YEHUD, Israel, Nov. 16, 2021
/PRNewswire/ -- Senstar Technologies Ltd. (NASDAQ:
SNT), a leading international provider of comprehensive
physical, video and access control security products and solutions,
today announced its financial results for the three and nine months
ended September 30, 2021. Management
will hold an investors' conference call later today (at
10 a.m. Eastern Time) to discuss the
results.
SUMMARY FINANCIAL
RESULTS
|
|
($ in
thousands)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2021
|
2020
|
|
2021
|
2020
|
Revenue
|
9,263
|
8,379
|
|
25,905
|
23,720
|
Gross
profit
|
5,627
|
5,375
|
|
16,744
|
15,500
|
Gross
margin
|
60.70%
|
64.10%
|
|
64.60%
|
65.30%
|
Operating
income
|
779
|
970
|
|
2,324
|
1,779
|
Net income
(loss)
|
(222)
|
616
|
|
9,597
|
1,208
|
EBITDA from
continuing operations*
|
1,129
|
1,258
|
|
3,302
|
2,644
|
EBITDA margin*
|
12.20%
|
15.00%
|
|
12.70%
|
11.10%
|
*Non-GAAP
measure
|
BUSINESS HIGHLIGHTS:
- Revenues up 9% to $25.9
million for the nine months ended September 30, 2021 compared with comparable
period in 2020.
- Net income increased to $9.6
million for the nine months ended September 30, 2021 up from $1.2 million in the 2020 period, reflecting
income from discontinued operations
- EBITDA up 25% to $3.3 million
for the nine months ended September 30,
2021 compared with comparable period in 2020.
- As part of our growth engine for 2022 and on, we introduced
the Senstar TC200 thermal-visible, dual-video detection camera for
outdoor site security and announced our new sensor fusion engine,
which synthesizes data from multiple sensors to generate actionable
information and address nuisance alarms.
- Completed a one-time cash distribution to shareholders in
the amount of $1.725 per share
(approximately $40 million in the
aggregate).
- Strong balance sheet with cash of $24.0 million (following the ~$40 million cash distribution), or $1.03 per share, and zero debt as of September 30, 2021.
Mr. Dror Sharon, Chief Executive
Officer of Senstar Technologies, said, "We delivered
11% revenue growth in the third quarter, as a result of
our solid performance, especially in the APAC region,
attributable to a large infrastructure contract that was announced
in the second quarter of this year. Our US business
experienced contract delays related to COVID, including our
difficulty in fulfilling customer orders due to supply chain
constraints that created a shortage of semiconductors. On
a positive note, we increased our trade show activities this
quarter and had numerous productive meetings at events in the US,
Europe, and the UK. The upturn in our marketing activity
increased our operating expenses in the quarter as business
processes recovered from COVID restrictions. Opportunities to
engage with customers face-to-face are helping to build
our pipeline of new business for future growth.
"A key growth lever for Senstar Technologies is adding new
products and enhancing our current product offering,"
continued Mr. Sharon. "This quarter we enhanced our PIDS
offering with the release of our thermal camera, creating a
powerful perimeter solution. We also released our
game-changing Fusion Hardware-Software engine,
which we anticipate will drive increased software
sales and raise gross margins over time. Customer
response to these new products has been overwhelmingly positive. In
order to leverage the improving business environment in the APAC
region and sustain our momentum there, we announced a
new Senior Regional Director based in Hong Kong.
These business drivers, in combination with
our excellent balance sheet, positions Senstar Technologies
to deliver growth, improve profitability and deliver value for
our shareholders."
THIRD QUARTER 2021 RESULTS
Revenue for the third quarter of 2021 was $9.3 million, an increase of 10.6% compared with
$8.4 million in the third quarter of
2020. The increase in third quarter revenue was primarily due to a
solid performance in the APAC region from a large
infrastructure contract announced in the prior quarter.
