RAMAT
GAN, Israel, June 6, 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 months ended March 31, 2023. Management will hold an
investors' conference call later today (at 10 a.m. Eastern Time) to discuss the results.
Business Highlights:
- Achieved double-digit, year-over-year revenue growth in the U.S
in Q1 2023 primarily in the corrections market, one of the
Company's four target market verticals.
- Awarded a new strategic project in Europe in one of our four key vertical
markets.
- Appointed Fabien Haubert as
Interim Chief Executive Officer.
Mr. Fabien Haubert, Interim Chief
Executive Officer of Senstar Technologies, stated, "Our first
quarter financial results are in-line with our expectations and
reflect the seasonality of our business. Gross margin of 56% of
revenue this quarter reflects product mix as compared to the same
period last year, while the modest increase in operating expenses
was the result of investments that we made in the first quarter in
sales and marketing and new product launches to drive future
growth. We are advancing several new business opportunities that
have the potential to scale our business in our targeted verticals
of energy, utilities, corrections and logistics."
Mr. Fabien Haubert continued, "Our primary
objective is to expand our market share within our focus high-value
verticals with the goal of maintaining gross margin above the
industry average. We are developing next-generation sensors and
differentiated products that align directly with market demand.
Importantly, the vertical markets we are targeting seek high-value
solutions and present attractive growth opportunities where Senstar
already has an established presence and brand recognition. We are
increasingly encouraged by the opportunities for growth in 2023 and
beyond and our ability to capture new market share."
First Quarter 2023 Results Summary
Revenue for the first quarter of 2023 was $6.4 million, a decrease of 5.0% compared with
$6.8 million in the first quarter of
2022. First quarter gross profit was $3.6
million, or 55.7% of revenue, compared with $4.5 million, or 65.8% 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.
Operating expenses were $5.3
million, an increase of 3.6% compared to the prior year's
first quarter operating expenses of $5.1
million. The increase in operating expenses is primarily
attributable to increases in selling and marketing expenses
compared to the 2022 period.
Operating loss for the first quarter of 2023 was ($1.7) million compared to an operating loss of
($0.7) million in the year-ago
period.
Financial income was $40,000
compared to financial expense of ($239,000) in the first quarter last year.
Net loss in the first quarter of 2023 was ($1.9) million or ($0.08) per share versus a net loss of
($1.1) million, or ($0.05) per share in the first quarter of last
year.
EBITDA loss for the first quarter of 2023 was ($1.4) million versus an EBITDA loss of
($0.3) million in the first quarter
of 2022.
The Company had cash and cash equivalents and short-term bank
deposits of $14.8 million, or
$0.64 per share, as of March 31, 2023, compared with $15.0 million, or $0.65 per share, at December 31, 2022.
Earnings Conference Call Information:
The Company will host a conference call later today,
June 6, 2023. The call will begin
promptly at 10:00 am Eastern Time;
5:00 pm Israel Time; 3:00 pm UK Time. The Company requests that
participants dial in 10 minutes before the conference call
commences and use 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 is also available via a live webcast at:
https://viavid.webcasts.com/starthere.jsp?ei=1618068&tp_key=655ad2ce49
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
|
-- Tables follow --
|
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(All numbers
except EPS expressed in thousands of US$)
|
|
|
Three Months
Ended March 31,
|
|
|
|
2023
|
|
2022
|
|
%Change
|
Revenue
|
6,445
|
|
6,785
|
|
(5)
|
Cost of
revenue
|
2,852
|
|
2,318
|
|
23
|
|
|
|
|
|
|
Gross
profit
|
3,593
|
|
4,467
|
|
(20)
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research
