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 March 2009
MAGAL SECURITY SYSTEMS LTD.
(Name of Registrant)
P.O. Box 70, Industrial Zone, Yahud 56100 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 [X] 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 [X]
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 Statements File Nos. 333-9050 and 333-123265 and Form S-8
Registration Statement File No. 333-06246.
Magal Security Systems Ltd.
6-K Items
1. Press Release re Magal Security Systems Announces That it Expects to
Incur Non-Cash Write-Offs and Establish Reserves for Termination
Expenses dated March 13, 2009.
ITEM 1
Press Release Source: Magal Security Systems Ltd
Magal Security Systems Announces That it Expects to Incur Non-Cash Write-Offs
and Establish Reserves for Termination Expenses
Friday March 13, 12:00 pm ET
YAHUD, Israel, March 13 /PRNewswire-FirstCall/ -- Magal Security Systems Ltd.
(NASDAQ GMS:MAGS, TASE: MAGS) today announced that it expects to incur up to
approximately $21.5 million in non-cash charges and reserves in its fourth
quarter 2008 results, which will primarily reduce the value of certain
non-tangible assets on its balance sheet.
Among the expected charges is an approximate $4 million reduction in a deferred
tax asset. Taking into account developments in global markets over the past few
months and the shrinkage of budgets manifested by reduced product demand,
management believes that a write-down will be necessary. As the market situation
improves, the company may be able to use this deferred tax asset based on
expected profit levels.
The Company believes that it will be required to record a goodwill impairment
charge with respect to a goodwill asset of $12.5 million established in
connection with the acquisition of a company in Europe. The recorded backlog for
the European company is lower than expected and it is not clear if its
operations will be able to recover to a level where its value will justify the
goodwill figure. These factors triggered the need for an impairment analysis of
the goodwill, which is expected to be completed in the next few months.
In addition to the above non-tangible asset charges is an approximate $2.5
million reserve to be recorded on the Company's balance sheet for future
termination costs associated with the departure of the Company's former CEO as
well as other executives. Management believes that an approximate $1.5 million
provision for slow moving inventory will be required, resulting from the
consolidation of inventory from different subsidiaries as well as identifying
slow moving products that may not be sellable due to the global economic
contraction, including in the markets in which the Company operates.
Management also believes that as a result of the effects of the global economic
slowdown on some of its customers and business partners, it will need to
increase its reserves for doubtful accounts by approximately $1 million.
The Company expects to publish its fourth quarter 2008 financial results as well
as its 2008 audited annual results, together with the filing of its annual
report on Form 20-F with the Securities and Exchange Commission, in June 2009.
The publication and filing will be followed by a conference call with investors.
The timing of the conference call will be announced separately.
About Magal Security Systems Ltd.:
Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing
and marketing of computerized security systems, which automatically detect,
locate and identify the nature of unauthorized intrusions. The Company's
products are currently used in more than 70 countries worldwide to protect
national borders, airports, correctional facilities, nuclear power stations and
other sensitive facilities from terrorism, theft and other threats.
Magal's shares trade in the U.S. on the NASDAQ Global Market and in Israel on
the Tel-Aviv Stock Exchange (TASE) under the symbol MAGS.
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.
Contacts:
Magal Security Systems Ltd
Lian Goldstein
Tel: +972-3-539-1444
Fax: +972-3-536-6245
E-mail:lian@magal-ssl.com
GK Investor Relations
Ehud Helft/Kenny Green
Tel: (US) +1-646-201-9246
Int'l dial: +972-3-607-4717
E-mail: info@gkir.com
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/ Lian Goldstein
---------------
Lian Goldstein
Chief Financial Officer
Date: March 19, 2009