Senstar Technologies Reports First Quarter 2022 Financial Results

About this update from Senstar Technologies Corporation

RAMAT GAN, Israel , May 26, 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 months ended March 31, 2022 . Management will hold an investors' conference call later today (at 10 a.m. Eastern Time ) to discuss the results. Business Highlights: Q1 2022 revenue increased 4% to $6.8 million compared with $6.5 million in the comparable period of 2021. Net loss was ($1.1) million compared to a net loss of ($2.0) million in the 2021 period, which included a ($1.2) million loss from discontinued operations. EBITDA loss improved to ($0.3) million compared with an EBITDA loss of $($0.4) million in the comparable period in 2021. Strong balance sheet with cash of $24.2 million , or $1.04 per share, and zero debt as of March 31, 2022 . Mr. Dror Sharon , Chief Executive Officer of Senstar Technologies , stated, "As previously stated on our prior earnings call, we closed a large contract in EMEA and delivered year-over-year revenue growth, despite the first quarter being a seasonally weaker quarter for our business. Importantly, we are effectively managing our supply chain and have increased inventory to assure continued customer order fulfillment and to maintain our gross margins. "Our pipeline is building for 2022 and we see strength in our global oil and gas vertical, as well as critical infrastructure and logistics," continued Mr. Sharon . "Our two largest geographies, EMEA and North America are beginning to rebound as COVID restrictions are lifted and customer activity resumes to pre-pandemic levels. Given our current backlog, the improved business climate and our building pipeline of business, we anticipate delivering another year of revenue growth in 2022. We are anticipating improved gross and EBITDA margins in 2022 for Senstar Technologies ." First Quarter 2022 Results Summary Revenue for the first quarter of 2022 was $6.8 million , an increase of 3.7% compared with $6.5 million in the first quarter of 2021. First quarter gross profit was $4.5 million , or 65.8% of revenue, compared with $4.1 million , or 62.1% of revenue. The increase in gross margin was primarily due to a shift in the mix of products sold during the quarter. Operating expenses for the first quarter of 2022 were $5.1 million , an increase of 8.3% compared to the prior year's first quarter operating expenses of $4.7 million . The increase in operating expenses is primarily attributable to the increase in revenues, travel, sales related expenses and marketing activities compared to the 2021 period, when there was a slowdown in similar activities due to the global pandemic. Operating loss was ($0.7) million for the first quarter of 2022, unchanged compared to ($0.7) million in the first quarter of 2021. Financial expense was $0.2 million compared to financial income of $20 thousand in the first quarter last year. This expense is mainly a non-cash expense related 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 ($1.1) million in the first quarter of 2022 compared to ($0.7) million in the year-ago quarter. Net loss in the first quarter of 2022 was ($1.1) million or ( $0.05 ) per share versus ($2.0) million , or ( $0.09 ) per share in the first quarter of last year. The net loss in the 2021 period includes a loss from discontinued operations of ($1.2) million . EBITDA loss from continuing operations for the first quarter was ($0.3) million versus ($0.4) million for the first quarter of 2021. Cash and cash equivalents and restricted cash as of March 31, 2022 , were $24.2 million , or $1.04 per share, compared with $26.4 million , or $1.13 per share, at December 31, 2021 . Earnings Conference Call Information: The Company will host a conference call later today, May 26, 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 13730020. 