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 2007
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
2007 Results dated May 7, 2007.
ITEM 1
Press Release Source: Magal Security Systems Ltd
Magal Security Systems Ltd. Announces First Quarter 2007 Results
Monday May 7, 6:00 am ET
YAHUD, Israel, May 7 /PRNewswire-FirstCall/ -- Magal Security Systems
Ltd.(Nasdaq GM: MAGS ; TASE: MAGS) today announced its consolidated financial
results for the three-month period ended March 31, 2007.
Revenues for the first quarter of 2007 reached US$15.0 million, an increase of
11.7 percent compared to US$13.5 million in the first quarter of 2006.
Operating income reached US$745,000, an increase of 55.5 percent compared to
US$479,000 in the first quarter 2006. Operating expenses for the first quarter
of 2007 reached US$5.8 million, an increase of 10.2 percent compared to US$5.2
million in the first quarter of last year.
Financial expenses for the first quarter of 2007 reached US$299,000, compared to
US$154,000 in the first quarter of 2006. The increase in the financial expenses
is primarily attributable to the change in the Company's functional currency
from the US dollar to the New Israeli Shekel, that was initiated in the
beginning of the fourth quarter of 2006. The US dollar remains the Company's
reporting currency.
Net income reached US$298,000, an increase of 100.0 percent compared to
US$149,000 in the first quarter of 2006.
Diluted earnings per share for the first quarter reached US$0.03 per share
compared to US$0.01 per share the same quarter of last year.
Commenting on the results, Mr. Izhar Dekel, CEO of Magal, said: "We are very
pleased with the organic growth in our business and the growth in revenues,
operating income and net income, compared to the first quarter of 2006, this,
despite the fact that our first quarter is usually our weakest quarter.
According to our expectations, we have every reason to believe that our results
for 2007 will be better than those of 2006 in all respects."
The Company will be hosting its quarterly conference call later today at 11:00am
EDT. On the call, management will review and discuss the first quarter 2007
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: 1-888-407-2553
Canada Dial-in Number: 1-866-485-2399
ISRAEL Dial-in Number: 03-918-0688
INTERNATIONAL Dial-in Number: +972-3-918-0688
at: 11:00 am Eastern Time; 8:00 am Pacific Time; 6:00 pm 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
in the U.S. 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 Global Market and
in Israel on the Tel-Aviv Stock Exchange (TASE).
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.
FINANCIAL TABLES FOLLOW
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in thousands of US$)
Quarter Ended March 31
2007 2006 %
change
Revenues $15,053 $13,472 11.7
Cost of revenues 8,544 7,763 10.1
Gross Profit 6,509 5,709 14.0
Operating expenses:
Research & development, net 1,454 1,200 21.2
Selling & marketing, net 2,786 2,583 7.9
General & administrative 1,524 1,447 5.3
5,764 5,230 10.2
Operating income 745 479 55.5
Financial expenses, net 299 154 94.2
Income from continuing operations 446 325 37.2
before taxes on income
Taxes on income 148 153 -3.3
Income from continuing operations 298 172 73.3
Loss on discontinued operations, net - 23
Net income 298 149 100.0
Basic net earnings per share $ 0.03 $ 0.01 200.0
Diluted net earnings per share $ 0.03 $ 0.01
Weighted average ordinary shares
outstanding
(in thousands) 10,394 10,375
Weighted average ordianry shares
outstanding,
assuming dilution (in thousands) 10,444 10,462
Quarter Ended March 31,
2007 2006
Gross margin (%) 43.2 42.4
Research & development expenses, 9.7 8.9
net as a % of Revenues
Selling & marketing expenses as 18.5 19.2
a % of Revenues
General & administrative 10.1 10.7
expenses as a % of Revenues
Operating margin (%) 5.0 3.6
Net income margin (%) 2.0 1.1
Total bank debt to total 0.40(* 0.43(**
capitalization
Current ratio 2.3(* 2.16(**
*) as of March 31, 2007
**) as of December 31, 2006
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2007 2006
CURRENT ASSETS:
Cash and cash equivalents $ 7,777 $ 5,039
Marketable securities 3,095 3,067
Short term bank deposits 14,397 14,061
Trade receivables 20,345 26,596
Unbilled accounts receivable 5,847 6,372
Other accounts receivable and prepaid expenses 3,010 3,962
Deferred income taxes 1,726 1,289
Inventories 14,049 14,500
Total current assets 70,246 74,886
Long term investments and receivables:
Long-term trade receivables 300 200
Long-term loans 657 622
Long-term bank deposits 4,800 4,800
Severance pay fund 2,487 2,401
Total long term investments and receivables 8,244 8,023
PROPERTY AND EQUIPMENT, NET 14,194 14,366
OTHER ASSETS, NET 6,014 5,539
Total assets $98,698 $102,814
CURRENT LIABILITIES:
Short-term bank credit $15,044 $ 17,026
Current maturities of long-term bank debt 795 795
Trade payables 4,942 5,827
Other accounts payable, accrued expenses and 9,801 11,082
customer advances
Total current liabilities 30,582 34,730
LONG-TERM LIABILITIES:
Long-term bank debt 7,201 7,399
Accrued severance pay 2,645 2,560
Total long-term liabilities 9,846 9,959
SHAREHOLDERS' EQUITY 58,270 58,125
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $98,698 $102,814
Contacts:
Company
Magal Security Systems, Ltd
Raya Asher, CFO
Tel: +972-3-5391444
Fax: +972-3-5366245
E-mail: magalssl@trendline.co.il
Investor Relations
Gelbart Kahana Investor Relations
Ehud Helft/Kenny Green
Tel: +1-646-201-9246
E-mail: info@gkir.com
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
------------------
Jacob Even-Ezra
Chairman of the Board
Date: May 7, 2007