RONKONKOMA, 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, 2004.
Revenues for the fourth quarter of 2004 were $4,901,000, compared to
revenues of $3,353,000 reported in the fourth quarter of the prior year. The
Company generated operating income for the current quarter of $380,000 as
compared to $47,000 for the same period of 2003. Net income was $172,000, or
$0.00 per share, in the fourth quarter of 2004 as compared to a net loss of
$109,000, or $(0.00) per share, in the fourth quarter of 2003.
For the year ended December 31, 2004, revenues were $16,665,000, compared
to $13,126,000 reported in the previous year. The increase in revenues is
primarily related to higher sales of EAS products principally as a result of
the ID Systems acquisition as well as an increase in sales of the Company's
proprietary SmartTrack traveling camera systems. There was operating income of
$665,000 in 2004, compared to an operating loss of $378,000 in 2003. Net
income was $31,000, or $0.00 per share in 2004, compared to $181,000, or $0.00
per share in 2003. Included in the net income for 2003 were extraordinary
gains of $738,000, or $0.01 per share, related to the settlement with trade
creditors of past due debt and the termination of its long-term lease with its
prior landlord for the Hauppauge, New York facility.
"We are pleased to report growth in revenues and our third consecutive
quarterly profit since the acquisition of ID Systems in May 2004," said Peter
L. Murdoch, President and CEO of Sentry Technology Corporation. "However, we
are disappointed that Lowe's Home Center, our largest customer, decided not to
renew its annual maintenance agreement for 2005. This contract represented
$0.9 million of our revenues in 2004 and contributed towards the selection of
Sentry as a vendor for replacement and add-on CCTV business in existing and
new Lowe's locations. We anticipate that this decision will result in a
substantial decrease in future revenues from Lowe's on a comparative basis.
Customer service and administrative expense reductions have been made to
compensate for this expected loss in business. At the same time, we have
increased funding of sales and marketing programs, which we expect will
continue to increase our business with new and existing customers. Recently we
have installed our SentryVision(R) Video Server along with wireless hand held
controls for SmartTrack in two major accounts. We believe this application of
our proprietary products will open new growth opportunities for Sentry."
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 the proprietary SentryVision(R) SmartTrack patented traveling
Surveillance 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 Company's acquisition of ID Systems expands
the Company's product offering to include proximity Access Control and Radio
Frequency Identification (RFID) solutions. For further information, please
visit our website at http://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.
CONTACT: Peter J. Mundy
Vice President - CFO
(631) 739-2000
SENTRY TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2004 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,965 $210
Accounts receivable, less allowance for doubtful
accounts of $338 and $304, respectively 3,500 1,482
Inventories 3,314 1,855
Prepaid expenses and other current assets 525 126
Total current assets 9,304 3,673
PROPERTY, PLANT AND EQUIPMENT, net 689 209
GOODWILL 1,564 ---
OTHER ASSETS 690 211
$12,247 $4,093
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,640 $1,515
Accounts payable 799 566
Accrued liabilities 1,146 1,601
Obligations under capital leases
- current portion 5 5
Deferred income 169 271
Total current liabilities 4,759 3,958
NOTES PAYABLE 189 247
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 8 13
DEFERRED INCOME TAXES 39 ---
CONVERTIBLE DEBENTURES 1,862 ---
MINORITY INTEREST 1,045 ---
Total liabilities 7,902 4,218
SHAREHOLDERS' EQUITY
Common stock 121 86
Additional paid-in capital 48,779 44,658
Accumulated deficit (44,718) (44,749)
Note receivable from shareholder --- (120)
Equity adjustment from foreign
currency translation 163 ---
Total shareholders' equity (deficit) 4,345 (125)
$12,247 $4,093
SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
REVENUES $4,901 $3,353 $16,665 $13,126
COSTS AND EXPENSES:
Cost of sales 1,813 1,200 6,351 5,179
Customer service
expenses 955 1,065 4,175 3,977
Selling, general and
administrative
expenses 1,527 877 4,642 3,692
Research and
development 226 164 832 656
4,521 3,306 16,000 13,504
OPERATING INCOME (LOSS) 380 47 665 (378)
INTEREST AND FINANCING
EXPENSES 103 158 412 671
INCOME (LOSS) BEFORE
INCOME TAXES 277 (111) 253 (1,049)
INCOME TAX EXPENSE
(BENEFIT) 63 (1) 140 (492)
INCOME (LOSS) BEFORE
MINORITY INTEREST AND
EXTRAORDINARY ITEM 214 (110) 113 (557)
MINORITY INTEREST (42) --- (82) ---
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 172 (110) 31 (557)
EXTRAORDINARY ITEM - Gain
on extinguishment of debt,
net of $1 and $492
income taxes --- 1 --- 738
NET INCOME (LOSS) $172 $(109) $31 $181
NET INCOME (LOSS) PER SHARE
Income (loss) before
extraordinary item $0.00 $(0.00) $0.00 $(0.01)
Extraordinary item 0.00 0.00 0.00 0.01
Basic and diluted $0.00 $(0.00) $0.00 $0.00
WEIGHTED AVERAGE SHARES
Basic and diluted 118,757 85,754 106,532 84,153
SOURCE Sentry Technology Corporation
 back to top
Related links:
http://www.sentrytechnology.com
Company News On-Call:
http://www.prnewswire.com/comp/494538.html
CONTACT:
Peter J. Mundy, Vice President - CFO of
Sentry Technology Corporation, +1-631-739-2000
|
