REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
Date of event requiring this shell company report |
Title of each class | Name of each exchange on which registered |
Ordinary Shares, NIS 1.0 Par Value | NASDAQ Global Market |
Large accelerated filer ☐ | Accelerated filer ☐ | ||
Non-accelerated filer ☒ | Emerging growth company ☐ |
U.S. GAAP | International Financial Reporting Standards as issued by the International Accounting Standards Board | Other |
H. | Documents on | 82 | |
I. | Subsidiary | 82 | |
82 | |||
83 | |||
[RESERVED] | 84 | ||
84 | |||
85 | |||
85 | |||
87 |
2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Revenues | $ | 77,543 | $ | 63,736 | $ | 67,825 | $ | 64,292 | $ | 92,602 | ||||||||||
Cost of revenues | 43,049 | 32,722 | 34,570 | 32,967 | 52,299 | |||||||||||||||
Gross profit | 34,494 | 31,014 | 33,255 | 31,325 | 40,303 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development, net | 4,604 | 4,814 | 6,779 | 6,558 | 6,852 | |||||||||||||||
Selling and marketing | 17,130 | 14,785 | 17,536 | 18,158 | 18,557 | |||||||||||||||
General and administrative | 8,898 | 7,026 | 7,445 | 7,853 | 10,160 | |||||||||||||||
Impairment of goodwill and other intangible assets | 2,439 | - | - | - | 979 | |||||||||||||||
Total operating expenses | 33,071 | 26,625 | 31,760 | 32,569 | 36,548 | |||||||||||||||
Operating income (loss) | 1,423 | 4,389 | 1,495 | (1,244 | ) | 3,755 | ||||||||||||||
Financial income (expenses), net | 1,979 | 642 | (591 | ) | (3,961 | ) | 1,361 | |||||||||||||
Income (loss) before income taxes | 3,402 | 5,031 | 904 | (5,205 | ) | 5,116 | ||||||||||||||
Taxes on income (tax benefit) | 82 | 1,923 | (122 | ) | 1,695 | 2,072 | ||||||||||||||
Net income (loss) | $ | 3,320 | $ | 3,108 | $ | 1,026 | $ | (6,900 | ) | $ | 3,044 | |||||||||
Less: net income (loss) attributable to non-controlling interest | (90 | ) | (33 | ) | (3 | ) | 14 | 95 | ||||||||||||
Net income (loss) attributable to Magal’s shareholders | $ | 3,410 | $ | 3,141 | $ | 1,029 | $ | (6,914 | ) | $ | 2,949 | |||||||||
Basic and diluted net earnings (loss) per share | $ | 0.21 | $ | 0.19 | $ | 0.06 | $ | (0.30 | ) | $ | 0.12 |
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Revenues | $ | 88,591 | $ | 77,697 | $ | 51,517 | $ | 77,543 | $ | 63,736 | ||||||||||
Cost of revenues | 49,089 | 44,163 | 31,059 | 43,049 | 32,722 | |||||||||||||||
Gross profit | 39,502 | 33,534 | 20,458 | 34,494 | 31,014 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development, net | 3,898 | 4,041 | 4,409 | 4,604 | 4,814 | |||||||||||||||
Selling and marketing | 19,415 | 16,528 | 12,781 | 17,130 | 14,785 | |||||||||||||||
General and administrative | 8,682 | 7,408 | 7,787 | 8,898 | 7,026 | |||||||||||||||
Impairment of goodwill and other intangible assets | - | - | - | 2,439 | - | |||||||||||||||
Other income | (2,304 | ) | - | - | - | - | ||||||||||||||
Total operating expenses | 29,691 | 27,977 | 24,977 | 33,071 | 26,625 | |||||||||||||||
Operating income (loss) | 9,811 | 5,557 | (4,519 | ) | 1,423 | 4,389 | ||||||||||||||
Financial expenses (income), net | (756 | ) | 472 | (59 | ) | (1,979 | ) | (642 | ) | |||||||||||
Income (loss) before income taxes | 10,567 | 5,085 | (4,460 | ) | 3,402 | 5,031 | ||||||||||||||
Taxes on income | 723 | 991 | 69 | 82 | 1,923 | |||||||||||||||
Net income (loss) | $ | 9,844 | $ | 4,094 | $ | (4,529 | ) | $ | 3,320 | $ | 3,108 | |||||||||
Less: net loss attributable to non-controlling interest | - | - | (66 | ) | (90 | ) | (33 | ) | ||||||||||||
Net income (loss) attributable to Magal’s shareholders | $ | 9,844 | $ | 4,094 | $ | (4,463 | ) | $ | 3,410 | $ | 3,141 | |||||||||
Basic and diluted net earnings (loss) per share | $ | 0.78 | $ | 0.26 | $ | (0.28 | ) | $ | 0.21 | $ | 0.19 |
Weighted average number of ordinary shares used in computing basic net earnings per share | 16,186,148 | 16,347,948 | 17,999,779 | 22,989,009 | 23,040,436 | |||||||||||||||
Weighted average number of ordinary shares used in computing diluted net earnings per share | 16,338,056 | 16,410,711 | 18,031,433 | 22,989,009 | 23,287,751 |
2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Consolidated Balance Sheets Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 21,602 | $ | 27,319 | $ | 19,692 | $ | 22,463 | $ | 38,665 | ||||||||||
Short and long-term deposits and restricted deposits | 10,979 | 3,977 | 32,971 | 30,022 | 16,431 | |||||||||||||||
Working capital | 45,805 | 43,996 | 58,752 | 59,401 | 61,023 | |||||||||||||||
Total assets | 83,759 | 74,996 | 105,993 | 112,545 | 119,171 | |||||||||||||||
Short‑term bank credit (including current maturities of long-term loans) | 3,071 | - | - | - | - | |||||||||||||||
Long‑term bank loans | 1,406 | - | - | - | - | |||||||||||||||
Total shareholders’ equity | 55,957 | 55,695 | 81,918 | 82,949 | 81,216 |
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Weighted average number of ordinary shares used in computing basic net earnings per share | 12,645,283 | 16,003,482 | 16,138,944 | 16,186,148 | 16,347,948 | |||||||||||||||
Weighted average number of ordinary shares used in computing diluted net earnings per share | 12,645,283 | 16,030,816 | 16,138,944 | 16,338,056 | 16,410,711 |
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Consolidated Statements of Comprehensive Income: | ||||||||||||||||||||
Net income (loss) | $ | 9,844 | $ | 4,094 | $ | (4,529 | ) | $ | 3,320 | $ | 3,108 | |||||||||
Realized foreign currency translation adjustments from subsidiary | - | (421 | ) | - | - | - | ||||||||||||||
Foreign currency translation adjustments | (589 | ) | 684 | (875 | ) | (1,833 | ) | (3,891 | ) | |||||||||||
Total comprehensive income (loss) | $ | 9,225 | $ | 4,357 | $ | (5,404 | ) | $ | 1,487 | $ | (783 | ) | ||||||||
Less - comprehensive loss attributable to non-controlling interests | - | - | (66 | ) | (90 | ) | (33 | ) | ||||||||||||
Comprehensive income (loss) attributable to Magal shareholders’ | $ | 9,225 | $ | 4,357 | $ | (5,338 | ) | $ | 1,577 | $ | (750 | ) |
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Consolidated Balance Sheets Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 30,005 | $ | 36,784 | $ | 32,235 | $ | 21,602 | $ | 27,319 | ||||||||||
Short and long-term deposits and restricted deposits | 10,123 | 9,607 | 12,283 | 10,979 | 3,977 | |||||||||||||||
Working capital | 40,493 | 49,202 | 46,922 | 45,805 | 43,996 | |||||||||||||||
Total assets | 85,987 | 91,036 | 87,787 | 83,759 | 74,996 | |||||||||||||||
Short-term bank credit (including current maturities of long-term loans) | 5,390 | 5,391 | 6,270 | 3,071 | - | |||||||||||||||
Long-term bank loans | 38 | 6 | 1,912 | 1,406 | - | |||||||||||||||
Total shareholders’ equity | 51,011 | 58,326 | 57,540 | 55,957 | 55,695 | |||||||||||||||
Ordinary shares issued and outstanding | 15,819,822 | 16,098,022 | 16,147,522 | 16,269,022 | 16,398,872 |
B. | Capitalization and Indebtedness. |
C. | Reasons for the Offer and Use of Proceeds. |
D. | Risk Factors. |
· | changes in customers’ or potential customers’ budgets as a result of, among other things, government funding and procurement policies; |
· | changes in demand for our existing products and services; |
· | our long and variable sales cycle; |
· | our ability to maintain sales volumes at a level sufficient to cover fixed manufacturing and operating costs; |
· | the timing of the introduction and market acceptance of new products, product enhancements and new applications. |
· | Difficulties in integrating the operations, systems, technologies, products, and personnel of the acquired businesses or enterprises; |
· | Diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from acquisitions; |
· | Integrating financial forecasting and controls, procedures and reporting cycles; |
· | Difficulties in entering markets in which we have no or limited direct prior experience and where competitors in such markets have stronger market positions; |
· | Insufficient revenue to offset increased expenses associated with acquisitions; and |
· | The potential loss of key employees, customers, distributors, vendors and other business partners of the companies we acquire following and continuing after announcement of acquisition plans. |
· | their requirements or budgetary constraints change; |
· | they cancel multi-year contracts and related orders if funds become unavailable; |
· | they shift spending priorities into other areas or for other products; or |
· | they adjust contract costs and fees on the basis of audits. |
· | we may not be successful in developing and marketing new products or product features that respond to technological change or evolving industry standards; |
· | we may experience difficulties that could delay or prevent the successful development, introduction and marketing of these new products and features; or |
· | our new products and product features may not adequately meet the requirements of the marketplace and achieve market acceptance. |
· | different and changing regulatory requirements in the jurisdictions in which we currently operate or may operate in the future; |
· | fluctuations in foreign currency exchange rates; |
· | export restrictions, tariffs and other trade barriers; |
· | difficulties in staffing, managing and supporting foreign operations; |
· | longer payment cycles; |
· | difficulties in collecting accounts receivable; |
· | political and economic changes, hostilities and other disruptions in regions where we currently sell or products or may sell our products in the future; and |
· | seasonal |
· | actual or anticipated variations in our quarterly operating results or those of our competitors; |
· | announcements by us or our competitors of technological innovations or new and enhanced products; |
· | developments or disputes concerning proprietary rights; |
· | introduction and adoption of new industry standards; |
· | changes in financial estimates by securities analysts; |
· | market conditions or trends in our industry; |
· | changes in the market valuations of our competitors; |
· | announcements by us or our competitors of significant acquisitions; |
· | entry into strategic partnerships or joint ventures by us or our competitors; |
· | additions or departures of key personnel; |
· | political and economic conditions, such as a recession or interest rate or currency rate fluctuations or political events; and |
· | other events or factors in any of the countries in which we do business, including those resulting from war, incidents of terrorism, natural disasters or responses to such events. |
B. Business Overview. |
· | Leverage existing customer relationships. We believe that we have the capability to offer certain of our customers a comprehensive security package. As part of our product development process, we seek to maintain close relationships with our customers to identify market needs and to define appropriate product specifications. We intend to expand the depth and breadth of our existing customer relationships while initiating similar new relationships. Our |
· | Refine and broaden our product portfolio. We have identified the security needs of our customers and intend to enhance our current products’ capabilities, develop new products, acquire complementary technologies and products and enter into OEM agreements with third parties in order to meet those needs. |
· | Refine and broaden our integration and turnkey delivery capabilities. As a solution provider we depend on our capability to tailor specific solutions for each customer. Our integration building blocks and our execution skills are key factors in achieving our growth and profitability. |
· | Develop and enhance our presence in new and existing verticals. We intend to enhance our presence in vertical markets as pharmaceutical marijuana, oil and gasterminals and infrastructure. Both verticals are highly regulated and require unique security solutions. As a solution provider with a wide selection of security technologies and products we believe that we can offer a comprehensive security solution that meets the standards required by the applicable regulations. Additionally, we intend to improve our position in a number of legacy vertical markets, such as correctional, utilities and transportation. |
· | Enhance our presence in emerging markets. |
· | Strengthen our presence in existing markets. We |
· | Perimeter Intrusion Detection Systems (PIDS); |
· | PIDS fence sensor with perimeter LED based lighting; |
· | VMS, including IVA applications; |
· | CCTV systems, including a perimeter security |
· | Security Video Observation & Surveillance systems; |
· | Pipeline security, |
· | Cyber security systems for security networks; |
· | Life safety/duress alarm systems; |
· | Command and control systems; and |
