Senstar Technologies Corp. Q1 FY2025 earnings call

• Delivered strong first quarter results with 12.5% revenue growth and EBITDA margin of 14.3%.
• Operating expenses increased 2% y-o-y but declined to 55% of revenue.
• North America revenue up 6% y-o-y, with Canada up 58% due to strong utilities and corrections offerings.
• EMEA revenue up 19% y-o-y, strong in logistics and energy.
• APAC revenue up 40% y-o-y, driven by increasing perimeter security requirements in energy and logistics.
• Focus on technological innovation with MultiSensor Cascade Plus launch, expanding pipeline of new opportunities.

Revenue in the first quarter was $8.4 million, a 12.5% increase compared to $7.5 million in Q1 2024. Geographically, North America accounted for 49% of revenue (down from 52% prior year), EMEA 30% (up from 28%), APAC 17% (up from 14%), and LATAM 3% (down from 5%). The four core verticals saw an aggregate 33% year-over-year increase, driven by strong performance in energy, logistics, and corrections.

• Continuing to invest for long-term growth while focusing on cost control and headcount efficiency.
• No specific forward-looking guidance beyond ongoing focus on profitable growth in core verticals.

• Market trends, reduced demand, and competitive nature of security systems industry.
• Unanticipated effects of coronavirus on operations and clients.
• Tariff risks, though current situation has no impact with plans in place to mitigate future tariff effects.

Q: Briefly skirt over the tariff issue and how it may or may not affect you?

A: Regarding tariffs, currently not impacted as most goods produced in Canada with no tariffs from Canada to US. Working on plan to assemble in US to mitigate tariffs if they arise. What I cannot predict is if tariffs were different, we would have to reassess.