Third quarter gross profit was $5.6
million, or 60.7% of revenue, compared with $5.4 million, or 64.1% of revenue. The decrease
in gross margin was primarily due to a shift in the mix of products
sold during the quarter, a higher cost of materials driven by
global supply chain challenges and unfavorable foreign currency
valuations.
Operating expenses were $4.8
million, an increase of 10.1% compared to the prior year's
third quarter operating expenses of $4.4
million. The increase in operating expenses is primarily
attributable to increased sales and marketing activity compared to
the 2020 period when there was slowdown in similar activities due
to the global pandemic.
Operating income for the third quarter was $0.8 million compared to $1 million in the year-ago period.
Financial expense was $0.4 million
compared to $0.1 million in the third
quarter last year. This is due to the adjustment of monetary assets
and liabilities, denominated in currencies other than the
functional currency of the operational entities in the group. At
the end of each period, a change in currency valuation of monetary
assets and liabilities is recorded as a non-cash financial expense
or income.
Income from continuing operations was $44,000 in the third quarter of 2021 compared to
$533,000 in the year ago quarter.
Net loss in the quarter was $0.2
million or ($0.01) per share
versus net income of $616,000 or
$0.01 per share in the third quarter
of last year. The net loss in the current period includes a net
loss of $0.3 million from
discontinued operations versus net income from discontinued
operations of $0.1 million in the
year ago quarter.
EBITDA from continuing operations for the third quarter was
$1.1 million versus $1.3 million in the third quarter of 2020.
On September 22, 2021, the Company
made a cash distribution to shareholders in the amount of
$1.725 per share, or approximately
$40 million in the aggregate.
Cash and cash equivalents and restricted cash and deposits
related to continuing operations as of September 30, 2021, was $24.0 million, or $1.03 per share, compared with cash and cash
equivalents and restricted cash and deposits related to continuing
operations of $24.5 million, or
$1.06 per share, at December 31, 2020.
EARNINGS CONFERENCE CALL INFORMATION:
The Company will host a conference call later today,
November 16, 2021. The call will
begin promptly at 10 a.m. Eastern
Time, 5 p.m. Israel Time,
3 p.m. UK Time. The Company requests
that participants dial in 10 minutes before the conference call
commences.
To participate, please call one of the following
teleconferencing numbers and the conference ID number 13724320:
- Toll Free: 1-877-407-9716
- Toll/International: 1-201-493-6779
- Israel Toll Free : 1 809 406
247
- UK Toll Free: 0 800 756 3429
The conference call will also be webcast live at:
https://78449.themediaframe.com/dataconf/productusers/vvdb/mediaframe/47094/indexl.html.
A replay link of the call will be available at
senstartechnologies.com on November 16,
2021, after 1 p.m. Eastern
time through November 30,
2021, at 11:59 p.m. Eastern
time.
Replay Dial-in Numbers:
- Toll Free: 1-844-512-2921
- Toll/International: 1-412-317-6671
- Replay Pin Number: 13724320
About Senstar Technologies
With innovative perimeter intrusion detection systems
(including fence sensors , buried sensors ,
and above ground
sensors), intelligent video-management , video
analytics , and access control ,
Senstar offers a comprehensive suite of proven,
integrated solutions that reduce complexity, improve
performance and unify support. For 40 years, Senstar has
been safeguarding people, places and property for
organizations around the world, with a special focus
in utilities , logistics , corrections , and energy markets.
For more information, visit the Company's website at
www.senstartechnologies.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S.
GAAP. To supplement the consolidated financial statements presented
in accordance with GAAP, the Company presents the Non-GAAP
presentation of EBITDA. This non-GAAP measure is not in accordance
with, nor is it a substitute for, a GAAP measure. The Company uses
EBITDA to evaluate and manage the Company's operations internally.
The Company is also providing this information to assist investors
in performing additional financial analysis. Reconciliation between
the company's results on a GAAP and non-GAAP basis is provided in a
table below.
Forward Looking Statements
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. In
addition, there is uncertainty about the spread of the COVID19
virus and the impact it will have on the Company's operations, the
demand for the Company's products, global supply chains and
economic activity in general.