and development, net
|
1,040
|
|
1,095
|
|
(5)
|
Selling
and marketing
|
2,446
|
|
2,299
|
|
6
|
General
and administrative
|
1,840
|
|
1,745
|
|
5
|
Total operating
expenses
|
5,326
|
|
5,139
|
|
4
|
|
|
|
|
|
|
Operating
loss
|
(1,733)
|
|
(672)
|
|
|
Financial income
(expense), net
|
40
|
|
(239)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(1,693)
|
|
(911)
|
|
|
|
|
|
|
|
|
Taxes on
income
|
182
|
|
186
|
|
|
|
|
|
|
|
|
Net loss
attributable to Senstar's shareholders
|
(1,875)
|
|
(1,097)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net loss per share
|
($0.08)
|
|
($0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing basic and
diluted net loss per share
|
23,309,987
|
|
23,301,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSTAR
TECHNOLOGIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(All numbers except
EPS expressed in thousands of US$)
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
2023
|
|
2022
|
|
%
|
|
%
|
|
|
|
|
Gross
margin
|
55.7
|
|
65.8
|
Research and
development, net as a % of revenues
|
16.1
|
|
16.1
|
Selling and marketing
as a % of revenues
|
38.0
|
|
33.9
|
General and
administrative as a % of revenues
|
28.5
|
|
25.7
|
Operating
margin
|
-
|
|
-
|
Net
margin
|
-
|
|
-
|
|
|
|
|
SENSTAR
TECHNOLOGIES
|
RECONCILIATION OF EBITDA TO NET INCOME
(LOSS)
|
(All numbers
expressed in thousands of US$)
|
|
|
Three Months
Ended March 31,
|
|
2023
|
|
2022
|
|
|
|
|
GAAP Net
loss
|
(1,875)
|
|
(1,097)
|
Less:
|
|
|
|
Financial
income (expenses), net
|
40
|
|
(239)
|
Taxes on
income
|
182
|
|
186
|
Depreciation and amortization
|
(323)
|
|
(408)
|
EBITDA
|
(1,410)
|
|
(264)
|
SENSTAR TECHNOLOGIES
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$14,727
|
|
$14,937
|
Short-term bank
deposits
|
113
|
|
110
|
Restricted cash and
deposits
|
5
|
|
5
|
Trade receivables,
net
|
6,540
|
|
9,973
|
Unbilled accounts
receivable
|
424
|
|
350
|
Other accounts
receivable and prepaid expenses
|
1,468
|
|
1,441
|
Inventories
|
9,867
|
|
8,443
|
|
|
|
|
Total current
assets
|
33,144
|
|
35,259
|
|
|
|
|
Long term
ASSETS:
|
|
|
|
|
|
|
|
Deferred tax
assets
|
2,034
|
|
1,981
|
Operating lease
right-of-use assets
|
941
|
|
987
|
|
|
|
|
Total long-term
assets
|
2,975
|
|
2,968
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
1,593
|
|
1,651
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
1,141
|
|
1,142
|
|
|
|
|
GOODWILL
|
10,879
|
|
10,866
|
|
|
|
|
Total assets
|
$49,732
|
|
$51,886
|
SENSTAR TECHNOLOGIES
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(All numbers
expressed in thousands of US$)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
CURRENT
LIABILITIES:
|
|
|
|
Trade
payables
|
$2,070
|
|
$2,408
|
Customer
advances
|
212
|
|
239
|
Deferred
revenues
|
2,742
|
|
2,866
|
Other accounts payable
and accrued expenses
|
4,974
|
|
4,749
|
Short-term operating
lease liabilities
|
273
|
|
248
|
|
|
|
|
Total current
liabilities
|
10,271
|
|
10,510
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Deferred
revenues
|
1,375
|
|
1,463
|
Deferred tax
liabilities
|
868
|
|
865
|
Accrued severance
pay
|
321
|
|
330
|
Long-term operating
lease liabilities
|
697
|
|
757
|
Other long-term
liabilities
|
265
|
|
274
|
|
|
|
|
Total long-term
liabilities
|
3,526
|
|
3,689
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share Capital: Ordinary
shares of NIS 1 par value -
|
|
|
|
|
Authorized: 39,748,000
shares at March 31, 2023 and December 31, 2022;
Issued and outstanding: 23,309,987 shares at March 31, 2023 and
December 31, 2022
|
6,799
|
|
6,799
|
Additional paid-in
capital
|
30,519
|
|
30,503
|
Accumulated other
comprehensive loss
|
(667)
|
|
(758)
|
Foreign currency
translation adjustments (stand-alone financial
statements)
|
9,670
|
|
9,654
|
Accumulated
deficit
|
(10,386)
|
|
(8,511)
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
35,935
|
|
37,687
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$49,732
|
|
$51,886
|
|
|
|
|
|
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SOURCE Senstar Technologies Ltd.