· | Miscellaneous systems tailored for specific vertical market needs. |
Years ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Perimeter products | $ | 30,551 | $ | 37,554 | $ | 30,761 | ||||||||||||||||||
Products | $ | 32,372 | $ | 22,301 | $ | 27,626 | ||||||||||||||||||
Turnkey projects | 20,137 | 39,198 | 34,128 | 31,823 | 34,742 | 57,072 | ||||||||||||||||||
Cyber security | 1,638 | 1,329 | 1,596 | |||||||||||||||||||||
Video & Cyber security | 5,626 | 8,350 | 9,461 | |||||||||||||||||||||
Eliminations | (809 | ) | (538 | ) | (2,749 | ) | (1,996 | ) | (1,101 | ) | (1,557 | ) | ||||||||||||
Total | $ | 51,517 | $ | 77,543 | $ | 63,736 | $ | 67,825 | $ | 64,292 | $ | 92,602 |
· | Fence mounted |
· | Smart barriers – a variety of robust detection grids, gates and innocent looking fences, designed to protect water passages, VIP residences and other outdoor applications; |
· | Buried sensors |
· | Taut wire – hybrid perimeter intrusion detection system with physical barrier; |
· | Electrical field disturbance sensors (volumetric); |
· | Microwave sensors; and |
· |
· | Face Recognition - A robust video analytic, ideally suited for securing facilities that require a stronger layer of protection for access control. With real-time alarms and intuitive searching when paired with Senstar Symphony, the Face Recognition video analytic transforms what is possible with a video surveillance system. |
· | Automatic License Plate Recognition - Automatically recognize and record vehicle license plates from over 100 countries. Set alarms for specific plates to deny or approve entry. |
· | Outdoor People and Vehicle Tracking - Detect and track all moving objects and classify them as a person, vehicle, or unknown. Movement tracks are recorded to know exactly where each object came from and where it left the camera’s point-of-view. |
· | Left and Removed Item Detection - Monitor changes in an environment to detect when objects are added or removed from a scene. Set alarms to notify security staff when an item has been removed from an area or left unattended for a designated amount of time. This solution designed for use in airports, train stations, and other public spaces. |
· | Indoor People Tracking - Detect and track people moving within the frame of a camera. Alarms can be set when unauthorized entry into an area is detected and dwell times can be tracked and recorded for the detection of unwanted loitering. Heat maps can also be created in retail stores and public spaces to determine areas of highest traffic and interest. |
· | Crowd Detection - Real-time occupancy estimation for indoor and outdoor deployments, ideal for monitoring public spaces, event venues, and capacity restricted environments. Crowd Detection also offers numerous business intelligence applications. |
· | PTZ Auto-Tracking (Auto PTZ) - Auto PTZ can automatically control a PTZ camera, enabling it to zoom in and follow moving people and vehicles within the field of the camera. This is designed for use in outdoor perimeter monitoring and provides a closer look at people and vehicles for future forensic purposes. |
· | Tungsten – A hardened managed edge switch with built in security capabilities to monitor unauthorized traffic which is optimized for outdoors security and ICS networks (Industrial Control System); and |
· | Rubidium – An easily operated SIEM (Security Information & Event Management) application, designed to manage an array of Tungsten products as well as third party network and cyber monitoring devices. |
· | One or two fixed cameras with IR illuminators for fence surveillance; |
· | One PTZ camera with IR illuminator; and |
· |
· |
· |
· |
· |
· | C-HAWK - a surveillance system designed for maritime environments, such as civilian ports and ships that are often difficult to protect. |
· | MODOS - a discreet early-warning multi-sensor intruder detection and observation system |
· | Fortis4G – a fourth generation high-end comprehensive command and control system; |
· | StarNet 2 |
· | Network Manager – a middleware (software) package which is essential for integration with 3rd party control systems and offers an entry level alarm management system called AIM. |
· | Our investments in IVA tools help eliminate dependency on constant human monitoring. Automatic tools and algorithms extract abnormalities and only irregular events are transferred and analyzed for verification. This approach saves bandwidth and storage and more importantly requires human intervention only when needed. |
· | Our IVA / VMD have been developed to meet the challenge of the outdoor environment (such as weather effects, moving objects like trees, glare and flashing lights). |
· | Our video solutions have a proven track record in high-end vertical markets that require outdoor security such as military bases, government organizations, airports, seaports, mass transportation, correctional facilities, utilities, banks, retail chains, hospitals and industrial sites. |
· |
· |
· | Projects. This part of the business deals with end-customers or high-end system integrators. We offer full comprehensive solutions, which include our in-house portfolio of products and products manufactured by third parties. Solutions are focused around our core competencies -outdoor and cyber security, safety and site |
Year Ended December 31, | Year Ended December 31,___ | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Israel | $ | 8,727 | $ | 9,599 | $ | 13,577 | ||||||||||||||||||
North America | $ | 13,614 | $ | 21,165 | $ | 17,749 | 23,467 | 15,547 | 24,324 | |||||||||||||||
Europe | 8,330 | 11,232 | 14,021 | |||||||||||||||||||||
South and Latin America | 3,118 | 8,813 | 13,443 | 10,364 | 13,152 | 25,471 | ||||||||||||||||||
Israel | 11,517 | 16,525 | 12,406 | |||||||||||||||||||||
Europe | 7,311 | 9,591 | 7,891 | |||||||||||||||||||||
Africa | 8,182 | 12,393 | 6,611 | 7,585 | 9,370 | 7,126 | ||||||||||||||||||
Others | 7,775 | 9,056 | 5,636 | 9,352 | 5,392 | 8,083 | ||||||||||||||||||
Total | $ | 51,517 | $ | 77,543 | $ | 63,736 | $ | 67,825 | $ | 64,292 | $ | 92,602 |
· | that patents will be issued from any pending applications, or that the claims allowed under any patents will be sufficiently broad to protect our technology; |
· | that any patents issued or licensed to us will not be challenged, invalidated or circumvented; or |
· | as to the degree or adequacy of protection any patents or patent applications may or will afford. |
Subsidiary Name | Country of Incorporation/Organization | Ownership Percentage | ||
Senstar | Canada | 100% | ||
Senstar Inc. | United States (Delaware) | 100% | ||
Senstar Latin America, S.A. DE | Mexico | 100% | ||
MAGAL-S3 CANADA INC. | Canada | 100% | ||
ESC BAZ LTD. | Israel | 55% |
· | Perimeter Products segment |
· | Turnkey Projects segment |
· | Video and Cyber Security segment |
· | continuing the growth of revenues and profitability of our perimeter security system |
· | enhancing the introduction and recognition of our new products into the markets; |
· | penetrating new markets and strengthening our presence in existing markets; and |
· | succeeding in selling our comprehensive turnkey |
· | succeeding in selling our comprehensive physical and cyber products as a combined solution. |
Year Ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
(In thousands) | ||||||||||||
Products | $ | 32,372 | $ | 22,301 | $ | 27,626 | ||||||
Turnkey projects | 31,823 | 34,742 | 57,072 | |||||||||
Video and Cyber-Security | 5,626 | 8,350 | 9,461 | |||||||||
Eliminations | (1,996 | ) | (1,101 | ) | (1,557 | ) | ||||||
Total | $ | 67,825 | $ | 64,292 | $ | 92,602 |
Year Ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
(In thousands) | ||||||||||||
Perimeter products | $ | 30,551 | $ | 37,554 | $ | 30,761 | ||||||
Turnkey projects | 20,137 | 39,198 | 34,128 | |||||||||
Cyber | 1,638 | 1,329 | 1,596 | |||||||||
Eliminations | (809 | ) | (538 | ) | (2,749 | ) | ||||||
Total | $ | 51,517 | $ | 77,543 | $ | 63,736 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Perimeter products | $ | 542 | $ | 6,770 | $ | 6,023 | ||||||||||||||||||
Products | $ | 5,799 | $ | 242 | $ | 2,863 | ||||||||||||||||||
Turnkey projects | (3,571 | ) | (148 | ) | 1,095 | (163 | ) | 1,762 | 2,782 | |||||||||||||||
Cyber | (1,184 | ) | (4,995 | ) | (1,684 | ) | ||||||||||||||||||
Video and Cyber Security | (3,383 | ) | (2,830 | ) | (1,298 | ) | ||||||||||||||||||
Eliminations | (306 | ) | (204 | ) | (1,045 | ) | (758 | ) | (418 | ) | (592 | ) | ||||||||||||
Total | $ | (4,519 | ) | $ | 1,423 | $ | 4,389 | $ | 1,495 | $ | (1,244 | ) | $ | 3,755 |
Years Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Perimeter products | $ | 606 | $ | 1,006 | $ | 787 | ||||||||||||||||||
Products | $ | 632 | $ | 614 | $ | 586 | ||||||||||||||||||
Turnkey projects | 629 | 641 | 602 | 512 | 498 | 879 | ||||||||||||||||||
Cyber | 484 | 320 | 114 | |||||||||||||||||||||
Video and Cyber-security | 596 | 764 | 1,759 | |||||||||||||||||||||
Total | $ | 1,719 | $ | 1,967 | $ | 1,503 | $ | 1,740 | $ | 1,876 | $ | 3,224 |
· | Raw materials, parts and supplies |
· | Work-in-progress and finished products |
Year Ended December 31, | Year Ended December 31 | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Revenues | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Cost of revenues | 60.3 | 55.5 | 51.3 | 51.0 | 51.3 | 56.5 | ||||||||||||||||||
Gross profit | 39.7 | 44.5 | 48.7 | 49.0 | 48.7 | 43.5 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development, net | 8.6 | 5.9 | 7.6 | 10.0 | 10.2 | 7.4 | ||||||||||||||||||
Selling and marketing, net | 24.8 | 22.1 | 23.2 | 25.9 | 28.2 | 20.0 | ||||||||||||||||||
General and administrative | 15.1 | 11.5 | 11.0 | 11.0 | 12.2 | 11.0 | ||||||||||||||||||
Impairment of goodwill and intangible assets | - | 3.1 | - | |||||||||||||||||||||
Impairment of goodwill | - | - | 1.1 | |||||||||||||||||||||
Operating income (loss) | (8.8 | ) | 1.8 | 6.9 | 2.2 | (1.9 | ) | 4.1 | ||||||||||||||||
Financial income (expenses), net | 0.1 | 2.6 | 1.0 | (0.9 | ) | (6.2 | ) | 1.5 | ||||||||||||||||
Income (loss) before income taxes | (8.7 | ) | 4.4 | 7.9 | ||||||||||||||||||||
Taxes on income | (0.1 | ) | (0.1 | ) | (3.0 | ) | ||||||||||||||||||
Net income (loss) | (8.8 | ) | 4.3 | 4.9 | ||||||||||||||||||||
Income before income taxes | 1.3 | (8.1 | ) | 5.5 | ||||||||||||||||||||
Taxes on income (tax benefit) | 0.2 | (2.6 | ) | (2.2 | ) | |||||||||||||||||||
Net income | 1.5 | (10.8 | ) | 3.3 |
Year Ended December 31 | ||||||||
2017 | 2018 | |||||||
(In thousands) | ||||||||
Perimeter products | $ | 242 | $ | 2,863 | ||||
Turnkey projects | 1,762 | 2,782 | ||||||
Video and Cyber Security | (2,830 | ) | (1,298 | ) | ||||
Eliminations | (418 | ) | (592 | ) | ||||
Total | $ | (1,244 | ) | $ | 3,755 |
Year Ended December 31, | Year Ended December 31 | |||||||||||||||
2014 | 2015 | 2016 | 2017 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Perimeter products | $ | 6,770 | $ | 6,023 | $ | 5,799 | $ | 242 | ||||||||
Turnkey projects | (148 | ) | 1,095 | (163 | ) | 1,762 | ||||||||||
Cyber | (4,995 | ) | (1,684 | ) | ||||||||||||
Video and Cyber Security | (3,383 | ) | (2,830 | ) | ||||||||||||
Eliminations | (204 | ) | (1,045 | ) | (758 | ) | (418 | ) | ||||||||
Total | $ | 1,423 | $ | 4,389 | $ | 1,495 | $ | (1,244 | ) |
Year Ended December 31, | ||||||||
2013 | 2014 | |||||||
(In thousands) | ||||||||
Perimeter products | $ | 542 | $ | 6,770 | ||||
Turnkey projects | (3,571 | ) | (148 | ) | ||||
Cyber | (1,184 | ) | (4,995 | ) | ||||
Eliminations | (306 | ) | (204 | ) | ||||
Total | $ | (4,519 | ) | $ | 1,423 |
· | our customers are mainly budget-oriented organizations with lengthy decision processes, which tend to mature late in the year; and |
· | due to harsh weather conditions in certain areas in which we operate during the first quarter of the calendar year, certain projects and services are put on hold and consequently revenues are delayed. |
Year ended December 31, | Israeli inflation rate % | NIS devaluation (appreciation) rate % | Israeli inflation adjusted for devaluation (appreciation) % | |||||||||
2014 | (0.2 | ) | 12.0 | (12.2 | ) | |||||||
2015 | (1.0 | ) | (0.3 | ) | (0.7 | ) | ||||||
2016 | (0.2 | ) | (1.5 | ) | 1.3 | |||||||
2017 | 0.4 | (9.8 | ) | 10.2 | ||||||||
2018 | 1.3 | 8.1 | (6.8 | ) |
Year ended December 31, | Israeli inflation rate % | NIS devaluation (appreciation) rate % | Israeli inflation adjusted for devaluation (appreciation) % | |||||||||
2011 | 2.2 | 7.7 | (5.5 | ) | ||||||||
2012 | 1.6 | (2.3 | ) | 3.9 | ||||||||
2013 | 1.8 | (7.0 | ) | 8.8 | ||||||||
2014 | (0.2 | ) | 12.0 | (12.2 | ) | |||||||
2015 | (1.0 | ) | (0.3 | ) | (0.7 | ) |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | (2,590 | ) | (1,710 | ) | 5,458 | 8,933 | (1,952 | ) | 7,326 | |||||||||||||||
