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, 2007.
Revenues for the first quarter were $2,668,000, compared to revenues of
$2,708,000 reported in the first quarter of the prior year. Sentry had a
net loss of $724,000, or $(0.01) per share in the first quarter of 2007,
compared to a net loss of $730,000, or $(0.01) per share, in the first
quarter of 2006.
"We have reduced selling, general and administrative expenses by 12% in
the first quarter of 2007 compared to 2006 while maintaining profit
margins," said Peter L. Murdoch, President and CEO of Sentry Technology
Corporation. "Several sales opportunities with new large customers expected
to close in the first quarter were postponed. However we are confident that
contracts will be signed in the near future. Our business opportunities are
strong and we are optimistic that Sentry will be profitable in 2007."
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,
2007 2006
REVENUES:
Sales $2,329 $2,285
Service, installation and other revenues 339 423
2,668 2,708
COST OF SALES AND EXPENSES:
Cost of sales 1,270 1,256
Customer service expenses 455 523
Selling, general and administrative expenses 1,197 1,353
Research and development 206 200
3,128 3,332
OPERATING LOSS (460) (624)
INTEREST AND FINANCING EXPENSE, net 213 82
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (673) (706)
INCOME TAX EXPENSE 27 10
LOSS BEFORE MINORITY INTEREST (700) (716)
MINORITY INTEREST 24 14
NET LOSS $(724) $(730)
LOSS PER SHARE
Basic and diluted $(0.01) $(0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic and diluted 120,744 120,648
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $276 $360
Short-term investments 262 259
Accounts receivable, less allowance
for doubtful accounts of $171 and
$160, respectively 1,714 2,251
Inventory 3,322 3,005
Prepaid expenses and other assets 339 306
Total current assets 5,913 6,181
PROPERTY, PLANT AND EQUIPMENT, net 598 609
GOODWILL 1,564 1,564
OTHER ASSETS 374 480
TOTAL ASSETS $8,449 $8,834
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank indebtedness, demand loan and
revolving line of credit $2,983 $3,030
Accounts payable 864 609
Accrued liabilities 1,148 1,078
Obligations under capital leases
- current portion 2 3
Deferred income 182 185
Total current liabilities 5,179 4,905
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 8 8
DEFERRED TAX LIABILITY 91 91
CONVERTIBLE DEBENTURE 1,955 1,945
Total liabilities 7,233 6,949
MINORITY INTEREST 1,274 1,237
STOCKHOLDERS' (DEFICIT) EQUITY (58) 648
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY $8,449 $8,834
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 of Sentry
Technology Corporation, +1-631-739-2000
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