Magal awarded $8m East African deal

Dror Sharon  / Photo: Eyal Izhar, Globes
Dror Sharon / Photo: Eyal Izhar, Globes

The company says that most of the order consists of follow-on orders to maintain systems for detecting penetration of an important seaport in the region.

Israeli integrated security solutions company Magal Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS) reported today the signing of contracts in East Africa worth $8 million in recent months. The company said that most of the orders were follow-on orders for maintaining systems for detecting inflitration at an important seaport in the region. Magal has worked with this customer for years. Supplying the order has begun, and will continue in the coming quarters.

"We are proud of these substantial orders in East Africa. Most of the orders are repeat orders from a customer that has worked with Magal for many years. These orders show our customers' satisfaction with the performance of our products and the regular service that we provide," Magal CEO Dror Sharon said. "Furthermore, Africa remains an important and growing market for Magal, because defense and security of critical installations are becoming more important. We have marked protection of seaports as an important growth engine for Magal in the coming years, and we are very satisfied at the recently improved momentum in this sector."

Magal, controlled by FIMI Opportunity Funds, is listed on Nasdaq at a $95 million market cap, following an 8% dip in its share price since the beginning of the year. The company supplies products and carries out security projects for government authorities, companies, and large events. The company posted a $965,000 net loss on $40.9 million in revenue in the first half of 2019, and its EBITDA was $1.7 million.

Published by Globes, Israel business news - en.globes.co.il - on October 7, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Dror Sharon  / Photo: Eyal Izhar, Globes
Dror Sharon / Photo: Eyal Izhar, Globes
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