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 June 2020

MAGAL SECURITY SYSTEMS LTD.
(Name of Registrant)

P.O. Box 70, Industrial Zone, Yahud 5610001 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 ☒          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 ☒

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 Statement File No. 333-217063 and Form S-8 Registration Statements File Nos. 333-127340, 333-164696, 333-174127 and 333-190469.

Magal Security Systems Ltd.

EXPLANATORY NOTE

The following exhibit is attached:
   
99.1
Press Release:  Magal Security Systems Ltd. Reports First Quarter 2020 Financial Results dated May 14, 2020.

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/ Doron Kerbel
 
Doron Kerbel
 
V.P. General Counsel & Company Secretary

Date:  June 1, 2020

EXHIBIT INDEX
EXHIBIT NO.
DESCRIPTION
   


EXHIBIT 99.1
 
Magal Security Systems Ltd. Reports
 First Quarter 2020 Financial Results
 
YEHUD, ISRAEL, May 14, 2020 -- Magal Security Systems, Ltd. (NASDAQ: MAGS) today announced its financial results for the three months ended March 31, 2020. Management will hold an investors’ conference call later today (at 10 a.m. Eastern Time) to discuss the results.
 
FIRST QUARTER 2020 RESULTS SUMMARY (all comparisons are to the first quarter of 2019)
 

 		•
Revenue of $17.4 million compared to $21.2 million
 

 		•
Gross margin 45.8% compared to 42.3%
 

 		•
Operating income of $0.2 million compared to $0.5 million
 

 		•
Net income attributable to Magal’s shareholders of $0.4 million compared to a net loss of ($0.6) million
 

 		•
EBITDA of $0.7 million, or EBITDA margin of 4.1% compared to $1.0 million, or EBITDA margin of 4.7%
 

 		•
$54.4 million, or $2.35 per share, of cash and cash equivalents and short-term deposits and restricted cash and deposits
 
Mr. Dror Sharon, Chief Executive Officer of Magal, said “The first quarter results reflect our priority to protect our employees, remain engaged with our customers and continue to grow our pipeline of business during the COVID-19 outbreak. Business delays due to COVID-19 restrictions impacted Magal’s Integrated Solutions division’s ability to meet with clients, and Senstar’s Product division shipments, compressing revenue in the quarter. Our strategy to diversify revenues helped our results, as evidenced by our recent win in Africa for the Djibouti seaport security system design and installation. While we are diversified, serving numerous vertical markets, the economic disruption related to COVID-19 negatively impacted our Oil and Gas, Logistics and to a lesser extent, Corrections verticals. The Oil and Gas sector was affected by the dramatic decline in oil prices, which caused delays in large projects. We remain engaged with these customers and continue to see purchase orders. We experienced some temporary delays in revenue execution for some of our Logistics customers, mainly in Europe. The Corrections facilities vertical, primarily based in North America, was impacted by temporary closures, driven by the COVID-19 outbreak.
 
We maintained profitability with cost savings and efficiencies that we enacted in the first quarter to reduce operating expenses. We continue to innovate and are launching new solutions in our Symphony VMS platform that address unique COVID-19 surveillance and enforcement needs for our customers. Our goal in 2020 is to manage our costs and maintain profitability while positioning the Company for recovery and growth. Magal’s sound financial standing with a cash balance of over $54 million, with no debt, gives us great confidence in our ability to execute our long-term strategy to grow revenue, improve profitability and identify new M&A opportunities arising from the global crisis.”
 
FIRST QUARTER 2020 RESULTS
 
Revenue was $17.4 million compared with revenue of $21.2 million in the first quarter of 2019. The decline in revenue was primarily due to the completion of a large project in Latin America in the first quarter of the prior year. Senstar Product division sales remained stable in the first quarter despite shipment delays arising from technical limitations related to the impact of COVID-19 on our customers. Revenue from Magal’s Integrated Solutions division (projects) represented approximately 58% of total revenue, while external revenue from the Senstar Products division represented approximately 42% of total revenue. Revenue, not including inter-company revenue,  from Magal’s Integrated Solutions (projects) and the Senstar Products divisions decreased by 24% and 6%, respectively, compared to the first quarter of 2019.
 
Gross profit was $8.0 million, or 45.8% of revenue in the first quarter of 2020 compared with gross profit of $9.0 million, or 42.3% of revenue, in the year-ago period. The increase in gross margin in the quarter was driven by Senstar product sales with mix favoring higher margin IP-based products and services, partially offset by an impact of the reduction in the projects revenue of Magal’s Integrated Solutions division.
 
