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In this Research Note, we examine Senstar Technologies perimeter protection business, based on their 2022 20F financial report, earnings release, investor presentations, vertical market focus and strategy. This article updates our previous May 2022 analysis.
Senstar Technologies Ltd, a listed company on the US Nasdaq global market, based in Ramat Gan, Israel, was established in 1981 with the objective of bringing security technologies originally targeted for military applications to the commercial market. Formerly known as Magal Security Systems, Senstar positions itself with a broad portfolio of Perimeter Intrusion Detection Systems (PIDS), Video Management Software (VMS) combined with Electronic Access Control (EAC) and Intelligent Video Analytics (IVA).
Following the sale of the Integrated Solutions (Projects) division in June 2021, the company continues to operate their Senstar Products division, with over 160 employees and with development and manufacturing facilities located in Canada and sales and support offices in the US, EMEA, China and APAC regions.
Senstar Technologies revenue for 2022 was $35.6 million, an increase of 1.8% compared with $34.9 million in 2021. The increase in annual revenue was primarily due to some recovery in the business which was impacted by the COVID-19 pandemic. EBITDA from continuing operations for 2022 was $2.9 million versus $2.6 million in 2021.
Their strategy is to increase revenues from their Products segment, which includes their PIDS, VMS and IVA products by:
- Focusing efforts on their strategic verticals
- Locating new channels to promote and market their products
- Investing in research and development thus maintaining technology leadership
- Entering into OEM agreements which will increase their offerings for the verticals on which they focus
- Acquiring new technologies relevant to their target verticals independently or through M&A
New products launched in 2022 include the Senstar Symphony Sensor Fusion Engine, which synthesizes data from separate systems to generate actionable information. More than just simple Boolean logic integration, the sensor fusion engine accesses low-level data to intelligently characterize potential risks. Data synthesis enables the system to achieve levels of performance that exceed those of individual sensors.
“The Senstar Symphony Sensor Fusion Engine addresses two of the top concerns for perimeter security–reducing nuisance alarms and increasing Probability of detection,” said Senstar Managing Director Fabien Haubert.
Senstar targets the critical infrastructure market, with a special focus on four key verticals - utilities, logistics, correction facilities and energy sectors.
The company sees an opportunity to increase market share in these four large verticals by leveraging their established brand and distribution and selling lateral product solutions for adjacent applications beside security.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.
