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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.

Senstar_Technologies_Logo
Senstar_Technologies_Logo

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.

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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

Tomer.Hay@senstar.com

 

IR Contact:

Kim Rogers

Managing Director

Hayden IR

+1 541-904-5075

Kim@HaydenIR.com

 

 

-- 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
operations

($0.01)


$0.06




($0.07)


$0.03



Basic and diluted net income (loss) per share from
discontinued operations, net

-


-




-


($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
basic net income (loss) per share

23,309,987


23,309,987




23,309,987


23,307,331















Weighted average number of shares used in computing
diluted net income (loss) per share

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,
2022; Issued and outstanding: 23,309,987 shares at September 30, 2023 and
23,309,987 shares at December 31, 2022

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






 

Logo: https://mma.prnewswire.com/media/1713105/Senstar_Technologies_Logo.jpg

 

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View original content:https://www.prnewswire.com/news-releases/senstar-technologies-reports-third-quarter-2023-financial-results-302001991.html

SOURCE Senstar Technologies Ltd.