Net cash provided by (used in) investing activities | (5,760 | ) | (3,643 | ) | 6,397 | (40,703 | ) | 3,176 | 10,121 | |||||||||||||||
Net cash provided by (used in) financing activities | 2,583 | (2,783 | ) | (3,968 | ) | 25,006 | 504 | 77 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,218 | (2,497 | ) | (2,170 | ) | 160 | 2,076 | (1,029 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (4,549 | ) | (10,633 | ) | 5,717 | |||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 36,784 | 32,235 | 21,602 | |||||||||||||||||||||
Cash and cash equivalents at the end of the year | $ | 32,235 | $ | 21,602 | $ | 27,319 | ||||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (6,604 | ) | 3,804 | 16,495 | ||||||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | 28,105 | 21,501 | 25,305 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year | $ | 21,501 | $ | 25,305 | $ | 41,800 |
Payments due by period | Payments due by period | |||||||||||||||||||||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-2 years | 3-5 years | More than 5 years | Total | Less than 1 year | 1-2 years | 3-5 years | More than 5 years | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Operating lease obligations | $ | 3,127 | $ | 659 | $ | 737 | $ | 716 | $ | 1,015 | 4,893 | 1,119 | 720 | 1,581 | 1,473 | |||||||||||||||||||||||||
Other long-term liabilities reflected on our balance sheet under U.S. GAAP | $ | 2,660 | - | - | - | $ | 2,660 | 2,181 | - | - | - | 2,181 | ||||||||||||||||||||||||||||
Total | $ | 5,787 | $ | 659 | $ | 737 | $ | 716 | $ | 3,675 | 7,074 | 1,119 | 720 | 1,581 | 3,654 |
Name | Age | Position | ||
Gillon Beck | Chairman of the Board of Directors | |||
Ron Ben-Haim | ||||
Jacob Berman | 70 | Director | ||
Director | ||||
Liza Singer (1)(2) | 48 | External Director | ||
External Director | ||||
Chief Executive Officer | ||||
Brian Rich | Deputy CEO, CTO and President of Senstar Corporation | |||
Doron Kerbel | Vice President – General Counsel and Company Secretary | |||
Yaniv | 45 | Senior Vice President & General Manager Magal Israel | ||
Jeremy Weese | 42 | Senior Vice President | ||
Vice President | ||||
Carlos Garcia Almeida | 48 | General Manager Latin America | ||
Fabien Haubert | 44 | Vice President EMEA Sales | ||
Gord Loney | 66 | Vice President APAC Sales |
(2) Member of our Compensation Committee |
Information Regarding the Covered Executive(1) (in U.S. dollars) | ||||||||||||||||||||
Name and Principal Position(2) | Base Salary | Benefits and Perquisites(3) | Variable Compensation(4) | Equity-Based Compensation(5) | Total | |||||||||||||||
Saar Koursh - Chief Executive Officer | 172,262 | 60,858 | 18,009 | 76,102 | 327,231 | |||||||||||||||
Eitan Livneh - Former President & CEO | 244,836 | 504,572 | 391,737 | 46,133 | 1,187,278 | |||||||||||||||
Ilan Ovadia - Senior Vice President – Finance, Chief Financial Officer | 180,730 | 138,665 | 120,487 | 22,360 | 462,242 | |||||||||||||||
Hagai Katz - Senior Vice President – Marketing and Business Development | 196,043 | 41,121 | 106,126 | 22,360 | 365,650 | |||||||||||||||
Eli Sananes - Vice President –Sales | 154,365 | 100,180 | 86,814 | 7,279 | 348,638 |
Information Regarding the Covered Executive(1) (in thousands) | ||||||
Name and Principal Position(2) | Base Salary | Benefits and Perquisites(3) | Variable Compensation(4) | Equity-Based Compensation(5) | Total | |
Dror Sharon – Chief Executive Officer | 148 | 73 | 134 | 116 | 471 | |
Saar Koursh – Former Chief Executive Officer | 102 | 219 | 146 | (63) | 404 | |
Yaniv Shachar - Senior Vice President & General Manager Magal Israel | 167 | 74 | 58 | 31 | 330 | |
Fabien Haubert - Vice President EMEA Sales | 161 | 76 | 51 | 15 | 303 | |
Yaacov Vinokur - Chief Financial Officer | 141 | 60 | 63 | 11 | 275 | |
(1) | All amounts reported in the table are in terms of cost to our company, as recorded in our financial statements. | |||||
(2) | All current Covered Executives listed in the table are full-time employees. Cash compensation amounts denominated in currencies other than the U.S. dollar were converted into U.S. dollars at the average conversion rate for the year ended December 31, 2018. | |||||
(3) | Amounts reported in this column include benefits and perquisites or on account of such benefits and perquisites, including those mandated by applicable law. Such benefits and perquisites may include, to the extent applicable to each executive, payments, contributions and/or allocations for savings funds, pension, severance, vacation, car or car allowance, medical insurances and benefits, risk insurances (e.g., life, disability, accident), convalescence pay, payments for social security, tax gross-up payments and other benefits and perquisites consistent with our guidelines. | |||||
(4) | Amounts reported in this column refer to Variable Compensation such as commission, incentive and bonus payments as recorded in our financial statements for the year ended December 31, 2018. | |||||
(5) | Amounts reported in this column represent the expense recorded in our financial statements for the year ended December 31, 2018. |
· | monitoring deficiencies in the management of the company, including in consultation with the independent auditors or the internal auditor, and to advise the board of directors on how to correct such deficiencies. If the audit committee finds a material deficiency, it will hold at least one meeting regarding such material deficiency, with the presence of the internal auditor or the independent auditors but without the presence of the senior management of the company. However, a member of the company’s senior management can participate in the meeting in order to present an issue which is under his or her responsibility; |
· | determining, on the basis of detailed arguments, whether to classify certain engagements or transactions as material or extraordinary, as applicable, and therefore as requiring special approval under the Israeli Companies Law. The audit committee may make such determination according to principles and guidelines predetermined on an annual basis; |
· | determining if transactions (excluding extraordinary transactions) with a controlling shareholder, or in which a controlling shareholder has a personal interest, are required to be rendered pursuant to a competitive procedure; |
· | deciding whether to approve engagements or transactions that require the Israeli Audit Committee approval under the Israeli Companies Law; |
· | determining the approval procedure of non-extraordinary transactions, following classification as such by the Israeli Audit Committee, including whether such specific non-extraordinary transactions require the approval of the Israeli Audit Committee; |
· | examining and approving the annual and periodical working plan of the internal auditor; |
· | overseeing the company’s internal auditing and the performance of the internal auditor; confirm that the internal auditor has sufficient tools and resources at his disposal, taking into account, among other, the special requirements of the company and its size; |
· | examining the scope of work of the independent auditor and its pay, and bringing such recommendations on these issue before the Board; |
· | determining the procedure of addressing complaints of employees regarding shortcomings in the management of the company and ensure the protection of employees who have filed such complaints; |
· | determining with respect to transactions with the controlling shareholder or in which such controlling shareholder has personal interest, whether such transactions are extraordinary or not, an obligation to conduct competitive process under supervisions of the audit committee or determination that prior to entering into such transactions the company shall conduct other process as the audit committee may deem fit, all taking into account the type of the company; and |
· | determining the manner of approval of transactions with the controlling shareholder or in which it has personal interest which (i) are not negligible transactions (pursuant to the committee’s determination) and (ii) are not qualified by the Israeli Audit Committee as extraordinary transactions. |
· | integrity of the Company’s financial statements; |
· | independent auditor’s qualifications, independence and performance; |
· | Company’s financial reporting processes and accounting policies; performance of the Company’s internal audit function; and |
· | Company’s compliance with legal and regulatory requirements. |
Name | Number of Ordinary Shares Owned (1) | Percentage of Outstanding Ordinary Shares (2) | |||||||||
Gillon Beck (3) | - | - | |||||||||
- | - | ||||||||||
Jacob Berman | * | ||||||||||
- | - | ||||||||||
- | - | ||||||||||
Moshe Tsabari | - | - | |||||||||
- | |||||||||||
* | |||||||||||
Brian Rich (5) | * | ||||||||||
Doron Kerbel (6) | 13,166 | * | |||||||||
Yaniv Shachar (7) | 24,000 | * | |||||||||
Jeremy Weese (8) | 16,548 | * | |||||||||
Kristen Cory | - | - | |||||||||
- | - | ||||||||||
- | - | ||||||||||
Gord Loney | 100 | * | |||||||||
All directors and executive officers as a group | 83,897 | * |
(1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Ordinary shares relating to options or convertible debenture notes currently exercisable or exercisable within 60 days of the date of this table are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them. |
(2) | The percentages shown are based on |
(3) | Does not include any ordinary shares held by the FIMI Funds. |
(4) | Includes |
Includes |
Includes |
(7) | Includes 24,000 ordinary shares issuable upon the exercise |
(8) | Includes 16,548 ordinary shares issuable upon the exercise of currently exercisable options. |
Name | Number of Ordinary Shares Beneficially Owned (1) | Percentage of Outstanding Ordinary Shares (2) | Number of Ordinary Shares Beneficially Owned (1) | Percentage of Outstanding Ordinary Shares (2) | ||||||||||||
FIMI Opportunity Five (Delaware), Limited Partnership (3) | 3,046,950 | 18.6 | % | 4,646,924 | 20.1 | % | ||||||||||
FIMI Israel Opportunity Five, Limited Partnership (3) | 3,414,340 | 20.8 | % | 5,207,235 | 22.5 | % | ||||||||||
BMI Capital Corporation (4) | 1,240,937 | 7.6 | % | |||||||||||||
Grace & White, Inc. (5). | 1,177,563 | 7.2 | % | |||||||||||||
Grace & White, Inc. (4) | 1,409,399 | 6.1 | % | |||||||||||||
(1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Ordinary shares relating to options or convertible notes currently exercisable or exercisable within 60 days of the date of this table are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them. |
(2) | The percentages shown are based on |
(3) | Based on Schedule |
(4) | Based |
NASDAQ Global Market | ||||||||
High | Low | |||||||
2011 | $ | 5.08 | $ | 2.20 | ||||
2012 | $ | 5.68 | $ | 3.26 | ||||
2013 | $ | 4.93 | $ | 3.16 | ||||
2014 | $ | 5.87 | $ | 3.38 | ||||
2015 | $ | 5.80 | $ | 4.01 |
NASDAQ Global Market | ||||||||
High | Low | |||||||
2013 | ||||||||
First Quarter | $ | 4.93 | $ | 4.11 | ||||
Second Quarter | $ | 4.90 | $ | 3.61 | ||||
Third Quarter | $ | 4.02 | $ | 3.41 | ||||
Fourth Quarter | $ | 3.80 | $ | 3.16 | ||||
2014 | ||||||||
First Quarter | $ | 4.32 | $ | 3.56 | ||||
Second Quarter | $ | 4.08 | $ | 3.38 | ||||
Third Quarter | $ | 5.51 | $ | 3.43 | ||||
Fourth Quarter | $ | 5.87 | $ | 3.77 | ||||
2015 | ||||||||
First Quarter | $ | 5.80 | $ | 4.71 | ||||
Second Quarter | $ | 5.37 | $ | 4.31 | ||||
Third Quarter | $ | 4.50 | $ | 4.01 | ||||
Fourth Quarter | $ | 5.08 | $ | 4.08 |
2016 | ||||||||
First Quarter (through March 27, 2016) | $ | 4.96 | $ | 4.06 |
NASDAQ Global Market | |||||||||
High | Low | ||||||||
October 2015 | $ | 4.29 | $ | 4.08 | |||||
November 2015 | $ | 5.08 | $ | 4.20 | |||||
December 2015 | $ | 4.60 | $ | 4.14 | |||||
January 2016 | $ | 4.25 | $ | 4.11 | |||||
February 2016 | $ | 4.18 | $ | 4.06 | |||||
March 2016 (through March 27, 2016) | $ | 4.96 | $ | 4.25 |
B. Plan of Distribution. |
C. | Markets. |
· | amend the memorandum of association or articles of association; |
· | change the share capital, for example by increasing or canceling the authorized share capital or modifying the rights attached to shares; and |
· | approve mergers, consolidations or winding up of our company. |
D. Exchange Controls. |
E. Taxation. |
