RAMAT
GAN, Israel,
May 26,
2022 /PRNewswire/ -- Senstar Technologies
(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
months ended March 31, 2022.
Management will hold an investors' conference call later today (at
10 a.m. Eastern Time) to discuss the
results.
Business Highlights:
- Q1 2022 revenue increased 4% to $6.8
million compared with $6.5
million in the comparable period of 2021.
- Net loss was ($1.1) million
compared to a net loss of ($2.0)
million in the 2021 period, which included a ($1.2) million loss from discontinued
operations.
- EBITDA loss improved to ($0.3)
million compared with an EBITDA loss of $($0.4) million in
the comparable period in 2021.
- Strong balance sheet with cash of $24.2
million, or $1.04 per share,
and zero debt as of March 31,
2022.
Mr. Dror Sharon, Chief Executive
Officer of Senstar Technologies, stated, "As previously stated on
our prior earnings call, we closed a large contract in EMEA and
delivered year-over-year revenue growth, despite the first quarter
being a seasonally weaker quarter for our business. Importantly, we
are effectively managing our supply chain and have increased
inventory to assure continued customer order fulfillment and to
maintain our gross margins.
"Our pipeline is building for 2022 and we see strength in our
global oil and gas vertical, as well as critical infrastructure and
logistics," continued Mr. Sharon. "Our two largest geographies,
EMEA and North America are
beginning to rebound as COVID restrictions are lifted and customer
activity resumes to pre-pandemic levels. Given our current backlog,
the improved business climate and our building pipeline of
business, we anticipate delivering another year of revenue growth
in 2022. We are anticipating improved gross and EBITDA margins in
2022 for Senstar Technologies."
First Quarter 2022 Results Summary
Revenue for the first quarter of 2022 was $6.8 million, an increase of 3.7% compared with
$6.5 million in the first quarter of
2021. First quarter gross profit was $4.5
million, or 65.8% of revenue, compared with $4.1 million, or 62.1% of revenue. The increase
in gross margin was primarily due to a shift in the mix of products
sold during the quarter.
Operating expenses for the first quarter of 2022 were
$5.1 million, an increase of 8.3%
compared to the prior year's first quarter operating expenses of
$4.7 million. The increase in
operating expenses is primarily attributable to the increase in
revenues, travel, sales related expenses and marketing activities
compared to the 2021 period, when there was a slowdown in similar
activities due to the global pandemic.
Operating loss was ($0.7) million
for the first quarter of 2022, unchanged compared to ($0.7) million in the first quarter of 2021.
Financial expense was $0.2 million
compared to financial income of $20
thousand in the first quarter last year. This expense is
mainly a non-cash expense related to the adjustment of monetary
assets and liabilities denominated in currencies other than the
functional currency of our operational entities.
Loss from continuing operations was ($1.1) million in the first quarter of 2022
compared to ($0.7) million in the
year-ago quarter.
Net loss in the first quarter of 2022 was ($1.1) million or ($0.05) per share versus ($2.0) million, or ($0.09) per share in the first quarter of last
year. The net loss in the 2021 period includes a loss from
discontinued operations of ($1.2)
million.
EBITDA loss from continuing operations for the first quarter was
($0.3) million versus ($0.4) million for the first quarter of 2021.
Cash and cash equivalents and restricted cash as of March 31, 2022, were $24.2
million, or $1.04 per share,
compared with $26.4 million, or
$1.13 per share, at December 31, 2021.
Earnings Conference Call Information:
The Company will host a conference call later today,
May 26, 2022. 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 use one of the following
teleconferencing numbers and the conference ID number
13730020.
Participant Dial-in Numbers:
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://viavid.webcasts.com/starthere.jsp?ei=1549781&tp_key=425536750f.
A replay link of the call will be available at
https://senstartechnologies.com/ on May
26, 2022 after 1 pm Eastern
time through June 9, 2022 at
11:59 pm Eastern time.
