Financial Data and Key Metrics Changes - The company reported revenues of $9 million for Q3 2023, a decrease of 7.9% compared to $9.7 million in Q3 2022, primarily due to the absence of one-off projects in Canada and the U.S. and continued weakness in the APAC region [4][32] - Gross margin for the third quarter was 56.5%, down from 61.1% in the same quarter last year, attributed to lower-margin legacy projects [10][32] - Operating income for Q3 was $123,000, a decline from $1.1 million in the prior year [33] - The net loss attributed to shareholders was $122,000 or negative $0.01 per share, compared to a net income of $1.3 million or $0.06 per share in Q3 2022 [34] Business Line Data and Key Metrics Changes - The company experienced strong growth in Europe, with revenue increasing over 20% year-over-year for the second consecutive quarter, driven by investments in several countries [16] - The U.S. market saw an 8% year-to-date revenue increase, while the Latin America region delivered 10% growth year-over-year [17][20] - The APAC region faced challenges, primarily due to the weak Chinese economy, leading to a decline in revenue [29] Market Data and Key Metrics Changes - Revenue breakdown for Q3 2023 showed North America at 43% (down from 50%), Europe at 34% (up from 25%), APAC at 16% (down from 19%), and Latin America at 7% (up from 6%) [20] - The company is well-positioned in Canada, although it faced challenges due to the absence of significant one-off projects [6] Company Strategy and Development Direction - The company plans to unveil a new multi-sensor intrusion detection system at ISC West in April 2024, which integrates multiple detection capabilities into a single unit [8][18] - The strategic vision includes expanding beyond current market focuses and enhancing product innovation to drive growth in key verticals [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in gaining market share in Europe and highlighted the importance of the region as a growth engine [5] - The company is working to normalize gross margins in the coming quarters despite current challenges [27] Other Important Information - Cash and cash equivalents as of September 30, 2023, were $12.7 million or $0.55 per share [11] - The company has been operational for 42 years [41] Q&A Session Summary Question: Status of the redomiciling from Israel to Canada and its impact on corporate taxes - Management confirmed the process is on schedule and operational entities will maintain their own taxes, indicating no ongoing impact [36] Question: Outlook for backlog over the next 3 to 12 months - Management stated that the backlog is stable and satisfactory, although specific data on backlog was not provided [37] Question: Company’s years in operation and revenue concerns - Management confirmed the company has been in operation for 42 years and acknowledged the revenue for the quarter is $9 million [41][43]

Senstar Technologies Ltd (NASDAQ:SNT) Q2 2023 Earnings Conference Call September 6, 2023 10:00 AM ET Company Participants Kimberly Rogers - Hayden IR Fabien Haubert - Interim CEO Tomer Hay - CFO Conference Call Participants Operator Hello, and welcome to the Senstar Technologies Second Quarter 2023 Financial Results Conference Call and Webcast. [Operator Instructions]. It's now my pleasure to turn the call over to Kim Rogers of Hayden IR. Please go ahead, Kim. Kimberly Rogers Thank you, Kevin. Welcome, and ...

Financial Data and Key Metrics Changes - Reported revenues for Q1 2023 were $6.4 million, a decrease of 5% compared to $6.8 million in Q1 2022, primarily due to exceptional projects in EMEA and APAC in the previous year [18] - Gross margin for Q1 2023 was 55.7%, down from 65.8% in the same quarter last year, attributed to a shift in the product mix sold [18] - Operating loss for Q1 2023 was $1.7 million, compared to an operating loss of $0.7 million in Q1 2022 [20] - Net loss attributed to shareholders was $1.9 million or $0.08 per share, compared to a net loss of $1.1 million or $0.05 per share in the prior year [21] - Reported EBITDA for Q1 2023 was negative $1.4 million, compared to negative $0.3 million in Q1 2022 [21] Business Line Data and Key Metrics Changes - The company achieved significant growth in the U.S. market, particularly in the corrections vertical, which is one of the targeted verticals [12] - The contribution from North America, including LATAM, was 62% of total revenues, up from 45% in the previous year, while Europe contributed 31%, down from 38% [18] - APAC's contribution to revenue was 6%, down from 16% in the prior year [18] Market Data and Key Metrics Changes - The U.S. and Europe together accounted for about 80% of total revenue in Q1 2023, reflecting strong performance in the U.S. corrections market [12] - EMEA and APAC regions experienced lower revenues compared to Q1 2022 due to the completion of exceptional projects in the previous year [15] Company Strategy and Development Direction - The company aims to expand market share in high-value verticals such as energy, utilities, corrections, and logistics, focusing on comprehensive solutions [10][11] - There is a deliberate shift away from commoditized markets to sustain profitability and maximize customer value [10] - Investment in R&D is prioritized to drive product innovation and align with market demand [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and steps being taken to expand market share and drive growth [16] - The company is focusing on high-value vertical markets and investing in R&D to position itself for future success [16] Other Important Information - The company is developing adjacent solutions to enhance its product offerings, such as a workflow engine for logistics and pipeline protection solutions [8] - Cash and cash equivalents as of March 31, 2023, were $14.7 million or $0.64 per share [21] Q&A Session Summary - The call concluded with management thanking participants for their continued interest and support, looking forward to future updates [23]

