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    Magal Security Systems Ltd. (MAGS) Shares Rise on Strong Quarterly Results

    Magal Security Systems Ltd. (MAGS) Shares Rise on Strong Quarterly Results

    Magal Security Systems Ltd. (Nasdaq: MAGS) surged over 67% to close at $4.43 in Tuesday’s trade, after setting a fresh 52-week high of $4.84. Over 1.32 million shares traded hands during the session, dwarfing the 10-day average of 3.94 K.  The stock is currently above its 50-day moving average of $2.45 and above its 200-day moving average of $2.75.

    Shares of the Israel-based security solution provider gained after the release of its third quarter results.

    For the three-month period ended September 30, 2011, Magal reported a record revenue of $27.7 million, which is a 107% increase from 2010’s third quarter revenue of $13.4. Gross profit in the quarter was $13.1 million, or 47.2% of revenues, up 142% compared to gross profit of $5.4 million , or 40.4% of revenues, in the comparable quarter last year.

    For the period, the company saw a net income of  $7.1 million, or $0.61 per basic and fully diluted share, reversing the year-ago net loss of $799 K, or  $0.08 per basic and fully diluted share.

    Eitan Livneh , president and CEO of Magal, commented in the release saying: “The in excess of $80 million in project wins that we have announced over the past year, as well as our execution on these projects which are in various stages of delivery, contributed to the strong improvement in revenue and profit.”

    “Following our successful rights offering and significant cash generation in the quarter, we have a very healthy balance sheet and strong financial position. This enables us to better compete for larger scale projects and pursue new opportunities. At the same time, we continue to see strong market demand for our services, particularly in global developing regions, and we believe our momentum will continue into the coming quarter and beyond.”

    Earlier this month, the company announced the receipt of $2.4 million in repeat orders.

    Shares of MAGS have gained 24.2% in the last five days; 37.7% in the last month; and 7.1% year-to-date.

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