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=1549781&tp_key=425536750f . A replay link of the call will be available at https://senstartechnologies.com/ on May 26, 2022 after 1 pm Eastern time through June 9, 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: 137330020 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 [email protected] IR Contact: Kim Rogers Managing Director Hayden IR +1 541-904-5075 [email protected] SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All numbers except EPS expressed in thousands of US$) Three Months Ended March 31 , 2022 2021 % change Revenue 6,785 6,540 4 Cost of revenue 2,318 2,478 (7) Gross profit 4,467 4,062 10 Operating expenses: Research and development, net 1,095 1,007 9 Selling and marketing 2,299 2,133 8 General and administrative 1,745 1,603 9 Total operating expenses 5,139 4,743 8 Operating loss (672) (681) Financial income (expense), net (239) 19 Loss before income taxes (911) (662) Taxes on income 186 70 Loss from continuing operations (1,097) (732) Loss from discontinued operations, net - (1,237) Net loss (1,097) (1,969) Income attributable to redeemable non-controlling interests and non-controlling interests - 21 Net loss attributable to Senstar's shareholders (1,097) (1,990) Basic and diluted net loss per share from continuing operations ( $0.05 ) $(0.03) Basic and diluted net loss per share from discontinued operations, net - $(0.06) Basic and diluted net loss per share ( $0.05 ) $(0.09) Weighted average number of shares used in computing basic and diluted net loss per share 23,301,931 23,163,985 SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All numbers except EPS expressed in thousands of US$) Three Months Ended March 31 , 2022 % 2021 % Gross margin 65.8 62.1 Research and development, net as a % of revenues 16.1 15.4 Selling and marketing as a % of revenues 33.9 32.6 General and administrative as a % of revenues 25.7 24.5 Operating margin - - Net margin from continuing operations - - SENSTAR TECHNOLOGIES RECONCILIATION OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING OPERATION (All numbers expressed in thousands of US$) Three Months Ended March 31 , 2022 2021 GAAP loss from continuing operations (1,097) (732) Less: Financial income (expenses), net (239) 19 Taxes on income 186 70 Depreciation and amortization (408) (312) EBITDA from continuing operations (264) (369) SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) March 31 , December 31 , 2022 2021 CURRENT ASSETS: Cash and cash equivalents $24,206 $26,397 Restricted cash and deposits 6 6 Trade receivables, net 6,604 7,723 Unbilled accounts receivable 16 26 Other accounts receivable and prepaid expenses 2,036 2,010 Inventories 6,917 5,751 Total current assets 39,785 41,913 Long term ASSETS: Deferred tax assets 489 502 Operating lease right-of-use assets 1,185 1,228 Total long-term assets 1,674 1,730 PROPERTY AND EQUIPMENT, NET 2,029 2,109 INTANGIBLE ASSETS, NET 1,936 2,186 GOODWILL 11,580 11,449 TOTAL ASSETS $57,004 $59,387 SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) March 31 , December 31 , 2022 2021 CURRENT LIABILITIES: Trade payables $2,417 $2,710 Customer advances 310 390 Deferred revenues 2,856 2,704 Other accounts payable and accrued expenses 11,914 13,203 Short-term operating lease liabilities 290 276 Total current liabilities 17,787 19,283 LONG-TERM LIABILITIES: Deferred revenues 1,621 1,690 Deferred tax liabilities 882 899 Accrued severance pay 512 523 Long-term operating lease liabilities 925 969 Other long-term liabilities 260 266 Total long-term liabilities 4,200 4,347 SHAREHOLDERS' EQUITY Share Capital: Ordinary shares of NIS 1 par value - Authorized: 39,748,000 shares at March 31, 2022 and December 31 ,2021; Issued and outstanding: 23,309,987 shares at March 31, 2022 and 23,301,653 shares at December 31, 2021 6,799 6,796 Additional paid-in capital 30,433 30,394 Accumulated other comprehensive loss 1,554 1,222 Foreign currency translation adjustments (stand-alone financial statements) 9,670 9,687 Accumulated deficit (13,439) (12,342) TOTAL SHAREHOLDERS' EQUITY 35,017 35,757 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $57,004 $59,387 Logo: https://mma.prnewswire.com/media/1713105/Senstar_Technologies_Logo.jpg View original content to download multimedia: https://www.prnewswire.com/news-releases/senstar-technologies-reports-first-quarter-2022-financial-results-301555882.html SOURCE Senstar Technologies Ltd.

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