/C O R R E C T I O N -- Senstar Technologies Corporation/

19.04.24 14:25 Uhr

In the news release, Senstar Technologies Corporation Reports Fourth Quarter and Full Year 2023 Financial Results, issued April 19, 2024 by Senstar Technologies Corporation over PR Newswire, we are advised by the company that the investors' conference call will be held at 9 a.m. Eastern Time today. The complete, corrected release follows:

Senstar Technologies Corporation Reports Fourth Quarter and Full Year 2023 Financial Results

OTTAWA, Ontario, April 19, 2024 /PRNewswire/ -- Senstar Technologies Corporation (successor to Senstar Technologies Ltd.) (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, 2023. Management will hold an investors' conference call later today (at 9 a.m. Eastern Time) to discuss the results.

Senstar Technologies Corporation Logo

Full Year 2023 Business Summary:

(Full year 2023 results compared to the comparable twelve-month period of 2022, except as mentioned.)

  • Revenue of $32.8 million with gross margin of 58% versus $35.6 million with gross margin of 61%
  • Net loss of ($1.3) million versus net income of $3.8 million; EBITDA loss of $(0.3) million compared with positive EBITDA of $2.9 million
  • Ended 2023 with a cash balance of $14.8 million and no debt, on par with the cash balance as of December 31, 2022, of $14.9 million
  • Successful launch of MultiSensor™, a groundbreaking AI-based intrusion detection system

Fourth Quarter 2023 Business Summary:

(Fourth quarter 2023 results compared to the comparable three-month period of 2022, except as mentioned.)

  • Revenue of $8.9 million with gross margin of 57% versus $9.9 million with gross margin of 57%
  • Net income of $0.4 million versus net income of $3.5 million; EBITDA of $0.5 million versus EBITDA of $1.2 million
  • Wins in key verticals drove growth in EMEA, APAC and LATAM in the quarter

Mr. Fabien Haubert, Chief Executive Officer of Senstar Technologies, stated, "In 2023, we took measures to address regions where we had negative growth by reinforcing our local leadership. We concluded the year on a stronger note than we began, as our revenue increased in the second half by 20%, while operating expenses decreased quarter by quarter, culminating in improved profitability in the fourth quarter compared to prior quarters in the year. Recently, we successfully completed the process of redomiciling from Israel to Canada, enabling us to streamline our corporate structure and empower our Canadian team to lead Senstar forward. We will continue to invest resources to increase market share across key regions, particularly in the Americas, Europe and APAC, while intensifying efforts to excel in the utilities, corrections, energy and logistics verticals. These efforts will be instrumental in achieving our objectives and driving sustained success for Senstar Technologies in the coming year."

Mr. Haubert continued, "Introduced in 2023, our new AI-based intrusion detection system, the MultiSensor, enhances Senstar's competitive position in the marketplace and will increase our addressable market. We anticipate sales starting in fall 2024."

Full Year 2023 Financial Results Summary

Revenue for 2023 was $32.8 million, a decrease of 7.8% compared with $35.6 million in 2022. The decrease in annual revenue was primarily due to the completion in 2022 of a one-time project in Asia.

Gross profit was $18.8 million, or 57.5% of revenue, for 2023 compared with $21.5 million, or 60.5% of revenue, in 2022. The decrease in gross margin was due to our revenue mix primarily in the first quarter of 2023 and some increases in material costs. During the fourth quarter measures were taken to improve gross margin.

Operating expenses were $20.1 million, an increase of 0.5% compared to the prior year's operating expenses of $20.0 million. The increase in operating expenses is primarily due to one-time exceptional expenses necessary to streamline the business for our future business requirements and our redomiciliation to Canada, partially offset by a decrease in general and administrative expenses compared to the 2022 period.

Operating loss for 2023 was ($1.3) million compared to operating income of $1.5 million in the year-ago period.

Financial expense of $64,000 in 2023 compared to financial income of $141,000 in the year-ago period.

Loss from continuing operations was ($1.3) million in 2023 compared to income from continuing operations of $4.0 million in the prior year.

