RONKONKOMA, 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, 2006.
Revenues for the first quarter were $2,708,000, compared to revenues of
$2,493,000 reported in the first quarter of the prior year. Sentry had a
net loss of $730,000, or $(0.01) per share in the first quarter of 2006,
compared to a net loss of $760,000, or $(0.01) per share, in the first
quarter of 2005.
"Sales increased 9% over first quarter last year despite a decrease in
revenue from Lowe's of $500,000. Non-Lowe's revenue increased 39% in the
first quarter of 2006," said Peter L. Murdoch, President and CEO of Sentry
Technology Corporation. "We believe that with the significant improvement
in our sales team and the addition of quality international dealers, our
business will continue to grow throughout 2006. Our new orders booked in
the first quarter reached $3.8 million. Momentum is building as result of
the new top tier prospects, the recent addition of major key accounts and
repeat orders of SmartTrack by many of the world's largest retailers. In
addition our library business continues to show solid, reliable growth."
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.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2006 2005
REVENUES:
Sales $2,285 $1,913
Service, installation and other revenues 423 580
2,708 2,493
COST AND EXPENSES:
Cost of sales 1,256 980
Customer service expenses 523 749
Selling, general and administrative expenses 1,353 1,221
Research and development 200 233
3,332 3,183
OPERATING LOSS (624) (690)
INTEREST AND FINANCING EXPENSES 82 91
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (706) (781)
INCOME TAX (BENEFIT) 10 (17)
LOSS BEFORE INCOME TAXES (716) (764)
MINORITY INTEREST 14 (4)
NET LOSS $(730) $(760)
NET LOSS PER SHARE
Basic and diluted $(0.01) $(0.01)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,648 120,551
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2006 2005
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 638 $ 842
Accounts receivable, less allowance
for doubtful accounts of
$84 and $141, respectively 2,152 2,762
Inventories 2,909 2,709
Prepaid expenses and other current assets 452 318
Total current assets 6,151 6,631
PROPERTY, PLANT AND EQUIPMENT, net 610 637
GOODWILL 1,564 1,564
OTHER ASSETS 529 563
$ 8,854 $ 9,395
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $ 1,507 $ 2,039
Accounts payable 537 489
Accrued liabilities 1,577 925
Obligations under capital leases
- current portion 6 6
Deferred income 129 135
Total current liabilities 3,756 3,594
OBLIGATIONS UNDER CAPITAL LEASES
- non-current portion --- 1
DEFERRED TAX LIABILITY 58 58
CONVERTIBLE DEBENTURES 1,914 1,904
MINORITY INTEREST 1,148 1,140
Total liabilities 6,876 6,697
SHAREHOLDERS' EQUITY 1,978 2,698
$ 8,854 $ 9,395
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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