RAMAT
GAN, Israel, April 20,
2023 /PRNewswire/ -- Senstar Technologies (NASDAQ:
SNT), a leading international provider of comprehensive
physical, video and access control security products and solutions,
today announced its financial results for the three and twelve
months ended December 31, 2022.
Management will hold an investors' conference call later today (at
10 a.m. Eastern Time) to discuss the
results.
Full Year 2022 Business Highlights:
(Full year 2022 results for the twelve months ended December 31, 2022 are compared to the comparable
twelve month period of 2021, except as mentioned.)
- Revenue grew to $35.6 million
versus $34.9 million, with gross
margin of 61% compared to 63%.
- Operating expense reduced by 4% for an operating income
increase of over 37% to $1.5 million
versus $1.1 million.
- Net income from continuing operations increased to $4.0 million, up from a net loss from continuing
operations of $(2.2) million.
- EBITDA from continuing operations grew 13% to $2.9 million, compared with $2.6 million.
- Cash and short term bank deposits of $15.0 million, or $0.65 per share, and zero debt as of December 31, 2022.
- Launched award-winning Symphony Sensor Fusion Engine, a
breakthrough technology that synthesizes data from separate systems
to generate actionable information.
- Awarded two significant contracts in the energy sector in the
USA and Canada for a combined value of over
$2 million to reinforce the security
of several major strategic sites.
Fourth Quarter 2022 Business Highlights:
(Fourth quarter 2022 results for the three months ended
December 31, 2022 compared to the
comparable three month period of 2021, except as mentioned.)
- Revenue increased by 10% to $9.9
million with gross margin of 57% versus $9 million with gross margin of 58%.
- Operating expense reduced by 28%, delivering operating income
of $0.9 million versus an operating
loss of ($1.2) million in the fourth
quarter of 2021.
- Net income from continuing operations rose to $3.5 million, up from a net loss from continuing
operations of ($2.2) million.
- EBITDA from continuing operations increased to $1.2 million from an EBITDA loss of ($0.7) million.
Mr. Dror Sharon, Chief Executive
Officer of Senstar Technologies, stated, "We finished 2022 on a
high note with revenue growth of 10% in the fourth quarter. We
maintained a strong and stable gross margin of 57%, despite the
ongoing supply chain-related extension of lead times and related
price increases, as we were able to pass some of the price
increases on to our customers. By maintaining our expense controls
in the fourth quarter, we delivered an increase of 37% in operating
income and a 13.2% increase in EBITDA, year over year. Our
strategic decision to divest Magal Integration Solutions for
$35 million in cash in 2021 enabled
us to concentrate on our core strengths and invest in areas with
the greatest growth potential, which delivered significant returns
for our shareholders in 2022. The products and software Senstar
released in 2022 garnered industry recognition and awards."
Mr. Sharon continued, "This is my last earnings report with
Senstar Technologies after five years with the company. I am
delighted to have been a part of such a remarkable organization.
While we had challenges during COVID, the resilience of the
Magal-Senstar group was inspiring. The Senstar group is
well-established to support the future growth of the four key
verticals (Correction, Logistics, Oil&Gaz and Utilities), which
delivered solid growth in 2022. Senstar's excellent team has been
led by Managing Director Mr. Fabien
Hubert for the past three years. Fabien and his team have
done a fantastic job of focusing the company, investing in the
right direction and maintaining high gross and EBITDA margins. I am
proud of the advancements in our product offerings and the
accomplishments of the talented and dedicated team. I want to thank
all our employees worldwide for their ongoing commitment to our
strategy, delivering excellence in products and service, improving
our profitability and ultimately delivering shareholder value.
Sharon concluded, "Senstar Technologies' board of directors has
appointed Mr. Fabien Hubert as
interim CEO, starting April
21st, 2023. Prior to serving as Managing Director
for Senstar, Fabien was the Company's VP of Sales in EMEA. During
his tenure, he successfully led a major change in the Company's
strategy during the challenging time of COVID 19. I am confident
that appointing Fabien as the interim CEO will serve the company in
the best way."
Full Year 2022 Financial Results Summary
Revenue for 2022 was $35.6
million, an increase of 1.8% compared with $34.9 million in 2021. The increase in annual
revenue was primarily due to some recovery in our business which
was impacted by the COVID-19 pandemic.