Net loss in 2023 was ($1.3) million, or ($0.06) per share, versus net income of $3.8 million, or $0.16 per share, in 2022. The current period includes no impact from discontinued operations compared to a net loss from discontinued operations of ($0.2) million in 2022.

EBITDA from continuing operations for 2023 was a loss of ($0.3) million versus positive EBITDA from continuing operations of $2.9 million in 2022.

Fourth Quarter 2023 Financial Results Summary

Revenue for the fourth quarter of 2023 was $8.9 million, a decrease of 9.8% compared with $9.9 million in the fourth quarter of 2022. Fourth quarter gross profit was $5.1 million, or 56.6% of revenue, compared with $5.6 million, or 56.6% of revenue, in the year ago quarter.

Operating expenses were $4.8 million, an increase of 2.2% compared to the prior year's fourth quarter operating expenses of $4.7 million. The increase in operating expenses is primarily attributable due to one-time exceptional expenses necessary to streamline the business for our future business requirements and our redomiciliation to Canada, partially offset by a decrease in general and administrative expenses compared to the 2022 period.

Operating income for the fourth quarter of 2023 was $0.3 million compared to $0.9 million in the year-ago period. The decrease in operating income is primilarily attributable due to the one-time exceptional expenses to streamline the business.

Financial income was $34,000 compared to $277,000 in the fourth quarter last year.

Net income in the fourth quarter of 2023 was $0.4 million or $0.02 per share versus $3.5 million, or $0.15 per share in the fourth quarter of last year.

EBITDA for the fourth quarter of 2023 was $0.5 million versus EBITDA of $1.2 million in the fourth quarter of 2022.

Cash and cash equivalents and short term bank deposits of $14.9 million, or $0.64 per share, as of December 31, 2023, compared with $15.1 million, or $0.65 per share, at December 31, 2022.

Earnings Conference Call Information:

The Company will host a conference call later today, April 19, 2024. The call will begin promptly at 9 a.m. Eastern Time, 2 p.m. UK Time. The Company requests that participants dial in 10 minutes before the conference call commences and use the conference ID number 13745466.

Participant Dial-in Numbers:

Toll Free: 1-877-407-9716
Toll/International: 1-201-493-6779
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=1663568&tp_key=3083d07165.

Replay Dial-in Numbers:

Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13745466

About Senstar Technologies Corporation

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 on utilities, logistics, correction facilities and energy markets.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario), which we refer to collectively as forward-looking statements. These forward-looking statements are not limited to historical facts, but reflect Senstar's current beliefs, expectations or intentions regarding future events. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "seek," "estimate," "predict," "potential," "pursue," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including those risks discussed under the heading "Risk Factors" in Senstar's most recent Annual Report on Form 20-F filed with the SEC and in other filings with the SEC. These forward-looking statements are made only as of the date hereof, and, except as required by applicable law or regulation, Senstar undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

For more information:                                                                     

IR Contact:

Senstar Technologies Corporation                                                     

Hayden IR                 

Alicia Kelly,                                                                                       

Kim Rogers,

Chief Financial Officer                                                                       

Managing Director                 

Alicia.Kelly@senstar.com                                                                 

Kim@HaydenIR.com


+1-541-904-5075

 

-- Tables follow –

 

 

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,



2023


2022

% change


2023


2022

% change

Revenue

8,937


9,910

(10)


32,792


35,558

(8)

Cost of revenue

3,877


4,300

(10)


13,944


14,056

(1)











Gross profit

5,060


5,610

(10)


18,848


21,502

(12)

Operating expenses:










   Research and development, net

896


817

10


4,005


4,032

(1)

   Selling and marketing

2,479


2,337

6


9,954


9,008

11

   General and administrative

1,423


1,539

(8)


6,154


6,978

(12)

Total operating expenses

4,798


4,693

2


20,113


20,018

(0)











Operating income (loss)

262


917



(1,265)


1,484


Financial income (expenses), net

34


277



(64)


