Senstar Technologies (SNT) 13 Jun 242024 Q1 Earnings call transcript

Greetings, and welcome to the Senstar Technologies First Quarter 2024 Financial Results. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Kim Rogers, with Hayden Ir. Thank you, Kim.

You may begin.

Camilla. you, Thank welcome Senstar to the call conference I'd management everyone for thank Technologies hosting and like to today's call. the With on call Mr. are us today Fabien Ms. Haubert, Technologies; CEO Senstar of and CFO. Alicia Kelly, highlights, summarize followed Senstar's financial results first the of for will Fabien and financial by who will key Alicia, review XXXX. quarter business

call a session. then will We for open the question-and-answer

company's market security statements we I'd that demand of Securities results clients may other like the and or from regarding conference only Commission. in competitive nature projections contain may forward-looking Senstar as industry, start, that the to statements systems coronavirus, this cannot the These does trends, operations as to events Exchange Before differ they reduced the fact, company or events assume unknown future including those including of future materially projected, predictions, effect and the and the will, our with well update and or unanticipated call obligation as the by the Actual and a any our of documents are occur. point out filed performance. not other identified guarantee on information. that changing risks Senstar in result

release, GAAP during comparable certain Reg financial course we in in measures. addition have accordance in G's GAAP most measures addition, note which non-GAAP we conference should directly considered reconciled to of will the with the Please non-GAAP in call, In the of describe be measures, financial not press comparable our financial to requirements. lieu measures that and

the and most the company's to measures at directly reconciliations. financial comparable also for www.senstartechnologies.com related can refer You website

over the to like go Fabien, now I'd that, please hand to call Fabien. with And ahead.

first a Technologies of across delivered our for that start And year. today the you year-over-year strong quarter improved results compared importantly, We're Thank First significantly. in major to operations off joining XX% Senstar We profitability revenue financial us Kim. XXXX growth with of XXXX quarter Financial last from you, first Results. Quarter to review improved to Thank metrics.

business accomplishment quarter. like release and issued which financial our redomiciling major a highlights, into and the operating highlight first diving organization successful Senstar's costs. the reduce a Canada to I'd to announcing Before streamlines In March, press we for

Operating the Revenue confirmed to in driving as year, nearly the represented quarter revenue These in had steps XX.X% first of promoted from with last and the margin Alicia our expenses Alicia decreased achieve year revenue, me XX.X% honor of to I the to our XX% was to compared margin of Additionally, our compared higher-margin and being gross adjustments position objectives. strategic CEO, line quarter. was to XX% and and goal. gross effectively target price products derived ago CFO. in

the a our have $X.XX control measures price in In the loss over terms significantly operating year XXXX we from a loss taken implemented loss of more of financial approaching improved are and $XX,XXX from adjustments hold course ago breakeven million quarter of to results. of our profitability, apparent and in operations. Cost that

our strong geographic by of with progress and the in In centers data of especially Asia position X% a in our achievement leadership, mainly due is with new Notably, utility team revenue, America. appointed our to segment. business and for U.S. Pacific regions first in great the largest activity, percent Latin as developing development and increased quarter, markets. our fantastic most in Under delivered U.S., recently growth strength correction we the the utilities notable quarter, market in revenue first making in the the

markets Market years, strong, sectors. in demand and the where of invested previous Senstar opportunities Europe underrepresented. the in Europe we first In markets, remained largest were transport in increased has in utilities, revenue in X% Europe, one in our especially quarter. by developing energy promising

In improved contributed and vertical sustain market success. our on growth established QX. to To has share our targeted key in also focus addition, Senstar which has to in accounts been its territories the key

by quarter leadership. compared Growth XXX% under APAC. transport to existing previous revenue Asia of In to utilities generated north new first verticals a drive year's concentrated the the our was the from from with territories efforts Pacific, on grew and mainly south

we XX% QX. to the In higher region, the wins primarily verticals, this due in Am in delivered late Lat the we experienced quarter, growth sustained in growth again XXXX, correction rate we

committed development these key verticals the remain and from revenue correction, key Revenue our to key our segments. our XX% verticals: contribution at energy market with these business drive growth. strategy X utilities, Looking by in to We logistics. in increased accounts

MultiSensor most X%. we're providing full detection intrusion this of AI-based intelligently from to an MultiSensor rates the quarter. embedded inclusion data fusion about engine technologies, ahead, new multiple our excited awareness that to launch alarm system sensor official reducing sensing synthesize false close uses and is Looking situation

image versatile market. short-range and includes The unlike anything extremely our well system players and by as sensor. recognize on solution being advanced vibration accelerometer, high-frequency an is else PIR, and radar, and received The in major MultiSensor industry the

a are new expect and sales to building pipeline opportunity, we second in of year. sales begin of the We half the recording better

in XXXX. profitability. these solid and continued gains growth through achieving remain delivered year-over-year in improved metrics, In progress and improvements target as summary, We key the metrics resulting geographies on focused across in growth we first important results verticals, and growth revenue quarter with on

results turn Alicia financial detail. a I for will the call to the of now review in more over

