Magal sees North American revival

Ishay Davidi and Magal security fence photo: Tamar Matsafi

The company has received orders totaling over $5 million to provide security solutions for correctional facilities.

Two weeks ago, security systems company Magal Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS) published unimpressive quarterly results, due to weakness in the North American market. Today, it reported new orders in this market, to the tune of over $5 million. Magal announced today that its North American subsidiaries have received several orders totaling in excess of $5 million to provide security solutions for correctional facilities in North America. The orders include the supply of advanced video solutions and perimeter detection smart solutions including the Omnitrax buried cable sensor. All the orders will be delivered within the coming 12 months.

Magal CEO Saar Koursh said, "We are proud of being selected as the provider of security solutions to correctional authorities in North America. We are also pleased to see a renewal of order flow from this key and strategic region for Magal. These orders from new, as well as existing customers, demonstrate trust in our security solutions as well as our ability to perform and deliver complex security solutions. We look forward to receiving further orders in this important and key strategic region for Magal in the future."

In the second quarter of this year, North America accounted for only 23% ($3.1 million) of Magal's revenue, which compares with about half ($6.8 million) in the corresponding quarter of 2016. In the first half of 2017, Magal had revenue of $27.6 million, 5.2% more than in the corresponding period of 2016. The net loss attributable to shareholders was narrowed by 64.5% to $2.5 million. Magal is controlled by FIMI Opportunity Funds, headed by Ishay Davidi.

Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Ishay Davidi and Magal security fence photo: Tamar Matsafi
Ishay Davidi and Magal security fence photo: Tamar Matsafi
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