Senstar Technologies Corporation Reports Fourth Quarter and Full Year 2023 Financial Results
OTTAWA, Ontario, April 19, 2024 /PRNewswire/ -- Senstar Technologies Corporation (successor to Senstar Technologies Ltd.) (NASDAQ:SNT), a leading international provider of comprehensive physical, video and access control security products and solutions, today announced its financial results for the three and twelve months ended December 31, 2023. Management will hold an investors' conference call later today (at 10 a.m. Eastern Time) to discuss the results.
Full Year 2023 Business Summary:
(Full year 2023 results compared to the comparable twelve-month period of 2022, except as mentioned.)
- Revenue of $32.8 million with gross margin of 58% versus $35.6 million with gross margin of 61%
- Net loss of ($1.3) million versus net income of $3.8 million; EBITDA loss of $(0.3) million compared with positive EBITDA of $2.9 million
- Ended 2023 with a cash balance of $14.8 million and no debt, on par with the cash balance as of December 31, 2022, of $14.9 million
- Successful launch of MultiSensor™, a groundbreaking AI-based intrusion detection system
Fourth Quarter 2023 Business Summary:
(Fourth quarter 2023 results compared to the comparable three-month period of 2022, except as mentioned.)
- Revenue of $8.9 million with gross margin of 57% versus $9.9 million with gross margin of 57%
- Net income of $0.4 million versus net income of $3.5 million; EBITDA of $0.5 million versus EBITDA of $1.2 million
- Wins in key verticals drove growth in EMEA, APAC and LATAM in the quarter
Mr. Fabien Haubert, Chief Executive Officer of Senstar Technologies, stated, "In 2023, we took measures to address regions where we had negative growth by reinforcing our local leadership. We concluded the year on a stronger note than we began, as our revenue increased in the second half by 20%, while operating expenses decreased quarter by quarter, culminating in improved profitability in the fourth quarter compared to prior quarters in the year. Recently, we successfully completed the process of redomiciling from Israel to Canada, enabling us to streamline our corporate structure and empower our Canadian team to lead Senstar forward. We will continue to invest resources to increase market share across key regions, particularly in the Americas, Europe and APAC, while intensifying efforts to excel in the utilities, corrections, energy and logistics verticals. These efforts will be instrumental in achieving our objectives and driving sustained success for Senstar Technologies in the coming year."
Mr. Haubert continued, "Introduced in 2023, our new AI-based intrusion detection system, the MultiSensor, enhances Senstar's competitive position in the marketplace and will increase our addressable market. We anticipate sales starting in fall 2024."
Full Year 2023 Financial Results Summary
Revenue for 2023 was $32.8 million, a decrease of 7.8% compared with $35.6 million in 2022. The decrease in annual revenue was primarily due to the completion in 2022 of a one-time project in Asia.
Gross profit was $18.8 million, or 57.5% of revenue, for 2023 compared with $21.5 million, or 60.5% of revenue, in 2022. The decrease in gross margin was due to our revenue mix primarily in the first quarter of 2023 and some increases in material costs. During the fourth quarter measures were taken to improve gross margin.
Operating expenses were $20.1 million, an increase of 0.5% compared to the prior year's operating expenses of $20.0 million. The increase in operating expenses is primarily due to one-time exceptional expenses necessary to streamline the business for our future business requirements and our redomiciliation to Canada, partially offset by a decrease in general and administrative expenses compared to the 2022 period.
Operating loss for 2023 was ($1.3) million compared to operating income of $1.5 million in the year-ago period.
Financial expense of $64,000 in 2023 compared to financial income of $141,000 in the year-ago period.
Loss from continuing operations was ($1.3) million in 2023 compared to income from continuing operations of $4.0 million in the prior year.
Net loss in 2023 was ($1.3) million, or ($0.06) per share, versus net income of $3.8 million, or $0.16 per share, in 2022. The current period includes no impact from discontinued operations compared to a net loss from discontinued operations of ($0.2) million in 2022.
EBITDA from continuing operations for 2023 was a loss of ($0.3) million versus positive EBITDA from continuing operations of $2.9 million in 2022.
Fourth Quarter 2023 Financial Results Summary
Revenue for the fourth quarter of 2023 was $8.9 million, a decrease of 9.8% compared with $9.9 million in the fourth quarter of 2022. Fourth quarter gross profit was $5.1 million, or 56.6% of revenue, compared with $5.6 million, or 56.6% of revenue, in the year ago quarter.