For more information:
Senstar
Technologies:
Doron Kerbel,
Adv.
V.P. General Counsel
& Company Secretary
Tel:
+972-3-5391500
Doron.Kerbel@senstar.com
|
IR
Contact:
Brett Maas
Managing
Partner
Hayden IR
+1
646-536-7331
Brett@HaydenIR.com
|
* Tables to follow *
SENSTAR
TECHNOLOGIES LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(All numbers
except EPS expressed in thousands of US$)
|
|
|
Three
Months
Ended September
30,
|
|
Nine
Months
Ended September
30,
|
|
2021
|
|
2020
|
%
change
|
|
2021
|
|
2020
|
%
change
|
Revenue
|
9,263
|
|
8,379
|
11
|
|
25,905
|
|
23,720
|
9
|
Cost of
revenue
|
3,636
|
|
3,004
|
21
|
|
9,161
|
|
8,220
|
11
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,627
|
|
5,375
|
5
|
|
16,744
|
|
15,500
|
8
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research
and development, net
|
814
|
|
875
|
(7)
|
|
2,797
|
|
2,965
|
(6)
|
Selling
and marketing
|
2,352
|
|
1,887
|
25
|
|
6,933
|
|
6,341
|
9
|
General
and administrative
|
1,682
|
|
1,643
|
2
|
|
4,690
|
|
4,415
|
6
|
Total operating
expenses
|
4,848
|
|
4,405
|
10
|
|
14,420
|
|
13,721
|
5
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
779
|
|
970
|
|
|
2,324
|
|
1,779
|
|
Financial income
(expenses), net
|
(416)
|
|
(71)
|
|
|
(619)
|
|
151
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
363
|
|
899
|
|
|
1,705
|
|
1,930
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
319
|
|
366
|
|
|
1,724
|
|
428
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
44
|
|
533
|
|
|
(19)
|
|
1,502
|
|
Income (loss) from
discontinued operations, net
|
(266)
|
|
83
|
|
|
9,616
|
|
(294)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(222)
|
|
616
|
|
|
9,597
|
|
1,208
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to redeemable non-controlling interests and
non-controlling interests
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Senstar's shareholders
|
(222)
|
|
616
|
|
|
9,597
|
|
1,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share from continuing operations
|
$0.00
|
|
$0.02
|
|
|
$0.00
|
|
$0.06
|
|
Basic and diluted net
income (loss) per share from discontinued operations,
net
|
($0.01)
|
|
($0.01)
|
|
|
$0.41
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net income (loss) per share
|
($0.01)
|
|
$0.01
|
|
|
$0.41
|
|
$0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing basic and diluted net income
(loss) per share
|
23,215,309
|
|
23,153,985
|
|
|
23,182,404
|
|
23,153,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSTAR
TECHNOLOGIES LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(All numbers
except EPS expressed in thousands of US$)
|
|
|
Three
Months
Ended September
30,
|
|
|
Nine
Months
Ended September
30,
|
|
2021
%
|
|
2020
%
|
|
|
2021
%
|
|
2020
%
|
|
|
|
|
|
|
|
|
|
Gross margin
|
60.7
|
|
64.1
|
|
|
64.6
|
|
65.3
|
Research and
development, net as a % of revenues
|
8.8
|
|
10.4
|
|
|
10.8
|
|
12.5
|
Selling and marketing
as a % of revenues
|
25.4
|
|
22.5
|
|
|
26.8
|
|
26.7
|
General and
administrative as a % of revenues
|
18.2
|
|
19.6
|
|
|
18.1
|
|
18.6
|
Operating
margin
|
8.4
|
|
11.6
|
|
|
9.0
|
|
7.5
|
Net margin from
continuing operations
|
0.5
|
|
6.4
|
|
|
-
|
|
6.3
|
SENSTAR
TECHNOLOGIES LTD.