Gross profit was $21.5 million, or
60.5% of revenue, for 2022 compared with $22.0 million, or 63.0% of revenue, in 2021. The
decrease in gross margin was primarily due to a shift in revenue
mix and increases in material costs.
Operating expenses were $20.0
million, a decrease of 4.2% compared to the prior year's
operating expenses of $20.9 million.
The decrease in operating expenses is primarily attributable to an
improvement in efficiencies which decreased expenses related to
R&D, sales and marketing activities.
Operating income for 2022 was $1.5
million compared to $1.1
million in the year-ago period.
Financial income was $0.1 million
in 2022 compared to financial expense of ($1.0) million in the year-ago period. Financial
expense is primarily due to the adjustment of monetary assets and
liabilities denominated in currencies other than the functional
currency of our operational entities. At the end of each period, a
change in currency valuation of monetary assets and liabilities is
recorded as a non-cash financial expense or income.
Income from continuing operations was $4.0 million in 2022 compared to a loss from
continuing operations of ($2.2)
million in the prior year.
Net income in 2022 was $3.8
million, or $0.16 per share,
versus $6.4 million, or $0.28 per share, in 2021. The net income in the
current period includes a net loss from discontinued operations of
($0.2) million versus net income from
discontinued operations of $8.6
million in the year ago period.
EBITDA from continuing operations for 2022 was $2.9 million versus $2.6
million in 2021.
Fourth Quarter 2022 Financial Results Summary
Revenue for the fourth quarter of 2022 was $9.9 million, an increase of 10.0% compared with
$9.0 million in the fourth quarter of
2021. Fourth quarter gross profit was $5.6
million, or 56.6% of revenue, compared with $5.2 million, or 58.1% of revenue, in the year
ago quarter. The decrease in gross margin was primarily due to a
shift in the mix of products sold during the quarter and increases
in material costs.
Operating expenses were $4.7
million, a decrease of 27.6% compared to the prior year's
fourth quarter operating expenses of $6.5
million. The decrease in operating expenses is primarily
attributable to decreases in general and administrative and selling
expenses compared to the 2021 period.
Operating income for the fourth quarter of 2022 was $0.9 million compared to an operating loss of
($1.2) million in the year-ago
period.
Financial income was $0.3 million
compared to financial expense of ($0.4)
million in the fourth quarter last year.
Income from continuing operations was $3.5 million in the fourth quarter of 2022
compared to a loss from continuing operations of ($2.2) million in the year-ago quarter.
Net income in the fourth quarter of 2022 was $3.5 million or $0.15 per share versus a net loss of ($3.2) million, or ($0.14) per share in the fourth quarter of last
year. Net income in the current period includes $0 from discontinued operations versus a net loss
from discontinued operations of ($1.0)
million in the year-ago quarter.
EBITDA from continuing operations for the fourth quarter of 2022
was $1.2 million versus an EBITDA
loss from continuing operations of ($0.7)
million in the fourth quarter of 2021.
Cash and cash equivalents and short term bank deposits of
$15.0 million, or $0.65 per share, as of December 31, 2022, compared with $26.4 million, or $1.13 per share, at December 31, 2021.
Earnings Conference Call Information:
The Company will host a conference call later today,
April 20, 2023. The call will begin
promptly at 10 a.m. Eastern Time,
5 p.m. Israel Time, 3 p.m. UK Time. The Company requests that
participants dial in 10 minutes before the conference call
commences. To participate, please use one of the following
teleconferencing numbers and the conference ID number
13737922.
Participant Dial-in Numbers:
Toll Free:
1-877-407-9716
Toll/International:
1-201-493-6779
Israel Toll Free:
1 809 406
247
UK Toll Free:
0 800 756 3429
The conference call will also be available via a live webcast at
https://viavid.webcasts.com/starthere.jsp?ei=1608608&tp_key=31d5c8dca8.
A replay link of the call will be available at
https://senstartechnologies.com/ on April
20, 2023, after 1 pm Eastern
time through May 4, 2023, at
11:59 pm Eastern time.
