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 July 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 Second Quarter
2007 Results dated July 26, 2007.
ITEM 1
Press Release Source: Magal Security Systems Ltd
Magal Security Systems Ltd. Announces Second Quarter 2007 Results
Thursday July 26, 8:47 am ET
Improved in Profitability and Profit Margins at all Levels
Net Income for the First Six Months Increased by 53% YOY
YAHUD, Israel, July 26 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd.
(Nasdaq GM:MAGS; TASE:MAGS) today announced its consolidated financial results
for the three and six-month periods ended June 30, 2007.
Second Quarter Results
Revenues for the second quarter of 2007 were US$14.9 million, similar to the
second quarter of 2006. Revenues for the first quarter of 2007 were $15.1
million.
Gross profit for the second quarter of 2007 reached US$6.6 million, an increase
of 6.1 % over the second quarter of 2006, and an increase of 1.3 % compared with
first quarter of 2007. Gross margin for the second quarter was 44.1 %, a
substantial increase compared with 41.8% in the second quarter 2006, and higher
than the 43.2% in the first quarter 2007.
Operating income for the second quarter of 2007 reached US$761,000, an increase
of 18.0% compared with US$645,000 for the second quarter of 2006, and an
increase of 2.1% compared with US$745,000 in the first quarter 2007.
Net income in the second quarter of 2007 reached US$342,000, an increase of
27.1% compared to US$269,000 in the second quarter of 2006 and an increase of
14.8% compared to the first quarter of 2007. Diluted earnings per share was
US$0.03, in both the second quarter of 2006 and 2007.
Six Month Results
Revenues for the first six months of 2007 reached US$30 million, an increase of
5.8% compared with the same period in 2006. Operating income for the first six
months of 2007 reached US$1.5 million, an increase of 33.9% compared to US$1.1
million in the same period in 2006. Net income for the first six months period
of 2007 reached US$640,000, an increase of 53.1% compared to US$418,000 in the
same period in 2006. Diluted earnings per share for the first six months ended
June 30, 2007 was US$0.06, compared with diluted earnings per share of US$0.04
in the same period of last year.
"We are very pleased to report a steady increase in our profit and profit
margins at all levels this quarter, despite revenues remaining flat due to the
delay in receiving certain orders, which we expect to receive in the near
future," Commented Mr. Izhar Dekel, CEO of Magal. "We continued to expand our
marketing activities to new regions, while identifying new growth and expansion
opportunities. We expect this investment to bear fruit in the coming quarters."
Mr. Dekel concluded: "We ended the second quarter with a healthy backlog. Based
on our backlog and several anticipated orders, we believe that our 2007 year-end
results will be better than those of 2006."
Conference Call
The Company will be hosting its quarterly conference call at 11:00am EDT today.
On the call, Mr. Izhar Dekel, CEO, and Ms. Raya Asher, V.P. Finance & CFO, will
review and discuss the second quarter 2007 results. They will then be available
to answer questions.
To participate, 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: 888-407-2553
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: +972-(0)-3-918-0688
International Dial-in Number: +972-3-918-0688
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
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. Israel-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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in thousands of US$)
Six Months Ended
June 30,
2007 2006 % change
Revenues 30,002 28,346 5.8
Cost of revenues 16,900 16,424 2.9
Gross profit 13,102 11,922 9.9
Operating expenses:
Research and 2,602 2,650 (1.8)
development, net
Selling and marketing 5,876 5,285 11.2
General and administrative 3,118 2,863 8.9
Total operating expenses 11,596 10,798 7.4
Operating income 1,506 1,124 33.9
Financial expense, net 438 380 15.3
Income from 1,068 744 43.5
continuing operations
before income taxes
Income tax 428 271 57.9
Net Income from 640 473 35.3
continuing operations
Loss on discontinued - 55 -
operations, net
Net income 640 418 53.1
Basic net 0.06 0.04
earnings per
share
Weighted average
number of shares
outstanding used
in computing
basic net
earnings per share 10,394 10,377
Diluted net 0.06 0.04
earnings per share
Weighted average
number of shares
outstanding used
in computing
diluted net
earnings per share 10,449 10,453
Quarter Ended
June 30,
2007 2006 % change
Revenues 14,949 14,874 0.5
Cost of revenues 8,356 8,661 (3.5)
Gross profit 6,593 6,213 6.1
Operating expenses:
Research and 1,148 1,450 (20.8)
development, net
Selling and marketing 3,090 2,702 14.4
General and administrative 1,594 1,416 12.6
Total operating expenses 5,832 5,568 4.7
Operating income 761 645 18.0
Financial expense, net 139 226 (38.5)
Income from 622 419 48.4
continuing operations
before income taxes
Income tax 280 118 137.3
Net Income from 342 301 13.6
continuing operations
Loss on discontinued - 32 -
operations, net
Net income 342 269 27.1
Basic net 0.03 0.03
earnings per
share
Weighted average
number of shares
outstanding used
in computing
basic net
earnings per share 10,394 10,379
Diluted net 0.03 0.03
earnings per share
Weighted average
number of shares
outstanding used
in computing
diluted net
earnings per share 10,454 10,443
FINANCIAL RATIOS
Six Months Ended Quarter Ended
June 30, June 30,
2007 2006 2007 2006
Gross margin 43.7 42.1 44.1 41.8
Research and 8.7 9.3 7.7 9.7
development,
net as a % of revenues
Selling and Marketing 19.6 18.6 20.7 18.2
as a % of revenues
General and 10.4 10.1 10.7 9.5
administrative
as a % of revenues
Operating margin 5.0 4.0 5.1 4.3
Net income margin 2.1 1.5 2.3 1.8
(after discontinued
operation)
Total bank debt to (*)0.42 (**)0.43 (*)0.42 (**)0.43
total capitalization
Current ratio (*)2.30 (**)2.12 (*)2.30 (**)2.12
(*) As of June 30, 2007 (**) As of December 31, 2006
MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
June 30, December 31,
2007 2006
CURRENT ASSETS:
Cash and cash equivalents $ 6,550 $ 4,908
Marketable securities 3,041 3,067
Short term bank deposits 15,139 14,186
Trade receivables 21,744 28,027
Unbilled accounts receivable 6,427 5,389
Other accounts receivable and prepaid expenses 3,718 3,995
Deferred income taxes 1,336 1,604
Inventories 15,121 13,971
Total current assets 73,076 75,147
Long term investments and receivables:
Long-term trade receivables 272 224
Long-term loans 715 622
Long-term bank deposits 4,800 4,800
Severance pay fund 2,391 2,401
Total long term investments and receivables 8,178 8,047
PROPERTY AND EQUIPMENT, NET 13,964 14,366
OTHER ASSETS, NET 6,150 6,121
Total assets $101,368 $103,681
CURRENT LIABILITIES:
Short-term bank credit $ 17,574 $ 17,026
Current maturities of long-term bank debt 795 795
Trade payables 4,230 6,001
Other accounts payable, accrued expenses and 9,210 11,608
customer advances
Total current liabilities 31,809 35,430
LONG-TERM LIABILITIES:
Long-term bank debt 7,002 7,399
Long-term accounts payable 45 178
Accrued severance pay 2,508 2,524
Total long-term liabilities 9,555 10,101
SHAREHOLDERS' EQUITY 60,004 58,150
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 101,368 $103,681
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: +1-866-704-6710
E-mail: Ehud@gk-biz.com
Kenny@gk-biz.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/ Izhar Dekel
---------------
Izhar Dekel
Chief Executive Officer
Date: July 26, 2007