Operating expense decreased 8.8% to $7.8 million in the first quarter of 2020 compared to $8.5 million in the prior-year period. The decline in operating expense was primarily due to delays in new hiring, reduction in travel and marketing, as well as cost efficiency measures taken in the quarter.
 
Operating income was $0.2 million in the first quarter of 2020 compared to $0.5 million in the parallel period of 2019.
 
Financial income was $0.5 million in the first quarter of 2020 compared to a financial loss of $(0.7) million in the year-ago period. Magal’s functional currency in Israel is the Israeli Shekel (NIS) and the vast majority of Magal’s cash deposits are held in US dollars. Because of the appreciation of the US dollar against the NIS during the quarter, the Company recorded non-cash financial income.
 
Net income attributable to Magal shareholders was $0.4 million, or $0.02 per share, compared with a net loss of $(0.6) million, or $(0.02) per share in the first quarter of 2019.
 
EBITDA was $0.7 million in the first quarter of 2020 compared with $1.0 million in the first quarter of 2019.
 
Cash and cash equivalents, short term deposits and restricted cash and deposits as of March 31, 2020, was $54.4 million, or $2.35 per share, compared with cash and short-term deposits of $51.6 million, or $2.23 per share, at December 31, 2019.
 
INVESTORS’ CONFERENCE CALL INFORMATION:
 
The Company will host a conference call later today, MAY 14, 2020. The call will begin promptly at: 10:00 am Eastern Time; 5:00 pm Israel Time; 3:00 pm UK Time.
To participate, please call one of the following teleconferencing numbers:
 

 		•
US: 1-877-407-9716
 

 		•
Israel: 1-809-406-247
 

 		•
UK: 0-800-756-3429
 

 		•
International: 1-201-493-6779
 
A replay of the call will be available on the Company’s website for three months from the day after the call. The link to the replay will be accessible at www.magalsecurity.com. The replay pin number is 13702170.
 
ABOUT MAGAL SECURITY SYSTEMS LTD.
 
Magal is a leading international provider of physical and video security solutions and products, as well as site management. Since 1969, Magal has delivered its products as well as tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 100 countries – under the most challenging conditions.
Magal offers comprehensive integrated solutions for critical sites, managed by Fortis4G – our 4th generation, cutting-edge physical security information management system (PSIM). The solutions leverage our broad portfolio of home-grown solutions including, PIDS (Perimeter Intrusion Detection Systems) and Symphony, our advanced VMS (Video Management Software) with native IVA (Intelligent Video Analytics) security solutions.
Forward Looking Statements
 
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. In addition, there is uncertainty about the spread of the COVID19 virus and the impact it will have on the Company’s operations, the demand for Company’s products, global supply chains and economic activity in general.
 
For more information:
 
Magal Security Systems Ltd.
Diane Hill, Assistant to the CEO
Tel: +972-3-539-1421
E-mail: dianeh@magal-s3.com
Web:  www.magalsecurity.com
IR Contact:
Brett Maas
Managing Partner
Hayden IR
+1 646-536-7331
Brett@HaydenIR.com

* Tables to follow *
MAGAL SECURITY SYSTEMS LTD.
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS expressed in thousands of US$)
   
Three Months
Ended March 31,
  
   
2020
    
2019
    
% change
  
                   
Revenue
    
17,443
      
21,190
      
(18
)
Cost of revenue
    
9,450
      
12,219
      
(23
)
                         
Gross profit
    
7,993
      
8,971
      
(11
)
Operating expenses:
                        
   Research and development, net
    
1,617
      
1,854
      
(13
)
   Selling and marketing
    
3,983
      
4,270
      
(7
)
   General and administrative
    
2,156
      
2,376
      
(9
)
Total operating expenses
    
7,756
      
8,500
      
(9
)
                         
Operating income
    
237
      
471
          
Financial income (expenses), net
    
470
      
(731
)
        
                         
Income (loss) before income taxes
    
707
      
(260
)
        
                         
Taxes on income
    
198
      
403
          
                         
Net income (loss)
    
509
      
(663
)
        
                         
Income (loss) attributable to redeemable non-controlling interests and non-controlling interests
    
70
      
(110
)
        