Fabien. you, Thank

with of XXXX. of Our first of in quarter XX% million revenue an reported first million, the the $X.X for revenue XXXX quarter $X.X compared was of increase reported

versus of as remained XX% The XXXX for geographical quarter X% our the versus year was X%; XX%; of as revenue prior versus breakdown North a to first XX% revenue X%. primarily due key growth As quarter percentage in vertical Fabien APAC, of the increase markets. discussed, Europe, compared Latin flat the with X%; versus and XX% XX%; America, is XX% follows: America, others at

quarter for product quarter our first Reported mix gross the XX.X% of XXXX. improvement taken of the first compared adjustments was to result of higher-margin to a XXXX for the This revenue of in XXXX. and in products the primarily margin in was shift revenue XX.X% quarter price of revenue

manage reported were million, operating expense our Our XX% million. the a of year's and overhead operating marketing decrease operations of to expenses G&A year-over-year lower diligently streamline $X.X from $X.X quarter's in due decrease result to The operating expenses expense costs. efforts selling and of prior and lower expenses as our a is primarily

significantly to of on higher year higher period. sales ago margins operating loss was a the to to of compared year-over-year first lower improvement gross million costs. and due in loss Our $X.X loss the narrowed quarter a operating in $XX,XXX The

accounting $XX,XXX GAAP. effect other income the to of Financial regularly was functional This a the in last operating to accordance quarter liabilities the $XX,XXX currency in group adjustment compared denominated entities the the mainly due and of currencies report of in is we first the our than valuation assets to year. with monetary noncash in

in of an reported the to quarter shareholders per versus of $XXX,XXX first first quarter The per quarter quarter $XXX,XXX $X.X attributable or versus EBITDA first a $X.XX positive in was Technologies' loss net the share $X.XX in million share EBITDA the the year. last of Net the Senstar for of group of company last to $X.X million of year. loss year. of loss last and was first the a was tax position Taxes compared to to the for provision due statute related in due a limitation. to uncertain provision the $XXX,XXX The an on offset $XXX,XXX primarily exceptional tax reorganizing reduction income assets, were by in quarter which structure increase tax the recovery or

as of intangible The Senstar's the March or Cash $X.XX as XX, XX, acquisitions. XXXX, operational expenses year corporate and amortization were share assets and cash versus December include the the of were compared per from in platform, million $XXX,XXX of to XXXX. million quarter expenses of $XX.X and equivalents first $X.X first amortization its expenses before. as public million quarter historical $XX.X for

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

from Our Ken Oppenheimer. of with the Liddy question comes Instructions] [Operator line first

solid the quarter. for Congratulations

Canada? or wanted your the any was Just know costs quarter, in significant from to redomiciling first savings in there

you your Thank question. for Okay.

attributable some redomiciliation. was the there Yes, to savings

we As also less level. And in savings were some was entities we've from significant well. some the naturally count operating Canada. restructured essentially, eliminated there restructured doing are were and the mentioned, then there to as headquarter so, have that we head In that

significant Was are there change any charges onetime the or in the that material? that -- quarter from

onetime charges No No. quarter. this

And looks to? in you that -- flow like positive Okay. it were you some cash was had the What strong attributable quarter.

That completing effect of QX. the was just natural us

our came our of of which the were cash from large XXXX. a QX during collections of portion higher QX So sales,

in product be it one you a to history? this question. a big of gauge Okay. to there big is? can a MultiSensor, Is how the significant very contributor? launch Or Or is this launch just is to that the is Or something expected I'm it's to deal? deal? last solid compare regards another -- And trying it With Senstar's

So it to major change be to where for reasons. is many going expected we're a

technologies. we alarm The And that first technology. has to MultiSensor is thing every touched those sensors on target we reduce is The technology, we've a focusing new. a in the basically segment of zero. of perimeter MultiSensor detection the false the today totally -- which Most one is one the to are limit believe

situational this and awareness of So compile site the to the information sight, the the sensing hearing, human analogy the the give what's going have replace to to an a never to will body, all clear best you smelling, happen. brain

another of like doing with perimeter to combined It's video check it top is whether be or it. going and has it's not. an to to be technology eventually on combined technology Today, another occurred going with alarm

technology together to to phones years perimeter mobile reduce translate do the We all into is with the the in the use to music, only back, the with way MPEG-X the digital device camera. then it's to Today, and X, flipping data an detection together like use to listen right to decision. situational the had and improve the a it the of it and a it be to PDA to give typically. we GPS, performance the iPhone to able together We to analogy conversion that believe in to and -- intelligence combine XX with device. one awareness phone, together to our

So to proposing the that. of we by ahead believe market be

basically device, step a another than provide But So and decision we adding technologies been is a only not understanding, to different which provide is an which seeing doing which you're the in able single anything it's past. intelligent today. have to device, using technology, better a

terms So why it. that's we of in did

and we and then best of high so to it, so cameras to of we're on on. we do it And -- going end technologies expect First the we're like put one other where of to the of our expect going top the on by market share have So able product solutions to on once. by expect as to at all, growth? the the try critical hope portfolio. to we But solution -- but take well points broadening targeted video hope be is having but system noncritical And a [indiscernible]. I only I finally, question many do of long, critical infrastructure, heavily this to as which infrastructure, your by not things answered our markets. targeting

That's customer a your from of outside Is lot of customer really interest your there it. appreciate any I of color. base type or base? groundswell of

test and Today, positive introduction, of market desire from a concept first proof to translated to of a we do it, lot have the huge the reaction of whatsoever. in

excited X weeks' release, which is -- will happen So in by time. we're the extremely

testing be pilot you of will you any -- will test? you And at be And it? point announcing are pilot the

to so far. not communicate that going We're on

Okay.

sorry. Okay. the And low value have a the about company Has question, regarding I'm last of buyback company stock is company thought discussion the one given or then any shares?

term, short is It on sir. planned not

you. Thank Instructions] [Operator

of question-and-answer comments. would We have Fabien end session. floor to back I turn to for our Haubert with any reached like over the that, the Mr. And closing

thank interest On our good business. would and long-term our of their day. of Senstar management, support behalf to like Have for a I investors

This concludes today's teleconference.

time. your for may lines this participation. you You your at disconnect Thank