FIRST QUARTER 2012 RESULTS SUMMARY
Revenues for the first quarter of 2012 increased 34.8% to $15.6 million. This is compared with $11.5 million in revenues for the first quarter of 2011.
Gross profit in the quarter was $6.5 million, or 41.5% of revenues, an increase of 40% compared to gross profit of $4.6 million, or 39.9% of revenues, in the first quarter of 2011.
Operating profit in the quarter was $135,000, or 0.9% of revenues, compared to an operating loss of $1.2 million in the first quarter of 2011.
Financial expenses in the quarter amounted to $220,000 compared to financial expenses of $155,000 in the first quarter of 2011.
Tax benefit in the quarter was $131,000, compared with tax expenses of $200,000 in the first quarter of 2011.
Net income in the quarter was $46,000, compared with a net loss of $1.6 million, or $0.15 per share, in the first quarter of 2011.
Cash and short term deposits net of current bank debt, as of March 31, 2012, were $37.8 million, or $2.39 per share, compared with cash and short term deposits net of current bank debt of $32.5 million, or $2.06 per share, on December 31, 2011.
MANAGEMENT COMMENT
Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, “Our results are a good start to 2012, showing improvements in revenue and profitability compared with the first quarter of last year. In addition, our strong balance sheet will enable us to invest in our long-term growth strategy. We intend to strengthen our market leadership in PIDS products through both internal development as well as synergistic acquisitions, while establishing a strong local presence in various key emerging geographic areas.”
Continued Mr. Livneh, “We continued to perform well in the developing regions of Africa, Latin America and Asia. We completed the Africa Cup of Nations project in Gabon early in the quarter, and the project was a resounding success for us on many levels, both financially and for our reputation in the region. As 2012 progresses, we expect to increasingly recognize revenues from our other major project, protecting the port of Mombassa.”
INVESTORS' CONFERENCE CALL INFORMATION
The Company will host a conference call later today, May 30, 2012, at 10 a.m. Eastern Time and 5 p.m. Israel time.
To participate, please call one of the following teleconferencing numbers:
US: 1 888 281 1167 ; Israel: 03 918 0685 ; UK: 0 800 917 9141 ; Intl.: +972 3 918 0685
Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
A replay of the call will be available from the day after the call for three months. The link to the replay will be accessible from Magal's website at: www.magal-s3.com.