HAUPPAUGE, N.Y., May 13 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's first quarter ended March 31, 2003.
Revenues for the first quarter were $3,574,000, compared to revenues of
$4,742,000 reported in the first quarter of the prior year. The reduction in
revenues is primarily attributable to the timing of orders received from major
customers as well as the continued weakness in the retail economy. Sentry
reported a net loss of $494,000, or $(0.01) per share in the first quarter of
2003, compared to a net loss of $350,000, or $(0.01) per share, in the first
quarter of last year.
In addition, during the first quarter of 2003, Dialoc ID Holdings B.V.
increased their ownership in Sentry to 51% through the exercise of
4,516,475 shares of newly issued common stock in accordance with the
provisions of a share purchase agreement.
"Efforts are ongoing to raise capital. We are in negotiation with a
potential investment partner to complete a financing transaction and we
continue to work with our suppliers, banker and landlord to complete the
restructuring of Sentry. To date we have significantly reduced costs and
restructured supplier debt," said Peter L. Murdoch, President and CEO. "The
Company's plan to focus on key customers has largely been successful and new
business is being pursued via a restructured sales team reporting to Jeff
Colthorpe, Director of Sales. Jeff was previously Director of Sales at
Checkpoint Canada."
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.
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 - Finance
(631) 232-2100
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $201 $266
Accounts receivable, less allowance for doubtful
accounts of $233 and $303, respectively 1,257 1,472
Inventories 2,457 3,145
Prepaid expenses and other current assets 218 237
Total current assets 4,174 5,120
PROPERTY, PLANT AND EQUIPMENT, net 2,481 2,563
OTHER ASSETS 294 309
$6,908 $7,992
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $1,536 $2,067
Accounts payable and accrued liabilities 3,360 3,330
Other current liabilities 420 491
Total current liabilities 5,316 5,888
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,532 2,555
Total liabilities 7,848 8,443
SHAREHOLDERS' EQUITY (DEFICIT) (940) (451)
$6,908 $7,992
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2003 2002
REVENUES $3,574 $4,742
COSTS AND EXPENSES:
Cost of sales 1,652 2,148
Customer service expenses 1,121 1,279
Selling, general and administrative expenses 1,024 1,382
Research and development 160 151
3,957 4,960
OPERATING LOSS (383) (218)
INTEREST EXPENSE 111 132
LOSS BEFORE INCOME TAXES (494) (350)
INCOME TAXES -- --
NET LOSS $(494) $(350)
NET LOSS PER SHARE
Basic and diluted $(0.01) $(0.01)
WEIGHTED AVERAGE SHARES
Basic and diluted 82,259 61,654
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
Company News On-Call:
http://www.prnewswire.com/comp/494538.html
CONTACT:
Peter J. Mundy, Vice President - Finance, of
Sentry Technology Corporation, +1-631-232-2100
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