Security

Senstar Technologies Business and 2021 Financials Examined

In this Research Note, we examine Senstar Technologies perimeter protection business, based on their 2021 20F financial report, earnings call, investor presentations, acquisitions and divestments, vertical market focus and our analysis of their market positioning.  Senstar Technologies Ltd, a listed company on the US Nasdaq global market, based in Ramat Gan, Israel, is a provider of physical security hardware and software products. Senstar 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 until July 2021, Senstar positions itself as a brand leader in perimeter intrusion detection systems (PIDS) with intelligent security management (SMS) featuring advanced video analytics and access control integrated into one solution for security and operational intelligence. The company has over 160 employees worldwide, with development and manufacturing facilities located in Canada and sales and support offices in the US, EMEA, China and APAC regions. Source: Senstar Technologies Ltd. Investor Presentation, Winter 2022 The company’s […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $180 USD per year per user ( just $15 USD per month) for Access to Quality Independent Smart Building Analysis!

What Exactly Do you Get?

  • Read every article published in full and get unlimited access to our archive of over 1,400 articles.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

In this Research Note, we examine Senstar Technologies perimeter protection business, based on their 2021 20F financial report, earnings call, investor presentations, acquisitions and divestments, vertical market focus and our analysis of their market positioning. 

Senstar Technologies Ltd, a listed company on the US Nasdaq global market, based in Ramat Gan, Israel, is a provider of physical security hardware and software products. Senstar 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 until July 2021, Senstar positions itself as a brand leader in perimeter intrusion detection systems (PIDS) with intelligent security management (SMS) featuring advanced video analytics and access control integrated into one solution for security and operational intelligence. The company has over 160 employees worldwide, with development and manufacturing facilities located in Canada and sales and support offices in the US, EMEA, China and APAC regions.

Source: Senstar Technologies Ltd. Investor Presentation, Winter 2022

The company’s position in Canada was strengthened in April 2016 when the company acquired Aimetis, a specialist in advanced video analytics software and intelligent IP video management software (VMS). In July 2017 the two Canadian subsidiaries were amalgamated as the Video Management Software Division.

On 30 June, 2021, the company completed its planned divestiture of their Integration Solutions Division to Aeronautics Ltd., a subsidiary of RAFAEL Advanced Defense Systems Ltd. in a share and asset purchase agreement. Magal received $35 million in cash at closing on a cash-free, debt-free basis.  Dror Sharon, Chief Executive Officer of Magal, commented;

“The closing of this transaction directly supports our strategy of prioritizing opportunities to provide technologically-rich products, solutions and related services in our key verticals of energy, logistics, critical infrastructure and correctional facilities. Operating as a pure product solutions company will increase visibility into our future performance and provide us with incremental opportunities to deliver additional shareholder value…

In connection with the completion of the divestiture, the company announced a change of name to Senstar Technologies Ltd and completed stabilizing the organization in the second half of 2021, with the focus shifting to growth from products and advancing innovative technology offerings.

Senstar Technologies 2021 revenue was $34.9 million, an increase of 4.7% compared with $33.4 million in 2020. The increase in annual revenue was primarily due to some recovery in the business which was impacted by the COVID-19 pandemic.  EBITDA was $2.6 million for the twelve months ended December 31, 2021, compared with $4.3 million in the comparable period in 2020. Operating margin for 2021 was 3.1% compared with 9.2% in 2020.

2021 results were impacted by the divestiture of Magal Division, which consumed a significant portion of management time, and by the COVID pandemic. They estimate that revenue in 2021 was reduced by around 10% as a result of the impact of COVID globally, which affected the closing of deals, the effectiveness of the workplace, and limited client interactions.

The regional breakdown as a percentage of revenues for 2021 is as follows:

  • North America, 46% 
  • Europe, 26%
  • APAC, 23%
  • Latin America, 4%
  • Other countries, 1%

The company’s commitment to innovation is reflected in the deployment of a significant investment exceeding $10 million in advanced research and development in the past three years on next-generation sensors and AI and deep-learning solutions.

New products launched in 2021 include Sensor Fusion Engine and OEM thermal cameras. These new solutions, together with the ongoing products offering, run on the latest version of their Symphony Common Operating Platform, a security management system that offers AI analytics, access control, video integration, and inputs from their PIDS products. Senstar announced the opening of a software development branch in Timisoara, Romania in March 2022 to advance its software solution portfolio.

According to our latest 2021 Physical Security Business Report,

Senstar Technologies is positioned in the Challengers Quadrant for vendors in the intruder detection and perimeter protection market.  Memoori defines Challengers as having innovative products, growing fast, and having the potential to move into the Leader Quadrant.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.

Most Popular Articles

Spacewell Nemetschek Group
Smart Buildings

Spacewell Smart Building Management Business & Financials 2022 Examined

In this Research Note, we examine Spacewell, part of the Manage segment of Nemetschek, which provides software for the management and operations phase in the building lifecycle. This article is based on their 2022 annual results, investor presentations, the Annual Report of the parent company, published on 23rd March 2023 and the group’s strategy in […]

Net Zero Buildings Balfour Hospital
Energy

Net Zero Buildings Explored – The Balfour Hospital

The Balfour Hospital in Kirkwall, on the remote Scottish islands of Orkney, has established itself as the first fully net-zero National Health Service (NHS) hospital in the UK in 2019. The £65 million facility, designed to accommodate 49 patients, has pioneered an innovative and sustainable approach to design, construction, and operation processes. Delivered by the […]

CXApp SPAC
Smart Buildings

Smart Building SPAC Trend Continues with Hybrid Work Play CXApp

Since 2019 the business world has been inundated with high-profile SPAC deals. And while we have certainly seen a slowdown in SPAC deals in recent months, the SPAC trend is by no means over. In the smart building industry, a new SPAC was completed this month, as workplace experience platform provider CXApp completed a business […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy