RAMAT
GAN, Israel, April 27,
2022 /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 twelve months ended December 31,
2021. Management will hold an investors' conference call
later today (at 10 a.m. Eastern Time)
to discuss the results.
Business Highlights:
- 2021 revenue grew 5% to $34.9
million for the twelve months ended December 31, 2021, compared with $33.4 million in the comparable period of
2020.
- Net income increased to $6.4
million for the twelve months ended December 31, 2021, up from $0.4 million in the 2020 period.
- EBITDA was $2.6 million for the
twelve months ended December 31,
2021, compared with $4.3
million in the comparable period in 2020.
- New products launched in 2021, including Sensor Fusion Engine
and Thermal Camera with Senstar Symphony™ Common Operating Platform
won multiple industry awards.
- Completed stabilization of organization in second half 2021
post-divestiture of its Integration Solution Division; Focus
shifted to growth from products and advancing innovative technology
offerings.
- Strong balance sheet with cash of $26.4
million, or $1.13 per share,
and zero debt as of December 31,
2021.
Mr. Dror Sharon, Chief Executive
Officer of Senstar Technologies, stated, "Our growth in 2021 was
driven by key wins in our four focused verticals. As COVID
headwinds have diminished, our pipeline of new opportunities has
begun to build in all geographies, reinforcing our optimism for
2022. The timing of two large opportunities impacted the fourth
quarter of 2021 due to customers delaying closing within the first
half of 2022. Product mix and increased cost of materials reduced
gross margin, which along with an increase in operating expense
related to higher sales expenses and increased marketing
activities, impacted our profitability in the fourth quarter.
"The new products and software we launched in 2021 are being
well received, as evidenced by the numerous industry awards and
accolades we have received, acknowledging our innovation in
perimeter security technology," continued Mr. Sharon. "Product
innovation is helping to build our 2022 pipeline in Europe, North
America, and APAC. Another factor supporting our pipeline
growth is our restructured sales organization with six new Senior
Sales directors (SSDs) who are located closer to customers, with
clear performance targets. The result is smaller teams working more
closely with clients, all under the direct supervision of a
regional sales directors. Combined with our strong balance sheet,
these business drivers position Senstar Technologies to deliver
growth and improved profitability and ultimately value for our
shareholders."
Full Year 2021 Financial Results Summary
Revenue for 2021 was $34.9
million, an increase of 4.7% compared with $33.4 million in 2020. The increase in annual
revenue was primarily due to some recovery in our business which
was impacted by the COVID-19 pandemic.
Gross profit was $22.0 million, or
63.0% of revenue, for 2021 compared with $22.1 million, or 66.3% of revenue in 2020. The
decrease in gross margin was primarily due to our revenue mix and
some increases in the material costs.
Operating expenses were $20.9
million, an increase of 9.7% compared to the prior year's
operating expenses of $19.1 million.
The increase in operating expenses is primarily attributable to
increase in revenues, travel expenses, sales related expenses and
marketing activities.
Operating income for 2021 was $1.1
million compared to $3.1
million in the year-ago period.
Financial expense was $1.0 million
in both the 2021 and 2020 periods. Financial expense is primarily
due to the adjustment of monetary assets and liabilities
denominated in currencies other than the functional currency of our
operational entities. At the end of each period, a change in
currency valuation of monetary assets and liabilities is recorded
as a non-cash financial expense or income.
Loss from continuing operations was ($2.2) million in 2021 compared to income from
continuing operations of $0.3 million
in the prior year.
Net income in 2021 was $6.4
million, or $0.28 per share,
versus $0.4 million, or $0.01 per share, in 2020. The net income in the
current period includes net income of $8.6
million from discontinued operations versus net income from
discontinued operations of $0.4
million in the year ago period.
EBITDA from continuing operations for 2021 was $2.6 million versus $4.3
million in 2020.
Fourth Quarter 2021 Results Summary
Revenue for the fourth quarter of 2021 was $9.0 million, a decrease of 6.4% compared with
$9.6 million in the fourth quarter of
2020. Fourth quarter gross profit was $5.2
million, or 58.1% of revenue, compared with $6.6 million, or 68.6% of revenue. The decrease
in gross margin was primarily due to a shift in the mix of products
sold during the quarter, a higher cost of materials driven by
global supply chain challenges, and unfavorable foreign currency
valuations.
Operating expenses were $6.5
million, an increase of 21.5% compared to the prior year's
fourth quarter operating expenses of $5.3
million. The increase in operating expenses is primarily
attributable to increase in revenues, travels, sales related
expenses and marketing activities compared to the 2020 period, when
there was a slowdown in similar activities due to the global
pandemic.
Operating loss for the fourth quarter of 2021 was ($1.2) million compared to operating income of
$1.3 million in the year-ago
period.
Financial expense was $0.4 million
compared to $1.2 million in the
fourth quarter last year. This is due to the adjustment of monetary
assets and liabilities denominated in currencies other than the
functional currency of our operational entities.
