Senstar Technologies Reports Third Quarter 2023 Financial Results
RAMAT GAN, Israel, Nov. 30, 2023 /PRNewswire/ -- Senstar Technologies (NASDAQ:SNT), a leading international provider of comprehensive physical, video and access control security products and solutions, today announced its financial results for the three and nine months ended September 30, 2023. Management will hold an investors' conference call later today (at 10 a.m. Eastern Time) to discuss the results.
Business Highlights:
- Continued strong growth in Europe driven by market share expansion in the region.
- Introduced the Senstar MultiSensor™ intrusion detection system, a disruptive AI-powered sensor unit.
- Cash balance of $12.6 million and zero debt as of September 30, 2023.
Mr. Fabien Haubert, Interim Chief Executive Officer of Senstar Technologies, stated, "Our third quarter revenue of $9.0 million underscores our sustained strength in Europe and Latam, both of which have been areas of investment. This growth was tempered by the absence of one-off projects in Canada and the U.S. completed in the third quarter of last year that did not repeat this year. Additionally, lower APAC revenue reflects the challenging economic conditions in China and a delayed large project. We are working to have our gross margin returning to more normalized levels in the coming quarters. Despite the dip in revenue and gross margin this quarter, we maintained positive operating income and EBITDA."
Mr. Haubert continued, "We are proud to introduce our latest breakthrough, the Senstar MultiSensor™ intrusion detection system, a disruptive AI-powered sensor unit that seamlessly integrates all intrusion detection capabilities into a single, powerful device. The MultiSensor offers unparalleled situational awareness, effectively eradicating false alarms and, as a versatile stand-alone solution, expands its potential applications beyond the conventional Perimeter Intrusion Detection use cases. The true gem of this innovation lies in its ability to consolidate multiple functionalities into one intelligent unit, reducing complexity and improving functionality. We are excited to announce that the MultiSensor is slated for release in 2024."
Third Quarter 2023 Results Summary
Revenue for the third quarter of 2023 was $9.0 million, a decrease of 7.9% compared with $9.7 million in the third quarter of 2022. Third quarter gross profit was $5.1 million, or 56.5% of revenue, compared with $6.0 million, or 61.1% of revenue. The decrease in gross margin was primarily due to the delivery of a lower margin legacy project in the quarter.
Operating expenses for the third quarter of 2023 were $4.9 million, essentially flat compared to $4.8 million in the prior year's third quarter.
Operating income was $123,000 for the third quarter of 2023 compared to $1.1 million in the third quarter of 2022.
Financial expense was ($64,000) for the third quarter of 2023 compared to financial income of $212,000 in the third quarter of 2022.
Loss from continuing operations was ($122,000) in the third quarter of 2023 compared to income from continuing operations of $1.2 million in the third quarter of 2022.
Net loss in the third quarter of 2023 was ($122,000) or ($0.01) per share compared to net income of $1.3 million, or $0.06 per share in the third quarter of last year. Net income in the 2022 period includes net income from discontinued operations of $66,000.
EBITDA from continuing operations for the third quarter of 2023 was $322,000 versus $1.5 million for the third quarter of 2022.
The Company had cash and cash equivalents and short-term bank deposits of $12.7 million, or $0.55 per share as of September 30, 2023, compared with $15.1 million, or $0.65 per share, as of December 31, 2022.
Earnings Conference Call Information:
To participate, please use one of the following teleconferencing numbers. The call will begin promptly at 10 a.m. Eastern Time, 5 p.m. Israel Time; 3 p.m. UK Time. The Company requests that participants dial in 10 minutes before the conference call commences and use the conference ID number 13742849.
Participant Dial-in Numbers:
Toll Free: 1-877-407-9716
Toll/International: 1-201-493-6779
Israel Toll Free: 1 809 406 247
UK Toll Free: 0 800 756 3429
The conference call will also be available via a live webcast at https://viavid.webcasts.com/starthere.jsp?ei=1645552&tp_key=24f51852b9.
Replay Dial-in Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13742849
A replay of the call will be available on Thursday, November 30, 2023, after 1 p.m. Eastern time through Thursday, December 13, 2023, at 11:59 p.m. Eastern time, and available on the Senstar Technologies website at https://senstartechnologies.com/events/.
About Senstar Technologies
With innovative perimeter intrusion detection systems (including fence sensors , buried sensors , and above ground sensors ), intelligent video-management , video analytics , and access control , Senstar offers a comprehensive suite of proven, integrated solutions that reduce complexity, improve performance and unify support. For 40 years, Senstar has been safeguarding people, places and property for organizations around the world, with a special focus in utilities , logistics , correction facilities , and energy markets.
For more information, visit the Company's website at www.senstartechnologies.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents the Non-GAAP presentation of EBITDA. This non-GAAP measure is not in accordance with, nor is it a substitute for, a GAAP measure. The Company uses EBITDA to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table below.
Forward Looking Statements
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F and other reports filed with the Securities and Exchange Commission. In addition, there is uncertainty about the spread of the COVID19 virus and the impact it will have on the Company's operations, the demand for the Company's products, global supply chains and economic activity in general.
