RONKONKOMA, 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, 2005.
Revenues for the first quarter were $2,493,000, compared to revenues of
$2,974,000 reported in the first quarter of the prior year. While EAS
revenues increased due to the acquisition of ID Systems in April of 2004, the
reduction in total revenues was attributable to lower sales of conventional
CCTV products and the Company's proprietary SmartTrack traveling camera
systems to domestic customers. In addition, total revenues from Lowe's Home
Centers were $0.6 million lower in the first quarter of 2005 as compared to
the first quarter of 2004. As previously disclosed, Lowe's decided not to
renew its maintenance contract for 2005, which also resulted in reduced
product sales during the quarter. As a result of lower revenue levels and the
added costs associated with the ID Systems merger, Sentry had a net loss of
$760,000, or $(0.01) per share in the first quarter of 2005, compared to a net
loss of $192,000, or $(0.00) per share, in the first quarter of 2004.
"We were disappointed with the results of the first quarter," said Peter
Murdoch, President and CEO of Sentry Technology Corporation. "This setback
comes following three consecutive profitable quarters and we expect to return
to profitability as a result of an increase in orders and additional cost
cutting."
Mr. Murdoch continued, "We are encouraged that our backlog of orders has
increased from $2.2 million at year end to $2.9 million as of the end of
March. Sales reps and international distributors have been added to the sales
group plus new print ads and trade show attendance will assist in improving
our sales results. Repeat orders have been booked recently from Wal-Mart in
the UK, Target and the U.S. Navy in the United States and ADT in Latin
America. The reorder trend for our flagship SmartTrack traveling camera
system is critical to our success."
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.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2005 2004
REVENUES:
Sales $1,913 $1,846
Service, installation and other revenues 580 1,128
2,493 2,974
COST AND EXPENSES:
Cost of sales 980 941
Customer service expenses 749 1,015
Selling, general and administrative expenses 1,221 925
Research and development 233 160
3,183 3,041
OPERATING LOSS (690) (67)
INTEREST AND FINANCING EXPENSE, net 91 125
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (781) (192)
INCOME TAX (BENEFIT) (8) -
LOSS BEFORE MINORITY INTEREST (764) (192)
MINORITY INTEREST (4) ---
NET LOSS $(760) $(192)
NET LOSS PER COMMON SHARE
Basic and diluted $(0.01) $(0.00)
WEIGHTED AVERAGE COMMON SHARES
Basic and diluted 120,551 85,756
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2005 2004
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,211 $1,965
Accounts receivable, less allowance for doubtful
accounts of $200 and $338, respectively 2,018 3,500
Inventories 3,736 3,314
Prepaid expenses and other current assets 489 525
Total current assets 7,454 9,304
PROPERTY, PLANT AND EQUIPMENT, net 659 689
GOODWILL 1,564 1,564
OTHER ASSETS 646 690
$10,323 $12,247
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $1,875 $2,640
Accounts payable 629 799
Accrued liabilities 1,177 1,146
Obligations under capital leases - current portion 6 5
Deferred income 85 169
Total current liabilities 3,772 4,759
NOTES PAYABLE 36 189
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 6 8
DEFERRED INCOME TAXES 33 39
CONVERTIBLE DEBENTURES 1,873 1,862
MINORITY INTEREST 1,031 1,045
Total liabilities 6,751 7,902
SHAREHOLDERS' EQUITY 3,572 4,345
$10,323 $12,247
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 - CFO of
Sentry Technology Corporation, +1-631-739-2000
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