YAHUD, Israel, September 1, 2010 -- Magal Security Systems Ltd. (NASDAQ GMS: MAGS, TASE: MAGS) today announced that revenues for the three month period ended June 30, 2010 grew 17% as compared to the first quarter of 2010.
Revenues for the second quarter of 2010 totaled US$11.4 million as compared with $9.8 million for the first quarter of 2010. The net loss for the second quarter of 2010 totaled $1.5 million, or $0.15 per share, a decline of 35.0% from US$2.4 million, or $0.23 per share, in the first quarter.
Gross margins for the quarter were 31.7%, down from 37.4% in the first quarter. The decline in gross margins is due primarily to changes in the mixture between product and project sales.
Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, "We were pleased with the revenue growth and reduction in the net loss for the quarter. We recently announced the receipt $5.5 million in new orders which included $4.3 million of orders in Israel, indicating that our strategic plan is starting to show early success. We also recently announced our second win to provide security solutions for airports in China, solidifying our position as the leader in this important market. In addition, we are seeing positive signs from the important markets in Western Europe and the UK. We believe that based on these positive signs, Magal expects to continue revenue growth for the balance of 2010.
"With the new cash infusion which was approved at the recent extraordinary shareholders meeting, I believe that Magal is now well-positioned to expand its sales efforts as well as seek acquisitions which will solidify our leadership in the perimeter security market," concluded Mr. Livneh.
Revenues for the six months ended June 30, 2010 were US$21.2 million, a 3.0% decrease compared with the comparable period last year. Net loss for the six months period ended June 30, 2010 was US$3.9 million, or $0.38 per share, compared with a net loss of US$2.1 million, or $0.20 per share, in the same period last year.