RONKONKOMA, N.Y., April 15 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's fourth quarter and year ended December 31, 2007.
Revenues for the fourth quarter of 2007 were $4,341,000, compared to
revenues of $3,752,000 reported in the fourth quarter of the prior year.
The net loss was $1,888,000, or $(0.02) per share, in the fourth quarter of
2007 as compared to a net loss of $293,000, or $(0.00) per share, in the
fourth quarter of 2006. The fourth quarter loss included a non-cash
$1,564,000 write-off of goodwill.
For the year ended December 31, 2007, revenues were $13,498,000
compared to $12,135,000 reported in 2006. The increase is primarily related
to the successful introduction of OperationalVideo(TM), a new solution to
manage business operations as well as safety and security using the
SentryVision(R) SmartTrack(TM) traveling camera system. The net loss was
$3,678,000, or $(0.03) per share in 2007, compared to $2,304,000, or
$(0.02) per share in 2006. In addition to the $1,564,000 goodwill
write-off, the 2007 results include a $607,000 foreign exchange loss
related to the decline in the U.S. dollar relative to the Company's
Canadian bank line and accounts receivable.
"Sales in 2007 increased 11% while our operating loss, excluding
foreign exchange, was reduced by 58%," said Peter L. Murdoch, President and
CEO of Sentry Technology Corporation. "We also reduced fixed expenses and
successfully introduced OperationalVideo(TM) in two key national accounts.
OperationalVideo dramatically increases the addressable market for
SmartTrack, our core video product. We believe the Company will continue to
grow both the library and video business segments in 2008."
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,
2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 256 $ 360
Short-term investments 202 259
Accounts receivable, less
allowance for doubtful accounts
of $209 and $160, respectively 3,014 2,251
Inventory 3,299 3,005
Prepaid expenses and other
current assets 858 306
Total current assets 7,629 6,181
PROPERTY AND EQUIPMENT, net 634 609
GOODWILL - 1,564
OTHER ASSETS 269 480
$ 8,532 $ 8,834
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES
Bank indebtedness, demand loan and
revolving line of credit $ 4,551 $ 3,030
Accounts payable 1,223 609
Accrued liabilities 1,539 1,078
Obligations under capital leases -
current portion 2 3
Deferred income 145 185
Total current liabilities 7,460 4,905
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 7 8
DEFERRED TAX LIABILITY 117 91
CONVERTIBLE DEBENTURE 1,986 1,945
Total liabilities 9,570 6,949
MINORITY INTEREST 1,200 1,237
STOCKHOLDERS' (DEFICIT) EQUITY
Common stock 121 121
Additional paid-in capital 49,420 49,037
Accumulated deficit (52,390) (48,712)
Accumulated other comprehensive
income 611 202
Total stockholders' (deficit)
equity (2,238) 648
$ 8,532 $ 8,834
SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
REVENUES
Sales $ 3,509 $ 3,170 $ 11,051 $ 10,212
Service, installation &
other revenues 832 582 2,447 1,923
4,341 3,752 13,498 12,135
COST OF SALES AND EXPENSES:
Cost of sales 2,040 1,599 6,215 5,374
Customer service expenses 842 608 2,474 2,209
Selling, general and
administrative expenses 1,399 1,332 5,394 5,296
Research and development 132 224 688 838
4,413 3,763 14,771 13,717
OPERATING LOSS (72) (11) (1,273) (1,582)
GOODWILL IMPAIRMENT (1,564) - 1,564 -
INTEREST AND FINANCING EXPENSE,
net 291 164 918 473
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (1,927) (175) (3,755) (2,055)
INCOME TAX (BENEFIT) EXPENSE (40) 75 (40) 145
LOSS BEFORE MINORITY INTEREST (1,887) (250) (3,715) (2,200)
MINORITY INTEREST (1) (43) 37 (104)
NET LOSS $(1,888) $ (293) $(3,678) $(2,304)
LOSS PER SHARE
Basic and diluted $ (0.02) $(0.00) $ (0.03) $ (0.02)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,744 120,744 120,744 120,716
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
http://www.prnewswire.com/comp/494538.html /
CONTACT:
Peter L. Murdoch, President & CEO, Sentry
Technology Corporation, +1-631-739-2000
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