Senstar Reports 8% Revenue Growth but Operating Income Declines Amid Blickfeld Integration
Senstar Technologies Corporation (NASDAQ: SNT) reported an 8% year-over-year revenue increase to $10.4 million in the second quarter, driven by the consolidation of German LiDAR company Blickfeld. However, operating income fell to $343,000 from $973,000 a year earlier due to higher costs and margin pressures. Gross profit rose 5% but gross margins declined as product mix and Blickfeld integration affected profitability. Blickfeld contributed significantly to Senstar's growth, with LiDAR sales nearly doubling and representing about 20% of global revenue in the quarter. Management noted that Blickfeld was EBITDA-positive during the period, though it did not provide detailed financials for the subsidiary. Despite these gains, core business segments saw a decline in U.S. revenue by 14%, attributed to project delays from government shutdown impacts. Operating expenses rose sharply due to increased R&D and marketing costs, including $1.2 million related to Blickfeld's acquisition. The first-half results were weak overall with an operating loss of $260,000 compared to a profit in the prior year period.
Tickers: $SNT
Topics: acquisition impact operating income decline revenue growth