· | Similar to the currently available alternative route, exemption from corporate tax on undistributed income for a period of two to ten years, depending on the geographic location of the Benefited Enterprise within Israel, and a reduced corporate tax rate of 10% to 25% for the remainder of the benefits period, depending on the level of foreign investment in each year. Benefits may be granted for a term of seven to ten years, depending on the level of foreign investment in the company. If the company pays a dividend out of income derived from the Benefited Enterprise during the tax exemption period, such income will be subject to corporate tax at the applicable rate (10%-25%) with respect to the gross amount of dividend distributed. The company is required to withhold tax at the source at a rate of 15% from any dividends distributed from income derived from the Benefited Enterprise; and |
· | A special tax route, which enables companies owning facilities in certain geographical locations in Israel to pay corporate tax at the rate of 11.5% on income of the Benefited Enterprise. The benefits period is ten years. Upon payment of dividends, the company is required to withhold tax at source at a rate of 15% for Israeli residents and at a rate of 4% for foreign residents. |
· | Amortization, under certain conditions, of purchases of |
· | Right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies; and |
· | Accelerated depreciation rates on equipment and buildings; and |
· | Deductions over a three-year period of expenses in connection with the issuance and listing of shares on a recognized stock market. |
· | broker-dealers; |
· | financial institutions; |
· | certain insurance companies; |
· |
investors liable for alternative minimum tax; |
· | regulated investment companies, real estate investment trusts, or grantor trusts; |
· |
· | tax-exempt organizations; |
· | non-resident aliens of the United States or taxpayers whose functional currency is not the U.S. dollar; |
· | persons who hold the ordinary shares through partnerships or other pass-through entities; |
· | persons who acquire their ordinary shares through the exercise or cancellation of employee stock options or otherwise as compensation for services; |
· | direct, indirect or constructive owners of investors that actually or constructively own 10% or more of our |
· | investors holding ordinary shares as part of a straddle, appreciated financial position, a hedging transaction or conversion transaction. |
· | an individual who is a citizen or, for U.S. federal income tax purposes, a resident of the United States; |
· | a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States or any political subdivision thereof; |
· | an estate |
· | a trust |
Year Ended December 31, | ||||||||
Services Rendered | 2017 | 2018 | ||||||
Audit (1) | 262,000 | 243,000 | ||||||
Tax (2) | 86,000 | 99,000 | ||||||
Other (3) | 12,000 | 12,000 | ||||||
Total | 360,000 | 354,000 |
Year Ended December 31, | ||||||||
Services Rendered | 2014 | 2015 | ||||||
Audit (1) | $ | 265,100 | 276,000 | |||||
Tax (2) | $ | 60,000 | 72,000 | |||||
Other (3) | $ | 66,500 | 63,000 | |||||
Total | $ | 391,600 | 411,000 |
(1) | Audit fees are for audit services for each of the years shown in the table, including fees associated with the annual audit (including audit of our internal control over financial reporting), consultations on various accounting issues and audit services provided in connection with other statutory or regulatory filings. |
(2) | Tax fees are for professional services rendered by our auditors for tax compliance, tax planning and tax advice on actual or contemplated transactions, tax consulting associated to international taxation, tax assessment deliberation, transfer pricing and withholding tax assessments. |
(3) | Other fees primarily relate to out of pocket reimbursement of expenses and primarily traveling expenses of our auditors. |
· | the requirement regarding the process of nominating directors. Instead, we follow Israeli law and practice in accordance with which our directors are recommended by our board of directors for election by our shareholders. See Item 6.C. “Directors, Senior Management and Employees |
· | the requirement regarding the compensation of our chief executive officer and all other executive officers. Instead, we follow Israeli law and practice in accordance with which our board of directors must approve all compensation arrangements for our chief executive officer and all compensation arrangements for officers are subject to the chief executive officer’s approval. See Item 6.C. “Directors, Senior Management and Employees |
· | the requirement that our independent directors have regularly scheduled meetings at which only independent directors are present. Under Israeli law, independent directors are not required to hold executive sessions. |
· | the requirement that we maintain a majority of independent directors, as defined under NASDAQ Stock Market Rules. Under Israeli law and practice we are required to appoint at least two external directors, within the meaning of the Israeli Companies Law, to our board of directors. |
Index to Financial Statements | F-1 |
F-2 | |
F-5 – F-6 | |
Exhibit No. | Description | |
1.1 | Memorandum of Association of the Registrant (1) | |
2.1 | Specimen Share Certificate for Ordinary Share (3) | |
15.2 | ||
101.INS | XBRL Instance Document.* | |
101.SCH | XBRL Taxonomy Extension Schema Document.* | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document.* | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document.* | |
101.LAB | XBRL Taxonomy Label Linkbase Document.* | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document.* |
* | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
(1) | Filed as an exhibit to our Registration Statement on Form F-1 (File No. |
(2) | Filed as an exhibit to our Registration Statement on Form F-1 (No. |
(3) | Filed as an exhibit to our Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on March 18, 1993, as amended, and incorporated herein by reference. |
(4) | Filed as Exhibit |
Filed as Exhibit 2.4 to the Registrant’s Annual Report on Form 20-F for the year ended December 31, 2013, and incorporated herein by reference. |
(6) | Filed as Exhibit 10.1 to the Registrant’s Registration Statement on Form F-1 (No. 333-213020), filed with the Securities and Exchange Commission on August 9, 2016, as amended, and incorporated herein by reference. |
(7) | Filed as Exhibit A to Exhibit 99.1 to the Registrant’s Proxy Statement on Form 6-K furnished with the Securities and Exchange Commission on July 8, 2016 and incorporated herein by reference. |
Page | |
Reports of Independent Registered Public Accounting | |
Kost Forer Gabbay & Kasierer Tel-Aviv | Tel: +972-3-6232525 Fax: +972-3-5622555 ey.com |
/s/ Kost Forer Gabbay & Kasierer |
KOST FORER GABBAY & KASIERER |
A Member of Ernst & Young Global |
Tel-Aviv, Israel |
April 15, 2019 |
Salles, Sainz – Grant Thornton, S.C. Periférico Sur 4348 Col. Jardines del Pedregal 04500, México, D.F. T +52 55 5424 6500 F +52 55 5424 6501 www.ssgt.com.mx |
Contadores y Consultores de Negocios Miembro de Grant Thornton International Ltd |
December 31, | ||||||||||||||||
2014 | 2015 | December 31, | ||||||||||||||
2018 | 2017 | |||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 21,602 | $ | 27,319 | $ | 38,665 | $ | 22,463 | ||||||||
Short-term bank deposits | 8,001 | 3,055 | 13,150 | 27,025 | ||||||||||||
Restricted deposits | 2,844 | 786 | 3,135 | 2,842 | ||||||||||||
Trade receivables (net of allowance for doubtful accounts of $2,331 and $1,802 at December 31, 2015 and 2014, respectively) | 20,875 | 13,706 | ||||||||||||||
Trade receivables (net of allowance for doubtful accounts of $ 2,751 and $ 1,557 at December 31, 2018 and 2017, respectively) | 14,176 | 14,489 | ||||||||||||||
Unbilled accounts receivable | 4,093 | 5,597 | 6,050 | 6,309 | ||||||||||||
Other accounts receivable and prepaid expenses (Note 3) | 2,102 | 2,107 | 4,126 | 2,850 | ||||||||||||
Inventories (Note 4) | 8,147 | 7,879 | 13,863 | 9,596 | ||||||||||||
Deferred income taxes (Note 14) | 625 | - | ||||||||||||||
Total current assets | 68,289 | 60,449 | 93,165 | 85,574 | ||||||||||||
LONG-TERM INVESTMENTS AND RECEIVABLES: | ||||||||||||||||
Long-term trade receivables | 232 | 617 | ||||||||||||||
Long-term deposits and restricted bank deposits | 134 | 136 | 146 | 155 | ||||||||||||
Severance pay fund | 2,187 | 1,761 | 1,289 | 1,524 | ||||||||||||
Deferred income taxes (Note 14) | 463 | 1,055 | ||||||||||||||
Deferred tax assets (Note 12) | 3,459 | 2,579 | ||||||||||||||
Total long-term investments and receivables | 3,016 | 3,569 | 4,894 | 4,258 | ||||||||||||
PROPERTY AND EQUIPMENT, NET (Note 5) | 6,111 | 5,415 | 6,347 | 5,718 | ||||||||||||
INTANGIBLE ASSETS, NET (Note 6) | 1,847 | 1,313 | 3,645 | 4,303 | ||||||||||||
GOODWILL (Note 7) | 4,496 | 4,250 | 11,120 | 12,692 | ||||||||||||
Total assets | $ | 83,759 | $ | 74,996 | $ | 119,171 | $ | 112,545 |
December 31, | ||||||||
2018 | 2017 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade payables | $ | 6,359 | $ | 5,198 | ||||
Customer advances | 10,170 | 7,191 | ||||||
Deferred revenues | 2,387 | 2,163 | ||||||
Other accounts payable and accrued expenses (Note 8) | 13,226 | 11,621 | ||||||
Total current liabilities | 32,142 | 26,173 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred revenues | 1,344 | 891 | ||||||
Deferred tax liabilities | 182 | 190 | ||||||
Accrued severance pay | 2,181 | 2,328 | ||||||
Other long-term liabilities | 351 | 14 | ||||||
Total long-term liabilities | 4,058 | 3,423 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES (Note 9) | ||||||||
REDEEMABLE NON-CONTROLLING INTEREST | 1,755 | - | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital - | ||||||||
Ordinary shares of NIS 1 par value - | ||||||||
Authorized: 39,748,000 shares at December 31, 2018 and December 31, 2017; Issued and outstanding: 23,049,639 shares at December 31, 2018 and 23,032,448 shares at December 31, 2017 | 6,721 | 6,716 | ||||||
Additional paid-in capital | 94,205 | 93,975 | ||||||
Accumulated other comprehensive loss | (1,827 | ) | (87 | ) | ||||
Foreign currency translation adjustments (Company's standalone financial statements) | 2,795 | 5,859 | ||||||
Accumulated deficit | (20,678 | ) | (23,514 | ) | ||||
Total shareholders' equity (Note 10) | 81,216 | 82,949 | ||||||
Total liabilities and shareholders' equity | $ | 119,171 | $ | 112,545 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Revenues | $ | 92,602 | $ | 64,292 | $ | 67,825 | ||||||
Cost of revenues | 52,299 | 32,967 | 34,570 | |||||||||
Gross profit | 40,303 | 31,325 | 33,255 | |||||||||
Operating expenses: | ||||||||||||
Research and development, net | 6,852 | 6,558 | 6,779 | |||||||||
Selling and marketing | 18,557 | 18,158 | 17,536 | |||||||||
General and administrative | 11,139 | 7,853 | 7,445 | |||||||||
Total operating expenses | 36,548 | 32,569 | 31,760 | |||||||||
Operating income (loss) | 3,755 | (1,244 | ) | 1,495 | ||||||||
Financial income (expenses), net (Note 15) | 1,361 | (3,961 | ) | (591 | ) | |||||||
Income (loss) before income taxes | 5,116 | (5,205 | ) | 904 | ||||||||
Taxes on income (tax benefit) (Note 12) | 2,072 | 1,695 | (122 | ) | ||||||||
Net income (loss) | 3,044 | (6,900 | ) | 1,026 | ||||||||
Less - loss (income) attributable to non-controlling interests | (95 | ) | (14 | ) | 3 | |||||||
Net income (loss) attributable to Magal shareholders' | $ | 2,949 | $ | (6,914 | ) | $ | 1,029 | |||||
Basic income (loss) per share | $ | 0.12 | $ | (0.30 | ) | $ | 0.06 |
Diluted income (loss) per share | $ | 0.12 | $ | (0.30 | ) | $ | 0.06 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net income (loss) | $ | 3,044 | $ | (6,900 | ) | $ | 1,026 | |||||
Realized foreign currency translation adjustments | - | 64 | - | |||||||||
Foreign currency translation adjustments | (1,740 | ) | 1,772 | (73 | ) | |||||||
Total comprehensive income (loss) | $ | 1,304 | $ | (5,064 | ) | $ | 953 | |||||
Net income (loss) attributable to: | ||||||||||||
Non-controlling interests | $ | - | $ | 14 | $ | (3 | ) | |||||
Redeemable non-controlling interests | 95 | - | - | |||||||||
Magal shareholders' | 2,949 | (6,914 | ) | 1,029 | ||||||||
Net income (loss) | $ | 3,044 | $ | (6,900 | ) | $ | 1,026 | |||||
Total comprehensive income (loss) attributable to: | ||||||||||||
Non-controlling interests | $ | - | $ | 14 | $ | (3 | ) | |||||
Redeemable non-controlling interests | (5 | ) | - | - | ||||||||
Magal shareholders' | 1,309 | (5,078 | ) | 956 | ||||||||
Total comprehensive income (loss) | $ | 1,304 | $ | (5,064 | ) | $ | 953 |
Number of shares | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Foreign currency translation adjustment - the Company | Retained earnings (accumulated deficit) | Non- controlling interests | Total shareholders' equity | |||||||||||||||||||||||||
Balance as of January 1, 2016 | 16,398,872 | $ | 4,968 | $ | 69,888 | $ | (1,850 | ) | $ | 406 | $ | (17,629 | ) | $ | (88 | ) | $ | 55,695 | ||||||||||||||
Issuance of share capital, net (Note 10b) | 6,170,386 | 1,626 | 21,991 | - | - | - | - | 23,617 | ||||||||||||||||||||||||
