Reports Second Quarter 2024 Financial
Results
Business momentum remains
strong; Senstar MultiSensor fully launched for
sale
Continued focus on optimizing working
capital and delivering positive cash from operations
OTTAWA,
ON, Aug. 26, 2024 /PRNewswire/ -- Senstar
Technologies Corporation (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 six months ended June 30, 2024. Management will hold an investors'
conference call later today (at 5 p.m.
Eastern Time) to discuss the results.
Second Quarter 2024 Summary:
(Results for the three months ended June
30, 2024 compared to the three-months ended June 30, 2023.)
- Revenue of $8.3 million with
gross margin of 63.2% versus revenue of $8.4
million with gross margin of 60.7%
- Operating expenses declined by 9.1% to $4.6 million versus $5.0
million in 2023
- Net income of $493,000 versus
$275,000
- EBITDA of $846,000 versus
$290,000
- Cash balance increased to $15.1
million, with no debt, as of June 30,
2024
Mr. Fabien Haubert, CEO of
Senstar Technologies, stated, "We are encouraged by the strong
order momentum in the first half of 2024. Second quarter revenue of
$8.3 million was on par with the
prior year quarter, reflecting typical order timing variability.
Our gross margin reached 63.2%, the highest in eight quarters,
thanks to the cost realignments and price adjustments we made last
year, which also improved our operating margin. As a result, net
income rose to $493,000 and EBITDA
margin increased to 10.2% of revenue. Our balance sheet
strengthened with higher cash reserves and reduced inventory,
enhancing our working capital."
Mr. Haubert continued, "We delivered solid growth in our four
key verticals, which rose 5% in the second quarter and 14%
year-to-date. In terms of product development, we are thrilled to
announce that our latest innovation, the MultiSensor, is now
available for sale and generating substantial market interest. The
MultiSensor represents a critical growth driver in our four
verticals and opens the potential to address largervolume
markets."
Second Quarter 2024 Financial Results Summary
Revenue for the second quarter of 2024 was $8.3 million, a decrease of 1.6% compared with
$8.4 million in the second quarter of
2023. Second quarter gross profit was $5.2
million, or 63.2% of revenue, compared with $5.1 million, or 60.7% of revenue, in the year
ago quarter. The increase in gross margin was primarily due to
product mix and price increases in the fourth quarter of 2023.
Operating expenses were $4.6
million, a decrease of 9.1% compared to the prior year's
second quarter operating expenses of $5.0
million. The decrease in operating expenses is primarily
attributable to the streamlining of our corporate structure and
realignment of resources implemented in 2023.
Operating income for the second quarter of 2024 was $666,000 compared to $83,000 in the year-ago period. The improvement
is primarily attributable to higher gross profit and lower
operating expenses both on a dollar basis and as a percentage of
revenue.
Financial income was $103,000
compared to financial expense of ($74,000) in the second quarter last year.
Net income in the second quarter of 2024 was $493,000 million, or $0.02 per share, versus $275,000, or $0.01
per share, in the second quarter of last year.
EBITDA for the second quarter of 2024 was $846,000 versus $290,000 in the second quarter of 2023.
Cash, cash equivalents and short term bank deposits as of
June 30, 2024 were $15.2 million, or $0.65 per share, compared with $14.9 million, or $0.64 per share, at December 31, 2023.
About our Non-GAAP Financial Information
The Company reports financial results in accordance with U.S.
GAAP and also provides a non-GAAP measure, EBITDA. This non-GAAP
measure is not in accordance with, nor is it a substitute for, GAAP
measures. This non-GAAP measure is intended to supplement the
Company's presentation of its financial results that are prepared
in accordance with GAAP. 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 the table
below.
Earnings Conference Call Information:
The Company will host a conference call later today,
August 26, 2024. The call will begin
promptly at 5 p.m. Eastern Time,
10 p.m. UK Time. The Company requests
that participants dial in 10 minutes before the conference call
commences and use the conference ID number 13748488.