                         
Net income (loss) attributable to Magal’s shareholders
    
439
      
(553
)
        
                         
Basic and diluted net income (loss) per share
  
$
0.02
    
$
(0.02
)
        
                         
Weighted average number of shares used in computing basic and diluted net income (loss) per share
    
23,153,985
      
23,061,497
          

   
Three Months
Ended March 31,
  
   
2020
%
    
2019
%
  
             
Gross margin
    
45.8
      
42.3
  
Research and development, net as a % of revenues
    
9.3
      
8.7
  
Selling and marketing as a % of revenues
    
22.8
      
20.2
  
General and administrative as a % of revenues
    
12.4
      
11.2
  
Operating margin
    
1.4
      
2.2
  
Net margin
    
2.5
      
-
  

MAGAL SECURITY SYSTEMS LTD.
 RECONCILLATION OF EBITDA TO NET INCOME (LOSS)
(All numbers expressed in thousands of US$)
   
Three Months
Ended March 31,
  
   
2020
    
2019
  
             
GAAP Net income (loss)
    
509
      
(663
)
   Less:
                
   Financial income (expenses), net
    
470
      
(731
)
   Taxes on income
    
198
      
403
  
   Depreciation and amortization
    
(486
)
    
(528
)
EBITDA
    
723
      
999
  

MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
   
March 31,
    
December 31,
  
   
2020
    
2019
  
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
41,578
    
$
34,531
  
Short-term bank deposits
    
12,474
      
16,749
  
Restricted cash and deposits
    
312
      
324
  
Trade receivables, net
    
13,173
      
18,697
  
Unbilled accounts receivable
    
7,146
      
8,897
  
Other accounts receivable and prepaid expenses
    
4,200
      
4,510
  
Inventories
    
12,482
      
12,605
  
                 
Total current assets
    
91,365
      
96,313
  
                 
LONG TERM INVESTMENTS AND RECEIVABLES:
                
                 
Long-term deposits, restricted bank deposits and other long-term accounts receivable and prepaid expenses
    
128
      
134
  
Severance pay fund
    
1,333
      
1,363
  
Deferred tax assets
    
3,724
      
4,215
  
Operating lease right-of-use assets
    
3,385
      
3,492
  
                 
Total long-term investments and receivables
    
8,570
      
9,204
  
                 
PROPERTY AND EQUIPMENT, NET AND OPERATING LEASE RIGHT-OF-USE ASSETS
    
5,860
      
6,256
  
                 
GOODWILL AND INTANGIBLE ASSETS, NET
    
14,012
      
15,276
  
                 
TOTAL ASSETS
  
$
119,807
    
$
127,049
  

MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
   
March 31,
    
December 31,
  
   
2020
    
2019
  
             
CURRENT LIABILITIES:
            
             
Trade payables
  
$
4,258
    
$
5,438
  
Customer advances
    
4,339
      
5,587
  
Deferred revenues
    
2,010
      
2,558
  
Other accounts payable and accrued expenses
    
14,649
      
14,609
  
Short-term operating lease liabilities
    
891
      
919
  
                 
Total current liabilities
    
26,147
      
29,111
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues
    
1,673
      
1,769
  
Deferred tax liabilities
    
189
      
178
  
Accrued severance pay
    
2,189
      
2,251
  
Long-term operating lease liabilities
    
2,438
      
2,515
  
Other long-term liabilities
    
330
      
371
  
                 
Total long-term liabilities
    
6,819
      
7,084
  
                 
Redeemable non-controlling interest
    
2,965
      
3,048
  
                 
SHAREHOLDERS' EQUITY
                
Share Capital: Ordinary shares of NIS 1 par value -
                
Authorized: 39,748,000 shares at March 31, 2020 and December 31, 2019; Issued and outstanding: 23,153,985 shares at March 31, 2020 and 23,153,985 shares at December 31, 2019
    
6,750
      
6,750
  
Additional paid-in capital
    
94,739
      
94,696
  
Accumulated other comprehensive loss
    
(3,793
)
    
(627
)
Foreign currency translation adjustments (stand-alone financial statements)
    
4,618
      
5,924
  
Accumulated deficit
    
(18,522
)
    
(18,961
)
                 
Total shareholders' equity
    
83,792
      
87,782
  
Non-controlling interest
    
84
      
24
  
                 
TOTAL SHAREHOLDERS' EQUITY
    
83,876
      
87,806
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
119,807
    
$
127,049