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Senstar Technologies Corporation Reports Third Quarter 2024 Financial Results

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Senstar Technologies (NASDAQ: SNT) reported strong Q3 2024 financial results with revenue growth of 8.2% to $9.7 million, compared to $9.0 million in Q3 2023. The company achieved significant improvements in profitability, with gross margin expanding to 68.0% from 56.5% year-over-year. Operating expenses decreased by 3.6% to $4.8 million, leading to a net income of $1.3 million compared to a net loss of $122,000 in the prior year. EBITDA improved to $2.0 million from $322,000, while cash position strengthened to $19.5 million with no debt.

Senstar Technologies (NASDAQ: SNT) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con una crescita del fatturato dell'8,2% a 9,7 milioni di dollari, rispetto ai 9,0 milioni di dollari nel terzo trimestre del 2023. L'azienda ha raggiunto notevoli miglioramenti nella redditività, con un margine lordo che è passato al 68,0% dal 56,5% rispetto all'anno precedente. Le spese operative sono diminuite del 3,6% a 4,8 milioni di dollari, portando a un utile netto di 1,3 milioni di dollari rispetto a una perdita netta di 122.000 dollari nell'anno precedente. L'EBITDA è migliorato a 2,0 milioni di dollari rispetto a 322.000 dollari, mentre la posizione di liquidità è migliorata a 19,5 milioni di dollari senza debiti.

Senstar Technologies (NASDAQ: SNT) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un crecimiento de ingresos del 8,2% a 9,7 millones de dólares, en comparación con 9,0 millones de dólares en el tercer trimestre de 2023. La compañía logró mejoras significativas en la rentabilidad, con un margen bruto que se expandió al 68,0% desde el 56,5% año tras año. Los gastos operativos disminuyeron en un 3,6% a 4,8 millones de dólares, lo que resultó en un ingreso neto de 1,3 millones de dólares en comparación con una pérdida neta de 122.000 dólares en el año anterior. El EBITDA mejoró a 2,0 millones de dólares desde 322.000 dólares, mientras que la posición de efectivo se fortaleció a 19,5 millones de dólares sin deudas.

센스타 테크놀로지스 (NASDAQ: SNT)는 2024년 3분기 재무 결과가 강력하며 수익이 8.2% 증가하여 970만 달러에 달했다고 보고했습니다. 이는 2023년 3분기의 900만 달러에 비해 증가한 수치입니다. 회사는 총 이익률이 56.5%에서 68.0%로 증가하는 등 수익성에서 상당한 개선을 이루었습니다. 운영 비용은 3.6% 감소하여 480만 달러에 달했으며, 순이익이 130만 달러로 증가한 반면, 작년에는 122,000 달러의 순손실을 기록했습니다. EBITDA는 322,000 달러에서 200만 달러로 개선되었고, 현금은 1950만 달러로 늘어났으며 부채는 없습니다.

Senstar Technologies (NASDAQ: SNT) a rapporté de solides résultats financiers pour le troisième trimestre de 2024, avec une croissance des revenus de 8,2% à 9,7 millions de dollars, contre 9,0 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé des améliorations significatives de la rentabilité, avec une marge brute passant de 56,5% à 68,0% d'une année sur l'autre. Les dépenses d'exploitation ont diminué de 3,6% pour atteindre 4,8 millions de dollars, entraînant un revenu net de 1,3 million de dollars par rapport à une perte nette de 122 000 dollars l'année précédente. L'EBITDA a progressé à 2,0 millions de dollars contre 322 000 dollars, tandis que la position de trésorerie s'est renforcée à 19,5 millions de dollars sans dettes.

Senstar Technologies (NASDAQ: SNT) hat für das dritte Quartal 2024 solide finanzielle Ergebnisse berichtet, mit einem Umsatzwachstum von 8,2% auf 9,7 Millionen Dollar im Vergleich zu 9,0 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte signifikante Verbesserungen in der Rentabilität, mit einer Bruttomarge, die von 56,5% auf 68,0% im Jahresvergleich anstieg. Die Betriebskosten gingen um 3,6% auf 4,8 Millionen Dollar zurück, was zu einem Nettogewinn von 1,3 Millionen Dollar im Vergleich zu einem Nettverlust von 122.000 Dollar im Vorjahr führte. Der EBITDA verbesserte sich auf 2,0 Millionen Dollar von 322.000 Dollar, während die Liquiditätsposition auf 19,5 Millionen Dollar ohne Schulden gestärkt wurde.

Positive
  • Revenue increased 8.2% to $9.7 million
  • Gross margin expanded significantly to 68.0% from 56.5%
  • Operating expenses reduced by 3.6% to $4.8 million
  • Net income improved to $1.3 million from a loss of $122,000
  • EBITDA increased to $2.0 million from $322,000
  • Cash position strengthened to $19.5 million with no debt
Negative
  • None.

