YAHUD, Israel, May 7 /PRNewswire-FirstCall/ -- Magal Security
Systems Ltd.(Nasdaq GM: MAGS ; TASE: MAGS) today announced its
consolidated financial results for the three-month period ended
March 31, 2007. Revenues for the first quarter of 2007 reached
US$15.0 million, an increase of 11.7 percent compared to US$13.5
million in the first quarter of 2006. Operating income reached
US$745,000, an increase of 55.5 percent compared to US$479,000 in
the first quarter 2006. Operating expenses for the first quarter of
2007 reached US$5.8 million, an increase of 10.2 percent compared
to US$5.2 million in the first quarter of last year. Financial
expenses for the first quarter of 2007 reached US$299,000, compared
to US$154,000 in the first quarter of 2006. The increase in the
financial expenses is primarily attributable to the change in the
Company's functional currency from the US dollar to the New Israeli
Shekel, that was initiated in the beginning of the fourth quarter
of 2006. The US dollar remains the Company's reporting currency.
Net income reached US$298,000, an increase of 100.0 percent
compared to US$149,000 in the first quarter of 2006. Diluted
earnings per share for the first quarter reached US$0.03 per share
compared to US$0.01 per share the same quarter of last year.
Commenting on the results, Mr. Izhar Dekel, CEO of Magal, said: "We
are very pleased with the organic growth in our business and the
growth in revenues, operating income and net income, compared to
the first quarter of 2006, this, despite the fact that our first
quarter is usually our weakest quarter. According to our
expectations, we have every reason to believe that our results for
2007 will be better than those of 2006 in all respects." The
Company will be hosting its quarterly conference call later today
at 11:00am EDT. On the call, management will review and discuss the
first quarter 2007 results. They will then be available to answer
questions. To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls 5 minutes
before the conference call commences. If you are unable to connect
using the toll-free numbers, please try the international dial-in
number. US Dial-in Number: 1-888-407-2553 Canada Dial-in Number:
1-866-485-2399 ISRAEL Dial-in Number: 03-918-0688 INTERNATIONAL
Dial-in Number: +972-3-918-0688 at: 11:00 am Eastern Time; 8:00 am
Pacific Time; 6:00 pm Israel Time The call will also be broadcast
live on the web, and can be accessed through a link on Magal's
website. A replay of the call will be available for three months
from the day after the call. The webcast and the replay will both
be accessible from Magal's website at: http://www.magal-ssl.com/.
About Magal Security Systems, Ltd.: Magal Security Systems Ltd.
(Magal) is engaged in the development, manufacturing and marketing
of computerized security systems, which automatically detect,
locate and identify the nature of unauthorized intrusions. Magal
also supplies video monitoring services through Smart Interactive
Systems, Inc., a subsidiary in the U.S. The Company's products are
currently used in more than 70 countries worldwide to protect
national borders, airports, correctional facilities, nuclear power
stations and other sensitive facilities from terrorism, theft and
other threats. Israeli-based Magal has subsidiaries in the U.S.,
Canada, the U.K., Germany, Romania, Mexico and an office in China.
Magal trades under the symbol MAGS in the U.S. on the Nasdaq Global
Market and in Israel on the Tel-Aviv Stock Exchange (TASE). This
press release contains forward-looking statements, which are
subject to risks and uncertainties. Such statements are based on
assumptions and expectations which may not be realized and are
inherently subject to risks and uncertainties, many of which cannot
be predicted with accuracy and some of which might not even be
anticipated. Future events and actual results, financial and
otherwise, may differ from the results discussed in the
forward-looking statements. A number of these risks and other
factors that might cause differences, some of which could be
material, along with additional discussion of forward-looking
statements, are set forth in the Company's Annual Report on Form
20-F filed with the Securities and Exchange Commission. FINANCIAL
TABLES FOLLOW MAGAL SECURITY SYSTEMS LTD. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (All numbers except EPS expressed
in thousands of US$) Quarter Ended March 31 2007 2006 % change
Revenues $15,053 $13,472 11.7 Cost of revenues 8,544 7,763 10.1
Gross Profit 6,509 5,709 14.0 Operating expenses: Research &
development, net 1,454 1,200 21.2 Selling & marketing, net
2,786 2,583 7.9 General & administrative 1,524 1,447 5.3 5,764
5,230 10.2 Operating income 745 479 55.5 Financial expenses, net
299 154 94.2 Income from continuing operations 446 325 37.2 before
taxes on income Taxes on income 148 153 -3.3 Income from continuing
operations 298 172 73.3 Loss on discontinued operations, net - 23
Net income 298 149 100.0 Basic net earnings per share $ 0.03 $ 0.01
200.0 Diluted net earnings per share $ 0.03 $ 0.01 Weighted average
ordinary shares outstanding (in thousands) 10,394 10,375 Weighted
average ordianry shares outstanding, assuming dilution (in
thousands) 10,444 10,462 Quarter Ended March 31, 2007 2006 Gross
margin (%) 43.2 42.4 Research & development expenses, 9.7 8.9
net as a % of Revenues Selling & marketing expenses as 18.5
19.2 a % of Revenues General & administrative 10.1 10.7
expenses as a % of Revenues Operating margin (%) 5.0 3.6 Net income
margin (%) 2.0 1.1 Total bank debt to total 0.40(* 0.43(**
capitalization Current ratio 2.3(* 2.16(** *) as of March 31, 2007
**) as of December 31, 2006 MAGAL SECURITY SYSTEMS LTD. UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in
thousands of US$) March 31, December 31, 2007 2006 CURRENT ASSETS:
Cash and cash equivalents $ 7,777 $ 5,039 Marketable securities
3,095 3,067 Short term bank deposits 14,397 14,061 Trade
receivables 20,345 26,596 Unbilled accounts receivable 5,847 6,372
Other accounts receivable and prepaid expenses 3,010 3,962 Deferred
income taxes 1,726 1,289 Inventories 14,049 14,500 Total current
assets 70,246 74,886 Long term investments and receivables:
Long-term trade receivables 300 200 Long-term loans 657 622
Long-term bank deposits 4,800 4,800 Severance pay fund 2,487 2,401
Total long term investments and receivables 8,244 8,023 PROPERTY
AND EQUIPMENT, NET 14,194 14,366 OTHER ASSETS, NET 6,014 5,539
Total assets $98,698 $102,814 CURRENT LIABILITIES: Short-term bank
credit $15,044 $ 17,026 Current maturities of long-term bank debt
795 795 Trade payables 4,942 5,827 Other accounts payable, accrued
expenses and 9,801 11,082 customer advances Total current
liabilities 30,582 34,730 LONG-TERM LIABILITIES: Long-term bank
debt 7,201 7,399 Accrued severance pay 2,645 2,560 Total long-term
liabilities 9,846 9,959 SHAREHOLDERS' EQUITY 58,270 58,125 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $98,698 $102,814 Contacts:
Company Magal Security Systems, Ltd Raya Asher, CFO Tel:
+972-3-5391444 Fax: +972-3-5366245 E-mail: Investor Relations
Gelbart Kahana Investor Relations Ehud Helft/Kenny Green Tel:
+1-646-201-9246 E-mail: DATASOURCE: Magal Security Systems Ltd
CONTACT: Contacts: Company, Magal Security Systems, Ltd, Raya
Asher, CFO, Tel: +972-3-5391444, Fax: +972-3-5366245, E-mail: ;
Investor Relations, Gelbart Kahana Investor Relations, Ehud
Helft/Kenny Green, Tel: +1-646-201-9246, E-mail:
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