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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 April 2004
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 Statement File No. 333-9050.
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Magal Security Systems Ltd.
6-K Items
1. Press Release re Magal Security Systems Ltd. Announces 2004 First Quarter
Results dated April 28, 2004.
ITEM 1
Press Release Source: Magal Security Systems Ltd.
Magal Security Systems Ltd. Announces 2004 First Quarter Results
Wednesday April 28, 9:04 am ET
- Net Income increases 29% compared with the first quarter of 2003 and 30%
compared with the fourth quarter of 2003 -
YAHUD, Israel, April 28 /PRNewswire-FirstCall/ -- Security Systems Ltd. (Nasdaq:
MAGS; TASE: MAGS) today announced its consolidated financial results for the
three-month period ended March 31, 2004.
Revenues for the first quarter of 2004 reached US$14.2 million, an increase of
11 percent compared with the first quarter of 2003. Operating income reached
US$1.2 million and net income reached US$687,000, an increase of 14 percent and
29 percent respectively compared with the first quarter of 2003.
Compared with the fourth quarter of 2003, revenues decreased by 20 percent,
operating income increased by 12 percent and net income increased by 30 percent.
Operating expenses for the first quarter of 2004 reached US$5.1 million, an
increase of 17 percent compared with the same period of last year and a decrease
of 26 percent compared with the fourth quarter of 2003.
Diluted earnings per share for the first quarter reached US$0.08, an increase of
14 percent compared with the same period of last year.
Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said:
"Usually, our first quarter of the year is the weakest quarter, as outdoor
installations are harder during the winter months. We remain pleased with the
organic growth in our business and the growth in the operating income, income
before tax and net income compared to the first and fourth quarters of 2003."
Mr. Even-Ezra added: " During this quarter, we launched three new products.
These were the Fortis Integrated Command and Control System, the PipeGuard
Pipeline Security System and the DreamBox, the All-in-One CCTV solution.
Management believes that the sales of Fortis and DreamBox will start during the
year 2004. Sales of the PipeGuard, we expect will start in the year 2005 due to
the long trial periods associated with this product."
Mr. Even-Ezra concluded: " Based on the first quarter results, the current
backlog and increased interest in our security products, we have every reason to
believe that our results in the year 2004 will be better than those of 2003".
The Company will be hosting its quarterly conference call at 11:00am EDT. On the
call, Mr. Jacob Even-Ezra, Chairman of the Board & CEO, and Ms. Raya Asher, V.P.
Finance & CFO, will review and discuss the first quarter 2004 results. They will
then be available to answer questions.
To participate, you may listen to the webcast by accessing the link from Magal's
web-site at: www.magal-ssl.com. Alternatively, you may call one of the
teleconferencing numbers that follows.
Please place your calls 5-10 minutes before the conference call commences. If
you are unable to connect using one of the toll-free numbers, please try the
international dial-in number or the webcast.
US Dial-in Number: 1-866-860-9642
Canada Dial-in Number: 1-866-485-2399
ISRAEL Dial-in Number: 03-9180610
INTERNATIONAL Dial-in Number: +972 3 9180610
At:
11:00am Eastern Time, 8:00am Pacific Time, 6:00pm Israel Time
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.
Revenues for fiscal year 2003 were US$59 million, with net income of US$2.4
million.
Magal trades under the symbol MAGS in the U.S. on the Nasdaq National Market
since 1993 and in Israel on the Tel-Aviv Stock Exchange (TASE) since July 2001.
This press release contains forward-looking statements, which are subject to
risks and uncertainties. Such statements are based on assumptions and
expectations which may not be realized and are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy and some of which
might not even be anticipated. Future events and actual results, financial and
otherwise, may differ from the results discussed in the forward- looking
statements. A number of these risks and other factors that might cause
differences, some of which could be material, along with additional discussion
of forward-looking statements, are set forth in the Company's Annual Report on
Form 20-F filed with the Securities and Exchange Commission.
Contacts:
Magal Security Systems, Ltd Gal Investor Relations
Raya Asher, CFO Ehud Helft, Investor Relations
Tel: +972-3-5391444 Tel: +1-866- 704 6710
Fax: +972-3-5366245 Tel (Intl): +972-3-6074717
E-mail: E-mail:
magalssl@trendline.co.il Ehud.Helft@galir.com,
Kenny.Green@galir.com
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in thousands of US$)
Quarter ended
March 31
2004 2003 % change
Revenues 14,215 12,801 11%
Cost of revenues 7,945 7,400 7%
Gross Profit 6,270 5,401 16%
Operating expenses:
Research & development, net 1,131 1,084 4%
Selling & marketing, net 2,621 1,930 36%
General & administrative 1,301 1,320 -1%
5,053 4,334 17%
Operating income 1,217 1,067 14%
Financial expenses, net 93 331
Income before taxes on income 1,124 736 53%
Taxes on income 437 204
Net income 687 532 29%
Basic net earnings per share 0.09 0.07 29%
Diluted net earnings per share 0.08 0.07 14%
Weighted average ordinary shares
outstanding (in thousands) 8,065 7,897
Weighted average ordianry shares
outstanding, assuming dilution
(in thousands) 8,186 7,985
Quarter Ended March 31,
2004 2003
Gross Margin (%) 44.1 42.2
Research & development net as
a % of Revenues 8.0 8.5
Selling & Marketing as a %
of Revenues 18.4 15.1
General & Administrative
as a % of Revenues 9.2 10.3
Operating margin (%) 8.6 8.3
Net income margin (%) 4.8 4.2
Total Bank Debt to
Total Capitalization 0.46 *0.47
Current Ratio 2.06 *1.76
* As of December 31, 2003
MAGAL SECURITY SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2004 2003
Unaudited Audited
CURRENT ASSETS:
Cash and cash equivalents 5,425 4,389
Short-term bank deposits 9,084 9,000
Trade receivables: 13,290 14,885
Unbilled accounts receivable 4,808 5,072
Other accounts receivable 3,145 3,332
Inventories 11,416 11,777
Deferred income taxes 931 979
Total current assets 48,099 49,434
Long term investments and trade receivables:
Long-term trade receivables 105 300
Long-term bank deposits 3,075 3,051
Severance pay fund 1,895 1,960
Total long term investments
and trade receivables 5,075 5,311
PROPERTY AND EQUIPMENT, NET 12,137 11,505
OTHER ASSETS, NET 5,159 5,193
Total assets 70,470 71,443
CURRENT LIABILITIES:
Short-term bank credit 12,861 12,597
Current maturities of long-term bank loans 1,348 3,841
Trade payables 3,005 5,077
Other accounts payable and accrued expenses 6,116 6,518
Total current liabilities 23,330 28,033
LONG-TERM LOANS 4,342 1,873
ACCRUED SEVERANCE PAY 1,926 1,992
UNREALIZED LOSSES ON FORWARD CONTRATCS 365 561
SHAREHOLDERS' EQUITY:
Share capital 2,717 2,683
Additional paid-in capital 24,820 24,098
Unrealized losses on forward contracts, net (556) (807)
Accumulated other comprehensive income 1,115 1,286
Retained earnings 12,411 11,724
Total shareholders' equity 40,507 38,984
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 70,470 71,443
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: April 28, 2004