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, 2008.
Revenues for the first quarter were $2,042,000, compared to revenues of
$2,668,000 reported in the first quarter of the prior year. Sentry had a
net loss of $887,000, or $(0.01) per share in the first quarter of 2008,
compared to a net loss of $724,000, or $(0.01) per share, in the first
quarter of 2007.
"Sales revenue was short of expectation primarily as a result of
several large orders that were received too late in the quarter to be
installed and recognized in Q1 revenue," said Peter L. Murdoch, President
and CEO of Sentry Technology Corporation. "This resulted in an increase in
our order backlog to a total of $5.6 million as of March 31, 2008 compared
with $1.7 million at the end of March '07. Several strategic sales were
closed in the first quarter including a large SmartTrack(TM) sale to the
Mexico City Metro as well as orders for OperationalVideo(TM) from one of
our most important customers in the courier business."
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 including
QuickCheck(TM) patron self-service kiosks. 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 manage operations, deter
shoplifting and internal theft and by industrial and institutional
customers to protect assets and people. Recently the Company launched
OVportal(TM), a video information portal over the internet offering
retailers an OperationalVideo(TM) solution to manage security,
merchandising, sign placement and procedure compliance. OVportal(TM) uses
the SmartTrack(TM) traveling CCTV system and the Company's real-time video
server to provide remote viewing and control of retail operations.
OperationalVideo(TM) is the next major trend in online video and
OVportal(TM) is a leading, cost effective, market proven solution. 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 AND COMPREHENSIVE LOSS (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2008 2007
REVENUES:
Sales $1,712 $2,329
Service, installation and other revenues 330 339
2,042 2,668
COST OF SALES AND EXPENSES:
Cost of sales 1,019 1,270
Customer service expenses 550 455
Selling, general and administrative expenses 979 1,197
Research and development 147 206
2,695 3,128
OPERATING LOSS (653) (460)
INTEREST AND FINANCING EXPENSE, net 237 213
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (890) (673)
INCOME TAX EXPENSE - 27
LOSS BEFORE MINORITY INTEREST (890) (700)
MINORITY INTEREST (3) 24
NET LOSS $(887) $(724)
LOSS PER SHARE
Basic and diluted $(0.01) $ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic and diluted 120,744 120,744
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
March 31, December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $1,221 $256
Short-term investments 101 202
Accounts receivable, less allowance
for doubtful accounts of $214
and $209, respectively 1,358 3,014
Inventory 3,328 3,299
Prepaid expenses and other assets 595 858
Total current assets 6,603 7,629
PROPERTY AND EQUIPMENT, net 582 634
OTHER ASSETS 268 269
TOTAL ASSETS $7,453 $8,532
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank indebtedness, demand loan and
revolving line of credit $4,504 $4,551
Accounts payable 1,220 1,223
Accrued liabilities 1,479 1,539
Obligations under capital leases
- current portion 2 2
Deferred income 140 145
Total current liabilities 7,345 7,460
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 6 7
DEFERRED TAX LIABILITY 113 117
CONVERTIBLE DEBENTURE 1,997 1,986
Total liabilities 9,461 9,570
MINORITY INTEREST 1,197 1,200
STOCKHOLDERS' (DEFICIT) EQUITY (3,205) (2,238)
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY $7,453 $8,532
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,
+1-631-739-2000
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