For more information:
Senstar Technologies: Tomer Hay Chief Financial Officer
Tel: +972-74-794-5200
| IR Contact: Kim Rogers Managing Director Hayden IR +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 September 30, | Nine Months Ended September 30, | ||||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | ||||||||
Revenue | 8,969 | 9,739 | (8) | 23,855 | 25,648 | (7) | |||||||
Cost of revenue | 3,898 | 3,789 | 3 | 10,067 | 9,756 | 3 | |||||||
Gross profit | 5,071 | 5,950 | (15) | 13,788 | 15,892 | (13) | |||||||
Operating expenses: | |||||||||||||
Research and development, net | 1,034 | 1,033 | (0) | 3,109 | 3,215 | (3) | |||||||
Selling and marketing | 2,404 | 2,152 | 12 | 7,475 | 6,671 | 12 | |||||||
General and administrative | 1,510 | 1,633 | (8) | 4,731 | 5,439 | (13) | |||||||
Total operating expenses | 4,948 | 4,818 | 3 | 15,315 | 15,325 | (0) | |||||||
Operating income (loss) | 123 | 1,132 | (1,527) | 567 | |||||||||
Financial income (expenses), net | (64) | 212 | (98) | (136) | |||||||||
Income (loss) before income taxes | 59 | 1,344 | (1,625) | 431 | |||||||||
Taxes on income (tax benefits) | 181 | 97 | 97 | (147) | |||||||||
Income (loss) from continuing operations | (122) | 1,247 | (1,722) | 578 | |||||||||
Income (loss) from discontinued operations, net | - | 66 | - | (198) | |||||||||
Net income (loss) attributable to Senstar's shareholders | (122) | 1,313 | (1,722) | 380 | |||||||||
Basic and diluted net income (loss) per share from continuing | ($0.01) | $0.06 | ($0.07) | $0.03 | |||||||||
Basic and diluted net income (loss) per share from | - | - | - | ($0.01) | |||||||||
Basic and diluted net income (loss) per share | ($0.01) | $0.06 | ($0.07) | $0.02 | |||||||||
Weighted average number of shares used in computing | 23,309,987 | 23,309,987 | 23,309,987 | 23,307,331 | |||||||||
Weighted average number of shares used in computing | 23,309,987 | 23,309,987 | 23,309,987 | 23,309,964 | |||||||||
SENSTAR TECHNOLOGIES | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(All numbers except EPS expressed in thousands of US$) | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2023 % | 2022 % | 2023 % | 2022 % | ||||||
Gross margin | 56.5 | 61.1 | 57.8 | 62.0 | |||||
Research and development, net as a % of revenues | 11.5 | 10.6 | 13.0 | 12.5 | |||||
Selling and marketing as a % of revenues | 26.8 | 22.1 | 31.3 | 26.0 | |||||
General and administrative as a % of revenues | 16.8 | 16.8 | 19.8 | 21.2 | |||||
Operating margin | 1.4 | 11.6 | - | 2.2 | |||||
Net margin from continuing operations | - | 12.8 | - | 2.3 | |||||
SENSTAR TECHNOLOGIES | ||||||||
RECONCILIATION OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING OPERATION | ||||||||
(All numbers expressed in thousands of US$) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
GAAP income (loss) from continuing operations | (122) | 1,247 | (1,722) | 578 | ||||
Less: | ||||||||
Financial income (expenses), net | (64) | 212 | (98) | (136) | ||||
Taxes on income (tax benefits) | 181 | 97 | 97 | (147) | ||||
Depreciation and amortization | (199) | (344) | (729) | (1,104) | ||||
EBITDA from continuing operations | 322 | 1,476 | (798) | 1,671 | ||||
SENSTAR TECHNOLOGIES | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(All numbers expressed in thousands of US$) | |||
September 30, | December 31, | ||
2023 | 2022 | ||
CURRENT ASSETS: | |||
Cash and cash equivalents | $12,600 | $14,937 | |
Short-term bank deposits | 110 | 110 | |
Restricted cash and deposits | 5 | 5 | |
Trade receivables, net | 8,461 | 9,973 | |
Unbilled accounts receivable | 477 | 350 | |
Other accounts receivable and prepaid expenses | 2,015 | 1,441 | |
Inventories | 8,368 | 8,443 | |
Total current assets | 32,036 | 35,259 | |
Long term ASSETS: | |||
Deferred tax assets | 2,076 | 1,981 | |
Operating lease right-of-use assets | 790 | 987 | |
Total long-term assets | 2,866 | 2,968 | |
PROPERTY AND EQUIPMENT, NET | 1,514 | 1,651 | |
INTANGIBLE ASSETS, NET | 960 | 1,142 | |
GOODWILL | 10,923 | 10,866 | |
Total assets | $48,299 | $51,886 | |
SENSTAR TECHNOLOGIES | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(All numbers expressed in thousands of US$) | ||||
September 30, | December 31, | |||
2023 | 2022 | |||
CURRENT LIABILITIES: | ||||
Trade payables | $973 | $2,408 | ||
Customer advances | 251 | 239 | ||
Deferred revenues | 2,663 | 2,866 | ||
Other accounts payable and accrued expenses | 4,715 | 4,749 | ||
Short-term operating lease liabilities | 250 | 248 | ||
Total current liabilities | 8,852 | 10,510 | ||
LONG-TERM LIABILITIES: | ||||
Deferred revenues | 1,238 | 1,463 | ||
Deferred tax liabilities | 863 | 865 | ||
Accrued severance pay | 303 | 330 | ||
Long-term operating lease liabilities | 571 | 757 | ||
Other long-term liabilities | 249 | 274 | ||
Total long-term liabilities | 3,224 | 3,689 | ||
SHAREHOLDERS' EQUITY | ||||
Share Capital: Ordinary shares of NIS 1 par value - | ||||
Authorized: 39,748,000 shares at September 30, 2023 and December 31, | 6,799 | 6,799 | ||
Additional paid-in capital | 30,513 | 30,503 | ||
Accumulated other comprehensive loss | (564) | (758) | ||
Foreign currency translation adjustments (stand-alone financial statements) | 9,708 | 9,654 | ||
Accumulated deficit | (10,233) | (8,511) | ||
TOTAL SHAREHOLDERS' EQUITY | 36,223 | 37,687 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $48,299 | $51,886 | ||
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SOURCE Senstar Technologies Ltd.