Participant Dial-in Numbers:
Toll Free:
1-877-407-9716
Toll/International: 1-201-493-6779
UK Toll Free: 0 800 756 3429
The conference call will also be available via a live webcast at
https://viavid.webcasts.com/starthere.jsp?ei=1684587&tp_key=696d15d416.
Replay Dial-in Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13748488
A replay of the call will be available on Monday, August 26, 2024, after 7:00 p.m. Eastern time through Monday, September 9, 2024, at 11:59 p.m. Eastern time, and available on the
Senstar Technologies website at
https://senstar.com/investors/investor-events/.
About Senstar Technologies Corporation
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 on utilities, logistics, correction facilities and
energy markets.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and forward-looking information
within the meaning of the Securities Act (Ontario), which we refer to collectively as
forward-looking statements. These forward-looking statements are
not limited to historical facts, but reflect Senstar's current
beliefs, expectations or intentions regarding future events. Words
such as "may," "will," "could," "should," "expect," "plan,"
"project," "intend," "anticipate," "believe," "seek," "estimate,"
"predict," "potential," "pursue," "target," "continue," and similar
expressions are intended to identify such forward-looking
statements. Because forward-looking statements relate to matters
that have not yet occurred, these statements are inherently subject
to risks and uncertainties that could cause our actual results to
differ materially from any future results expressed or implied by
the forward-looking statements. Many factors could cause actual
activities or results to differ materially from the activities and
results anticipated in forward-looking statements. Actual results
may differ materially from those projected as a result of certain
risks and uncertainties, including those risks discussed under the
heading "Risk Factors" in Senstar's most recent Annual Report on
Form 20-F filed with the SEC and in other filings with the SEC.
These forward-looking statements are made only as of the date
hereof, and, except as required by applicable law or regulation,
Senstar undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Logo:
https://mma.prnewswire.com/media/1713105/3503459/Senstar_Technologies_Logo.jpg
For more information:
Senstar Technologies Corporation
Alicia Kelly
Chief Financial Officer
alicia.kelly@senstar.com
IR contact:
Hayden IR
Kim Rogers
Managing Director
kim@haydenir.com
+1-541-904-5075
-- Tables follow --
|
SENSTAR TECHNOLOGIES
CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(All numbers except EPS expressed in thousands of
US$)
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
Six
Months
Ended June
30,
|
|
|
2024
|
|
2023
|
%
change
|
|
2024
|
|
2023
|
%
change
|
|
Revenue
|
8,306
|
|
8,441
|
(2)
|
|
15,817
|
|
14,886
|
6
|
|
Cost of
revenue
|
3,059
|
|
3,317
|
(8)
|
|
6,091
|
|
6,169
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,247
|
|
5,124
|
2
|
|
9,726
|
|
8,717
|
12
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research
and development, net
|
1,060
|
|
1,035
|
2
|
|
2,042
|
|
2,075
|
(2)
|
|
Selling
and marketing
|
2,257
|
|
2,625
|
(14)
|
|
4,352
|
|
5,071
|
(14)
|
|
General
and administrative
|
1,264
|
|
1,381
|
(8)
|
|
2,739
|
|
3,221
|
(15)
|
|
Total operating
expenses
|
4,581
|
|
5,041
|
(9)
|
|
9,133
|
|
10,367
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
666
|
|
83
|
|
|
593
|
|
(1,650)
|
|
|
Financial income
(expenses), net
|
103
|
|
(74)
|
|
|
157
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before
income taxes
|
769
|
|
9
|
|
|
750
|
|
(1,684)
