RONKONKOMA, N.Y., Nov. 14 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's third quarter ended September 30, 2008.
Revenues for the third quarter were $3,573,000, compared to revenues of
$4,061,000 reported in the third quarter of the prior year. Sentry had an
operating profit of $124,000 and a net loss in the third quarter of 2008 of
$204,000, or $(0.00) per share, compared to a $2,000 operating profit and a
net loss of $168,000, or $(0.00) per share, in the third quarter of last year.
The net loss in both periods includes a non-cash amortization expense related
to financing of $172,000 and $89,000, respectively. The results in the third
quarter also include a foreign exchange gain of $141,000 in 2008 and a loss of
$255,000 in 2007.
For the first nine months ended September 30, 2008, revenues were
$9,644,000, compared to $9,157,000 reported in the previous year. Sentry had
a net loss of $1,083,000, or $(0.01) per share, in the first nine months of
2008 compared to a net loss of $1,790,000, or $(0.01) per share, in the first
nine months of 2007. The net loss in both periods includes a non-cash
amortization expense related to financing of $460,000 and $243,000,
respectively. The results in the third quarter also include a foreign
exchange gain of $217,000 in 2008 and a loss of $592,000 in 2007.
"We are pleased to report a year to date sales increase of 5.3%," said
Peter L. Murdoch, President and CEO of Sentry Technology Corporation.
"Efforts to reduce costs and manage cash have resulted in a net loss
improvement over the first nine months of this year compared to 2007. We
continue to see opportunities for our products both domestically and
internationally in an uncertain environment."
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 including QuickCheck(TM) patron
self-service kiosks. The CCTV product line features SentryVision(R),
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 manage operations, deter shoplifting and
internal theft and by industrial and institutional customers to protect assets
and people. Recently the Company launched OVportal(TM), a video information
portal over the internet offering retailers an OperationalVideo(TM) solution
to manage security, merchandising, sign placement and procedure compliance.
OVportal(TM) uses the SmartTrack(TM) traveling CCTV system and the Company's
real-time video server to provide remote viewing and control of retail
operations. OperationalVideo(TM) is the next major trend in online video and
OVportal(TM) is a leading, cost effective, market proven solution. 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.
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $215 $256
Short-term investments 289 202
Accounts receivable, less allowance
for doubtful accounts of $175 in
2008 and $209 in 2007, respectively 1,784 3,014
Inventory, net 2,997 3,299
Prepaid expenses and other assets 582 858
Total current assets 5,867 7,629
PROPERTY AND EQUIPMENT, net 525 634
OTHER ASSETS 244 269
TOTAL ASSETS $6,636 $8,532
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Bank indebtedness, demand loan
and revolving line of credit $3,986 $4,551
Accounts payable 780 1,223
Accrued liabilities 1,299 1,539
Obligations under capital
leases - current portion 2 2
Deferred income 240 145
Convertible debenture 2,000 1,986
Total current liabilities 8,307 9,446
OBLIGATIONS UNDER CAPITAL
LEASES - less current portion 5 7
DEFERRED TAX LIABILITY 109 117
Total liabilities 8,421 9,570
MINORITY INTEREST 1,213 1,200
STOCKHOLDERS' DEFICIT (2,998) (2,238)
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $6,636 $8,532
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
(Unaudited) (Unaudited)
REVENUES
Sales $3,101 $3,222 $8,215 $7,542
Service, installation
and other revenues 472 839 1,429 1,615
3,573 4,061 9,644 9,157
COST OF SALES AND EXPENSES:
Cost of sales 1,818 1,799 4,721 4,175
Customer service expenses 522 692 1,627 1,632
Selling, general and
administrative expenses 967 1,403 3,041 3,995
Research and development 142 165 435 556
3,449 4,059 9,824 10,358
INCOME (LOSS) FROM OPERATIONS 124 2 (180) (1,201)
INTEREST EXPENSE, net 139 132 415 384
NON-CASH AMORTIZATION COSTS
RELATED TO FINANCING 172 89 460 243
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (187) (219) (1,055) (1,828)
INCOME TAX EXPENSE (RECOVERY) 9 (7) 15 ---
LOSS BEFORE MINORITY INTEREST (196) (212) (1,070) (1,828)
MINORITY INTEREST 8 (44) 13 (38)
NET LOSS $(204) $(168) $(1,083) $(1,790)
LOSS PER SHARE
Basic and diluted $(0.00) $(0.00) $(0.01) $(0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted 120,744 120,744 120,744 120,744