Issuance of shares upon exercise of employee stock options | 325,090 | 85 | 1,304 | - | - | - | - | 1,389 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 258 | - | - | - | - | 258 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | 6 | - | - | 6 | ||||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | 1,029 | (3 | ) | 1,026 | |||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | (73 | ) | - | - | - | (73 | ) | ||||||||||||||||||||||
Balance as of December 31, 2016 | 22,894,348 | 6,679 | 93,441 | (1,923 | ) | 412 | (16,600 | ) | (91 | ) | 81,918 | |||||||||||||||||||||
Issuance of shares upon exercise of warrants | 60,000 | 16 | 238 | - | - | - | - | 254 | ||||||||||||||||||||||||
Issuance of shares upon exercise of employee stock options | 78,100 | 21 | 306 | - | - | - | - | 327 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 144 | - | - | - | - | 144 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | 5,447 | - | - | 5,447 | ||||||||||||||||||||||||
Purchase of non-controlling interests | - | - | (154 | ) | - | - | - | 77 | (77 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Loss | - | - | - | - | - | (6,914 | ) | 14 | (6,900 | ) | ||||||||||||||||||||||
Realized foreign currency translation adjustments | - | - | - | 64 | - | - | - | 64 | ||||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | 1,772 | - | - | - | 1,772 | ||||||||||||||||||||||||
Balance as of December 31, 2017 | 23,032,448 | 6,716 | 93,975 | (87 | ) | 5,859 | (23,514 | ) | - | 82,949 | ||||||||||||||||||||||
Cumulative effect adjustment resulting from adoption of ASC606 | - | - | - | - | - | 114 | - | 114 | ||||||||||||||||||||||||
Issuance of shares upon exercise of employee stock options | 17,191 | 5 | 72 | - | - | - | - | 77 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 158 | - | - | - | - | 158 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | (3,064 | ) | - | - | (3,064 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | 2,949 | - | 2,949 | ||||||||||||||||||||||||
Adjustment to the redemption value of redeemable non-controlling interests | - | - | - | - | - | (227 | ) | - | (227 | ) | ||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | (1,740 | ) | - | - | - | (1,740 | ) | ||||||||||||||||||||||
Balance as of December 31, 2018 | 23,049,639 | 6,721 | 94,205 | (1,827 | ) | 2,795 | (20,678 | ) | - | 81,216 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 3,044 | $ | (6,900 | ) | $ | 1,026 | |||||
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 2,245 | 1,876 | 1,740 | |||||||||
Impairment of goodwill | 979 | - | - | |||||||||
Loss (gain) on sale of property and equipment | (47 | ) | (4 | ) | 5 | |||||||
Increase (decrease) in accrued interest and exchange differences on short-term and other long-term liabilities | (520 | ) | 2,996 | (57 | ) | |||||||
Stock based compensation | 158 | 144 | 258 | |||||||||
Decrease in trade receivables, net | 555 | 153 | 1,487 | |||||||||
Decrease (increase) in unbilled accounts receivable | (227 | ) | (1,593 | ) | 1,395 | |||||||
Decrease (increase) in other accounts receivable and prepaid expenses | (1,333 | ) | 119 | 221 | ||||||||
Decrease (increase) in inventories | (3,981 | ) | (2,079 | ) | 1,200 | |||||||
Increase in deferred income taxes | (968 | ) | (467 | ) | (1,722 | ) | ||||||
Decrease in long-term trade receivables | - | 329 | 319 | |||||||||
Increase in trade payables | 1,071 | 787 | 857 | |||||||||
Increase (decrease) in other accounts payable and accrued expenses and deferred revenues | 3,114 | 1,521 | (1,010 | ) | ||||||||
Increase in customer advances | 3,214 | 1,207 | 3,351 | |||||||||
Accrued severance pay, net | 22 | (41 | ) | (137 | ) | |||||||
Net cash provided by (used in) operating activities | $ | 7,326 | $ | (1,952 | ) | $ | 8,933 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Investment in short-term deposits | $ | - | $ | - | $ | (27,868 | ) | |||||
Proceeds from sale of short-term bank deposits | 12,873 | 4,103 | - | |||||||||
Release of long-term bank deposits | - | (15 | ) | 13 | ||||||||
Proceeds from sale of property and equipment | 57 | 35 | 93 | |||||||||
Purchase of property and equipment | (2,128 | ) | (934 | ) | (797 | ) | ||||||
Investment in technology, know-how and patents | (296 | ) | (13 | ) | (31 | ) | ||||||
Payments for acquisition of ESC BAZ, net of cash acquired (1) | (385 | ) | - | - | ||||||||
Payments for acquisition of Aimetis, net of cash acquired (2) | - | - | (12,113 | ) | ||||||||
Net cash provided by (used in) investing activities | 10,121 | 3,176 | (40,703 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of shares, net of issuance costs of $ 201 | - | - | 23,617 | |||||||||
Proceeds from issuance of shares upon exercise of options to employees | 77 | 327 | 1,389 | |||||||||
Proceeds from issuance of shares upon exercise of warrants | - | 254 | - | |||||||||
Purchase of shares from non-controlling interests, net | - | (77 | ) | - | ||||||||
Net cash provided by financing activities | 77 | 504 | 25,006 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,029 | ) | 2,076 | 160 | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 16,495 | 3,804 | (6,604 | ) | ||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | 25,305 | 21,501 | 28,105 | |||||||||
Cash, cash equivalents and restricted cash at the end of the year | $ | 41,800 | $ | 25,305 | $ | 21,501 | ||||||
Supplemental disclosures of cash flows activities: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 20 | $ | 148 | $ | 27 | ||||||
Income taxes | $ | 2,926 | $ | 1,855 | $ | 1,677 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(1) Payments for acquisition of ESC BAZ, net of cash acquired: | ||||||||||||
Net fair value of assets acquired and liabilities assumed of ESC BAZ at the date of acquisition (see also Note 1a): | ||||||||||||
Net assets (excluding cash and cash equivalents) | $ | 1,222 | $ | - | $ | - | ||||||
Technology | 190 | - | - | |||||||||
Customer relationship | 164 | - | - | |||||||||
Backlog | 147 | - | - | |||||||||
Adjustment to deferred revenue | 20 | - | - | |||||||||
Deferred tax liability, net | (80 | ) | - | - | ||||||||
Goodwill | 255 | |||||||||||
Redeemable non-controlling interest | (1,533 | ) | - | - | ||||||||
Total payments for acquisition of ESC BAZ, net of cash acquired | $ | 385 | $ | - | $ | - | ||||||
(2) Payments for acquisition of Aimetis, net of cash acquired: | ||||||||||||
Net fair value of assets acquired and liabilities assumed of Aimetis at the date of acquisition (see also Note 1b): | ||||||||||||
Net assets (liabilities) (excluding cash and cash equivalents) | $ | - | $ | - | $ | (293 | ) | |||||
Technology | - | - | 3,759 | |||||||||
Customer relationship | - | - | 761 | |||||||||
Adjustment to deferred revenue | - | - | 671 | |||||||||
Contingent consideration | (82 | ) | ||||||||||
Deferred tax liability, net | - | - | (562 | ) | ||||||||
Goodwill | - | - | 7,859 | |||||||||
Total payments for acquisition of Aimetis, net of cash acquired | $ | - | $ | - | $ | 12,113 |
December 31, | ||||||||
2014 | 2015 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit (Note 8) | $ | 2,571 | $ | - | ||||
Current maturities of long-term bank debt | 500 | - | ||||||
Trade payables | 6,272 | 3,185 | ||||||
Customer advances | 1,262 | 2,520 | ||||||
Other accounts payable and accrued expenses (Note 9) | 11,879 | 10,748 | ||||||
Total current liabilities | 22,484 | 16,453 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term bank debt and other long-term payables (Note 10) | 1,406 | 15 | ||||||
Deferred income taxes (Note 14) | 193 | 173 | ||||||
Accrued severance pay | 3,719 | 2,660 | ||||||
Total long-term liabilities | 5,318 | 2,848 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES (Note 11) | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital - | ||||||||
Ordinary shares of NIS 1 par value - | ||||||||
Authorized: 39,748,000 shares at December 31, 2014 and December 31, 2015; Issued and outstanding: 16,398,872 shares at December 31, 2015 and 16,269,022 shares at December 31, 2014 | 4,935 | 4,968 | ||||||
Additional paid-in capital | 69,174 | 69,888 | ||||||
Accumulated other comprehensive income (loss) | 2,041 | (1,850 | ) | |||||
Foreign currency translation adjustments (Company's standalone financial statements) | 632 | 406 | ||||||
Accumulated deficit | (20,770 | ) | (17,629 | ) | ||||
Total Magal shareholders' equity | 56,012 | 55,783 | ||||||
Non-controlling interest | (55 | ) | (88 | ) | ||||
Total shareholders' equity (Note 12) | 55,957 | 55,695 | ||||||
Total liabilities and shareholders' equity | $ | 83,759 | $ | 74,996 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Revenues | $ | 51,517 | $ | 77,543 | $ | 63,736 | ||||||
Cost of revenues | 31,059 | 43,049 | 32,722 | |||||||||
Gross profit | 20,458 | 34,494 | 31,014 | |||||||||
Operating expenses: | ||||||||||||
Research and development, net | 4,409 | 4,604 | 4,814 | |||||||||
Selling and marketing | 12,781 | 17,130 | 14,785 | |||||||||
General and administrative | 7,787 | 8,898 | 7,026 | |||||||||
Impairment of goodwill and intangible assets | - | 2,439 | - | |||||||||
Total operating expenses | 24,977 | 33,071 | 26,625 | |||||||||
Operating income (loss) | (4,519 | ) | 1,423 | 4,389 | ||||||||
Financial income, net (Note 17) | 59 | 1,979 | 642 | |||||||||
Income (loss) before income taxes (Note 14) | (4,460 | ) | 3,402 | 5,031 | ||||||||
Taxes on income | 69 | 82 | 1,923 | |||||||||
Net income (loss) | (4,529 | ) | 3,320 | 3,108 | ||||||||
Less - loss attributable to non-controlling interests | 66 | 90 | 33 | |||||||||
Net income (loss) attributable to Magal shareholders' | $ | (4,463 | ) | $ | 3,410 | $ | 3,141 | |||||
Basic and diluted income (loss) per share | $ | (0.28 | ) | $ | 0.21 | $ | 0.19 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Net income (loss) | $ | (4,529 | ) | $ | 3,320 | $ | 3,108 | |||||
Foreign currency translation adjustments | (875 | ) | (1,833 | ) | (3,891 | ) | ||||||
Total comprehensive income (loss) | $ | (5,404 | ) | $ | 1,487 | $ | (783 | ) | ||||
Total comprehensive loss attributable to non-controlling interests | (66 | ) | (90 | ) | (33 | ) | ||||||
Total comprehensive income (loss) attributable to Magal shareholders' | $ | (5,338 | ) | $ | 1,577 | $ | (750 | ) |
Number of shares | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Foreign currency translation adjustment - the Company | Retained earnings (accumulated deficit) | Non- controlling interests | Total shareholders' equity | |||||||||||||||||||||||||
Balance as of January 1, 2013 | 16,098,022 | $ | 4,887 | $ | 66,183 | $ | 4,749 | $ | 2,224 | $ | (19,717 | ) | $ | - | $ | 58,326 | ||||||||||||||||
Issuance of shares upon exercise of employee stock options | 49,500 | 14 | 175 | - | - | - | - | 189 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 513 | - | - | - | - | 513 | ||||||||||||||||||||||||
Warrants Granted for CyberSeal founders | - | - | 1,500 | - | - | - | - | 1,500 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | 2,365 | - | - | 2,365 | ||||||||||||||||||||||||
Issue of shares to non-controlling interests | - | - | - | - | - | - | 51 | 51 | ||||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | (4,463 | ) | (66 | ) | (4,529 | ) | |||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | (875 | ) | - | - | - | (875 | ) | ||||||||||||||||||||||
Balance as of December 31, 2013 | 16,147,522 | 4,901 | 68,371 | 3,874 | 4,589 | (24,180 | ) | (15 | ) | 57,540 | ||||||||||||||||||||||
Issuance of shares upon exercise of employee stock options | 121,500 | 34 | 430 | - | - | - | - | 464 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 373 | - | - | - | - | 373 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | (3,957 | ) | - | - | (3,957 | ) | ||||||||||||||||||||||
Issue of shares to non-controlling interests | - | - | - | - | - | - | 50 | 50 | ||||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | 3,410 | (90 | ) | 3,320 | |||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | (1,833 | ) | - | - | - | (1,833 | ) | ||||||||||||||||||||||
Balance as of December 31, 2014 | 16,269,022 | 4,935 | 69,174 | 2,041 | 632 | (20,770 | ) | (55 | ) | 55,957 | ||||||||||||||||||||||
Issuance of shares upon exercise of employee stock options | 129,850 | 33 | 471 | - | - | - | - | 504 | ||||||||||||||||||||||||
Stock-based compensation | - | - | 243 | - | - | - | - | 243 | ||||||||||||||||||||||||
Foreign currency translation adjustments- the Company | - | - | - | - | (226 | ) | - | - | (226 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | 3,141 | (33 | ) | 3,108 | |||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | (3,891 | ) | - | - | - | (3,891 | ) | ||||||||||||||||||||||
