Magal Security Gets 4 Million in New Sales Following Losing Q2

magal Fortis - Command and Control system

Things are looking a bit brighter for Israel’s Magal Security Systems, an international provider of cyber and physical security, safety and site management solutions and products, as the company has announced $4 million in recent sales for homeland security systems in the U.S., Israel and Southeast Asia.

A $500, 000 order was made in for its fiber sensor technology which is used to secure industrial sites and seaports. $2 million will be paid by an undisclosed city in Israel for its dual technology smart fence, which features taut wire and vibration sensors.

Eitan Livneh, president and chief executive officer of Magal S3 stated that, “Following our strategic acquisition of long-range fiber optic PIDS technology, we are definitely seeing strong traction for this technology. I am also encouraged by the ongoing receipt of follow-on orders from our existing customers.”

Magal states that today security solutions and managed systems are digital making it possible to hack and penetrate a site through logical means, and execute any possible crime remotely, with minimal risk and leaving almost no trace. Its systems monitor the network flow, detect abnormalities and respond immediately in order to confront any suspected attack.

The news should come as a relief to Magal’s investors after its poor results in the second quarter of this year and whose return on Investment for is currently at -7%.

It revenues decreased 7% to $12.5 million from $13.5 million for the first quarter of 2013. Gross profit in the quarter was $4.1 million, or 32.7% of revenues, a decrease of 17% compared to gross profit of $5.0 million, or 36.8% of revenues in the first quarter of 2013. The variance in the gross margin between the quarters, the company asserted, reflected changes between products and projects in the revenue mix.

Operating loss in the quarter was $2.3 million, compared to an operating loss of $0.9 million in the first quarter of 2013.

Financial income in the quarter amounted to $399 thousand compared to financial expenses of $153 thousand in the first quarter of 2013.

Net loss in the quarter was $2.0 million, or $0.12 per share, compared with a net loss of $1.1 million, or $0.07 per share, in the first quarter of 2013.

Based in Yahud, Magal Security Systems was founded in 1969.

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