Senstar Technologies ( NASDAQ: SNT ) stock ticked higher in premarket trading on Thursday after posting a quarterly profit for the first time in the past year.
For the second quarter, the company posted $0.02 in GAAP EPS and $9.12M in revenue. The latter figure reflected a 9.7% decline from the prior year quarter.
"Due to a number of factors, new business is taking longer to close, particularly in the U.S., where many projects are tied to federal funding,” CEO Dror Sharon explained. “As a result, second-quarter revenue declined by 10% to $9.1M. Importantly, we have not lost business, and we continue to expect awards in our favor in the coming months.”
He added that comparisons to a subsidized 2021 and increases in the cost of goods this year added to adverse results. Sharon expects results to normalize in the coming quarters.
"For the remainder of 2022, our pipeline is robust with several large orders in the process of closing, and we continue to win significant contracts in the energy vertical, as well as critical infrastructure and logistics," Sharon said. "New solutions like our Sensor Fusion Engine and FiberPatrol sensor detection are gaining industry attention and will be future growth drivers on top of new products that will be launched in the next few months. We see good business momentum for the remainder of 2022 and anticipate improved gross and EBITDA margins in the remainder of 2022."
Senstar Technologies ( SNT ) stock rose 0.77% on light volume in Thursday’s premarket trading.
Read more on the details of the quarterly print .
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Senstar Technologies pushes to quarterly profit, touts pipeline