HAUPPAUGE, N.Y., March 31 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's fourth quarter and year ended December 31, 2002.
Revenues for the fourth quarter were $3,188,000, compared to revenues of
$4,295,000 reported in the fourth quarter of the prior year. Net loss
attributable to common shareholders was $873,000, or $(0.01) per share, in the
fourth quarter of 2002 as compared to a net loss $639,000, or $(0.01) per
share, in the fourth quarter of 2001.
For the year ended December 31, 2002, revenues were $14,536,000, compared
to $17,299,000 reported in the previous year. The decrease in revenues is
primarily related to lower sales of EAS products to several of the Company's
larger customers. Net loss attributable to common shareholders was
$3,356,000, or $(0.05) per share, compared to a net income attributable to
common shareholders of $24,262,000, or $0.40 per share. The share purchase
agreement with Dialoc ID Holdings, B.V. triggered the redemption of all Class
A Preferred shares into common shares, resulting in a return to common
shareholders of $27,198,000 in the first quarter of 2001.
Peter L. Murdoch, President and Chief Executive Officer, commented, "Our
restructuring plan is progressing according to schedule. However, our success
will still rely on the restructuring of certain debt combined with an equity
infusion, which we are continuing to pursue."
Sentry Technology Corporation designs, manufactures, sells and installs a
complete line of Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems
and Closed Circuit Television (CCTV) solutions. The CCTV product line
features SentryVision(R), a proprietary, patented traveling Surveillance
System, including our latest SmartTrack system. The Company's products are
used by retailers to deter shoplifting and internal theft and by industrial
and institutional customers to protect assets and people. The recent
partnership with Dialoc ID Holdings, B.V. expands the Company's product
offering to include proximity Access Control and Radio Frequency
Identification (RFID) solutions. For further information, please visit our
Web site at http://www.sentrytechnology.com.
Information contained in this release contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 which can be identified by the use of forward-looking terminology such
as "believes," "expects," "may," "will," "should" or "anticipates" or the
negative thereof, other variations thereon or comparable terminology, or by
discussions of strategy. These forward-looking statements involve certain
significant risks and uncertainties, and actual results may differ materially
from the forward-looking statements. For further details and discussion of
these risks and uncertainties see Sentry Technology Corporation's SEC filings
including, but not limited to, its annual report on Form 10-K. No assurance
can be given that future results covered by the forward-looking statements
will be achieved, and other factors could also cause actual results to vary
materially from the future results covered in such forward-looking statements.
The Company does not undertake to publicly update or revise any of its
forward-looking statements even if experience or future changes show that the
indicated results or events will not be realized.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
REVENUES $3,188 $4,295 $14,536 $17,299
COSTS AND EXPENSES:
Cost of sales 1,791 2,166 7,382 8,879
Customer service
expenses 930 1,034 4,240 4,361
Selling, general and
administrative
expenses 1,088 1,439 5,227 5,773
Research and
development 133 171 548 661
3,942 4,810 17,397 19,674
OPERATING LOSS (754) (515) (2,861) (2,375)
INTEREST EXPENSE 119 124 495 536
LOSS BEFORE INCOME TAXES (873) (639) (3,356) (2,911)
INCOME TAXES --- --- --- ---
NET LOSS (873) (639) (3,356) (2,911)
PREFERRED STOCK DIVIDENDS --- --- --- (25)
RETURN TO COMMON
SHAREHOLDERS FROM
REDEMPTION OF
PREFERRED STOCK --- --- --- 27,198
NET INCOME (LOSS)
ATTRIBUTED TO
COMMON SHAREHOLDERS $(873) $(639) $(3,356) $24,262
NET INCOME (LOSS) PER
COMMON SHARE
Basic $(0.01) $(0.01) $(0.05) $0.40
Diluted $(0.01) $(0.01) $(0.05) $0.39
WEIGHTED AVERAGE
COMMON SHARES
Basic 78,044 61,492 72,193 60,468
Diluted 78,044 61,492 72,193 62,008
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2002 2001
ASSETS
CURRENT ASSETS
Cash and cash equivalents $266 $423
Accounts receivable, net 1,472 2,713
Inventories 3,145 4,740
Prepaid expenses and other current assets 237 399
Total current assets 5,120 8,275
PROPERTY, PLANT AND EQUIPMENT, net 2,563 2,962
PATENTS 207 234
OTHER ASSETS 102 90
$7,992 $11,561
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,067 $2,599
Accounts payable 1,807 1,153
Accrued liabilities 1,523 1,864
Obligations under capital leases -
current portion 97 121
Deferred income 394 303
Total current liabilities 5,888 6,040
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,555 2,630
Total liabilities 8,443 8,670
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock 78 62
Additional paid-in capital 44,521 44,403
Accumulated deficit (44,930) (41,574)
Note receivable from shareholder (120) ---
Total shareholders' equity (deficit) (451) 2,891
$7,992 $11,561
SOURCE Sentry Technology Corporation
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http://www.sentrytechnology.com
Company News On-Call:
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CONTACT:
Peter J. Mundy, Vice President - Finance of
Sentry Technology Corporation, +1-631-232-2100
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