HAUPPAUGE, N.Y., May 15 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's first quarter ended March 31, 2002.
Revenues for the first quarter were $4,743,000, compared to revenues of
$4,670,000 reported in the first quarter of the prior year. Sentry reported
an operating loss of $350,000 in the first quarter of 2002, a 50% reduction
from a loss of $694,000 in the first quarter of 2001. The net loss attributed
to common shareholders in the first quarter of 2002 was $350,000, or $(0.01)
per share, compared to net income attributable to common shareholders of
$26,479,000, or $0.46 per share, in the first quarter of last year. The share
purchase agreement with Dutch A&A triggered the redemption of all Class A
Preferred shares into common shares, resulting in a return to common
shareholders of $27,198,000 in the first quarter of 2001.
Highlights of the first quarter included:
* Signing a new three year, secured, revolving credit and term loan
facility with The CIT Group/Business Credit, Inc., which replaced the
previous credit facility with G.E. Capital Corporation.
* SentryVision(R) orders from our international dealers Intrepid for B&Q,
from Chubb for Cora and from Ultrak Italy for Coop.
* SentryVision(R) orders from Target, Lowe's Companies Inc. and Mills
Fleet Farm in the United States and Building Box in Canada.
* Additional CCTV orders in the retail market from Menards, Lowe's, The
Kroger Co., Save-A-Lot, Shoe Carnival and Goody's Family Clothing, Inc.
* CCTV and EAS orders in the educational market from school districts in
California, Georgia, New York and Texas.
* Continued EAS orders from Goody's, Shoe Carnival, Norstan, French
Connection, Salvatore Ferragamo, Archambault and Barney's.
* Additional EAS orders in the library market from Brooklyn and Calgary
Public Libraries.
In addition, on May 15, 2002, Dialoc ID Holdings B.V., formerly known as
Dutch A&A Holding B.V., exercised a purchase right for an additional
14,500,000 shares of newly issued Sentry Technology Corporation common stock,
increasing their ownership to 48.1% of the total outstanding shares.
Sentry Technology Corporation designs, manufactures, sells, installs and
services a complete line of Radio Frequency (RF) and Electro-magnetic (EM) EAS
and Closed Circuit Television (CCTV) surveillance systems. The CCTV product
line features SentryVision(R), a proprietary, patented, traveling Surveillance
System including our latest generation 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 Dutch A&A Holding BV expands the Company's product
offerings to include proximity Access Control and Radio Frequency
Identification (RFID) solutions.
For further information, please visit our Web site at
http://www.sentrytechnology.com.
Information contained in this release contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 which can be identified by the use of forward-looking terminology such
as "believes," "expects," "may," "will," "should" or "anticipates" or the
negative thereof, other variations thereon or comparable terminology, or by
discussions of strategy. These forward-looking statements involve certain
significant risks and uncertainties, and actual results may differ materially
from the forward-looking statements. For further details and discussion of
these risks and uncertainties see Sentry Technology Corporation's SEC filings
including, but not limited to, its annual report on Form 10-K. No assurance
can be given that future results covered by the forward-looking statements
will be achieved, and other factors could also cause actual results to vary
materially from the future results covered in such forward-looking statements.
The Company does not undertake to publicly update or revise any of its
forward-looking statements even if experience or future changes show that the
indicated results or events will not be realized.
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2002 2001
ASSETS
CURRENT ASSETS
Cash and cash equivalents $150 $423
Accounts receivable, less allowance for
doubtful accounts of $773 and $763, respectively 2,906 2,713
Net investment in sales-type
leases - current portion 63 61
Inventories 4,634 4,740
Prepaid expenses and other current assets 405 338
Total current assets 8,158 8,275
NET INVESTMENT IN SALES-TYPE LEASES -
non-current portion 32 35
SECURITY DEVICES ON LEASE, net 9 11
PROPERTY, PLANT AND EQUIPMENT, net 2,845 2,962
OTHER ASSETS 373 278
$11,417 $11,561
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit $2,783 $2,599
Accounts payable 1,733 1,153
Accrued liabilities 1,449 1,864
Obligations under capital leases
- current portion 138 121
Deferred income 194 303
Total current liabilities 6,297 6,040
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,579 2,630
Total liabilities 8,876 8,670
COMMON SHAREHOLDERS' EQUITY (DEFICIT)
Common stock 64 62
Additional paid-in capital 44,521 44,403
Accumulated deficit (41,924) (41,574)
Receivable from stock sale (120) --
Total common shareholders' equity 2,541 2,891
$11,417 $11,561
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2002 2001
REVENUES $4,742 $4,670
COSTS AND EXPENSES:
Cost of sales 2,148 2,391
Customer service expenses 1,279 1,129
Selling, general and administrative expenses 1,382 1,522
Research and development 151 175
4,960 5,217
OPERATING LOSS (218) (547)
INTEREST EXPENSE 132 147
LOSS BEFORE INCOME TAXES (350) (694)
INCOME TAXES -- --
NET LOSS (350) (694)
PREFERRED STOCK DIVIDENDS -- (25)
RETURN TO COMMON SHAREHOLDERS FROM
REDEMPTION OF PREFERRED STOCK -- 27,198
NET INCOME (LOSS) ATTRIBUTED TO
COMMON SHAREHOLDERS $(350) $26,479
NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted $(0.01) $0.46
WEIGHTED AVERAGE COMMON SHARES
Basic and diluted 61,654 57,445
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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