Magal Security Reports Third Quarter 2011 Financial Results

Gross Profit in the quarter was $13.1 million, or 47.2 percent of revenues. This is an increase of 142 percent compared to gross profit of $5.4 million, or 40.4 percent of revenues in the third quarter of 2010.

Operating profit in the quarter was $5.6 million compared to an operating loss of $0.8 million in the third quarter of 2010. During the quarter, the Company recorded a $2.3 million arbitration award arising from the unwarranted cancellation of a contract entered into in 2006 with a customer in Eastern Europe.

Financial income in the quarter amounted to $1.2 million compared to financial income of $97,000 in the third quarter of 2010.

The company reported a tax benefit of $199,000 in the quarter compared with a tax expense of $66,000 in the third quarter of 2010.

Net income in the quarter was $7.1 million. This is compared with a net loss of $799,000 in the third quarter of 2010.

Net income per basic and fully diluted share in the third quarter of 2011 was $0.61, compared with a net loss per basic share of $0.08 in the same period last year.

Cash and cash equivalents as of September 30, 2011, were $33.8 million, or $2.14 per basic share, compared with $22.4 million or $2.12 per basic share as of June 30, 2011.

First Nine Months 2011 Results Summary
Revenues in the first nine months of 2011 were $54.9 million, an increase of 59 percent compared with $34.6 million as reported in the first nine months of 2010. Net profit in the nine month period amounted to $5.6 million compared with a net loss of $4.7 million, in the same period last year. Net income per basic and fully diluted share in the nine month period amounted to $0.52, compared with a net loss per basic share of $0.45 in the same period last year.