Insights

The Q3 2024 results demonstrate significant operational improvements and financial strength. Revenue increased by 8.2% to $9.7 million, while gross margin expanded substantially to 68.0% from 56.5%. The company achieved notable cost control, reducing operating expenses by 3.6% to $4.8 million.

Most impressive is the turnaround in profitability, with net income reaching $1.3 million compared to a previous loss of $122,000. The strong cash position of $19.5 million with zero debt provides excellent financial flexibility. The EBITDA improvement to $2.0 million from $322,000 indicates robust operational efficiency.

Growth in strategic sectors like data centers and solar farms, combined with improved margins from product mix and pricing strategies, suggests sustainable momentum. The company's focus on high-margin opportunities and operational efficiency positions it well for continued growth.

Revenue growth of 8%
Business momentum remains strong; Senstar MultiSensor fully launched for sale
Continued focus on optimizing working capital and delivering positive cash from operations

OTTAWAON, Nov. 12, 2024 /PRNewswire/ -- Senstar Technologies Corporation (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 nine months ended September 30, 2024. Management will hold an investors' conference call later today (at 5 p.m. Eastern Time) to discuss the results.

Senstar Technologies Logo

Third Quarter 2024 Summary:

(Results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.)

  • Revenue of $9.7 million with gross margin of 68.0% compared to revenue of $9.0 million with gross margin of 56.5%
  • Operating expenses declined 3.6% to $4.8 million compared to $4.9 million
  • Net income of $1.3 million compared to a net loss of ($122,000)
  • EBITDA of $2.0 million compared to $322,000
  • Cash balance of $19.4 million, with no debt, as of September 30, 2024

Mr. Fabien Haubert, CEO of Senstar Technologies, stated, "Our growth in key verticals reflects a strategic focus on high-potential sectors and the effectiveness of our tailored solutions. In the third quarter, we achieved double-digit growth in our largest regions—the U.S. and EMEA—driving an 8% increase in overall revenue. This revenue growth, coupled with robust gross margin expansion and a substantial reduction in operating expenses, delivered a profitable quarter with a marked improvement in EBITDA."

Mr. Haubert continued, "We are seeing accelerated growth in specific applications like data centers, solar farms and airport facilities. These sectors, which require high levels of security and reliability, are responding well to our MultiSensor technology and other solutions optimized for complex, high-demand environments. Our expansion into these areas extends our market reach and strengthens our ability to meet the evolving needs of the infrastructure sector."

Third Quarter 2024 Financial Results Summary

Revenue for the third quarter of 2024 was $9.7 million, an increase of 8.2% compared with $9.0 million in the third quarter of 2023. Third quarter gross profit was $6.6 million, or 68.0% of revenue, compared with $5.1 million, or 56.5% of revenue, in the year ago quarter. The increase in gross margin was primarily due to product mix and price increases in the fourth quarter of 2023.

Operating expenses were $4.8 million, a decrease of 3.6% compared to the prior year's third quarter operating expenses of $4.9 million. The decrease in operating expenses is primarily attributable to streamlining of the corporate structure and realignment of resources implemented in 2023.

Operating income for the third quarter of 2024 was $1.8 million compared to $123,000 in the year-ago period. The improvement is primarily attributable to higher gross profit and lower operating expenses both on a dollar basis and as a percentage of revenue basis.

Financial income was $111,000 compared to financial expense of ($64,000) in the third quarter last year.

Net income in the third quarter of 2024 was $1.3 million, or $0.06 per share, compared to a net loss of  ($122,000), or ($0.01) per share, in the third quarter of last year.

EBITDA for the third quarter of 2024 was $2.0 million compared to $322,000 in the third quarter of 2023.

Cash, cash equivalents and short term bank deposits as of September 30, 2024 were $19.5 million, or $0.84 per share, compared with $14.9 million, or $0.64 per share, at December 31, 2023.

About our Non-GAAP Financial Information 

The Company reports financial results in accordance with U.S. GAAP and also provides a non-GAAP measure, EBITDA. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. 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 the table below.

Earnings Conference Call Information:

The Company will host a conference call later today, November 12, 2024. The call will begin promptly at 5 p.m. Eastern Time, 10 p.m. UK Time. The Company requests that participants dial in 10 minutes before the conference call commences and use the conference ID number 13749786.

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=1694516&tp_key=d864cd5e09.

Replay Dial-in Numbers:

Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13749786

A replay of the call will be available on Tuesday, November 12, 2024, after 7:00 p.m. Eastern time through Tuesday, November 26, 2024, at 11:59 p.m. Eastern time, and available on the Senstar Technologies website at https://senstar.com/investors/investor-events/.