Replay Dial-in Numbers:
Toll Free:
1-844-512-2921
Toll/International:
1-412-317-6671
Replay Pin Number: 13737922
About Senstar Technologies
With innovative perimeter intrusion detection systems
(including fence sensors , buried sensors ,
and above ground
sensors ), intelligent video-management , video
analytics , and access control ,
Senstar offers a comprehensive suite of proven,
integrated solutions that reduce complexity, improve
performance and unify support. For 40 years, Senstar has
been safeguarding people, places and property for
organizations around the world, with a special focus
in utilities , logistics , correction
facilities, and energy markets.
For more information, visit the Company's website at
www.senstartechnologies.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S.
GAAP. To supplement the consolidated financial statements presented
in accordance with GAAP, the Company presents the Non-GAAP
presentation of EBITDA. This non-GAAP measure is not in accordance
with, nor is it a substitute for, a GAAP measure. The Company uses
EBITDA to evaluate and manage the Company's operations internally.
The Company is also providing this information to assist investors
in performing additional financial analysis. Reconciliation between
the company's results on a GAAP and non-GAAP basis is provided in a
table below.
Forward Looking Statements
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. In
addition, there is uncertainty about the spread of the COVID19
virus and the impact it will have on the Company's operations, the
demand for the Company's products, global supply chains and
economic activity in general.
For more information:
Senstar
Technologies:
Tomer Hay
Chief Financial
Officer
Tel:
+972-74-794-5200
Tomer.Hay@senstar.com
|
IR
Contact:
Kim Rogers
Managing
Partner
Hayden IR
+1
541-904-5075
Kim@HaydenIR
|
SENSTAR
TECHNOLOGIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS
expressed in thousands of US$)
|
Three
Months
Ended December
31,
|
|
Full
Year
Ended December
31,
|
|
|
2022
|
|
2021
|
%
change
|
|
2022
|
|
2021
|
%
change
|
Revenue
|
9,910
|
|
9,011
|
10
|
|
35,558
|
|
34,916
|
2
|
Cost of
revenue
|
4,300
|
|
3,774
|
14
|
|
14,056
|
|
12,935
|
9
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,610
|
|
5,237
|
7
|
|
21,502
|
|
21,981
|
(2)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research
and development, net
|
817
|
|
1,136
|
(28)
|
|
4,032
|
|
3,933
|
3
|
Selling
and marketing
|
2,337
|
|
3,065
|
(24)
|
|
9,008
|
|
9,998
|
(10)
|
General
and administrative
|
1,539
|
|
2,279
|
(32)
|
|
6,978
|
|
6,969
|
-
|
Total operating
expenses
|
4,693
|
|
6,480
|
(28)
|
|
20,018
|
|
20,900
|
(4)
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
917
|
|
(1,243)
|
|
|
1,484
|
|
1,081
|
|
Financial income
(expenses), net
|
277
|
|
(392)
|
|
|
141
|
|
(1,011)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
1,194
|
|
(1,635)
|
|
|
1,625
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on income (tax
benefits)
|
(2,257)
|
|
537
|
|
|
(2,404)
|
|
2,261
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
3,451
|
|
(2,172)
|
|
|
4,029
|
|
(2,191)
|
|
Income (loss) from
discontinued operations, net
|
-
|
|
(1,009)
|
|
|
(198)
|
|
8,607
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
3,451
|
|
(3,181)
|
|
|
3,831
|
|
6,416
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to redeemable non-controlling interests and
non-controlling interests
|
-
|
|
(1)
|
|
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Senstar's shareholders
|
3,451
|
|
(3,180)
|
|
|
3,831
|
|
6,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share from
continuing operations
|
$0.15
|
|
($0.10)
|
|
|
$0.17
|
|
($0.09)
|
|
Basic and diluted net
income (loss) per share from
discontinued operations, net
|
-
|
|
($0.04)
|
|
|
($0.01)
|
|
$0.37
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net income (loss) per share
|
$0.15
|
|
($0.14)
|
|
|
$0.16
|
|
