Senstar Technologies (SNT) 26 Aug 242024 Q2 Earnings call transcript

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

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

begin. may You

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

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

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

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

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

Fabien now to go the CEO, Haubert. With call over Senstar that, I'd hand Please to like ahead.

Results. XXXX Thank Technologies review for Second us Financial to joining Senstar Thank you, today you Kim. Quarter

revenue same from of profitability quarter is on with mainly continued the One second highlight quarter performance. $X.X improvement our this par the year, last X.X%. Our quarter is was million down in

gross in supply in the Our shift we the improvement have reached last improvements product a was we X challenges This due mix, established best mostly and to cost of the margin quarters. year. chain last realignments delivered XX.X%,

Operating expenses decreased ago and year of of gross in XX.X% quarter. margin operating the X% to XX.X% X% by and our The higher X% expenses operating compared revenue, revenue represented lower to from XXXX. in lift margin QX combined to

net revenue. our income to USD higher EBITDA second further and XX.X% and reserve with the QX, balance quarter, management. sheet to increased of end As to diligent since a climbed inventory XXX,XXX million thanks reduction strengthened our in cash inventory $X margin of result, In a the our

growth gives flow our and us cash key continue to incremental Our innovation. areas in investing driving in flexibility the new product

sectors market demand major by remains in driven a into in of to regions sector. revenue the correctional region steady in our specifics a various with projects. utilities strong QX wins several was utilities the surging XXXX, primarily versus and region in and APAC growing QX the XXX% standard revenue transport whole and performer with throughout sectors. modest in X% saw dive let's last In the QX Now the this in we and U.S., of compared And increase year. revenue a performance important across

Europe, in delays to QX, mainly however, down projects. customer XX% due some in challenges revenue faced with

energy in the up will anticipate utility, substantial QX. this and However, delays, in these throughout we believe Despite the project region. sectors transport activity QX and we catch

and This and X power data solar major particularly was nuclear the growth and increases stations, in in verticals solid farms, year-over-year Our sales by X% in worldwide, utility key delivered QX growth, in plants year-to-date. demand rising sector centers. driven XX%

with environment interest Additionally, we've airport seen a reinforcing in global scale. on significant growth the

In terms of we latest innovation, with Senstar MultiSensor. are thrilled launch product new successful of our the development, the

paying meet professionals market delivering operational the to to off. Security to efficiency. security industry events and solutions solution are commitment complex enhance dealing innovation Senstar is and with frequent increasingly

challenges noninterest too even by it. nuisance time One These biggest someone alarms. a False against of to or alarms is close alarms blowing resources. their and triggered standing debris waste fan like

sensors MultiSensor MultiSensors tackle reducing industry, metrics unique for situational issues market X. device and out multiple the decreases the these the to we're full nuisance next can probability These the to synthetize ability that in proud exceeds The advanced sensing to of security to and of to awareness most and capability be a deliver us detection stands data outcomes. alarm for The pressing key technology, market allows alarms with nuisance vastly one first industry's X. traditional are provide to with its

securing verticals markets. MultiSensor market [indiscernible] key believe areas already within momentum now addition for driver the available sale, we product We be significant up to which expand a growth With traditional us seeing and Senstar for volumes. interest. versatility in address core critical MultiSensor will to for infrastructure, into are higher this The deal as opportunities we our opens our market new in build markets, noncritical exciting for

In support closing, you thank continued for I'd like of Senstar to Technologies. your

our the the about the underscores of Our the of half built the we're solid key performance We're by launch momentum team. encouraged with verticals, in multi-sensor. ahead, particularly the excited across of we've our that the our and first and dedication strength XXXX opportunities of strategy lie

made success. product solutions appearances well position forward, driving evolving for innovative of in that the us continued enhancing As believe growth, we delivering remain alongside to we and our our operational investments customers. portfolio improved We move profitability needs that our meet committed the we've

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

Thank you, Fabien.

with in EMEA. was Our to The reported projects due the revenues of revenue for second modest quarter of of $X.X decrease XXXX. decrease a million was XXXX in reported quarter second compared $X.X the of X.X%, delays primarily in million,

as revenue XX% all than America, period; second other periods. regions, versus XX% in X% America, for APAC the year the of in quarter percentage follows: of quarter North with a each versus compared as XX%. less EU versus breakdown and both geographical Latin X%; XXXX The is X% XX%; XX% prior

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

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

we due the to the currencies last evaluation quarter the in ago quarter The entities second was income due year-over-year year. monetary compared the gross operating the to Our was of in Financial accordance margins of $XX,XXX on cost. currency and adjustment accounting $XXX,XXX, assets financial liabilities our This sales regularly the operating is higher with than second group improvement in the to year improved operating GAAP. other $XXX,XXX in expense the noncash income of $XX,XXX report in a functional in of to higher effect, to mainly and lower denominated compared period. a to

year. EBITDA in second $XXX,XXX, year. in reported for quarter or second share less quarter attributable of company year. in Taxes income in $XXX,XXX than Technologies second $XXX,XXX the $X.XX of the shareholders benefit the versus the Senstar quarter $X.XX last of The of was to share on $XXX,XXX quarter per Net were or quarter a to second the versus tax $XXX,XXX last income last $XXX,XXX compared of per

or previous quarter. of were December equivalents amortization acquisitions. and $XXX,XXX XX, of historical to platform the as and The cash amortization per $X.XX public $XX.X share million XXXX. the expense of intangible as include June quarter expenses were for assets XX, expense operating Cash compared as XXXX, as and per or share corporate Senstar's $X.XX from $XX.X second [indiscernible] year's million

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

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

or you growth? impact was would I revenue expect have material a wondering to when on MultiSensor the revenue were

much very question. Thank your you for

weeks. So next provide more the released is the a couple We the for for hope to say. got the just to in already, product delivery a the early significant next sales, to and selling order information ago. not has just to less It's first are first coming for happen weeks it's product the but come released than But because of got officially at release. this stage, bit

orders months? And in does have the a backlog company next currently the of expected XX

we that of backlog commenting can I unfortunately, commenting that booking or mention of a year. only first we're part in good the yes, not we're the But trend had So expectations. the further unfortunately, not

last roughly of half to XXXX? to half you in compared increase did second year million revenue second Do the you for expect the of $XX year the the

and statements, working not hard on striving we're but Unfortunately, forward-looking providing it. we're

call pass Fabien at no further are There the remarks. closing back to this over I'd questions to for time. any like

Thank you day. release. to this The quarters. on a the good follow-up Senstar Please progress call look our to feel contact in again. the learn is information on more contact we for of coming updating further And IR free about you this Have our firm bottom press to forward at or Technologies.

This concludes today's teleconference.

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