141












Income (loss) before income taxes

296


1,194



(1,329)


1,625












Taxes on income (tax benefits)

(137)


(2,257)



(40)


(2,404)












Income (loss) from continuing operations

433


3,451



(1,289)


4,029


Loss from discontinued operations, net

-


-



-


(198)












Net income (loss) attributable to Senstar's shareholders

433


3,451



(1,289)


3,831
































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

$0.02


$0.15



($0.06)


$0.17


Basic and diluted net loss per share from discontinued operations, net

-


-



-


($0.01)












Basic and diluted net income (loss) per share

$0.02


$0.15



($0.06)


$0.16
































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

23,309,987


23,309,987



23,309,987


23,308,001












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

23,309,987


23,309,987



23,309,987


23,309,976























 

 

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,



2023

%


2022

%



2023

%


2022

%












Gross margin

56.6


56.6



57.5


60.5


Research and development, net as a % of revenues

10.0


8.2



12.2


11.3


Selling and marketing as a % of revenues

27.7


23.6



30.4


25.3


General and administrative as a % of revenues

15.9


15.5



18.8


19.6


Operating margin

2.9


9.3



-


4.2


Net margin from continuing operations 

4.8


34.8



-


11.3


 

 

SENSTAR TECHNOLOGIES

RECONCILIATION OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING OPERATION

(All numbers expressed in thousands of US$)



Three Months

Ended December 31,



Full Year

Ended December 31,


2023


2022



2023


2022










GAAP income (loss) from continuing operations

433


3,451



(1,289)


4,029

   Less:









   Financial income (expenses), net

34


277



(64)


141

   Taxes on income (tax benefits)

(137)


(2,257)



(40)


(2,404)

   Depreciation and amortization

(188)


(325)



(917)


(1,430)

EBITDA from continuing operations

450


1,242



(348)


2,914

 

 

SENSTAR TECHNOLOGIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)



December 31,


December 31,


2023


2022

CURRENT ASSETS:




Cash and cash equivalents

$14,806


$14,937

Short-term bank deposits

116


110

Restricted cash and deposits

6


5

Trade receivables, net

9,545


9,973

Unbilled accounts receivable

240


350

Other accounts receivable and prepaid expenses

2,448


1,441

Inventories

7,178


8,443





Total current assets

34,339


35,259





 

Long term ASSETS:








Deferred tax assets

1,525


1,981

Operating lease right-of-use assets

842


987





Total long-term assets

2,367


2,968





PROPERTY AND EQUIPMENT, NET

1,589


1,651





INTANGIBLE ASSETS, NET

881


1,142





GOODWILL

11,090


10,866





Total assets

$50,266


$51,886

 

 

SENSTAR TECHNOLOGIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)



December 31,


December 31,


2023


2022





CURRENT LIABILITIES:








Trade payables

$1,650


$2,408

Customer advances

187


239

Deferred revenues

2,878


2,866

Other accounts payable and accrued expenses

5,052


4,877

Short-term operating lease liabilities

297


248





Total current liabilities

10,064


10,638





LONG-TERM LIABILITIES:




Deferred revenues

1,415


1,463

Deferred tax liabilities

606


865

Accrued severance pay

296


330

Long-term operating lease liabilities

580


757

Other long-term liabilities

113


146





Total long-term liabilities

3,010


3,561





SHAREHOLDERS' EQUITY




Share Capital: Ordinary shares of NIS 1 par value -





Authorized: 39,748,000 shares at December 31, 2023 and December 31, 2022;
Issued and outstanding: 23,309,987 shares at December 31, 2023 and
23,309,987 shares at December 31, 2022

6,799


6,799

Additional paid-in capital

30,521


30,503

Accumulated other comprehensive income (loss)

24


(758)

Foreign currency translation adjustments (stand-alone financial statements)

9,648


9,654

Accumulated deficit

(9,800)


(8,511)





TOTAL SHAREHOLDERS' EQUITY

37,192


37,687





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$50,266


$51,886






 

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