Senstar Technologies (SNT) 20 Apr 232022 Q4 Earnings call transcript

Greetings, and welcome to Senstar Technologies Fourth Quarter and Year End 2022 Results Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Kim Rogers. you. Thank

begin. may You

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understanding our appointed as I'm as for the in CEO. Fabien the pandemic. has press Haubert sales ago has we our CEO. COVID-XX Board Directors of Mr. announced President As a significant earlier deliver down than deep way region. responsibility that this that interim the corporate will announce he Fabien stepping confident role that of and years and And the joined organizations operations that of Fabien resume EMEA Sales the first as as He region. will back release the today, and year, in Fabien his five and Vice a In in April joined three to our company XX, ago Senstar XXXX. appointed in serve tomorrow, growth Director our more possible. was the in of I'm architect the company as strategy. changes strategy he the revenues behind more and Fabien call support streamlined best me of years during was our he the Managing than

to our the Integration our on the XXXX. in to to results divest of strengths resulting for XXXX, $XX We $X.X growth. to quarter million achieved Solutions XXXX in $X.X $X.X year our investing for to We core an in decision XX% rise strategic compared shareholders and delivered Magal full increase and to us returns income million. potential the concentrate cash Turning significant in million in for a fourth areas our enabled XXXX million operating EBITDA of with in in for XXXX, greatest

strong allowed gross times we through still passed compared and increases which the our less extended of increases. face problematic XX% to were price most onto margin While maintain price over We customers, supply chain in related XXXX. XXXX, a lead headwinds to successfully us

We margin. of growth stable XX% finished maintained and quarter high a gross a strong revenue fourth XXXX with on note

want management reduced by Senstar our than annual an stabilizing in to Overall, are for their our support year operating year pleased with throughout we backlog, XX% in and increase our of Technologies cash full operating burn. the Our and We EBITDA. continued gratitude for our and year-over-year. income employees expenses stakeholders more increase customers, while increase diligent the resulted exited our X% a year. of our in expense year-over-year. income XXXX, the with especially results in express unwavering EBITDA We to strong operating XX.X%

the allowed divesture [indiscernible] of perimeter to have well our strengths our been alongside in site as focus significant on my My cash remarkable of had position the to team company's intrusion integration we full Ottawa. previously stakeholders. [emitted] the previously leader During verticals. Magal the solidified success primary privilege our dedicated I a industry. Integration growing site and leverage important has my milestones technologies. challenges professionals million Senstar This us and as strategic U.S. rebranding driving achieved have as in to the that Together, during and at our time post-merger consolidation the for to of working of deep our to here Solution $XX (ph) have Senstar, [indiscernible] tenure Senstar, and in value delivering core as and accomplishment navigated now the

streamed cash. million we a XXXX, to September returned planning, million not analysis cash previous in our returned we divestiture distribution, to of a following behind the shareholders. careful also return and when significant executed only In shareholders our in It's we $XX but the $XX the operation, our form efficiency. delivered distribution Through

I team down pandemic. our in the would by work COVID-XX to the exceptional also navigating acknowledge like

services ensuring the faced commitment and products team to supply its our employees' providing to the landscape to our us world COVID while these and changing steadfast [indiscernible] the which our customers, customers. our allows chain in serving and the Through continue challenges, strategic the adapted well-being. we safety remains As action, during challenges, in essential to and

the expenses line in our continue booking COVID to XXXX, have happy managed positioning longer Although XXXX to cancellations experienced cycle. cash I'm despite pipeline. the say, an with opportunities the in exited eye operating sustainable sales execute the growth. any we work term for we long and not impacted we with top company order and and XXXX to solid We

the strong orders negotiations backlog revenue we As have a company and next I month, backlog expected the plan to the XX a in backlog we are to the close of this large replenishing over mentioned, to stage at steady rate. where of final months. deliver Several portion a expected our in coming of currently

growth. doing sales in fostering and and the our marketplace. I to provide innovation. resources in customers' has had company's Senstar in achievements, development received of made. Senstar we year we the investing needs, Senstar those software of four to efforts. priority XXXX key By understand research look our proud Advancing and awards differentiate and that XXXX and and we so, industry my with stride better solutions their a us meet to been productive By also addition offering specifically for The introduced to along to time innovation, be during new solutions culture the released product verticals of them industries I’m and have helped aligned position product top focus In our at this continued designed recognition

advancement Operating Platform. like to winning I Common award successful our Symphony highlight would solution, the Senstar also of the

edge our team, talented recent that close recognized collaboration impact. we through cutting and has release with innovation for version of the product a With developed X.X, been its

products Our which this and release platform Fusion upgrade the common year to had software to our devices track in software PIDS operating early solution, fusion. on strong our new two market. linked remain we reception with to and continue the a We the

I'm to honor closing, a excellent for ongoing deliver is grateful incredibly and to want employees and the commitment positioned our to confident our lead our worldwide the be has such in and of the profitability made experience. talented proud dedicated value. the to and strategy for that team an improve In thank all have well success. will products ultimately progress continued I together deliver been It shareholders services, for of I we always and company

go Tomer and to Tomer please review Hay. I financial ahead CFO, pass the Now, the will results. call Mr. our

you, Thank Dror.