Operating expenses were $4.8 million, an increase of 2.2% compared to the prior year's fourth quarter operating expenses of $4.7 million. The increase in operating expenses is primarily attributable due to one-time exceptional expenses necessary to streamline the business for our future business requirements and our redomiciliation to Canada, partially offset by a decrease in general and administrative expenses compared to the 2022 period.
Operating income for the fourth quarter of 2023 was $0.3 million compared to $0.9 million in the year-ago period. The decrease in operating income is primilarily attributable due to the one-time exceptional expenses to streamline the business.
Financial income was $34,000 compared to $277,000 in the fourth quarter last year.
Net income in the fourth quarter of 2023 was $0.4 million or $0.02 per share versus $3.5 million, or $0.15 per share in the fourth quarter of last year.
EBITDA for the fourth quarter of 2023 was $0.5 million versus EBITDA of $1.2 million in the fourth quarter of 2022.
Cash and cash equivalents and short term bank deposits of $14.9 million, or $0.64 per share, as of December 31, 2023, compared with $15.1 million, or $0.65 per share, at December 31, 2022.
Earnings Conference Call Information:
The Company will host a conference call later today, April 19, 2024. The call will begin promptly at 9 a.m. Eastern Time, 2 p.m. UK Time. The Company requests that participants dial in 10 minutes before the conference call commences and use the conference ID number 13745466.
Participant Dial-in Numbers:
Toll Free: 1-877-407-9716
Toll/International: 1-201-493-6779
UK Toll Free: 0 800 756 3429
The conference call will also be available via a live webcast at https://viavid.webcasts.com/starthere.jsp?ei=1663568&tp_key=3083d07165.
Replay Dial-in Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13745466
About Senstar Technologies Corporation
With innovative perimeter intrusion detection systems (including fence sensors, buried sensors, and above ground sensors), intelligent video-management, video analytics, and access control, Senstar offers a comprehensive suite of proven, integrated solutions that reduce complexity, improve performance, and unify support. For 40 years, Senstar has been safeguarding people, places, and property for organizations around the world, with a special focus on utilities, logistics, correction facilities and energy markets.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario), which we refer to collectively as forward-looking statements. These forward-looking statements are not limited to historical facts, but reflect Senstar's current beliefs, expectations or intentions regarding future events. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "seek," "estimate," "predict," "potential," "pursue," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including those risks discussed under the heading "Risk Factors" in Senstar's most recent Annual Report on Form 20-F filed with the SEC and in other filings with the SEC. These forward-looking statements are made only as of the date hereof, and, except as required by applicable law or regulation, Senstar undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
For more information: | IR Contact: |
Senstar Technologies Corporation | Hayden IR |
Alicia Kelly, | Kim Rogers, |
Chief Financial Officer | Managing Director |
+1-541-904-5075 |
-- Tables follow –
SENSTAR TECHNOLOGIES | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(All numbers except EPS expressed in thousands of US$) | |||||||||||
Three Months Ended December 31, | Full Year Ended December 31, | ||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | ||||||
Revenue | 8,937 | 9,910 | (10) | 32,792 | 35,558 | (8) | |||||
Cost of revenue | 3,877 | 4,300 | (10) | 13,944 | 14,056 | (1) | |||||
Gross profit | 5,060 | 5,610 | (10) | 18,848 | 21,502 | (12) | |||||
Operating expenses: | |||||||||||
Research and development, net | 896 | 817 | 10 | 4,005 | 4,032 | (1) | |||||
Selling and marketing | 2,479 | 2,337 | 6 | 9,954 | 9,008 | 11 | |||||
General and administrative | 1,423 | 1,539 | (8) | 6,154 | 6,978 | (12) | |||||
Total operating expenses | 4,798 | 4,693 | 2 | 20,113 | 20,018 | (0) | |||||
Operating income (loss) | 262 | 917 | (1,265) | 1,484 | |||||||
Financial income (expenses), net | 34 | 277 | (64) | 141 | |||||||
Income (loss) before income taxes | 296 | 1,194 | (1,329) | 1,625 | |||||||
