RONKONKOMA, N.Y., April 13 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's fourth quarter and year ended December 31, 2005.
Revenues for the fourth quarter of 2005 were $2,949,000, compared to
revenues of $4,966,000 reported in the fourth quarter of the prior year.
The decrease in revenues is primarily related to a reduction in Lowe's
revenues by approximately $0.9 million as well as a reduction in sales to
other repeat customers. Net loss was $604,000, or $(0.01) per share, in the
fourth quarter of 2005 as compared to a net income of $172,000, or $0.00
per share, in the fourth quarter of 2004.
For the year ended December 31, 2005, revenues were $13,570,000
compared to $16,863,000 reported in the previous year. The decrease in
revenues is primarily related to a reduction in Lowe's revenues by
approximately $4.0 million on a comparable basis. Net loss was $1,690,000,
or $(0.01) per share in 2005, compared to $31,000, or $0.00 per share in
2004.
"We had disappointing financial results in the fourth quarter of 2005
which continued into the first quarter of 2006," said Peter L. Murdoch,
President and CEO of Sentry Technology Corporation. "At the same time,
since joining the Company in 2001, I believe that our business
opportunities and Company structure have never been better."
Mr. Murdoch continued, "Orders in the first quarter of 2006 exceeded
the first quarter of 2005 by approximately 23%. We expect that orders will
continue to increase on a comparative basis throughout 2006. Several new
multibillion dollar customers are installing SmartTrack(TM) and without
exception current customers are sales references, supporting the quality of
our flagship traveling CCTV system. Our library business is growing with
many new installations of QuickCheck(TM), a self-service kiosk with RFID
interface. The library sector sales are strong both domestically and
internationally where we have recently added key distributors that
previously purchased significant yearly quantities of product from
competitors."
"At the end of 2005, we hired additional, industry experienced sales
reps in the U.S. and the sales and marketing team is now led by Joe Ryan,
Sensormatic's former VP Marketing, who joined Sentry at the end of January
this year. We are confident that the work we have done to effectively
reposition the business following the loss of Lowe's, including the
acquisition of several new key accounts and the introduction of new
applications related to SmartTrack(TM), along with the continued support of
core customers, will result in significant future growth. In support of the
Company's plans, Robert Furst, a Sentry director and I have agreed to
guarantee a proposed $860,000 increase in borrowing availability under our
bank line of credit."
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(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 deter
shoplifting and internal theft and by industrial and institutional
customers to protect assets and people. 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.
SENTRY TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $842 $1,965
Accounts receivable, less allowance for
doubtful accounts of $141 and $338,
respectively 2,762 3,500
Inventories 2,709 3,314
Prepaid expenses and other current assets 318 525
Total current assets 6,631 9,304
PROPERTY, PLANT AND EQUIPMENT, net 637 689
GOODWILL 1,564 1,564
OTHER ASSETS 563 690
$9,395 $12,247
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,039 $2,640
Accounts payable 489 799
Accrued liabilities 925 1,146
Obligations under capital leases --
current portion 6 5
Deferred income 135 169
Total current liabilities 3,594 4,759
NOTES PAYABLE --- 189
OBLIGATIONS UNDER CAPITAL LEASES --
non-current portion 1 8
DEFERRED INCOME TAXES 58 39
CONVERTIBLE DEBENTURES 1,904 1,862
MINORITY INTEREST 1,140 1,045
Total liabilities 6,697 7,902
SHAREHOLDERS' EQUITY
Common stock 121 121
Additional paid-in capital 48,783 48,779
Accumulated deficit (46,408) (44,718)
Equity adjustment from foreign currency
translation 202 163
Total shareholders' equity 2,698 4,345
$9,395 $12,247
SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
REVENUES
Sales $2,413 $3,950 $11,131 $12,482
Service installation
& other revenues 536 1,016 2,439 4,381
2,949 4,966 13,570 16,863
COSTS AND EXPENSES:
Cost of sales 1,272 1,813 5,960 6,351
Customer service
expenses 616 955 2,654 4,175
Selling, general and
administrative
expenses 1,331 1,592 5,348 4,840
Research and
development 218 226 856 832
3,437 4,586 14,818 16,198
OPERATING INCOME (LOSS) (488) 380 (1,248) 665
INTEREST AND FINANCING
EXPENSES 84 103 333 412
INCOME (LOSS) BEFORE
INCOME TAXES (572) 277 (1,581) 253
INCOME TAX EXPENSE 20 63 49 140
INCOME (LOSS) BEFORE
MINORITY INTEREST (592) 214 (1,630) 113
MINORITY INTEREST (12) (42) (60) (82)
NET INCOME (LOSS) $(604) $172 $(1,690) $31
NET INCOME (LOSS)
PER SHARE
Basic and diluted $(0.01) $0.00 $(0.01) $0.00
WEIGHTED AVERAGE
SHARES
Basic and diluted 120,629 118,757 120,594 106,532
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com/
http://www.prnewswire.com/comp/494538.html /
CONTACT:
Peter J. Mundy, Vice President - CFO, of
Sentry Technology Corporation, +1-631-739-2000
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