Magal Security Systems (MAGS) Reports Q4 Loss of $0.02
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Magal Security Systems (NASDAQ: MAGS) reported Q4 EPS of ($0.02), versus $0.05 reported last year. Revenue for the quarter came in at $29.2 million, versus $23.8 million reported last year.
Mr. Dror Sharon, CEO of Magal, commented, "We finished the year with a solid fourth quarter that delivered 23% revenue growth and a 40% gross margin. The Integrated Solutions division\'s sales led the revenue increase due in part to the fulfillment of delayed orders from prior quarters. Senstar\'s stable revenues year-over-year in the US were modestly offset by continued weakness in the COVID-affected APAC and EMEA regions. Fourth quarter operating income increased 22%, and we reported a 14% EBITDA margin. Senstar\'s revenue was $9.6 million with 63% gross margin in the quarter and delivered ~20% EBITDA margin contribution to the consolidated EBITDA. The Company\'s performance in 2020, a year where we faced challenges due to the COVID-19 pandemic, reflects the strength of our global team and their ability to pivot to productive and successful customer engagement across our vertical markets. We entered 2021 with a record backlog of ~$64 million, out of which Senstar accounted for a record backlog of ~$14 million. In December, we returned $25 million to our shareholders in a one-time cash distribution. Our balance sheet remains strong, with ~$27 million of cash and cash equivalents and no debt."
Continued Mr. Sharon, "In February 2021, we announced the divestiture of our Integrated Solutions Division, which we anticipate will close by the end of the second quarter of 2021. We are committed to focusing our efforts and resources on developing Senstar\'s industry-leading security technology and expanding its market share, particularly in our four focus vertical markets – logistics, corrections, energy, and critical infrastructure. We believe that Senstar\'s rich customer base and business model, with attractive gross margin contribution, and operational efficiencies is highly scalable to deliver long-term shareholder value as a stand-alone entity. The Senstar team is working continuously to improve our product lines and develop new products that set an industry standard for quality, innovation and reliability. The divesture of Integrated Solutions will improve the visibility of our Senstar business and further strengthen our already strong balance sheet to support the execution of our long-term growth strategy."
For earnings history and earnings-related data on Magal Security Systems (MAGS) click here.
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