begin for Magal a and to for valuable deal of first his to as and thank for want CFO unwaveringness I new I my I And it. wishes his been best Before extremely gratitude express Finance an and as Dror Dror to my fulfilling working note, me, Senstar for extend experience. later him long more in great contribution VP and years, I presence to needed support personal his position. professionally On financial and a review, success would those my Group for has his have learned personally. both the whenever like I his alongside

revenues reported markets, quarter well our The million, of recovery in primarily four quarter reported the Our due key increase $X.X compared in the some fourth was as $X revenue of of effort an XX% with our XXXX the sales of for verticals. in fourth million XXXX. increase to as was of

costs. XX% revenues XX%. follows. versus as material XX.X% XX% products fourth business a X%. as North to to XX%. quarter geographic America percentage margin gross breakdown macro Other The is APAC availability was primarily X%. the level The sold versus quarter reported XX%. in of Fourth and was the revenues last quarter gross components year the during of versus XX% cost, quarter of XXXX X% related to the labor for XX.X% in mix decrease versus XX% margin versus high ago due a compared shift versus and Latin of year. Europe conditions America

decrease prior in to as quarter expenses, were decrease of -- $X.X general expenses administrative well operating reported and generating Our as million, expenses in expenses the is expenses. operating from year selling decrease The XX.X% due fourth $X.X primarily year-over-year million. lower operating of a

compared income other valuation $X.X accounting regularly loss to effect to the accordance is liabilities in the GAAP. year. fourth last of in period. due financial of functional quarter $X.X currency expenses year report mainly the the operating a the to million operational we ago the entity million of in was fourth currencies denominated $X.X income of for This was operating non-cash the quarter monetary reported our Financial Our in assets and million with an in of than million group adjustments $X.X the compared

continuing reported XXXX last million from was loss from million fourth $X.X continuing the operation quarter income Our of continuing a fourth company's was of compared operation fourth $X.X EBITDA from in for quarter. in for ago quarter operation of loss an $X.X to million year. continuing The of the year EBITDA quarter the million in the operation the negative versus $X.X

loss net a in versus income Net The in income Senstar of loss in quarter corporate share operation amortization from $X.X same operation expenses expenses Added contribution is zero quarter of the Senstar the negative was or for of and assets million fourth technology per intangible in year. to year $X.XX last quarter fourth net net fourth includes expenses in were the or the share per public $X year. acquisitions. operational amortization reported $X.XX a from discontinued the million from of million XXXX $X.X discontinued $X.X fourth a versus million of of shareholders the $X.X attributed to versus million quarter before. platform period the The last and quarter historical

of versus COVID XX, year for full gross XX%. versus year of lower sales. the to $XX December Europe, pandemic. was X%. The million XXXX been XX.X% North was as margin revenue in year. XX%. or revenues revenues for breakdown X.X% The America, XX%. and geographic increases some margin gross million, has APAC, in our $XX.X last percentage $XX.X million year. XX% periods is gross XX% XX% a both ended representing which to profit our versus XXXX as prior million X% America, impacted Revenues Latin $XX.X of XX% business, is some in follows. by recovery XXXX gross compared increase of The relates to material versus due in the of The others compared year-over-year primarily mix versus and margin X% to

was as million, technology from expenses Operating was with the $XX.X shareholder The as primarily versus operating income increase share attributed expenses. the XXXX due was $X.X well $XX last million share Our decrease compared Senstar of million or $X.X $X.X in million to a income per million to income to in XXXX. operating a lower $X.XX higher million revenues, year. in Net operating or XXXX per $X.XX was $X.X X.X% compared XXXX.

X.X% The XXXX reported operations. million our XX, Cash the includes income $X.X was and margin share. level million, XXXX. or XXXX for $X.X discontinued and The of margin were expenses from XXXX. X.X% $X.XX net were corporate in of an platform the cash expenses $X.XX as EBITDA an amortization XXXX, million, $XX EBITDA public In of December net of $X.X per in equivalents the in as representing million same million with income in EBITDA compared representing

would like remarks. That concludes open now. questions Operator, the call my we to to

At this There to at are I'd session. the over closing remarks. Instructions] time. we'll be management for you. question-and-answer Thank [Operator like conducting call questions a to time, brief turn back no this

deepest lots serve endeavors. to On Thank to greater our my much. as thank very like gratitude everyone I CEO that team again and business. Senstar success. best individuals. to excellence. Senstar, would work of luck the you also and behalf of good of future management in my interim-CEO company. for And confident Thank driven work, of express success and to their of Senstar the the to It and honor for alongside the a for has new their thrive our commitment I company Fabien like role achieve I'm at wish this opportunity dedication their an everyone. unwavering of Thank support the investors you the term would friend such been hard will have long continue a interest and I remarkable luck as talented his of to and you. to in day,

This conference. concludes today's

thank may you your at You we this lines disconnect your and participation. time, for