magal , said, "We are very proud of our achievements over the past year which has led to these outstanding quarterly results, the highest in Magal's history. The in excess of $80 million in project wins that we have announced over the past year, as well as our execution on these projects which are in various stages of delivery, contributed to the strong improvement in revenue and profit."
Continued Mr. Livneh, "I believe Magal has successfully transitioned to the new path we initiated over the past two years, and the fruits of our efforts are finally visible in the outstanding results of the quarter. Following our successful rights offering and significant cash generation in the quarter, we have a very healthy balance sheet and strong financial position. This enables us to better compete for larger scale projects and pursue new opportunities. At the same time, we continue to see strong market demand for our services, particularly in global developing regions, and we believe our momentum will continue into the coming quarter and beyond."
