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Magal CFO sees 2001 sales above $40m

Raya Asher says security firm will look to acquire peers in 2002

With Reuters

Magal Security Systems (Nasdaq:MAGS), which posted solid third-quarter financial results, will continue to grow in the fourth quarter and end the year with revenues above $40 million, Magal's chief financial officer said on Wednesday.

"We think we will be more than $40 million," CFO Raya Asher told Reuters, noting sales were about $38 million in 2000.

"Security is a segment that will show growth in the near future because of the terror attacks" on September 11 in the United States," she said.

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Magal's revenues and net income, Asher said, should show year-over-year growth of seven percent in the fourth quarter after sales rose 3.6 percent and net income jumped 14 percent in the third quarter.

Asher also said Magal was looking to acquire security companies in 2002.

Magal, a provider of outdoor perimeter security systems, on Wednesday recorded net income of $915,000, or 12 cents per share, compared with net income of $804,000, or 11 cents a share, in the same period a year ago.

Revenues rose to $10.6 million, while its net margin rose to 8.7% from 7.9% last year.

Net profit was $2.9 million in 2000 and $2.3 million, or 32 cents per share, over the first nine months of the year compared with $2.2 million, or 30 cents a share, in the January through September period in 2000.