RONKONKOMA, N.Y., March 19 /PRNewswire-FirstCall/ -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported financial results for the Company's fourth quarter and year ended December 31, 2008.
Revenues for the fourth quarter of 2008 were $3,064,000, compared to revenues of $4,341,000 reported in the fourth quarter of the prior year. The net loss was $55,000, or $(0.00) per share, in the fourth quarter of 2008 as compared to a net loss of $1,888,000, or $(0.02) per share, in the fourth quarter of 2007 which included a non-cash goodwill write-off of $1,564,000.
For the year ended December 31, 2008, revenues were $12,708,000 compared to $13,498,000 reported in 2007. The net loss was $1,138,000, or $(0.01) per share in 2008, compared to $3,678,000, or $(0.03) per share in 2007.
"We were able to produce a small operating profit in 2008 in part as a result of a foreign exchange gain," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "However the future is uncertain due to the economic outlook for our core customers in the retail sector."
Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Video Surveillance System (VSS) solutions, Electro-Magnetic (EM) and RFID based Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The VSS product line features SentryVision, SmartTrack, a proprietary, patented traveling Surveillance System. The Company's products are used by libraries to secure inventory and improve operating efficiency, by retailers to deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. For further information, please visit our website at www.sentrytechnology.com.
This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings.
SENTRY TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2008 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 643 $ 256
Short-term investments 264 202
Accounts receivable, less allowance
for doubtful accounts of $179 in
2008 and $209 in 2007 971 3,014
Inventory, net 2,739 3,299
Prepaid expenses and other current assets 682 858
Total current assets 5,299 7,629
PROPERTY AND EQUIPMENT, net 439 634
OTHER ASSETS 232 269
$ 5,970 $ 8,532
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Bank indebtedness, demand loan and
revolving line of credit $ 3,418 $ 4,551
Accounts payable 830 1,223
Accrued liabilities 1,211 1,539
Obligations under capital leases -
current portion 2 2
Deferred income 175 145
Convertible debenture 2,000 1,986
Total current liabilities 7,636 9,446
Long-term debt - less current portion:
Obligations under capital leases 4 7
Deferred tax liabilities 90 117
Total long-term liabilities 94 124
Total liabilities 7,730 9,570
MINORITY INTEREST 1,311 1,200
STOCKHOLDERS' DEFICIT
Common stock 121 121
Additional paid-in capital 50,196 49,420
Accumulated deficit (53,528) (52,390)
Accumulated other comprehensive income 140 611
Total stockholders' deficit (3,071) (2,238)
$ 5,970 $ 8,532
SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
REVENUES
Sales $ 2,644 $ 3,509 $ 10,859 $ 11,051
Service, installation &
maintenance revenues 420 832 1,849 2,447
3,064 4,341 12,708 13,498
COST OF SALES AND EXPENSES:
Cost of sales 1,540 2,040 6,261 6,215
Customer service expenses 488 842 2,115 2,474
Selling, general and
administrative expenses 1,081 1,384 4,339 4,787
Research and development 127 132 562 688
Foreign exchange (gain) loss (600) 15 (817) 607
2,636 4,413 12,460 14,771
INCOME (LOSS) FROM OPERATIONS 428 (72) 248 (1,273)
GOODWILL IMPAIRMENT --- 1,564 --- 1,564
INTEREST EXPENSE, net 130 162 545 546
NON-CASH AMORTIZATION COSTS
RELATED TO FINANCING 176 129 636 372
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST 122 (1,927) (933) (3,755)
INCOME TAX EXPENSE (RECOVERY) 79 (40) 94 (40)
LOSS BEFORE MINORITY INTEREST 43 (1,887) (1,027) (3,715)
MINORITY INTEREST EXPENSE
(INCOME) 98 1 111 (37)
NET LOSS $ (55) $(1,888) $(1,138) $(3,678)
LOSS PER SHARE
Basic and diluted $(0.00) $ (0.02) $ (0.01) $ (0.03)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,744 120,744 120,744 120,744