Balance as of December 31, 2015 | 16,398,872 | 4,968 | 69,888 | (1,850 | ) | 406 | (17,629 | ) | (88 | ) | 55,695 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (4,529 | ) | $ | 3,320 | $ | 3,108 | |||||
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 1,719 | 1,967 | 1,503 | |||||||||
Impairment of goodwill and intangible assets | - | 2,439 | - | |||||||||
Loss (gain) on sale of property and equipment | 30 | (28 | ) | 18 | ||||||||
Decrease (increase) in accrued interest and exchange differences on short-term and long-term bank deposits and long-term loans | 317 | (673 | ) | (218 | ) | |||||||
Stock based compensation | 513 | 373 | 243 | |||||||||
Decrease (increase) in trade receivables, net | 5,819 | (9,936 | ) | 6,261 | ||||||||
Decrease (increase) in unbilled accounts receivable | 58 | (1,928 | ) | (1,570 | ) | |||||||
Decrease (increase) in other accounts receivable and prepaid expenses | 375 | 235 | (151 | ) | ||||||||
Decrease (increase) in inventories | 246 | (88 | ) | (635 | ) | |||||||
Increase in deferred income taxes | (144 | ) | (943 | ) | (51 | ) | ||||||
Decrease (increase) in long-term trade receivables | 420 | 416 | (387 | ) | ||||||||
Increase (decrease) in trade payables | (3,045 | ) | 2,666 | (2,934 | ) | |||||||
Increase (decrease) in other accounts payable and accrued expenses | (1,518 | ) | 3,065 | (483 | ) | |||||||
Increase (decrease) in customer advances | (3,054 | ) | (2,740 | ) | 1,385 | |||||||
Accrued severance pay, net | 203 | 145 | (631 | ) | ||||||||
Net cash provided by (used in) operating activities | (2,590 | ) | (1,710 | ) | 5,458 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Investment in short-term deposits | (25,697 | ) | (27,291 | ) | (592 | ) | ||||||
Proceeds from sale of short-term bank deposits | 21,264 | 25,371 | 5,777 | |||||||||
Release of long-term bank deposits and restricted deposit | 2,251 | 2,822 | 1,985 | |||||||||
Proceeds from sale of property and equipment | 22 | 81 | 104 | |||||||||
Purchase of property and equipment | (1,203 | ) | (737 | ) | (876 | ) | ||||||
Investment in know-how and patents | (4 | ) | (14 | ) | (1 | ) | ||||||
Payments for business acquisition of a Fiber Company, net of cash acquired (1) | - | (3,875 | ) | - | ||||||||
Payments for business acquisition of CyberSeal, net of cash acquired (2) | (2,393 | ) | - | - | ||||||||
Net cash provided by (used in) investing activities | (5,760 | ) | (3,643 | ) | 6,397 | |||||||
Cash flows from financing activities: | ||||||||||||
Short-term bank credit, net | - | (2,795 | ) | (2,573 | ) | |||||||
Principal payment of long-term bank loans | (157 | ) | (502 | ) | (1,899 | ) | ||||||
Proceeds from long-term bank debt | 2,500 | - | - | |||||||||
Proceeds from issuance of shares upon exercise of options to employees | 189 | 464 | 504 | |||||||||
Issue of shares to non-controlling interests | 51 | 50 | - | |||||||||
Net cash provided by (used in) financing activities | 2,583 | (2,783 | ) | (3,968 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 1,218 | (2,497 | ) | (2,170 | ) | |||||||
Increase (decrease) in cash and cash equivalents | (4,549 | ) | (10,633 | ) | 5,717 | |||||||
Cash and cash equivalents at the beginning of the year | 36,784 | 32,235 | 21,602 | |||||||||
Cash and cash equivalents at the end of the year | $ | 32,235 | $ | 21,602 | $ | 27,319 | ||||||
Supplemental disclosures of cash flows activities: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 182 | $ | 166 | $ | 116 | ||||||
Income taxes | $ | 499 | $ | 516 | $ | 753 | ||||||
Non-cash activities: | ||||||||||||
Warrants issued upon the acquisition of CyberSeal | $ | 1,500 | $ | - | $ | - |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
(1) Payments for business acquisitions of a Fiber Company, net of cash acquired: | ||||||||||||
Net fair value of assets acquired and liabilities assumed of the fiber company at the date of acquisition (see also Note 1b): | ||||||||||||
Net assets (excluding cash and cash equivalents) | $ | - | $ | 410 | $ | - | ||||||
Technology | - | 1,337 | - | |||||||||
Customer relationship | - | 315 | - | |||||||||
Backlog | - | 398 | - | |||||||||
Deferred tax liability | - | (819 | ) | - | ||||||||
Deferred tax assets | - | 474 | - | |||||||||
Goodwill | - | 1,760 | - | |||||||||
Total payments for business acquisitions of a Fiber Company, net of cash acquired | $ | - | $ | 3,875 | $ | - | ||||||
(2) Payments for business acquisitions of CyberSeal, net of cash acquired: | ||||||||||||
Net fair value of assets acquired and liabilities assumed of CyberSeal at the date of acquisition (see also Note 1c): | ||||||||||||
Net assets (excluding cash and cash equivalents) | $ | (279 | ) | $ | - | $ | - | |||||
Technology | 457 | - | - | |||||||||
Customer relationship | 386 | - | - | |||||||||
Backlog | 323 | - | - | |||||||||
Deferred tax liability | (175 | ) | - | - | ||||||||
Goodwill | 3,181 | - | - | |||||||||
$ | 3,893 | $ | - | $ | - | |||||||
Warrants issued upon the acquisition of Cyberseal | (1,500 | ) | - | - | ||||||||
Total payments for business acquisitions of CyberSeal, net of cash acquired | $ | 2,393 | $ | - | $ | - |
NOTE 1:- | GENERAL |
a. | General: |
b. |
NOTE 1:- | GENERAL (Cont.) |
Net assets (including cash of $ 2,461) | $ | 3,683 | ||
Intangible assets | 501 | |||
Adjustment to deferred revenue | 20 | |||
Deferred tax liabilities | (80 | ) | ||
Goodwill | 255 | |||
Redeemable non-controlling interests | (1,533 | ) | ||
Total purchase price | $ | 2,846 |
Fair value | ||||
Technology | $ | 190 | ||
Customer relationships | 164 | |||
Backlog | 147 | |||
Total intangible assets | $ | 501 |
NOTE 1:- | GENERAL (Cont.) |
Year ended December 31, | ||||
2018 | ||||
Revenues | $ | 3,969 | ||
Net income | $ | 210 |
Year ended December 31, | ||||||||
2018 | 2017 | |||||||
Unaudited | ||||||||
Revenues | $ | 94,216 | $ | 69,851 | ||||
Net income (loss) attributable to Magal shareholders' | $ | 3,198 | $ | (6,802 | ) | |||
Basic and diluted net income (loss) per share | $ | 0.14 | $ | (0.30 | ) |
c. | 2016 Acquisition: |
NOTE 1:- | GENERAL (Cont.) |
Net assets (including cash of $411) | $ | 821 | ||||||
Net assets (including cash of $ 2,274) | $ | 1,981 | ||||||
Intangible assets | 2,050 | 4,520 | ||||||
Deferred tax assets | 474 | |||||||
Deferred tax liabilities | (819 | ) | ||||||
Adjustment to deferred revenue | 671 | |||||||
Deferred tax liabilities, net | (562 | ) | ||||||
Goodwill | 1,760 | 7,859 | ||||||
Total purchase price | $ | 4,286 | $ | 14,469 |
Fair value | Fair value | |||||||
Technology | $ | 1,337 | $ | 3,759 | ||||
Customer relationships | 315 | 761 | ||||||
Backlog | 398 | |||||||
Total intangible assets | $ | 2,050 | $ | 4,520 |
NOTE 1:- | GENERAL (Cont.) |
Year ended December | ||||
31, 2014 | ||||
Revenues | $ | 3,763 | ||
Net income | $ | 733 |
Year ended December 31, | ||||
2016 | ||||
Revenues | $ | 5,047 | ||
Net loss | $ | (2,667 | ) |
Year ended December 31, | Year ended December 31, | |||||||||||||||
2013 | 2014 | 2016 | 2015 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Revenues | $ | 55,282 | $ | 77,999 | $ | 69,956 | $ | 71,709 | ||||||||
Net income (loss) | $ | (5,780 | ) | $ | 3,156 | |||||||||||
Net income (loss) attributable to Magal shareholders' | $ | (73 | ) | $ | 2,134 | |||||||||||
Basic and diluted income (loss) per share | $ | (0.36 | ) | $ | 0.19 | $ | 0.00 | $ | 0.13 |
Cash | $ | 2,560 | ||
Warrants *) | 1,500 | |||
Total purchase price | $ | 4,060 |
Net assets (liabilities) (including cash of $167) | $ | (112 | ) | |
Intangible assets | 1,166 | |||
Deferred tax liabilities | (175 | ) | ||
Goodwill | 3,181 | |||
Total purchase price | $ | 4,060 |
Fair value | ||||
Technology | $ | 457 | ||
Customer relationships | 386 | |||
Backlog | 323 | |||
Total intangible assets | $ | 1,166 |
Year ended December | ||||
31, 2013 | ||||
Revenues | $ | 1,638 | ||
Net loss | $ | (703 | ) |
Year ended December 31, | ||||||||
2012 | 2013 | |||||||
Unaudited | ||||||||
Revenues | $ | 79,501 | $ | 51,527 | ||||
Net income (loss) | $ | 3,565 | $ | (4,378 | ) | |||
Basic and diluted income (loss) per share | $ | 0.22 | $ | (0.27 | ) |
a. | Use of estimates: |
b. | Financial statements in U.S. dollars: |
c. | Principles of consolidation: |
Redeemable non-controlling interests are classified as temporary equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the non-controlling interest book value, in accordance with the requirements of ASC 810 “Consolidation” and ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity”. The following table provides a reconciliation of the beginning and ending amount of the redeemable non-controlling interests for the year ended December 31, 2018:
d. Cash equivalents: |
e. | Short-term and long-term bank deposits: |
f. Inventories: |
g. Long-term trade receivables: |
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
h. Property and equipment: |
% | |
Buildings | 3 - 4 |
Machinery and equipment | 10 - 33 (mainly 10%) |
Motor vehicles | 15 |
Promotional displays | 15 - 50 |
Office furniture and equipment | 6 - 33 |
Leasehold improvements | By the shorter of the term of the lease or the useful life of the assets |
i. Intangible assets: |
% | |
Patents | 10 |
Technology | |
Customer relationships | |
Backlog |
j. Impairment of long-lived assets: |
k. | Goodwill: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
l. | Business combinations: |
m. | Revenue recognition: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
n. Accounting for stock-based compensation: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
2013 | 2014 | 2015 | ||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||
Expected volatility | 38.5%-58 | % | 39.34%-44.91 | % | 36.86%-50.05 | % | ||||||
Risk-free interest | 0.14%-1.6 | % | 0.10%-1.90 | % | 0.24%-2.16 | % | ||||||
Contractual term | 4-8 years | 4-6 years | 4-7 years | |||||||||
Forfeiture rate | 10 | % | 10 | % | 10 | % | ||||||
Suboptimal exercise multiple | 1.5 | 1.5 | 1.41 |
2018 | 2016 | |||
Dividend yield | 0% | 0% | ||
Expected volatility | 37.11%-43.98% | 27.72%-46.02% | ||
Risk-free interest | 2.5%-2.86% | 0.61%-1.59% | ||
Contractual term | 5-7 years | 5-7 years | ||
Forfeiture rate | 10% | 10% | ||
Suboptimal exercise multiple | 1.32-1.33 | 1.41 |
o. Research and development costs: |
p. Warranty costs: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
December 31, | ||||||||
2018 | 2017 | |||||||
Warranty provision, beginning of year | $ | 1,281 | $ | 1,197 | ||||
Charged to costs and expenses relating to new sales | 569 | 230 | ||||||
Costs of warranties granted | (365 | ) | (251 | ) | ||||
Foreign currency translation adjustments | (125 | ) | 105 | |||||
Warranty provision, end of year | $ | 1,360 | $ | 1,281 |
December 31, | ||||||||
2014 | 2015 | |||||||
Warranty provision, beginning of year | $ | 1,238 | $ | 1,319 | ||||
Charged to costs and expenses relating to new sales | 1,014 | 709 | ||||||
Costs of warranties granted | (793 | ) | (723 | ) | ||||
Foreign currency translation adjustments | (140 | ) | (92 | ) | ||||
Warranty provision, end of year | $ | 1,319 | $ | 1,213 |
q. Net earnings |
r. Concentrations of credit risk: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Balance at the beginning of the year | $ | 959 | $ | 809 | $ | 1,802 | $ | 1,557 | $ | 2,064 | $ | 2,331 | ||||||||||||
Doubtful debt expenses during the year | 165 | 1,159 | 749 | 1,453 | 299 | 429 | ||||||||||||||||||
Customers write-offs/collection during the year, net | (358 | ) | (17 | ) | (185 | ) | (204 | ) | (957 | ) | (706 | ) | ||||||||||||
Exchange rate | 43 | (149 | ) | (35 | ) | (55 | ) | 151 | 10 | |||||||||||||||
$ | 809 | $ | 1,802 | $ | 2,331 | $ | 2,751 | $ | 1,557 | $ | 2,064 |
s. Income taxes: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
t. | Severance pay: |
u. | Fair value of financial instruments: |
(i) | The carrying amounts of cash and cash equivalents, short-term bank deposits, long-term bank deposits, trade receivables, unbilled accounts receivable, short-term bank credit and trade payables approximate their fair value due to the short-term maturity of such instruments. |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
(ii) | The carrying amount of the Company's long-term trade receivables approximate their fair value. The fair value was estimated using discounted cash flows analysis, based on the Company's investment rates for similar type of investment arrangements. |
(iii) | The carrying amounts of the Company's long-term debt are estimated by discounting the future cash flows using current interest rates for loans of similar terms and maturities. As of December 31, |
v. Advertising expenses: |
w. | Fair value measurements: |
Level 1 | - | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
Level 2 | - | Significant other observable inputs based on market data obtained from sources independent of the reporting entity. |
