Magal Security Systems Ltd. Announces 2004 First Quarter ResultsWednesday April 28, 9:04 am ET - Net Income increases 29% compared with the first quarter of 2003 and 30% compared with the fourth quarter of 2003 - YAHUD, Israel, April 28 /PRNewswire-FirstCall/ -- Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS) today announced its consolidated financial results for the three-month period ended March 31, 2004. Revenues for the first quarter of 2004 reached US$14.2 million, an increase of 11 percent compared with the first quarter of 2003. Operating income reached US$1.2 million and net income reached US$687,000, an increase of 14 percent and 29 percent respectively compared with the first quarter of 2003. Compared with the fourth quarter of 2003, revenues decreased by 20 percent, operating income increased by 12 percent and net income increased by 30 percent. Operating expenses for the first quarter of 2004 reached US$5.1 million, an increase of 17 percent compared with the same period of last year and a decrease of 26 percent compared with the fourth quarter of 2003. Diluted earnings per share for the first quarter reached US$0.08, an increase of 14 percent compared with the same period of last year. Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said: "Usually, our first quarter of the year is the weakest quarter, as outdoor installations are harder during the winter months. We remain pleased with the organic growth in our business and the growth in the operating income, income before tax and net income compared to the first and fourth quarters of 2003." Mr. Even-Ezra added: " During this quarter, we launched three new products. These were the Fortis Integrated Command and Control System, the PipeGuard Pipeline Security System and the DreamBox, the All-in-One CCTV solution. Management believes that the sales of Fortis and DreamBox will start during the year 2004. Sales of the PipeGuard, we expect will start in the year 2005 due to the long trial periods associated with this product." Mr. Even-Ezra concluded: " Based on the first quarter results, the current backlog and increased interest in our security products, we have every reason to believe that our results in the year 2004 will be better than those of 2003". The Company will be hosting its quarterly conference call at 11:00am EDT. On the call, Mr. Jacob Even-Ezra, Chairman of the Board & CEO, and Ms. Raya Asher, V.P. Finance & CFO, will review and discuss the first quarter 2004 results. They will then be available to answer questions. To participate, you may listen to the webcast by accessing the link from Magal's web-site at:
www.magal-ssl.com. Alternatively, you may call one of the teleconferencing numbers that follows. Please place your calls 5-10 minutes before the conference call commences. If you are unable to connect using one of the toll-free numbers, please try the international dial-in number or the webcast.