Loss from continuing operations was ($2.2) million in the fourth quarter of 2021
compared to ($1.2) million in the
year-ago quarter.
Net loss in the fourth quarter of 2021 was $3.2 million or ($0.14) per share versus $0.5 million, or ($0.04) per share in the fourth quarter of last
year. The net loss in the current period includes a net loss of
$0.1 million from discontinued
operations versus net income from discontinued operations of
$0.7 million in the year-ago
quarter.
EBITDA loss from continuing operations for the fourth quarter
was $0.7 million versus positive
EBITDA from continuing operations of $1.6
million in the fourth quarter of 2020.
Cash and cash equivalents and restricted cash and deposits
related to continuing operations as of December 31, 2021, was $26.4 million, or $1.13 per share, compared with cash and cash
equivalents and restricted cash and deposits related to continuing
operations of $24.5 million, or
$1.06 per share, at December 31, 2020.
Mr. Ron Ben-Haim Retirement
Mr. Ron Ben-Haim has informed our
Board of Directors of his retirement from his directorship
position. Mr. Ben-Haim's retirement is effective today,
April 27, 2022.
Mr. Sharon, Chief Executive Officer of Senstar Technologies,
stated, "I wish to thank Ron for his service on behalf of the
Company, its employees, and management."
Earnings Conference Call Information:
The Company will host a conference call later today,
April 27, 2022. 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. To participate, please use one of the following
teleconferencing numbers and the conference ID number
13727597.
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 webcast live at
https://viavid.webcasts.com/starthere.jsp?ei=1533812&tp_key=871365c700.
A replay link of the call will be available at
https://senstartechnologies.com/ on April
27, 2022, after 1:00 pm Eastern
time through May 11, 2022, at
11:59 pm Eastern time.
Replay Dial-in Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13727597
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 , corrections , 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 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:
Doron Kerbel,
Adv.
V.P. General Counsel
& Company Secretary
Tel:
+972-74-794-5200
Doron.Kerbel@senstar.com
|
IR
Contact:
Brett Maas
Managing
Partner
Hayden IR
+1
646-536-7331
Brett@HaydenIR.com
|
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,
|
|
|
2021
|
|
2020
|
%
change
|
|
2021
|
|
2020
|
%
change
|
Revenue
|
9,011
|
|
9,631
|
(6)
|
|
34,916
|
|
33,351
|
5
|
Cost of
revenue
|
3,774
|
|
3,024
|
25
|
|
12,935
|
|
11,244
|
15
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,237
|
|
6,607
|
(21)
|
|
21,981
|
|
22,107
|
(1)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research
and development, net
|
1,136
|
|
1,005
|
13
|
|
3,933
|
|
3,970
|
(1)
|
Selling
and marketing
|
3,065
|
|
2,268
|
35
|
|
9,998
|
|
8,609
|
16
|
General
and administrative
|
2,279
|
|
2,060
|
11
|
|
6,969
|
|
6,475
|
8
|
Total operating
expenses
|
6,480
|
|
5,333
|
22
|
|
20,900
|
|
19,054
|
10
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(1,243)
|
|
1,274
|
|
|
1,081
|
|
3,053
|
|
Financial expenses,
net
|
392
|
|
1,168
|
|
|
1,011
|
|
1,017
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(1,635)
|
|
106
|
|
|
70
|
|
2,036
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
537
|
|
1,342
|
|
|
2,261
|
|
1,770
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
(2,172)
|
|
(1,236)
|
|
|
(2,191)
|
|
266
|
|
Income (loss) from
discontinued operations, net
|
(1,009)
|
|
730
|
|
|
8,607
|
|
436
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(3,181)
|
|
(506)
|
|
|
6,416
|
|
702
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to redeemable non-controlling interests and
non-controlling interests
|
(1)
|
|
342
|
|
|
(1)
|
|
342
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Senstar's shareholders
|
(3,180)
|
|
(848)
|
|
|
6,417
|
|
360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share from
continuing operations
|
($0.10)
|
|
($0.05)
|
|
|
($0.09)
|
|
$0.01
|
|
Basic and diluted net
income (loss) per share from
discontinued operations, net
|
($0.04)
|
|
$0.01
|
|
|
$0.37
|
|
($0.00)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net income (loss) per share
|
($0.14)
|
|
($0.04)
|
|
|
$0.28
|
|