Replay Dial-in Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 137330020
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:
+972-74-794-5200
Doron.Kerbel@senstar.com
|
IR
Contact:
Kim Rogers
Managing
Director
Hayden IR
+1
541-904-5075
Kim@HaydenIR.com
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(All numbers except
EPS expressed in thousands of US$)
|
|
|
Three Months
Ended March 31,
|
|
2022
|
|
2021
|
% change
|
Revenue
|
6,785
|
|
6,540
|
4
|
Cost of revenue
|
2,318
|
|
2,478
|
(7)
|
|
|
|
|
|
Gross profit
|
4,467
|
|
4,062
|
10
|
Operating expenses:
|
|
|
|
|
Research and
development, net
|
1,095
|
|
1,007
|
9
|
Selling and
marketing
|
2,299
|
|
2,133
|
8
|
General and
administrative
|
1,745
|
|
1,603
|
9
|
Total operating expenses
|
5,139
|
|
4,743
|
8
|
|
|
|
|
|
Operating loss
|
(672)
|
|
(681)
|
|
Financial income
(expense), net
|
(239)
|
|
19
|
|
|
|
|
|
|
Loss before income taxes
|
(911)
|
|
(662)
|
|
|
|
|
|
|
Taxes on
income
|
186
|
|
70
|
|
|
|
|
|
|
Loss from continuing
operations
|
(1,097)
|
|
(732)
|
|
Loss from discontinued
operations, net
|
-
|
|
(1,237)
|
|
|
|
|
|
|
Net loss
|
(1,097)
|
|
(1,969)
|
|
|
|
|
|
|
Income attributable to
redeemable non-controlling interests and
non-controlling interests
|
-
|
|
21
|
|
|
|
|
|
|
Net loss attributable to Senstar's
shareholders
|
(1,097)
|
|
(1,990)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share from continuing
operations
|
($0.05)
|
|
$(0.03)
|
|
Basic and diluted net
loss per share from
discontinued
operations, net
|
-
|
|
$(0.06)
|
|
|
|
|
|
|
Basic and diluted net loss per
share
|
($0.05)
|
|
$(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in
computing
basic and diluted net loss per share
|
23,301,931
|
|
23,163,985
|
|
|
|
|
|
|
|
|
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(All numbers except
EPS expressed in thousands of US$)
|
|
|
Three Months
Ended March 31,
|
|
2022
%
|
|
2021
%
|
|
|
|
|
Gross margin
|
65.8
|
|
62.1
|
Research and
development, net as a % of revenues
|
16.1
|
|
15.4
|
Selling and marketing
as a % of revenues
|
33.9
|
|
32.6
|
General and
administrative as a % of revenues
|
25.7
|
|
24.5
|
Operating
margin
|
-
|
|
-
|
Net margin from
continuing operations
|
-
|
|
-
|
SENSTAR
TECHNOLOGIES
|
RECONCILIATION
OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS)
FROM CONTINUING OPERATION
|
(All numbers
expressed in thousands of US$)
|
|
|
Three Months
Ended March 31,
|
|
2022
|
|
2021
|
|
|
|
|
GAAP loss from continuing
operations
|
(1,097)
|
|
(732)
|
Less:
|
|
|
|
Financial income
(expenses), net
|
(239)
|
|
19
|
Taxes on
income
|
186
|
|
70
|
Depreciation and
amortization
|
(408)
|
|
(312)
|
EBITDA from continuing
operations
|
(264)
|
|
(369)
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
March 31,
|
|
December 31,
|
|
2022
|
|
2021
|
CURRENT ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$24,206
|
|
$26,397
|
Restricted cash and
deposits
|
6
|
|
6
|
Trade receivables,
net
|
6,604
|
|
7,723
|
Unbilled accounts
receivable
|
16
|
|
26
|
Other accounts
receivable and prepaid expenses
|
2,036
|
|
2,010
|
Inventories
|
6,917
|
|
5,751
|
|
|
|
|
Total current assets
|
39,785
|
|
41,913
|
|
|
|
|
Long term
ASSETS:
|
|
|
|
|
|
|
|
Deferred tax
assets
|
489
|
|
502
|
Operating lease
right-of-use assets
|
1,185
|
|
1,228
|
|
|
|
|
Total long-term assets
|
1,674
|
|
1,730
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET
|
2,029
|
|
2,109
|
|
|
|
|
INTANGIBLE ASSETS, NET
|
1,936
|
|
2,186
|
|
|
|
|
GOODWILL
|
11,580
|
|
11,449
|
|
|
|
|
TOTAL ASSETS
|
$57,004
|
|
$59,387
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
March 31,
|
|
December 31,
|
|
2022
|
|
2021
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
$2,417
|
|
$2,710
|
Customer
advances
|
310
|
|
390
|
Deferred
revenues
|
2,856
|
|
2,704
|
Other accounts payable
and accrued expenses
|
11,914
|
|
13,203
|
Short-term operating
lease liabilities
|
290
|
|
276
|
|
|
|
|
Total current liabilities
|
17,787
|
|
19,283
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Deferred
revenues
|
1,621
|
|
1,690
|
Deferred tax
liabilities
|
882
|
|
899
|
Accrued severance
pay
|
512
|
|
523
|
Long-term operating
lease liabilities
|
925
|
|
969
|
Other long-term
liabilities
|
260
|
|
266
|
|
|
|
|
Total long-term liabilities
|
4,200
|
|
4,347
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
Share Capital: Ordinary
shares of NIS 1 par value -
|
|
|
|
|
Authorized: 39,748,000
shares at March 31, 2022 and December 31,
2021; Issued and outstanding: 23,309,987 shares at March 31,
2022
and 23,301,653 shares at December 31, 2021
|
6,799
|
|
6,796
|
Additional paid-in
capital
|
30,433
|
|
30,394
|
Accumulated other
comprehensive loss
|
1,554
|
|
1,222
|
Foreign currency
translation adjustments (stand-alone financial
statements)
|
9,670
|
|
9,687
|
Accumulated
deficit
|
(13,439)
|
|
(12,342)
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY
|
35,017
|
|
35,757
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
|
$57,004
|
|
$59,387
|
|
|
|
|
|
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SOURCE Senstar Technologies Ltd.