Level 3 | - | Unobservable inputs which are supported by little or no market activity. |
NOTE 2:- |
Comprehensive income (loss): |
Year ended December 31, | December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Foreign currency translation adjustments | $ | 3,874 | $ | 2,041 | $ | (1,850 | ) | $ | (1,827 | ) | $ | (87 | ) | $ | (1,923 | ) | ||||||||
Total accumulated other comprehensive income (loss) | $ | 3,874 | $ | 2,041 | $ | (1,850 | ) | |||||||||||||||||
Total accumulated other comprehensive loss | $ | (1,827 | ) | $ | (87 | ) | $ | (1,923 | ) |
y. | Non-controlling interest: |
z. | Impact of recently issued and adopted accounting standards: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
aa. | New accounting pronouncements not yet effective: |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 3:- | OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES |
December 31, | December 31, | |||||||||||||||
2014 | 2015 | 2018 | 2017 | |||||||||||||
Prepaid expenses | $ | 2,188 | $ | 1,495 | ||||||||||||
Government authorities | $ | 721 | $ | 443 | 1,222 | 730 | ||||||||||
Advances to suppliers | 445 | 359 | ||||||||||||||
Employees | 29 | 13 | 62 | 63 | ||||||||||||
Prepaid expenses | 879 | 852 | ||||||||||||||
Advances to suppliers | 284 | 533 | ||||||||||||||
Others | 189 | 266 | 209 | 203 | ||||||||||||
$ | 2,102 | $ | 2,107 | $ | 4,126 | $ | 2,850 |
NOTE 4:- | INVENTORIES |
December 31, | December 31, | |||||||||||||||
2014 | 2015 | 2018 | 2017 | |||||||||||||
Raw materials | $ | 2,124 | $ | 1,498 | $ | 4,762 | $ | 2,346 | ||||||||
Work in progress | 1,482 | 1,607 | 1,952 | 1,378 | ||||||||||||
Finished products | 4,541 | 4,774 | 7,149 | 5,872 | ||||||||||||
$ | 8,147 | $ | 7,879 | $ | 13,863 | $ | 9,596 |
NOTE 5:- | PROPERTY AND EQUIPMENT, NET |
December 31, | ||||||||
2018 | 2017 | |||||||
Cost: | ||||||||
Land and buildings | $ | 7,559 | $ | 7,311 | ||||
Machinery and equipment | 3,392 | 3,129 | ||||||
Motor vehicles | 2,440 | 1,958 | ||||||
Promotional displays | 644 | 600 | ||||||
Office furniture and equipment | 4,198 | 4,619 | ||||||
Leasehold improvements | 739 | 906 | ||||||
18,972 | 18,523 | |||||||
Accumulated depreciation: | ||||||||
Buildings | 4,375 | 4,283 | ||||||
Machinery and equipment | 2,689 | 2,446 | ||||||
Motor vehicles | 1,244 | 1,165 | ||||||
Promotional displays | 477 | 453 | ||||||
Office furniture and equipment | 3,426 | 3,861 | ||||||
Leasehold improvements | 414 | 597 | ||||||
12,625 | 12,805 | |||||||
Property and equipment, net | $ | 6,347 | $ | 5,718 |
December 31, | ||||||||
2014 | 2015 | |||||||
Cost: | ||||||||
Land and buildings | $ | 7,025 | $ | 6,574 | ||||
Machinery and equipment | 2,822 | 2,566 | ||||||
Motor vehicles | 1,611 | 1,734 | ||||||
Promotional displays | 452 | 419 | ||||||
Office furniture and equipment | 3,620 | 3,455 | ||||||
Leasehold improvements | 575 | 521 | ||||||
16,105 | 15,269 | |||||||
Accumulated depreciation: | ||||||||
Buildings | 3,440 | 3,490 | ||||||
Machinery and equipment | 2,221 | 2,045 | ||||||
Motor vehicles | 864 | 852 | ||||||
Promotional displays | 349 | 355 | ||||||
Office furniture and equipment | 2,803 | 2,791 | ||||||
Leasehold improvements | 317 | 321 | ||||||
9,994 | 9,854 | |||||||
Property and equipment, net | $ | 6,111 | $ | 5,415 |
NOTE 6:- | INTANGIBLE ASSETS, NET |
a. | Composition: |
December 31, | December 31, | |||||||||||||||
2014 | 2015 | 2018 | 2017 | |||||||||||||
Cost: | ||||||||||||||||
Know-how and patents | $ | 4,738 | $ | 4,076 | $ | 4,194 | $ | 4,525 | ||||||||
Technology | 1,789 | 1,789 | 5,873 | 5,766 | ||||||||||||
Customer relationships | 686 | 686 | 1,582 | 1,521 | ||||||||||||
Backlog | 708 | 708 | 858 | 746 | ||||||||||||
7,921 | 7,259 | 12,507 | 12,558 | |||||||||||||
Accumulated amortization: | ||||||||||||||||
Know-how and patents | 4,606 | 4,002 | 4,162 | 4,478 | ||||||||||||
Technology | 327 | 762 | 2,774 | 2,154 | ||||||||||||
Customer relationships | 270 | 475 | 1,093 | 877 | ||||||||||||
Backlog | 546 | 707 | 833 | 746 | ||||||||||||
5,749 | 5,946 | 8,862 | 8,255 | |||||||||||||
Impairment of technology and customer relationships | 325 | - | ||||||||||||||
Intangible assets , net | $ | 1,847 | $ | 1,313 | $ | 3,645 | $ | 4,303 |
b. | Amortization expenses related to intangible assets |
c. | Estimated amortization of intangible assets for the years ended: |
December 31, | ||||
2016 | $ | 272 | ||
2017 | 239 | |||
2018 | 230 | |||
2019 | 188 | |||
2020 and thereafter | 384 | |||
$ | 1,313 |
December 31, | ||||
2019 | $ | 897 | ||
2020 | 888 | |||
2021 | 850 | |||
2022 | 673 | |||
2023 | 227 | |||
2024 and thereafter | 110 | |||
$ | 3,645 |
NOTE 7:- | GOODWILL |
Perimeter Products | Cyber | Total | ||||||||||
As of January 1, 2014 | $ | 1,991 | $ | 3,426 | $ | 5,417 | ||||||
Acquisition of a Fiber Company | 1,760 | - | 1,760 | |||||||||
Impairment of goodwill (See Note 2k.) | - | (2,114 | ) | (2,114 | ) | |||||||
Foreign currency translation adjustments | (199 | ) | (368 | ) | (567 | ) | ||||||
As of December 31, 2014 | 3,552 | 944 | 4,496 | |||||||||
Foreign currency translation adjustments | (242 | ) | (4 | ) | (246 | ) | ||||||
As of December 31, 2015 | $ | 3,310 | $ | 940 | $ | 4,250 |
Products | Video and Cyber security | Projects | Total | |||||||||||||
As of January 1, 2017 | $ | 3,305 | $ | 8,545 | $ | - | $ | 11,850 | ||||||||
Foreign currency translation adjustments | 165 | 677 | - | 842 | ||||||||||||
As of December 31, 2017 | 3,470 | 9,222 | - | 12,692 | ||||||||||||
Acquisition of ESC BAZ | - | - | 255 | 255 | ||||||||||||
Impairment of goodwill (See Note 2k.) | - | (979 | ) | - | (979 | ) | ||||||||||
Foreign currency translation adjustments | (105 | ) | (727 | ) | (16 | ) | (848 | ) | ||||||||
As of December 31, 2018 | $ | 3,365 | $ | 7,516 | $ | 239 | $ | 11,120 |
NOTE 8:- |
Interest rate | December 31, | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
% | ||||||||||||||||
In or linked to NIS | 0.66 | - | $ | 2,571 | $ | - | ||||||||||
$ | 2,571 | $ | - | |||||||||||||
Weighted average interest rates at the end of the year | 0.66 | - |
December 31, | ||||||||
2018 | 2017 | |||||||
Employees and payroll accruals | $ | 4,250 | $ | 3,082 | ||||
Accrued expenses | 7,190 | 6,100 | ||||||
Government authorities | 156 | 1,427 | ||||||
Income tax payable and tax provision | 1,457 | 951 | ||||||
Others | 173 | 61 | ||||||
$ | 13,226 | $ | 11,621 |
NOTE |
December 31, | ||||||||
2014 | 2015 | |||||||
Short-term bank credit | $ | 2,571 | $ | - | ||||
Long-term bank credit | 1,875 | - | ||||||
Bank guarantees | 4,111 | 5,744 | ||||||
8,557 | 5,744 | |||||||
Unutilized credit lines | 19,406 | 17,085 | ||||||
Total authorized credit lines | $ | 27,963 | $ | 22,829 |
December 31, | ||||||||
2014 | 2015 | |||||||
Employees and payroll accruals | $ | 3,455 | $ | 3,212 | ||||
Accrued expenses | 6,479 | 4,949 | ||||||
Deferred revenues | 451 | 487 | ||||||
Government authorities | 287 | 51 | ||||||
Income tax payable and tax provision | 1,085 | 1,822 | ||||||
Others | 122 | 227 | ||||||
$ | 11,879 | $ | 10,748 |
Interest rate | December 31, | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
% | ||||||||||||||||
In or linked to US$ | 3.65 | - | $ | 1,875 | $ | - | ||||||||||
1,875 | - | |||||||||||||||
Less - current maturities | 500 | - | ||||||||||||||
$ | 1,375 | $ | - | |||||||||||||
Weighted average interest rates at the end of the year | 3.65 | - |
COMMITMENTS AND CONTINGENT LIABILITIES |
a. | Royalty commitments to the Innovation Authority (formerly the Office of the Chief |
b. | Royalty commitments to a third party: |
c. | Lease commitments: |
2016 | $ | 659 | ||
2017 | 414 | |||
2018 | 323 | |||
2019 | 235 | |||
2020 | 241 | |||
2021 and there after | 1,255 | |||
$ | 3,127 |
2019 | $ | 1,119 | ||
2020 | 720 | |||
2021 | 599 | |||
2022 | 517 | |||
2023 | 465 | |||
2024 and there after | 1,473 | |||
$ | 4,893 |
NOTE 9:- | COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) |
d. | Guarantees: |
The Company's Canadian subsidiary has undertaken to maintain a general covenant and the following financial ratio and term in respect of its outstanding credit lines: a ratio of total liabilities to tangible net worth of not greater than 0.75:1. As of December 31, 2018, the Canadian subsidiary was in a default of its covenant. After the balance sheet date, the bank acknowledged the default and agreed to the Company's plan to remedy such default until May 31, 2019. Such default has no impact on the Company's financial statements as of December 31, 2018. |
Restricted deposits: |
Legal proceedings: |
a. | Pertinent rights and privileges conferred by Ordinary shares: |
b. | Issued and outstanding share capital: |
NOTE | SHAREHOLDERS' EQUITY (Cont.) |
c. | Stock Option Plan: |
Number of options | Weighted-average exercise price | Weighted- average remaining contractual life (in months) | Aggregate intrinsic value (in thousands) | |||||||||||||
Outstanding at January 1, 2015 | 1,017,332 | 4.33 | 33.3 | 1,507 | ||||||||||||
Granted | 383,000 | 4.48 | 60.08 | |||||||||||||
Exercised | (129,850 | ) | 3.88 | |||||||||||||
Forfeited | (395,232 | ) | 4.35 | |||||||||||||
Outstanding at December 31, 2015 | 875,250 | 4.45 | 40 | 59 | ||||||||||||
Vested and expected to vest at December 31, 2015 | 705,600 | 4.38 | 42.7 | 59 | ||||||||||||
Exercisable at December 31, 2015 | 380,083 | 4.42 | 8.53 | 39 |
Number of options | Weighted-average exercise price | Weighted- average remaining contractual life (in months) | Aggregate intrinsic value (in thousands) | |||||||||||||
Outstanding at January 1, 2018 | 412,976 | 4.616 | 44.21 | 183 | ||||||||||||
Granted | 555,000 | 5.032 | ||||||||||||||
Exercised | (17,191 | ) | 4.507 | |||||||||||||
Forfeited | (61,667 | ) | 4.807 | |||||||||||||
Outstanding at December 31, 2018 | 889,118 | 4.865 | 51.25 | - | ||||||||||||
Exercisable at December 31, 2018 | 223,620 | 4.57 | 0.003 | - |
NOTE | SHAREHOLDERS' EQUITY (Cont.) |
Options outstanding as of December 31, 2015 | Exercise price | Weighted average remaining contractual life | Options exercisable as of December 31, 2015 | |||||||||||
(In months) | ||||||||||||||
36,000 | 4.25 | 43.03 | 18,000 | |||||||||||
291,250 | 4.35 | 25.2 | 213,750 | |||||||||||
55,000 | 3.53 | 17.03 | 55,000 | |||||||||||
85,000 | 5.14 | 16.03 | 85,000 | |||||||||||
25,000 | 5.16 | 44.03 | 8,333 | |||||||||||
209,000 | 4.15 | 56.51 | - | |||||||||||
150,000 | 4.96 | 62.5 | - | |||||||||||
24,000 | 4.4 | 65.23 | - | |||||||||||
875,250 | 40 | 380,083 |
Number of options outstanding as of December 31, 2018 | Exercise price | Weighted average remaining contractual life | Number of options exercisable as of December 31, 2018 | |||||||||||
(In months) | ||||||||||||||
54,000 | 5.01 | 38.89 | 18,000 | |||||||||||
81,906 | 4.96 | 3.25 | 81,906 | |||||||||||
24,000 | 4.40 | 29.23 | 16,000 | |||||||||||
135,212 | 4.15 | 28.33 | 94,713 | |||||||||||
39,000 | 4.86 | 43.94 | 13,001 | |||||||||||
24,000 | 5.61 | 61.23 | - | |||||||||||
440,000 | 5.15 | 65.78 | - | |||||||||||
91,000 | 4.31 | 71.92 | - | |||||||||||
889,118 | 51.25 | 223,620 |
d. | Warrants: |
NOTE 10:- | SHAREHOLDERS' EQUITY (Cont.) |
e. | Dividends: |
NOTE | BASIC AND DILUTED NET EARNINGS PER SHARE |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Income (loss) attributable to Magal shareholders' | $ | (4,463 | ) | $ | 3,410 | $ | 3,141 | $ | 2,722 | $ | (6,914 | ) | $ | 1,029 | ||||||||||
Denominator: | ||||||||||||||||||||||||
Denominator for basic net earnings (loss) per share weighted-average number of shares outstanding | 16,138,944 | 16,186,148 | 16,347,948 | 23,040,436 | 22,989,009 | 17,999,779 | ||||||||||||||||||
Effect of diluting securities: | ||||||||||||||||||||||||
Employee stock options | - | 151,908 | 62,763 | 247,315 | - | 31,654 | ||||||||||||||||||
Denominator for diluted net earnings (loss) per share - adjusted weighted average shares and assumed exercises | 16,138,944 | 16,338,056 | 16, 410,711 | 23,287,751 | 22,989,009 | 18,031,433 |
NOTE | TAXES ON INCOME |
a. | Tax laws applicable to the Group companies: |
NOTE 12:- | TAXES ON INCOME (Cont.) |
NOTE | TAXES ON INCOME (Cont.) |
b. | Tax rates applicable to the Group: |
1. | The Israeli regular corporate tax rate for Israeli companies was |
2. | The tax rates of the Company's non-Israeli subsidiaries range between 16% |
NOTE 12:- | TAXES ON INCOME (Cont.) |
c. | Income taxes on non-Israeli subsidiaries: |
d. | Tax assessments: |
NOTE 12:- | TAXES ON INCOME (Cont.) |
e. | Reconciliation between the theoretical tax expense, assuming all income is taxed at the Israeli statutory rate, and the actual tax expense, is as follows: |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Income (loss) before taxes as reported in the statements of operations | $ | (4,460 | ) | $ | 3,402 | $ | 5,031 | $ | 5,116 | $ | (5,205 | ) | $ | 904 | ||||||||||