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 CORPORATION

 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All numbers except EPS expressed in thousands of US$)


Three Months



Nine Months



Ended September 30,



Ended September 30,



2024


2023

%


2024


2023

%





change





change

Revenue

9,701


8,969

8


25,518


23,855

7

Cost of revenue

3,109


3,898

(20)


9,200


10,067

(9)











Gross profit

6,592


5,071

30


16,318


13,788

18

Operating expenses:










   Research and development, net

1,300


1,034

26


3,342


3,109

8

   Selling and marketing

2,041


2,404

(15)


6,393


7,475

(14)

   General and administrative

1,427


1,510

(5)


4,166


4,731

(12)

Total operating expenses

4,768


4,948

(4)


13,901


15,315

(9)











Operating income (loss)

1,824


123



2,417


(1,527)


Financial income (expenses), net

111


(64)



268


(98)












Income (loss) before income taxes

1,935


59



2,685


(1,625)












Taxes on income (tax benefits)

650


181



1,653


97












Net income (loss) attributable to Senstar's shareholders

1,285


(122)



1,032


(1,722)






















Basic and diluted net income (loss) per share

$0.06


($0.01)



$0.04


($0.07)






















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

23,309,987


23,309,987



23,309,987


23,309,987












 

 

SENSTAR TECHNOLOGIES CORPORATION

 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All numbers except EPS expressed in thousands of US$)







Three Months

Ended September 30,



Nine Months

Ended September 30,


2024

2023



2024

2023


%

%



%

%








Gross margin

68.0

56.5



63.9

57.8

Research and development, net as a % of revenues

13.4

11.5



13.1

13.0

Selling and marketing as a % of revenues

21.0

26.8



25.1

31.3

General and administrative as a % of revenues

14.7

16.8



16.3

19.8

Operating margin

18.8

1.4



9.5

-

Net margin 

13.2

-



4.0

-

 

 

SENSTAR TECHNOLOGIES CORPORATION

RECONCILIATION OF EBITDA TO NET INCOME (LOSS)

(All numbers expressed in thousands of US$)







Three Months

Ended September 30,



Nine Months

Ended September 30,


2024


2023



2024


2023










GAAP income (loss)

1,285


(122)



1,032


(1,722)

   Less:









   Financial income (expenses), net

111


(64)



268


(98)

   Taxes on income (tax benefits)

650


181



1,653


97

   Depreciation and amortization

(185)


(199)



(552)


(729)

EBITDA

2,009


322



2,969


(798)

 

 

SENSTAR TECHNOLOGIES CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)







September 30,



December 31,


2024



2023

CURRENT ASSETS:










Cash and cash equivalents

$19,383



$14,806

Short-term bank deposits

118



116

Restricted cash and deposits

6



6

Trade receivables, net

9,354



9,545

Unbilled accounts receivable

276



240

Other accounts receivable and prepaid expenses

1,819



2,448

Inventories

4,881



7,178






Total current assets

35,837



34,339






LONG TERM ASSETS:





Deferred tax assets

1,261



1,525

Operating lease right-of-use assets

606



842






Total long-term assets

1,867



2,367






PROPERTY AND EQUIPMENT, NET

1,481



1,589






INTANGIBLE ASSETS, NET

589



881






GOODWILL

10,922



11,090






TOTAL ASSETS

$50,696



$50,266

 

 

SENSTAR TECHNOLOGIES CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All numbers expressed in thousands of US$)







September 30,



December 31,


2024



2023






CURRENT LIABILITIES:










Trade payables

$1,522



$1,650

Customer advances

174



187

Deferred revenues

2,466



2,878

Other accounts payable and accrued expenses

5,916



5,052

Short-term operating lease liabilities

261



297






Total current liabilities

10,339



10,064






LONG-TERM LIABILITIES:





Deferred revenues

1,170



1,415

Deferred tax liabilities

608



606

Accrued severance pay

290



296

Long-term operating lease liabilities

378



580

Other long-term liabilities

84



113






Total long-term liabilities

2,530



3,010











TOTAL SHAREHOLDERS' EQUITY

37,827



37,192






TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$50,696



$50,266

 

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SOURCE Senstar Technologies Corporation

FAQ

What was Senstar Technologies (SNT) revenue in Q3 2024?

Senstar Technologies reported revenue of $9.7 million in Q3 2024, an 8.2% increase from $9.0 million in Q3 2023.

What was Senstar Technologies (SNT) gross margin in Q3 2024?

Senstar Technologies achieved a gross margin of 68.0% in Q3 2024, compared to 56.5% in Q3 2023.

How much net income did Senstar Technologies (SNT) report in Q3 2024?

Senstar Technologies reported net income of $1.3 million ($0.06 per share) in Q3 2024, compared to a net loss of $122,000 in Q3 2023.

What was Senstar Technologies (SNT) cash position as of September 30, 2024?

Senstar Technologies had $19.5 million in cash, cash equivalents and short-term bank deposits as of September 30, 2024, equivalent to $0.84 per share.

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