Financial Performance - In the twelve months ended December 31, 2022, the company's revenue was $35.6 million, compared to $34.9 million in 2021 and $33.4 million in 2020, indicating a year-over-year growth of approximately 2%[52]. - The company reported an operating profit from continuing operations of $1.5 million and a net income attributable to shareholders of $3.8 million for the year ended December 31, 2022[54]. - Consolidated revenues for the year ended December 31, 2022, were approximately $35.6 million, an increase from $34.9 million in 2021 and $33.4 million in 2020[174]. - Revenues from continuing operations increased by 1.8% to $35.6 million for the year ended December 31, 2022, compared to $34.9 million in 2021[196]. - Operating income improved to $1.5 million in 2022, up from $1.1 million in 2021, driven by increased revenues and savings in operating expenses[201]. - Financial income for 2022 was $0.1 million, a significant improvement from financial expenses of $1 million in 2021, mainly due to foreign exchange gains[202]. - Tax benefits of $2.4 million were recorded in 2022, compared to tax expenses of $2.3 million in 2021, attributed to a different geographical mix of pre-tax profitability[203]. Currency and Foreign Exchange - The Israeli Shekel appreciated by 13.2% against the U.S. dollar in 2022, which resulted in a foreign exchange gain of $0.4 million for the company[59]. - The Israeli Shekel appreciated by 13.2% against the U.S. dollar in 2022, impacting foreign currency translation adjustments[187]. - The company recorded foreign currency translation adjustments totaling $9.7 million for both 2022 and 2021, compared to $9.1 million in 2020[187]. - The CAD depreciated against the U.S. dollar by 6.4% in 2022, impacting the dollar cost of operations in Canada[209]. Operational Challenges - The company experienced significant disruptions due to global supply-chain challenges, which negatively impacted operations and financial performance[42]. - The ongoing effects of the COVID-19 pandemic have led to unpredictable impacts on the company's future results of operations and overall financial performance[52]. - The company may face increased costs and operational disruptions due to potential tariffs or restrictions on imports from China or other emerging markets[46]. - Supply chain disruptions in 2022 led to longer delivery times and increased material prices, impacting manufacturing operations[155]. - The company may experience production delays if suppliers terminate or amend arrangements in a detrimental manner[86]. Market and Competition - The company faces intense competition in the security and safety market, which could lead to loss of market share and eroded profitability margins[65]. - The competitive landscape includes major players like Genetec Inc. and Avigilon Corp., with the company focusing on maintaining product quality and customer support as key differentiators[159]. Strategic Initiatives - The company aims to increase revenues from its Products segment, including Perimeter Intrusion Detection Systems (PIDS), Video Management Software (VMS), and Intelligent Video Analytics (IVA) through strategic verticals and new channels[113]. - The company plans to enhance its presence in strategic verticals such as critical infrastructure, correctional facilities, logistics, and energy, while also targeting emerging markets like China and Eastern Europe[123]. - The company anticipates organic growth post-divestiture of the Integrated Solutions Division, leveraging its industry position for strategic acquisitions[123]. - The company aims to refine and broaden its product portfolio by developing new products and entering into OEM agreements to meet customer security needs[123]. Research and Development - Research and development expenses for the continuing products segment were $4.0 million in 2022, consistent with $3.9 million in 2021 and $4.0 million in 2020[154]. - Research and development expenses remained stable at 11% of revenues for both 2022 and 2021, while selling and marketing expenses decreased to 25% in 2022 from 29% in 2021[195]. - Research and development expenses are expected to be approximately $4.6 million in 2023, focusing on new product development and technology improvements[225]. Intellectual Property and Compliance - The company has four patents and one pending patent application, relying on a combination of trade secret and copyright law to protect proprietary technology[83]. - The company may face significant costs and resource expenditure in defending against potential intellectual property infringement claims[84]. - The company is exposed to risks associated with international operations, including compliance with anti-corruption laws and varying regulatory environments[78]. Financial Position and Cash Flow - Cash and cash equivalents decreased to $15.0 million at December 31, 2022, down from $26.4 million in 2021, primarily due to net cash used in operating and investing activities[217]. - Net cash used in operating activities was approximately $9.5 million in 2022, compared to net cash provided of $6.0 million in 2021[228]. - The company expects ongoing cash requirements to be met through cash flows from operations, although liquidity may be affected by reduced demand for products[226]. Shareholder and Governance Issues - As of April 17, 2023, FIMI partnerships owned approximately 42.3% of the company's outstanding ordinary shares, allowing them to exert significant control over business decisions[94]. - Changes in Israeli law regarding corporate governance may result in the company following home country practices instead of NASDAQ requirements, potentially affecting shareholder protections[96]. - The company has not determined whether it will continue to make cash distributions in the future, which are subject to board discretion and various factors[95]. Product Development and Innovation - The company’s product portfolio includes advanced perimeter security solutions, with installations along tens of thousands of kilometers of borders and facility boundaries globally[126]. - The company’s latest product, FlexZone, can pinpoint intrusions to within ±3 meters and supports long cable lengths of up to 600 meters[130]. - The Senstar Symphony Common Operating Platform integrates video management and analytics, enhancing security management capabilities through sensor fusion[138]. - The intelligent video analytics capabilities include face recognition, automatic license plate recognition, and crowd detection, enhancing security and operational efficiency[145]. - The Senstar E5000 Physical Security Appliance is designed for challenging environments, combining hardware with the Senstar Symphony platform[145]. - The company maintains a centralized development approach in Canada, focusing on enhancing existing products and developing new technologies[153].