Tax rate | 25 | % | 26.5 | % | 26.5 | % | 23 | % | 24 | % | 25 | % | ||||||||||||
Theoretical tax (tax benefit) | $ | (1,115 | ) | $ | 902 | $ | 1,333 | |||||||||||||||||
Theoretical tax | $ | 1,177 | $ | (1,249 | ) | $ | 226 | |||||||||||||||||
Increase (decrease) in taxes: | ||||||||||||||||||||||||
Non-deductible items | 119 | 746 | 211 | 32 | 185 | 249 | ||||||||||||||||||
Losses and other items for which a valuation allowance was provided | 1,494 | 939 | 579 | 972 | 1,769 | 977 | ||||||||||||||||||
Adjustment of deferred tax balances following a changes in tax rates | (266 | ) | - | - | ||||||||||||||||||||
Realization of carryforward tax losses for which valuation allowance was provided | - | (2,382 | ) | (587 | ) | (1,293 | ) | (28 | ) | (541 | ) | |||||||||||||
Changes in valuation allowance | - | (1,034 | ) | (567 | ) | (377 | ) | - | (1,602 | ) | ||||||||||||||
Tax rate differences in subsidiaries | (1 | ) | 571 | 276 | 223 | (71 | ) | 236 | ||||||||||||||||
Adjustment of deferred tax balances following a changes in tax rates | - | 410 | ||||||||||||||||||||||
Provision for uncertain tax positions | (55 | ) | 55 | 147 | 717 | 245 | (230 | ) | ||||||||||||||||
Taxes in respect of prior years | (3 | ) | - | 7 | (2 | ) | 21 | 79 | ||||||||||||||||
Tax withheld against which valuation allowance was provided this year | 266 | 391 | 671 | 755 | 638 | 602 | ||||||||||||||||||
Investment tax credit | (236 | ) | (160 | ) | (158 | ) | (180 | ) | (178 | ) | (220 | ) | ||||||||||||
Other | (134 | ) | 54 | 11 | 48 | (47 | ) | 102 | ||||||||||||||||
Taxes on income in the statements of operations | $ | 69 | $ | 82 | $ | 1,923 | ||||||||||||||||||
Taxes on income (tax benefit) in the statements of operations | $ | 2,072 | $ | 1,695 | $ | (122 | ) |
NOTE | TAXES ON INCOME (Cont.) |
f. | Taxes on income (tax benefit) included in the statements of operations: |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Current | $ | 213 | $ | 1,024 | $ | 1,979 | $ | 3,003 | $ | 2,162 | $ | 1,485 | ||||||||||||
Deferred | (144 | ) | (942 | ) | (56 | ) | (931 | ) | (467 | ) | (1,607 | ) | ||||||||||||
$ | 69 | $ | 82 | $ | 1,923 | $ | 2,072 | $ | 1,695 | $ | (122 | ) | ||||||||||||
Domestic | $ | 49 | $ | 295 | $ | 966 | $ | 1,460 | $ | 893 | $ | 407 | ||||||||||||
Foreign | 20 | (213 | ) | 957 | 612 | 802 | (529 | ) | ||||||||||||||||
$ | 69 | $ | 82 | $ | 1,923 | $ | 2,072 | $ | 1,695 | $ | (122 | ) |
g. | Deferred income taxes: |
December 31, | December 31, | |||||||||||||||
2014 | 2015 | 2018 | 2017 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Operating loss carry forwards | $ | 4,837 | $ | 6,178 | $ | 4,123 | $ | 5,158 | ||||||||
Reserves and tax allowances | 4,535 | 2,646 | 3,875 | 4,052 | ||||||||||||
Total deferred taxes before valuation allowance | 9,372 | 8,824 | 7,998 | 9,210 | ||||||||||||
Valuation allowance | (7,621 | ) | (7,276 | ) | (4,539 | ) | (6,631 | ) | ||||||||
Net deferred tax assets | 1,751 | 1,548 | ||||||||||||||
Deferred tax assets, net: | 3,459 | 2,579 | ||||||||||||||
Deferred tax liabilities: | 182 | 190 | ||||||||||||||
Intangible assets | 856 | 666 | ||||||||||||||
Net deferred tax assets | $ | 895 | $ | 882 | $ | 3,277 | $ | 2,389 | ||||||||
Foreign | $ | 739 | $ | 882 | $ | 3,277 | $ | 2,389 | ||||||||
Domestic | $ | 156 | $ | - |
NOTE | TAXES ON INCOME (Cont.) |
h. | The domestic and foreign components of income (loss) before taxes are as follows: |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Domestic | $ | (2,313 | ) | $ | (923 | ) | $ | (1,484 | ) | $ | 1,705 | $ | (1,605 | ) | $ | (1,482 | ) | |||||||
Foreign | (2,147 | ) | 4,325 | 6,515 | 3,411 | (3,600 | ) | 2,386 | ||||||||||||||||
$ | (4,460 | ) | $ | 3,402 | $ | 5,031 | $ | 5,116 | $ | (5,205 | ) | $ | 904 |
i. Net operating carry forward tax losses: |
j. | Uncertain tax positions: |
December 31, | ||||||||
2018 | 2017 | |||||||
Balance at the beginning of the year | $ | 908 | $ | 663 | ||||
Additions based on tax positions taken related to the current year | 717 | 245 | ||||||
Foreign currency translation adjustments | (14 | ) | - | |||||
Balance at the end of the year | $ | 1,611 | $ | 908 |
December 31, | ||||||||
2014 | 2015 | |||||||
Balance at the beginning of the year | $ | 706 | $ | 758 | ||||
Additions based on tax positions taken during a prior period | 9 | - | ||||||
Additions based on tax positions taken related to the current year | 114 | 293 | ||||||
Reductions related to settlement of tax matters and limitation | (68 | ) | (146 | ) | ||||
Foreign currency translation adjustments | (3 | ) | (12 | ) | ||||
Balance at the end of the year | $ | 758 | $ | 893 |
NOTE | BALANCES AND TRANSACTIONS WITH RELATED PARTIES |
NOTE | SEGMENT INFORMATION |
· | Perimeter Products segment (Products) - sales of perimeter products, including services and maintenance that are performed either on a fixed-price basis or pursuant to time-and-materials based contracts, and |
· | Turnkey Projects segment (Projects) - installation of comprehensive turnkey solutions for which revenues are generated from long-term fixed price contracts and modular and customizable medium and long range surveillance systems, and |
· | Video and Cyber security segment - provides |
a. | The following data present the revenues, expenditures, assets and other operating data of the Company's operating segments: |
Year ended December 31, 2013 | ||||||||||||||||||||
Perimeter | Projects | Cyber | Eliminations | Total | ||||||||||||||||
Revenues | $ | 30,551 | $ | 20,137 | $ | 1,638 | $ | (809 | ) | $ | 51,517 | |||||||||
Depreciation and amortization | $ | 606 | $ | 629 | $ | 484 | $ | - | $ | 1,719 | ||||||||||
Operating income (loss), before financial expenses and taxes on income | $ | 542 | $ | (3,571 | ) | $ | (1,184 | ) | $ | (306 | ) | $ | (4,519 | ) | ||||||
Financial income, net | (59 | ) | ||||||||||||||||||
Taxes on income | 69 | |||||||||||||||||||
Net loss | $ | (4,529 | ) |
Year ended December 31, 2014 | Year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
Perimeter | Projects | Cyber | Eliminations | Total | Products | Projects | Video and Cyber security | Eliminations | Total | |||||||||||||||||||||||||||||||
Revenues | $ | 37,554 | $ | 39,198 | $ | 1,329 | $ | (538 | ) | $ | 77,543 | $ | 27,626 | $ | 57,072 | $ | 9,461 | $ | (1,557 | ) | $ | 92,602 | ||||||||||||||||||
Depreciation and amortization | $ | 1,006 | $ | 641 | $ | 320 | $ | - | $ | 1,967 | ||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | $ | - | $ | - | $ | 2,439 | $ | - | $ | 2,439 | ||||||||||||||||||||||||||||||
Depreciation, amortization and impairment of goodwill | $ | 586 | $ | 879 | $ | 1,759 | $ | - | $ | 3,224 | ||||||||||||||||||||||||||||||
Operating income (loss), before financial expenses and taxes on income | $ | 6,770 | $ | (148 | ) | $ | (4,995 | ) | $ | (204 | ) | $ | 1,423 | $ | 2,863 | $ | 2,782 | $ | (1,298 | ) | $ | (592 | ) | $ | 3,755 | |||||||||||||||
Financial income, net | (1,979 | ) | 1,361 | |||||||||||||||||||||||||||||||||||||
Taxes on income | 82 | (2,072 | ) | |||||||||||||||||||||||||||||||||||||
Net income | $ | 3,320 | $ | 3,044 |
NOTE | SEGMENT INFORMATION (Cont.) |
Year ended December 31, 2015 | Year ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Perimeter | Projects | Cyber | Eliminations | Total | Products | Projects | Video and Cyber security | Eliminations | Total | |||||||||||||||||||||||||||||||
Revenues | $ | 30,761 | $ | 34,128 | $ | 1,596 | $ | (2,749 | ) | $ | 63,736 | $ | 22,301 | $ | 34,742 | $ | 8,350 | $ | (1,101 | ) | $ | 64,292 | ||||||||||||||||||
Depreciation and amortization | $ | 787 | $ | 602 | $ | 114 | $ | - | $ | 1,503 | $ | 614 | $ | 498 | $ | 764 | $ | - | $ | 1,876 | ||||||||||||||||||||
Operating income (loss), before financial expenses and taxes on income | $ | 6,023 | $ | 1,095 | $ | (1,684 | ) | $ | (1,045 | ) | $ | 4,389 | $ | 242 | $ | 1,762 | $ | (2,830 | ) | $ | (418 | ) | $ | (1,244 | ) | |||||||||||||||
Financial income, net | (642 | ) | ||||||||||||||||||||||||||||||||||||||
Financial expenses, net | (3,961 | ) | ||||||||||||||||||||||||||||||||||||||
Taxes on income | 1,923 | (1,695 | ) | |||||||||||||||||||||||||||||||||||||
Net income | $ | 3,108 | ||||||||||||||||||||||||||||||||||||||
Net loss | $ | (6,900 | ) |
Year ended December 31, 2014 | ||||||||||||||||
Perimeter | Projects | Cyber | Total | |||||||||||||
Total long-lived assets | $ | 7,890 | $ | 3,439 | $ | 1,125 | $ | 12,454 |
Year ended December 31, 2016 | ||||||||||||||||||||
Products | Projects | Video and Cyber security | Eliminations | Total | ||||||||||||||||
Revenues | $ | 32,372 | $ | 31,823 | $ | 5,626 | $ | (1,996 | ) | $ | 67,825 | |||||||||
Depreciation and amortization | $ | 632 | $ | 512 | $ | 596 | $ | - | $ | 1,740 | ||||||||||
Operating income (loss), before financial expenses and taxes on income | $ | 5,799 | $ | (163 | ) | $ | (3,383 | ) | $ | (758 | ) | $ | 1,495 | |||||||
Financial expenses, net | (591 | ) | ||||||||||||||||||
Tax benefits, net | 122 | |||||||||||||||||||
Net income | $ | 1,026 |
Year ended December 31, 2015 | ||||||||||||||||
Perimeter | Projects | Cyber | Total | |||||||||||||
Total long-lived assets | $ | 6,641 | $ | 3,360 | $ | 977 | $ | 10,978 |
Year ended December 31, 2018 | ||||||||||||||||
Products | Projects | Video and Cyber security | Total | |||||||||||||
Total long-lived assets | $ | 5,847 | $ | 4,267 | $ | 10,998 | $ | 21,112 |
Year ended December 31, 2017 | ||||||||||||||||
Products | Projects | Video and Cyber security | Total | |||||||||||||
Total long-lived assets | $ | 6,374 | $ | 3,460 | $ | 12,879 | $ | 22,713 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Customer A | 15 | % | 14.8 | % | 13.3 | % | ||||||
Customer B | 14.2 | % | 5.7 | % | 5 | % | ||||||
Customer C | * | ) | 6.4 | % | 18.1 | % |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Customer A | 25.3 | % | 14.6 | % | 11.9 | % | ||||||
Customer B | 10.9 | % | 10.2 | % | 8.6 | % |
NOTE | SEGMENT INFORMATION (Cont.) |
c. Geographical information: |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Israel | $ | 13,577 | $ | 9,599 | $ | 8,727 | ||||||
Europe | 14,021 | 11,232 | 8,330 | |||||||||
North America | 24,324 | 15,547 | 23,467 | |||||||||
South and Latin America | 25,471 | 13,152 | 10,364 | |||||||||
Africa | 7,126 | 9,370 | 7,585 | |||||||||
Others | 8,083 | 5,392 | 9,352 | |||||||||
$ | 92,602 | $ | 64,292 | $ | 67,825 |
Year ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
North America | $ | 13,614 | $ | 21,165 | $ | 17,749 | ||||||
South and Latin America | 3,118 | 8,813 | 13,443 | |||||||||
Israel | 11,517 | 16,525 | 12,406 | |||||||||
Europe | 7,311 | 9,591 | 7,891 | |||||||||
Africa | 8,182 | 12,393 | 6,611 | |||||||||
Others | 7,775 | 9,056 | 5,636 | |||||||||
$ | 51,517 | $ | 77,543 | $ | 63,736 |
December 31, | ||||||||
2018 | 2017 | |||||||
Israel | $ | 3,720 | $ | 3,996 | ||||
Europe | 970 | 1,030 | ||||||
USA | 2,377 | 2,612 | ||||||
Canada | 13,337 | 14,404 | ||||||
Others | 708 | 671 | ||||||
$ | 21,112 | $ | 22,713 |
December 31, | ||||||||
2014 | 2015 | |||||||
Israel | $ | 4,193 | $ | 3,889 | ||||
USA | 3,463 | 3,073 | ||||||
Canada | 2,970 | 2,387 | ||||||
Europe | 992 | 900 | ||||||
Others | 836 | 729 | ||||||
$ | 12,454 | $ | 10,978 |
NOTE | SELECTED STATEMENTS OF INCOME DATA |
Year ended December 31, | ||||||||||||||||||||||||
2013 | 2014 | 2015 | Year ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||
Financial expenses: | ||||||||||||||||||||||||
Interest on long-term debt | $ | (36 | ) | $ | (79 | ) | $ | (67 | ) | |||||||||||||||
Interest on short-term and long-term bank credit and bank charges | (370 | ) | (414 | ) | (314 | ) | ||||||||||||||||||
Interest on short-term and long-term bank credit and bank charges and long-term debt | $ | (412 | ) | $ | (349 | ) | $ | (299 | ) | |||||||||||||||
Realization of foreign currency translation adjustments | - | (64 | ) | - | ||||||||||||||||||||
Foreign exchange loss, net | - | (4,010 | ) | (595 | ) | |||||||||||||||||||
(406 | ) | (493 | ) | (381 | ) | (412 | ) | (4,423 | ) | (894 | ) | |||||||||||||
Financial income: | ||||||||||||||||||||||||
Interest on short-term and long-term bank deposits | 337 | 141 | 54 | 670 | 462 | 303 | ||||||||||||||||||
Foreign exchange derivative instruments | 39 | - | - | |||||||||||||||||||||
Foreign exchange gains, net | 89 | 2,331 | 969 | 1,103 | - | - | ||||||||||||||||||
465 | 2,472 | 1,023 | 1,773 | 462 | 303 | |||||||||||||||||||
$ | 59 | $ | 1,979 | $ | 642 | |||||||||||||||||||
Financial income (expenses), net | $ | 1,361 | $ | (3,961 | ) | $ | (591 | ) |
MAGAL SECURITY SYSTEMS LTD. | |||
By: | /s/ Dror Sharon | ||
Title: Chief Executive Officer |