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 2006
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
2006 Results dated May 1, 2006.
ITEM 1
Press Release Source: Magal Security Systems Ltd.
Magal Security Systems Ltd. Announces First Quarter 2006 Results
Monday May 1, 6:03 am ET
YAHUD, Israel, May 1 /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, 2006.
Revenues for the first quarter of 2006 reached US$13.5 million, a decrease of
1.9 percent from the first quarter of 2005. Operating income reached US$479,000
and net income reached US$149,000, a decrease of 50.7 percent and 49.5 percent
respectively from the first quarter of 2005. Compared with the fourth quarter of
2005, revenues decreased by 33 percent, operating income decreased by 58 percent
and net income decreased by 80 percent.
Operating expenses for the first quarter of 2006 reached US$5.2 million, about
the same as in the first quarter of last year and decreased by 24.5 percent from
the fourth quarter of 2005.
Diluted earnings per share for the first quarter reached US$0.01, a decrease of
66.7 percent from the same period of last year.
Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said,
"Revenues for the first quarter of 2006 were in the upper range of our estimate
of between $12.5 to $14 million that we provided in our press release of April
7, 2006. Historically, our first quarter is the weakest quarter of the year."
Mr. Jacob Even-Ezra continued, "The decrease in revenues in the first quarter
was also affected by the previously reported termination of an agreement by a
European customer and due to a number of orders that we expected to obtain in
the first quarter that were delayed to subsequent quarters."
Mr. Even-Ezra concluded, "Despite the first quarter results and based on the
current backlog, management remains confident that the Company will have a good
year in 2006, with revenue growth over 2005."
The Company will be hosting its quarterly conference call at 10:00am EST. On the
call, Mr. Jacob Even-Ezra, Chairman of the Board & CEO, and Mrs. Raya Asher,
CFO, will review and discuss the first quarter 2006 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 DDial-in Number: 1-866-485-239
ISRAEL Dial-in Number: 03-918-0610
INTERNATIONAL Dial-in Number: +972-3-918-0610
At:
10:00am Eastern Time
7:00am Pacific Time
5:00pm 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
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 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 GK Investor Relations
Raya Asher, CFO Ehud Helft/Kenny Green
Tel: +972-3-5391444 Tel: +1-866-7046710
Fax: +972-3-5366245 E-mail: Ehud@gkir.com
E-mail: magalssl@trendline.co.il Kenny@gkir.com
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(All numbers except EPS expressed in
thousands of US$)
Quarter ended
March 31
-----------------------
2006 2005(*) %
-----------------------
change
Revenues $13,472 $13,726 -1.9
Cost of revenues 7,763 7,459 4.1
---------- ---------
Gross Profit 5,709 6,267 -8.9
---------- ---------
Operating expenses:
Research & development, net 1,200 1,156 3.8
Selling & marketing, net 2,583 2,726 -5.3
General & administrative 1,447 1,413 2.4
---------- ---------
5,230 5,295 -1.2
---------- ---------
Operating income 479 972 -50.7
Financial expenses, net 154 329 -53.2
---------- ---------
Income from continuing operations 325 643 -49.5
before taxes on income
Taxes on income 153 318 -51.9
---------- ---------
Income from continuing operations 172 325 -47.1
Loss on discontinued operations, net 23 30 -23.3
---------- ---------
Net income 149 $ 295 -49.5
---------- ---------
Basic net earnings per share $ 0.01 $ 0.03
---------- ---------
Diluted net earnings per share $ 0.01 $ 0.03
---------- ---------
Weighted average ordinary shares
outstanding
(in thousands) 10,375 8,672
---------- ---------
Weighted average ordianry shares
outstanding,
assuming dilution (in thousands) 10,462 8,675
---------- ---------
(*)Reclassified
Quarter Ended March 31,
-----------------------
2006 2005
-----------------------
Gross Margin (%) 42.4 45.7
Research & development net as a % of 8.9 8.4
Revenues
Selling & Marketing as a % of Revenues 19.2 19.9
General & Administrative as a % of 10.7 10.3
Revenues
Operating margin (%) 3.6 7.1
Net income margin (%) 1.1 2.1
Total Bank Debt to Total Capitalization 0.36 0.38(**)
Current Ratio 2.22 2.12(**)
**) as of December 31, 2005
MAGAL SECURITY SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2006 2005
----------- ----------
CURRENT ASSETS:
Cash and cash equivalents $11,514 $10,099
Short term bank deposits 14,032 17,053
Trade receivables 20,743 24,912
Unbilled accounts receivable 10,904 11,252
Other accounts receivable 2,326 2,221
Deferred income taxes 973 910
Inventories 13,305 10,888
----------- ----------
Total current assets 73,797 77,335
----------- ----------
Long term investments and trade receivables:
Long-term trade receivables 315 290
Long-term bank deposits and structure notes 1,800 1,800
Severance pay fund 2,052 2,126
----------- ----------
Total long term investments and trade 4,167 4,216
receivables ___________ __________
PROPERTY AND EQUIPMENT, NET 16,101 15,587
----------- ----------
OTHER ASSETS, NET 5,363 5,365
----------- ----------
Total assets $99,428 $102,503
----------- ----------
CURRENT LIABILITIES:
Short-term bank credit 16,942 18,068
Current maturities of long-term bank loans 3,647 3,647
Trade payables 4,668 6,360
Other accounts payable and accrued expenses 7,925 8,486
----------- ----------
Total current liabilities 33,182 36,561
----------- ----------
LONG-TERM LIABILITIES:
Long-term bank loans 1,617 1,653
Accrued severance pay 2,187 2,131
Long-term liability in respect of forward 13 50
contracts ___________ __________
Total long terms liabilities 3,817 3,834
----------- ----------
SHAREHOLDERS' EQUITY 62,429 62,108
----------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $99,428 $102,503
----------- ----------
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 and
Chief Executive Officer
Date: May 1, 2006