RONKONKOMA, N.Y., June 5 /PRNewswire-FirstCall/ -- Sentry Technology Corporation (OTC Bulletin Board: SKVYE) today announced that it will file Form 15 with the Securities and Exchange Commission to voluntarily suspend its reporting obligations. The stock will continue to trade on the Pink Sheets. The Company has taken this action as part of its continuing efforts to reduce expenses and anticipates annual savings of more than $150,000. Press releases will be issued announcing quarterly financial results and other noteworthy activities.
Revenues for the first quarter of 2009 were $2,513,000 compared to revenues of $2,042,000 reported in the first quarter of the prior year. The net loss was $486,000 in the first quarter of 2009 as compared to a net loss of $887,000 in the first quarter of 2008. In addition to increasing sales by 23% the Company increased gross margins by 5% and decreased expenses by $278,000 on a comparative basis, excluding foreign exchange adjustments. Additional expense cuts have been implemented beginning April 1, 2009 including a 5% across the board pay cut for all Sentry employees.
Management has been successful in restructuring the terms of its $2,000,000 debenture. The debenture holder has agreed to a 12-month interest holiday and upon the Company raising $1,000,000 in additional working capital, the debenture converts to a term loan amortized over 10 years with a balloon payment of the remaining amount owing at the end of the 5th year. The term loan will not have the right to convert into Company stock.
Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The CCTV 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 AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value Amounts)
March 31, December 31,
2009 2008
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 340 $ 643
Short-term investments 159 264
Accounts receivable, net of
allowance for doubtful
accounts of $178 in 2009
and $179 in 2008 1,319 971
Inventory, net 2,596 2,739
Prepaid expenses and other
current assets 555 682
----------- -----------
Total current assets 4,969 5,299
PROPERTY AND EQUIPMENT, net 409 439
OTHER ASSETS 224 232
----------- -----------
TOTAL ASSETS $ 5,602 $ 5,970
============= ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Bank indebtedness, demand
loan and revolving line
of credit $ 3,407 $ 3,418
Accounts payable 849 830
Accrued liabilities 1,257 1,211
Obligations under capital
leases - current portion 2 2
Deferred income 213 175
Convertible debenture 2,000 2,000
----------- -----------
Total current liabilities 7,728 7,636
Long-term debt - less current portion:
Obligations under capital leases 3 4
Deferred tax liabilities 87 90
----------- -----------
Total long-term liabilities 90 94
----------- -----------
Total liabilities 7,818 7,730
MINORITY INTEREST 1,324 1,311
STOCKHOLDERS' DEFICIT
Preferred stock, $0.001 par
value; authorized 10,000
(2008 - 10,000) shares;
none issued and outstanding
Common stock, $0.001 par value;
authorized 190,000 (2008 - 190,000)
shares; issued and outstanding
120,744 (2008 - 120,744) shares 121 121
Additional paid-in capital 50,200 50,196
Accumulated deficit (54,014) (53,528)
Accumulated other comprehensive
income 153 140
----------- ------------
Total stockholders' deficit (3,540) (3,071)
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT $ 5,602 $ 5,970
=========== ============
SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended
March 31,
2009 2008
---- ----
(Unaudited)
REVENUES:
Sales $ 2,184 $ 1,712
Service, installation and
maintenance revenues 329 330
------- --------
2,513 2,042
COST OF SALES AND EXPENSES:
Cost of sales 1,206 1,019
Customer service expenses 426 550
Selling, general and
administrative expenses 993 1,120
Research and development 120 147
Foreign exchange gain (19) (141)
------- --------
2,726 2,695
------- --------
LOSS FROM OPERATIONS (213) (653)
INTEREST EXPENSE, net 120 108
NON-CASH AMORTIZATION COSTS RELATED
TO FINANCING 125 129
------- --------
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (458) (890)
INCOME TAX EXPENSE 15 ---
------- --------
LOSS BEFORE MINORITY INTEREST (473) (890)
MINORITY INTEREST EXPENSE (INCOME) 13 (3)
------- --------
NET LOSS $ (486) $ (887)
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LOSS PER SHARE
Basic and diluted $ (0.00) $ (0.01)
======= ========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic and diluted 120,744 120,744
======= ========