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on income (tax
benefits)
|
276
|
|
(266)
|
|
|
1,003
|
|
(84)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Senstar's shareholders
|
493
|
|
275
|
|
|
(253)
|
|
(1,600)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net income
(loss) per share
|
$0.02
|
|
$0.01
|
|
|
($0.01)
|
|
($0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number
of shares used in computing
basic and diluted net income
(loss) per share
|
23,309,987
|
|
23,309,987
|
|
|
23,309,987
|
|
23,309,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSTAR TECHNOLOGIES
CORPORATION
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(All numbers except EPS
expressed in thousands of US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
2024
%
|
|
2023
%
|
|
|
2024
%
|
|
2023
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
63.2
|
|
60.7
|
|
|
61.5
|
|
58.6
|
|
|
Research and
development, net as a % of
revenues
|
12.8
|
|
12.3
|
|
|
12.9
|
|
13.9
|
|
|
Selling and marketing
as a % of revenues
|
27.2
|
|
31.1
|
|
|
27.5
|
|
34.1
|
|
|
General and
administrative as a % of
revenues
|
15.2
|
|
16.4
|
|
|
17.3
|
|
21.6
|
|
|
Operating
margin
|
8.0
|
|
1.0
|
|
|
3.7
|
|
-
|
|
|
Net
margin
|
5.9
|
|
3.3
|
|
|
-
|
|
-
|
|
|
SENSTAR TECHNOLOGIES
CORPORATION
RECONCILIATION OF EBITDA TO NET INCOME (LOSS)
(All numbers expressed in thousands of US$)
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
GAAP income
(loss)
|
493
|
|
275
|
|
|
(253)
|
|
(1,600)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Financial
income (expenses), net
|
103
|
|
(74)
|
|
|
157
|
|
(34)
|
|
Taxes on
income (tax benefits)
|
276
|
|
(266)
|
|
|
1,003
|
|
(84)
|
|
Depreciation and amortization
|
(180)
|
|
(207)
|
|
|
(367)
|
|
(530)
|
|
EBITDA
|
846
|
|
290
|
|
|
960
|
|
(1,120)
|
|
SENSTAR TECHNOLOGIES
CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2024
|
|
2023
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$15,099
|
|
$14,806
|
|
Short-term bank
deposits
|
112
|
|
116
|
|
Restricted cash and
deposits
|
5
|
|
6
|
|
Trade receivables,
net
|
8,600
|
|
9,545
|
|
Unbilled accounts
receivable
|
225
|
|
240
|
|
Other accounts
receivable and prepaid expenses
|
2,993
|
|
2,448
|
|
Inventories
|
5,474
|
|
7,178
|
|
|
|
|
|
Total current
assets
|
32,508
|
|
34,339
|
|
|
|
|
|
Long term
ASSETS:
|
|
|
|
|
|
|
|
|
Deferred tax
assets
|
1,370
|
|
1,525
|
|
Operating lease
right-of-use assets
|
669
|
|
842
|
|
|
|
|
|
Total long-term
assets
|
2,039
|
|
2,367
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
1,490
|
|
1,589
|
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
670
|
|
881
|
|
|
|
|
|
GOODWILL
|
10,771
|
|
11,090
|
|
|
|
|
|
Total assets
|
$47,478
|
|
$50,266
|
|
SENSTAR TECHNOLOGIES
CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2024
|
|
2023
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Trade
payables
|
$1,095
|
|
$1,650
|
|
Customer
advances
|
148
|
|
187
|
|
Deferred
revenues
|
2,488
|
|
2,878
|
|
Other accounts payable
and accrued expenses
|
4,650
|
|
5,052
|
|
Short-term operating
lease liabilities
|
266
|
|
297
|
|
|
|
|
|
Total current
liabilities
|
8,647
|
|
10,064
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred
revenues
|
1,420
|
|
1,415
|
|
Deferred tax
liabilities
|
600
|
|
606
|
|
Accrued severance
pay
|
286
|
|
296
|
|
Long-term operating
lease liabilities
|
435
|
|
580
|
|
Other long-term
liabilities
|
91
|
|
113
|
|
|
|
|
|
Total long-term
liabilities
|
2,832
|
|
3,010
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
35,999
|
|
37,192
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$47,478
|
|
$50,266
|
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SOURCE Senstar Technologies Corporation
