0001178913-20-001096.txt : 20200413 0001178913-20-001096.hdr.sgml : 20200413 20200413103809 ACCESSION NUMBER: 0001178913-20-001096 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200413 FILED AS OF DATE: 20200413 DATE AS OF CHANGE: 20200413 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAGAL SECURITY SYSTEMS LTD CENTRAL INDEX KEY: 0000896494 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21388 FILM NUMBER: 20788067 BUSINESS ADDRESS: STREET 1: P O BOX 70 STREET 2: INDUSTRIAL ZONE CITY: YAHUD ISRAEL STATE: L3 ZIP: 5600 BUSINESS PHONE: 972-3-5391444 MAIL ADDRESS: STREET 1: P.O. BOX 70, STREET 2: INDUSTRIAL ZONE CITY: YAHUD STATE: L3 ZIP: 56100 6-K 1 zk2024269.htm 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

F O R M 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2020

MAGAL SECURITY SYSTEMS LTD.
(Name of Registrant)

P.O. Box 70, Industrial Zone, Yahud 5610001 Israel
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________

This Report on Form 6-K is incorporated by reference into the Registrant's Form F-3 Registration Statement File No. 333-217063 and Form S-8 Registration Statements File Nos. 333-127340, 333-164696, 333-174127 and 333-190469.


Magal Security Systems Ltd.

EXPLANATORY NOTE

The following exhibit is attached:
   
99.1
Press Release:  Magal Security Systems Update as to its Response to COVID-19 dated April 13, 2020.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
MAGAL SECURITY SYSTEMS LTD.
  
 
        (Registrant)
  
     
 
By:  /s/ Doron Kerbel
  
 
Doron Kerbel
  
 
V.P. General Counsel & Company Secretary
  

Date:  April 13, 2020


EXHIBIT INDEX

EXHIBIT NO.
DESCRIPTION
   

          

 EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
 
EXHIBIT 99.1
 

FOR IMMEDIATE RELEASE: April 13, 2020

Magal Security Systems Update as to its Response to COVID-19

Senstar in Canada and Magal in Israel are considered essential workplaces
Main production facilities operational
Sufficient liquidity with $50 Million in cash on balance sheet

YEHUD, ISRAEL – April 13, 2020 Magal Security Systems, Ltd. (Nasdaq: MAGS), a leading international provider of comprehensive physical, video and access control security products and solutions, as well as critical site management, announced today that in response to the rapidly evolving global situation related to the impact of global spread of the Coronavirus (COVID-19). Magal has implemented a number of key initiatives focusing on the safety of its key stakeholders while also providing for business continuity and opportunity.

Mr. Dror Sharon, Chief Executive Officer of Magal, said “Our first priority is protecting our employees while managing our business through the crisis and ensuring that we can return to efficient operations once the situation recovers. In response, we have implemented key initiatives to manage the business through the current uncertainties and the possible long-term economic impact.
 
Continued Mr. Sharon, “We are well positioned to withstand the impact of the crisis given our strong performance in recent years, our healthy backlog, strong balance sheet with approximately $50 million of cash and cash equivalents and no debt. We are closely monitoring our bookings log and delivery schedules. Our goal is to mitigate, as much as possible, the impact of COVID-19 on our financial results, monitor our costs and maintain profitability while positioning the Company for recovery and growth.”
 
SUMMARY OF KEY INITIATIVES
 
Protect our employees
 

 •
Global teams monitoring local health and safety directives and implementing necessary guidelines and best practices in all workplaces.
 

 •
All our employees, with a few exceptions whose presence is necessary for production, operations and performance of projects, are working remotely.
 

 •
We believe that employee retention is essential for the Company’s recovery post-crisis.
 
Maintain ongoing operations in production, R&D, sales, support
 

 •
Currently, both of our main production facilities are operating as usual. Senstar in Canada and Magal in Israel are considered vital workplaces, since both are suppliers and service providers for ministries of defense and energy critical sites.
 

 •
We are closely monitoring our supply chain and to date, have not seen shortages. However, some materials and finished products are taking longer to receive and shipping expenses are increasing.
 

 •
Completion of certain projects and installation work will be delayed due to flight and inland travel restrictions as well as the inability to access certain sites.
 

 •
While Magal’s project sales team is continuing to meet remotely with end-users, mainly government entities, there has been a pause in the initiation of new projects. To date we have not seen a slow-down in proposals and quotes from our Senstar sales team, but it is too soon to tell if this will continue in Q2, or if these proposals and quotes will materialize into sales.
 

 •
Senstar customer support is currently provided remotely, with on-site support being postponed. In Israel, as well as, in Kenya and Mexico, support is currently being provided. We anticipate that due to the dynamics of the governmental measures in those geographies such support may be restricted. In Israel, there is almost no interruption in our performance of IMOD related projects.
 
Reduce expenditures
 

 •
Salary increases and recruitments have been postponed.
 

 •
As of mid- March, all employees were put on a four-day work week, with extended vacation periods for Passover and Easter.
 

 •
Non-essential expenses were put on hold.
 

 •
Negotiating with service providers for cost savings across the board.
 

 •
Studying and applying to various governmental relief programs as applicable per each geography.
 
Magal’s current plan assumes that the Company will return to normal operations by the end of June or by early July, while the economic impact may continue longer. Due to the speed of the spread of COVID-19, there is uncertainty around its impact on our financial and operating results, which we cannot reasonably estimate at this time. We expect to provide an update in our Q1 2020 earnings release.
 
About Magal Security Systems, LTD.
 
Magal is a leading international provider of comprehensive physical, video and access control security products and solutions, as well as site management. Over the past 45 years, Magal has delivered its products as well as tailor‐made security solutions and turnkey projects to hundreds of satisfied customers in over 80 countries ‐ under some of the most challenging conditions. Magal offers comprehensive integrated solutions for critical sites, managed by Fortis4G ‐ our 4th generation, cutting‐edge physical security information management system (PSIM). The solutions leverage our broad portfolio of home‐grown PIDS (Perimeter Intrusion Detection Systems), Symphony ‐ our advanced VMS (Video Management Software) with native IVA (Intelligent Video Analytics) security solutions.

Forward Looking Statements
 
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission. In addition, and as mentioned in this press release, there is uncertainty about the spread of the Coronavirus and the impact it will have on the Company’s operations, the demand for Company’s products, global supply chains and economic activity in general.
 
For more information:
 
Magal Security Systems Ltd.
Diane Hill, Assistant to the CEO
+972-3-539-1421
dianeh@magal-s3.com
www.magalsecurity.com
IR Contact:
Brett Maas
Managing Partner
Hayden IR
+1 646-536-7331
Brett@HaydenIR.com