Magal sells first PipeGuard system
Two years ago Magal launched its PipeGuard system, a specialty system designed to protect underground oil pies from saboteurs; it has taken two years and the company has its first client for the system — but it is not an oil company; the first client is a bank interested in protecting itself from bank robbers who might try to tunnel their way into the bank
As the poet John Milton put it, “They also serve who only stand and wait.” Well, it is not exactly as if Magal Security Systems (Nasdaq: MAGS) just stood and waited, but still, it has taken the the Israeli company two years to sell its first PipeGuard system.
The company launched PipeGuard two years ago, hoping that a system specifically designed to protect oil and other pipelines would have many takers. It was slow going, and the first client is not even an oil company but rather a bank, which purchased the system in order to protect six of its branches from underground break-ins. The company said the work is expected to be complete before the end of the first quarter of 2007.
PipeGuard uses sensors which filter out seismic signals to reduce false alarms. If thieves try to tunnel into the bank, the system will know. When launching PipeGuard in February 2004, Magal said that the system could detect any attempt to dig in the ground early enough so as to prevent damage to buried pipelines. In addition to oil companies and banks, customers interested in the system may phone companies with underground cables, government institutions, and more.
Izhar Dekel, CEO of Magal, said: “We are very proud to penetrate this new niche of protecting banks from underground intrusions. We identified this particular niche as one that carries a huge marketing potential for our PipeGuard system. We expect this order will be followed by more orders from this customer and from other banks worldwide during 2007. This order also validates the PipeGuard’s technology as the solution for protecting valuable buried assets.”
-read more in Shirley Yom-Tov’s Haaretz report; and see details about PipeGuard at company Web site