|
RECONCILIATION OF EBITDA FROM
CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING
OPERATION
|
(All numbers
expressed in thousands of US$)
|
|
|
Three
Months
Ended September
30,
|
|
|
Nine
Months
Ended September
30,
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
44
|
|
533
|
|
|
(19)
|
|
1,502
|
Less:
|
|
|
|
|
|
|
|
|
Financial
income (expenses), net
|
(416)
|
|
(71)
|
|
|
(619)
|
|
151
|
Taxes on
income
|
319
|
|
366
|
|
|
1,724
|
|
428
|
Depreciation and amortization
|
(350)
|
|
(288)
|
|
|
(978)
|
|
(865)
|
EBITDA from continuing
operations
|
1,129
|
|
1,258
|
|
|
3,302
|
|
2,644
|
SENSTAR
TECHNOLOGIES LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
September 30,
|
|
December
31,
|
|
2021
|
|
2020
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$23,933
|
|
$24,531
|
Restricted cash and
deposits
|
27
|
|
10
|
Trade receivables,
net
|
8,570
|
|
7,670
|
Unbilled accounts
receivable
|
114
|
|
64
|
Other accounts
receivable and prepaid expenses
|
1,067
|
|
899
|
Inventories
|
4,978
|
|
5,325
|
|
|
|
|
Total current
assets
|
38,689
|
|
38,499
|
|
|
|
|
Long term investments
and receivables:
|
|
|
|
|
|
|
|
Deferred tax
assets
|
1,604
|
|
1,671
|
Operating lease
right-of-use assets
|
1,410
|
|
1,703
|
|
|
|
|
Total long-term
investments and receivables
|
3,014
|
|
3,374
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
2,075
|
|
2,080
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
2,488
|
|
2,979
|
|
|
|
|
GOODWILL
|
11,465
|
|
11,507
|
|
|
|
|
ASSETS ATTRIBUTED
TO DISCONTINUED OPERATIONS
|
2,028
|
|
49,618
|
|
|
|
|
Total
assets
|
$59,759
|
|
$108,057
|
SENSTAR
TECHNOLOGIES LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
September 30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
$1,791
|
|
$1,511
|
Customer
advances
|
362
|
|
355
|
Deferred
revenues
|
2,730
|
|
2,709
|
Other accounts
payable and accrued expenses
|
6,809
|
|
6,164
|
Short-term operating
lease liabilities
|
343
|
|
460
|
|
|
|
|
Total current
liabilities
|
12,035
|
|
11,199
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Deferred
revenues
|
1,746
|
|
1,624
|
Deferred tax
liabilities
|
701
|
|
676
|
Accrued severance
pay
|
641
|
|
644
|
Long-term operating
lease liabilities
|
1,146
|
|
1,335
|
Other long-term
liabilities
|
256
|
|
285
|
|
|
|
|
Total long-term
liabilities
|
4,490
|
|
4,564
|
|
|
|
|
LIABILITIES
ATTRIBUTED TO DISCONTINUED OPERATIONS
|
4,346
|
|
25,196
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share Capital:
Ordinary shares of NIS 1 par value -
|
|
|
|
|
Authorized:
39,748,000 shares at September 30, 2021 and December 31, 2020;
Issued and outstanding: 23,258,320 shares at September 30, 2021 and
23,163,985
shares at December 31, 2020
|
6,784
|
|
6,753
|
Additional paid-in
capital
|
30,355
|
|
69,965
|
Accumulated other
comprehensive loss
|
1,570
|
|
34
|
Foreign currency
translation adjustments (stand-alone financial
statements)
|
9,341
|
|
9,104
|
Accumulated
deficit
|
(9,162)
|
|
(18,759)
|
|
|
|
|
Total shareholders'
equity
|
38,888
|
|
67,097
|
Non-controlling
interest
|
-
|
|
1
|
|
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
38,888
|
|
67,098
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$59,759
|
|
$108,057
|
|
|
|
|
|
View original
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SOURCE Senstar Technologies Ltd.