$0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing basic net income (loss) per
share
|
23,286,288
|
|
23,153,985
|
|
|
23,208,589
|
|
23,154,422
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing diluted net income (loss) per
share
|
23,286,288
|
|
23,153,985
|
|
|
23,208,589
|
|
23,154,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SENSTAR TECHNOLOGIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(All
numbers except EPS expressed in thousands of US$)
|
|
|
|
|
|
|
Three
Months
Ended December
31,
|
|
|
Full
Year
Ended December
31,
|
|
|
2021
%
|
|
2020
%
|
|
|
2021
%
|
|
2020
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
58.1
|
|
68.6
|
|
|
63.0
|
|
66.3
|
|
Research and
development, net as a % of revenues
|
12.6
|
|
10.4
|
|
|
11.3
|
|
11.9
|
|
Selling and marketing
as a % of revenues
|
34.0
|
|
23.5
|
|
|
28.6
|
|
25.8
|
|
General and
administrative as a % of revenues
|
25.3
|
|
21.4
|
|
|
20.0
|
|
19.4
|
|
Operating
margin
|
-
|
|
13.2
|
|
|
3.1
|
|
9.2
|
|
Net margin from
continuing operations
|
-
|
|
-
|
|
|
-
|
|
0.8
|
|
SENSTAR TECHNOLOGIES
RECONCILIATION OF EBITDA TO
NET INCOME
[INSERT]
SENSTAR TECHNOLOGIES
RECONCILIATION OF EBITDA FROM
CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING
OPERATION
(All numbers expressed in thousands of
US$)
|
Three
Months
Ended December
31,
|
|
|
Full
Year
Ended December
31,
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from continuing operations
|
(2,172)
|
|
(1,236)
|
|
|
(2,191)
|
|
266
|
Less:
|
|
|
|
|
|
|
|
|
Financial
income (expenses), net
|
(392)
|
|
(1,168)
|
|
|
(1,011)
|
|
(1,017)
|
Taxes on
income
|
537
|
|
1,342
|
|
|
2,261
|
|
1,770
|
Depreciation and amortization
|
(514)
|
|
(347)
|
|
|
(1,492)
|
|
(1,212)
|
EBITDA from continuing
operations
|
(729)
|
|
1,621
|
|
|
2,573
|
|
4,265
|
SENSTAR TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$26,397
|
|
$24,531
|
Restricted cash and
deposits
|
6
|
|
10
|
Trade receivables,
net
|
7,723
|
|
7,670
|
Unbilled accounts
receivable
|
26
|
|
64
|
Other accounts
receivable and prepaid expenses
|
2,010
|
|
1,011
|
Inventories
|
5,751
|
|
5,669
|
Current assets of
discontinued operations
|
-
|
|
39,080
|
|
|
|
|
Total current
assets
|
41,913
|
|
78,035
|
|
|
|
|
Long term
ASSETS:
|
|
|
|
|
|
|
|
Deferred tax
assets
|
502
|
|
1,616
|
Operating lease
right-of-use assets
|
1,228
|
|
1,366
|
|
|
|
|
Total long-term
assets
|
1,730
|
|
2,982
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
2,109
|
|
2,082
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
2,186
|
|
2,979
|
|
|
|
|
GOODWILL
|
11,449
|
|
11,507
|
|
|
|
|
LONG-TERM ASSETS OF
DISCONTINUED OPERATIONS
|
-
|
|
10,472
|
|
|
|
|
Total assets
|
$59,387
|
|
$108,057
|
SENSTAR TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
$2,710
|
|
$1,554
|
Customer
advances
|
390
|
|
355
|
Deferred
revenues
|
2,704
|
|
2,709
|
Other accounts payable
and accrued expenses
|
13,203
|
|
7,137
|
Short-term operating
lease liabilities
|
276
|
|
358
|
Current liabilities of
discontinued operations
|
-
|
|
21,124
|
|
|
|
|
Total current
liabilities
|
19,283
|
|
33,237
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
Deferred
revenues
|
1,690
|
|
1,624
|
Deferred tax
liabilities
|
899
|
|
667
|
Accrued severance
pay
|
523
|
|
644
|
Long-term operating
lease liabilities
|
969
|
|
1,078
|
Other long-term
liabilities
|
266
|
|
285
|
Long-term liabilities
of discontinued operations
|
-
|
|
3,424
|
|
|
|
|
Total long-term
liabilities
|
4,347
|
|
7,722
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share Capital: Ordinary
shares of NIS 1 par value -
|
|
|
|
|
Authorized: 39,748,000
shares at December 31, 2021 and December 31, 2020; Issued and
outstanding: 23,301,653 shares at December 31, 2021 and 23,163,985
shares at December 31, 2020
|
6,796
|
|
6,753
|
Additional paid-in
capital
|
30,394
|
|
69,965
|
Accumulated other
comprehensive loss
|
1,222
|
|
34
|
Foreign currency
translation adjustments (stand-alone financial
statements)
|
9,687
|
|
9,104
|
Accumulated
deficit
|
(12,342)
|
|
(18,759)
|
|
|
|
|
Total shareholders'
equity
|
35,757
|
|
67,097
|
Non-controlling
interest
|
-
|
|
1
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
35,757
|
|
67,098
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$59,387
|
|
$108,057
|
|
|
|
|
|
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SOURCE Senstar Technologies Ltd.