Taxes on income (tax benefits) | (137) | (2,257) | (40) | (2,404) | |||||||
Income (loss) from continuing operations | 433 | 3,451 | (1,289) | 4,029 | |||||||
Loss from discontinued operations, net | - | - | - | (198) | |||||||
Net income (loss) attributable to Senstar's shareholders | 433 | 3,451 | (1,289) | 3,831 | |||||||
Basic and diluted net income (loss) per share from continuing operations | $0.02 | $0.15 | ($0.06) | $0.17 | |||||||
Basic and diluted net loss per share from discontinued operations, net | - | - | - | ($0.01) | |||||||
Basic and diluted net income (loss) per share | $0.02 | $0.15 | ($0.06) | $0.16 | |||||||
Weighted average number of shares used in computing | 23,309,987 | 23,309,987 | 23,309,987 | 23,308,001 | |||||||
Weighted average number of shares used in computing | 23,309,987 | 23,309,987 | 23,309,987 | 23,309,976 | |||||||
SENSTAR TECHNOLOGIES | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(All numbers except EPS expressed in thousands of US$) | |||||||||
Three Months Ended December 31, | Full Year Ended December 31, | ||||||||
2023 % | 2022 % | 2023 % | 2022 % | ||||||
Gross margin | 56.6 | 56.6 | 57.5 | 60.5 | |||||
Research and development, net as a % of revenues | 10.0 | 8.2 | 12.2 | 11.3 | |||||
Selling and marketing as a % of revenues | 27.7 | 23.6 | 30.4 | 25.3 | |||||
General and administrative as a % of revenues | 15.9 | 15.5 | 18.8 | 19.6 | |||||
Operating margin | 2.9 | 9.3 | - | 4.2 | |||||
Net margin from continuing operations | 4.8 | 34.8 | - | 11.3 | |||||
SENSTAR TECHNOLOGIES | ||||||||
RECONCILIATION OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING OPERATION | ||||||||
(All numbers expressed in thousands of US$) | ||||||||
Three Months Ended December 31, | Full Year Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
GAAP income (loss) from continuing operations | 433 | 3,451 | (1,289) | 4,029 | ||||
Less: | ||||||||
Financial income (expenses), net | 34 | 277 | (64) | 141 | ||||
Taxes on income (tax benefits) | (137) | (2,257) | (40) | (2,404) | ||||
Depreciation and amortization | (188) | (325) | (917) | (1,430) | ||||
EBITDA from continuing operations | 450 | 1,242 | (348) | 2,914 | ||||
SENSTAR TECHNOLOGIES | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(All numbers expressed in thousands of US$) | |||
December 31, | December 31, | ||
2023 | 2022 | ||
CURRENT ASSETS: | |||
Cash and cash equivalents | $14,806 | $14,937 | |
Short-term bank deposits | 116 | 110 | |
Restricted cash and deposits | 6 | 5 | |
Trade receivables, net | 9,545 | 9,973 | |
Unbilled accounts receivable | 240 | 350 | |
Other accounts receivable and prepaid expenses | 2,448 | 1,441 | |
Inventories | 7,178 | 8,443 | |
Total current assets | 34,339 | 35,259 | |
Long term ASSETS: | |||
Deferred tax assets | 1,525 | 1,981 | |
Operating lease right-of-use assets | 842 | 987 | |
Total long-term assets | 2,367 | 2,968 | |
PROPERTY AND EQUIPMENT, NET | 1,589 | 1,651 | |
INTANGIBLE ASSETS, NET | 881 | 1,142 | |
GOODWILL | 11,090 | 10,866 | |
Total assets | $50,266 | $51,886 | |
SENSTAR TECHNOLOGIES | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(All numbers expressed in thousands of US$) | ||||
December 31, | December 31, | |||
2023 | 2022 | |||
CURRENT LIABILITIES: | ||||
Trade payables | $1,650 | $2,408 | ||
Customer advances | 187 | 239 | ||
Deferred revenues | 2,878 | 2,866 | ||
Other accounts payable and accrued expenses | 5,052 | 4,877 | ||
Short-term operating lease liabilities | 297 | 248 | ||
Total current liabilities | 10,064 | 10,638 | ||
LONG-TERM LIABILITIES: | ||||
Deferred revenues | 1,415 | 1,463 | ||
Deferred tax liabilities | 606 | 865 | ||
Accrued severance pay | 296 | 330 | ||
Long-term operating lease liabilities | 580 | 757 | ||
Other long-term liabilities | 113 | 146 | ||
Total long-term liabilities | 3,010 | 3,561 | ||
SHAREHOLDERS' EQUITY | ||||
Share Capital: Ordinary shares of NIS 1 par value - | ||||
Authorized: 39,748,000 shares at December 31, 2023 and December 31, 2022; | 6,799 | 6,799 | ||
Additional paid-in capital | 30,521 | 30,503 | ||
Accumulated other comprehensive income (loss) | 24 | (758) | ||
Foreign currency translation adjustments (stand-alone financial statements) | 9,648 | 9,654 | ||
Accumulated deficit | (9,800) | (8,511) | ||
TOTAL SHAREHOLDERS' EQUITY | 37,192 | 37,687 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $50,266 | $51,886 | ||
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SOURCE Senstar Technologies Corporation