(Full year 2022 results for the twelve months ended December 31, 2022 are compared to the comparable twelve month period of 2021, except as mentioned.) Fourth Quarter 2022 Business Highlights: (Fourth quarter 2022 results for the three months ended December 31, 2022 compared to the comparable three month period of 2021, except as mentioned.) • Revenue grew to $35.6 million versus $34.9 million, with gross margin of 61% compared to 63%. • Operating expense reduced by 4% for an operating income increase of ov ...

Kim Rogers I would also like to acknowledge the exceptional work down by our team in navigating the COVID-19 pandemic. As the world faced these challenges, our team remains steadfast in its commitment to serving our customers, while ensuring our employees' safety and well-being. Through the [indiscernible] and the strategic action, we adapted to the changing in landscape during COVID and the supply chain challenges, which allows us to continue providing essential products and services to our customers. Alth ...

Senstar Technologies Ltd. (NASDAQ:SNT) Q3 2022 Earnings Conference Call December 22, 2022 10:00 AM ET Company Participants Kim Rogers - Hayden IR Dror Sharon - CEO Tomer Hay - CFO Conference Call Participants Mike Distler - AMX Operator Greetings and welcome to Senstar Technologies' Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being record ...

Senstar Technologies Ltd. (NASDAQ:SNT) Q2 2022 Results Conference Call September 22, 2022 10:00 AM ET Company Participants Doron Kerbel - Company Secretary & V.P. General Counsel Dror Sharon - Chief Executive Officer Tomer Hay - Chief Financial Officer Operator Greetings. Welcome to Senstar Technologies Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this confer ...

Senstar Technologies Ltd. (NASDAQ:SNT) Q1 2022 Earnings Conference Call May 26, 2022 10:00 AM ET Company Participants Kim Rogers – Managing Director-Hayden IR Dror Sharon – Chief Executive Officer Tomer Hay – Chief Financial Officer Conference Call Participants Operator Greetings, and welcome to Senstar TechnologiesÂ' First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions ...

SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SE ...