Magal Security Systems (MAGS) Reports Q1 EPS of $0.02

Magal Security Systems (NASDAQ: MAGS) reported Q1 EPS of $0.02, versus ($0.02) reported last year. Revenue for the quarter came in at $17.4 million, versus $21.2 million reported last year.

FIRST QUARTER 2020 RESULTS SUMMARY (all comparisons are to the first quarter of 2019)

• Revenue of $17.4 million compared to $21.2 million
• Gross margin 45.8% compared to 42.3%
• Operating income of $0.2 million compared to $0.5 million
• Net income attributable to Magal's shareholders of $0.4 million compared to a net loss of ($0.6) million
• EBITDA of $0.7 million, or EBITDA margin of 4.1% compared to $1.0 million, or EBITDA margin of 4.7%
• $54.4 million, or $2.35 per share, of cash and cash equivalents and short-term deposits and restricted cash and deposits

Mr. Dror Sharon, Chief Executive Officer of Magal, said "The first quarter results reflect our priority to protect our employees, remain engaged with our customers and continue to grow our pipeline of business during the COVID-19 outbreak. Business delays due to COVID-19 restrictions impacted Magal's Integrated Solutions division's ability to meet with clients, and Senstar's Product division shipments, compressing revenue in the quarter. Our strategy to diversify revenues helped our results, as evidenced by our recent win in Africa for the Djibouti seaport security system design and installation. While we are diversified, serving numerous vertical markets, the economic disruption related to COVID-19 negatively impacted our Oil and Gas, Logistics and to a lesser extent, Corrections verticals. The Oil and Gas sector was affected by the dramatic decline in oil prices, which caused delays in large projects. We remain engaged with these customers and continue to see purchase orders. We experienced some temporary delays in revenue execution for some of our Logistics customers, mainly in Europe. The Corrections facilities vertical, primarily based in North America, was impacted by temporary closures, driven by the COVID-19 outbreak.

We maintained profitability with cost savings and efficiencies that we enacted in the first quarter to reduce operating expenses. We continue to innovate and are launching new solutions in our Symphony VMS platform that address unique COVID-19 surveillance and enforcement needs for our customers. Our goal in 2020 is to manage our costs and maintain profitability while positioning the Company for recovery and growth. Magal's sound financial standing with a cash balance of over $54 million, with no debt, gives us great confidence in our ability to execute our long-term strategy to grow revenue, improve profitability and identify new M&A opportunities arising from the global crisis."

For earnings history and earnings-related data on Magal Security Systems (MAGS) click here.

You May Also Be Interested In

• Virtuix delays Q1 FY2027 earnings report amid accounting firm switch
• Gaxos.ai Inc. (GXAI) Reports Q2 EPS of $0.02
• Logistic Properties of the Americas (LPA) Reports Q2 results