SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2005
MAGAL SECURITY SYSTEMS LTD.
(Name of Registrant)
P.O. Box 70, Industrial Zone, Yahud 56100 Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-__________
This Report on Form 6-K is incorporated by reference into the Registrant's Form
F-3 Registration Statements File Nos. 333-9050 and 333-123265 and Form S-8
Registration Statement File No. 333-06246.
Magal Security Systems Ltd.
6-K Items
1. Press Release re Magal Security Systems Ltd. Announces First Quarter
2005 Results dated May 2, 2005.
ITEM 1
Press Release Source: Magal Security Systems Ltd.
Magal Security Systems Ltd. Announces First Quarter 2005 Results
Monday May 2, 8:30 am ET
YAHUD, Israel, May 2 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd.
(Nasdaq NM: MAGS; TASE: MAGS) today announced its consolidated financial results
for the three-month period ended March 31, 2005.
Revenues for the first quarter of 2005 reached US$13.8 million, a decrease of
2.6 percent compared with the first quarter of 2004. Operating income reached
US$934,000 and net income reached US$295,000, a decrease of 23.2 percent and
57.1 percent respectively compared with the first quarter of 2004.
Compared with the fourth quarter of 2004, revenues decreased by 18.5 percent,
operating income increased by 9.2 percent and net income decreased by 33.3
percent.
Operating expenses for the first quarter of 2005 reached US$5.3 million, an
increase of 5.6 percent compared with the same period of last year and a
decrease of 21.4 percent compared with the fourth quarter of 2004.
Diluted earnings per share for the first quarter reached US$0.03, a decrease of
63 percent compared with the same period of last year.
Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said:
"Revenues for the first quarter of 2005 were in the upper range of our estimate
of between $12 to $14 million that we provided in our press release of April 7,
2005. Usually, our first quarter of the year is the weakest quarter, as outdoor
installations are more difficult during the winter months."
Mr. Jacob Even-Ezra continued: "In addition, the decrease in revenues in the
first quarter resulted from a number of other factors. We signed the recent US
$6.1 million framework agreement with the Israeli Ministry of Defence (MOD) for
the seam-line in Israel only at the end of March 2005 and revenues from that
agreement will be recorded at the second and third quarters of the year. In
comparison, we recorded revenues of approximately US$2 million from the
seam-line project in the first quarter of last year. Additionally, a number of
orders that were expected to be received by our U.S.-based subsidiary in the
first quarter were delayed to subsequent quarters."
Mr. Even-Ezra concluded: "Despite the first quarter results and based on the
current backlog, management remains confident in its guidance issued in
February, that the Company will see a good year in 2005, with revenue growth
over 2004."
The Company will be hosting its quarterly conference call at 11:00am EST. On the
call, Mr. Jacob Even-Ezra, Chairman of the Board & CEO, and Mr. Roi Levy,
Controller, will review and discuss the first quarter 2005 results. They will
then be available to answer questions. To participate, please call one of the
following teleconferencing numbers. Please begin placing your calls 5 minutes
before the conference call commences. If you are unable to connect using the
toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-866-860-9642
Canada Dial-in Number: 1-866-485-2399
ISRAEL Dial-in Number: 03-918-0610
INTERNATIONAL Dial-in Number: +972-3-918-0610
At:
11:00am Eastern Time
8:00am Pacific Time
6:00pm Israel Time
The call will also be broadcast live on the web, and can be accessed through a
link on Magal's website. A replay of the call will be available for three months
from the day after the call. The webcast and the replay will both be accessible
from Magal's website at: www.magal-ssl.com.
About Magal Security Systems, Ltd.:
Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing
and marketing of computerized security systems, which automatically detect,
locate and identify the nature of unauthorized intrusions. Magal also supplies
video monitoring services through Smart Interactive Systems, Inc., a subsidiary
established in the U.S. in June 2001. The Company's products are currently used
in more than 70 countries worldwide to protect national borders, airports,
correctional facilities, nuclear power stations and other sensitive facilities
from terrorism, theft and other threats. Israeli-based Magal has subsidiaries in
the U.S., Canada, the U.K., Germany, Romania, Mexico and an office in China.
Magal trades under the symbol MAGS in the U.S. on the Nasdaq National Market
since 1993 and in Israel on the Tel-Aviv Stock Exchange (TASE) since July 2001.
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.
Contacts:
Company Investor Relations
Magal Security Systems, Ltd Gelbart Kahana Investor Relations
Raya Asher, CFO Ehud Helft/Kenny Green
Tel: +972-3-5391444 Tel: +1-866-704-6710
Fax: +972-3-5366245 E-mail: Ehud@gk-biz.com
E-mail: magalssl@trendline.co.il Kenny@gk-biz.com
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in thousands of US$)
Quarter ended
March 31
2005 2004 %
change
Revenues $13,839 $14,215 (2.6)
Cost of revenues 7,570 7,945 (4.7)
Gross Profit 6,269 6,270 -
Operating expenses:
Research & development, net 1,156 1,131 2.2
Selling & marketing, net 2,766 2,621 5.5
General & administrative 1,413 1,301 8.6
5,335 5,053 5.6
Operating income 934 1,217 (23.2)
Financial expenses, net (329) (93) 254
Income before taxes on income 605 1,124 (46.1)
Taxes on income 310 437 (29.1)
Net income $ 295 $ 687 (57.1)
Basic net earnings per share $ 0.03 $ 0.08
Diluted net earnings per share $ 0.03 $ 0.08
Weighted average ordinary shares
outstanding
(in thousands) 8,672 8,468
Weighted average ordianry shares
outstanding,
assuming dilution (in thousands) 8,675 8,595
Quarter Ended March 31
2005 2004
Gross Margin (%) 45.3 44.1
Research & development net as a 8.4 8.0
% of Revenues
Selling & Marketing as a % of 20.0 18.4
Revenues
General & Administrative as a % 10.2 9.2
of Revenues
Operating margin (%) 6.8 8.6
Net income margin (%) 2.1 4.8
Total Bank Debt to Total 0.49 *0.48
Capitalization
Current Ratio 1.75 *1.77
*) as of December 31, 2004
MAGAL SECURITY SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2005 2004
CURRENT ASSETS:
Cash and cash equivalents 10,361 11,964
Trade receivables 11,217 13,232
Unbilled accounts receivable 13,131 7,465
Other accounts receivable 3,614 3,858
Deferred income taxes 473 488
Inventories 12,103 12,702
Total current assets 50,899 49,709
Long term investments and trade receivables:
Long-term trade receivables 324 344
Long-term bank deposits and structure notes 6,071 5,994
Severance pay fund 2,115 2,142
Total long term investments and trade 8,510 8,480
receivables
PROPERTY AND EQUIPMENT, NET 14,758 14,659
OTHER ASSETS, NET 4,949 5,128
Total assets 79,116 77,976
CURRENT LIABILITIES:
Short-term bank credit 16,387 15,618
Current maturities of long-term bank loans 1,823 1,849
Trade payables 4,473 3,189
Other accounts payable and accrued expenses 6,397 7,450
Total current liabilities 29,080 28,106
LONG-TERM LIABILITIES:
Long-term bank loans 3,500 3,500
Accrued severance pay 2,145 2,172
Long-term liability in respect of forward 301 650
contracts
Total long terms liabilities 5,946 6,322
SHAREHOLDERS' EQUITY 44,090 43,548
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 79,116 77,976
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MAGAL SECURITY SYSTEMS LTD.
(Registrant)
By: /s/Jacob Even-Ezra
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Jacob Even-Ezra
Chairman of the Board and
Chief Executive Officer
Date: May 2, 2005