$0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing basic net income (loss) per
share
|
23,309,987
|
|
23,286,288
|
|
|
23,308,001
|
|
23,208,589
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing diluted net income (loss) per
share
|
23,309,987
|
|
23,286,288
|
|
|
23,309,976
|
|
23,208,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSTAR
TECHNOLOGIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS
expressed in thousands of US$)
|
|
|
|
|
|
|
Three
Months
Ended December
31,
|
|
|
Full
Year
Ended December
31,
|
|
|
2022
%
|
|
2021
%
|
|
|
2022
%
|
|
2021
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
56.6
|
|
58.1
|
|
|
60.5
|
|
63.0
|
|
Research and
development, net as a % of revenues
|
8.2
|
|
12.6
|
|
|
11.3
|
|
11.3
|
|
Selling and marketing
as a % of revenues
|
23.6
|
|
34.0
|
|
|
25.3
|
|
28.6
|
|
General and
administrative as a % of revenues
|
15.5
|
|
25.3
|
|
|
19.6
|
|
20.0
|
|
Operating
margin
|
9.3
|
|
-
|
|
|
4.2
|
|
3.1
|
|
Net margin from
continuing operations
|
34.8
|
|
-
|
|
|
11.3
|
|
-
|
|
SENSTAR
TECHNOLOGIES
RECONCILIATION OF
EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING
OPERATION
(All numbers
expressed in thousands of US$)
|
Three
Months
Ended December
31,
|
|
|
Full
Year
Ended December
31,
|
|
2022
|
|
2021
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
3,451
|
|
(2,172)
|
|
|
4,029
|
|
(2,191)
|
Less:
|
|
|
|
|
|
|
|
|
Financial
income (expenses), net
|
277
|
|
(392)
|
|
|
141
|
|
(1,011)
|
Taxes on
income (tax benefits)
|
(2,257)
|
|
537
|
|
|
(2,404)
|
|
2,261
|
Depreciation and amortization
|
(325)
|
|
(514)
|
|
|
(1,430)
|
|
(1,492)
|
EBITDA from continuing
operations
|
1,242
|
|
(729)
|
|
|
2,914
|
|
2,573
|
SENSTAR TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$14,937
|
|
$26,397
|
Short-term bank
deposits
|
110
|
|
-
|
Restricted cash and
deposits
|
5
|
|
6
|
Trade receivables,
net
|
9,973
|
|
7,723
|
Unbilled accounts
receivable
|
350
|
|
26
|
Other accounts
receivable and prepaid expenses
|
1,441
|
|
2,010
|
Inventories
|
8,443
|
|
5,751
|
|
|
|
|
Total current
assets
|
35,259
|
|
41,913
|
|
|
|
|
Long term
ASSETS:
|
|
|
|
|
|
|
|
Deferred tax
assets
|
1,981
|
|
502
|
Operating lease
right-of-use assets
|
987
|
|
1,228
|
|
|
|
|
Total long-term
assets
|
2,968
|
|
1,730
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
1,651
|
|
2,109
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
1,142
|
|
2,186
|
|
|
|
|
GOODWILL
|
10,866
|
|
11,449
|
|
|
|
|
Total assets
|
$51,886
|
|
$59,387
|
SENSTAR
TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
$2,408
|
|
$2,710
|
Customer
advances
|
239
|
|
390
|
Deferred
revenues
|
2,866
|
|
2,704
|
Other accounts payable
and accrued expenses
|
4,749
|
|
13,203
|
Short-term operating
lease liabilities
|
248
|
|
276
|
|
|
|
|
Total current
liabilities
|
10,510
|
|
19,283
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Deferred
revenues
|
1,463
|
|
1,690
|
Deferred tax
liabilities
|
865
|
|
899
|
Accrued severance
pay
|
330
|
|
523
|
Long-term operating
lease liabilities
|
757
|
|
969
|
Other long-term
liabilities
|
274
|
|
266
|
|
|
|
|
Total long-term
liabilities
|
3,689
|
|
4,347
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share Capital: Ordinary
shares of NIS 1 par value -
|
|
|
|
|
Authorized: 39,748,000
shares at December 31, 2022 and December 31, 2021; Issued and
outstanding: 23,309,987 shares at December 31, 2021 and 23,301,653
shares at December 31, 2021
|
6,799
|
|
6,796
|
Additional paid-in
capital
|
30,503
|
|
30,394
|
Accumulated other
comprehensive loss
|
(758)
|
|
1,222
|
Foreign currency
translation adjustments (stand-alone financial
statements)
|
9,654
|
|
9,687
|
Accumulated
deficit
|
(8,511)
|
|
(12,342)
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
37,687
|
|
35,757
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$51,886
|
|
$59,387
|
|
|
|
|
|
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SOURCE Senstar Technologies Ltd.