RONKONKOMA, N.Y., Aug. 12 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's second quarter ended June 30, 2005.
Revenues for the second quarter were $4,267,000 compared to revenues of
$4,279,000 reported in the second quarter of the prior year. Revenues from
the former ID Systems group contributed $1.7 million in EAS sales in the
current quarter compared to $0.9 million in the prior year. Operating profit
was $119,000 in the second quarter of 2005 compared to $120,000 in the second
quarter of 2004. There was a net loss in the second quarter of 2005 of
$30,000, or $(0.00) per share, compared to net income of $12,000, or $0.00 per
share, in the second quarter of last year.
For the first six months ended June 30, 2005, revenues were $6,760,000
compared to revenues of $7,253,000 reported in the first six months 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 installation and maintenance revenues as well as lower sales of
conventional CCTV products and the Company's proprietary SmartTrack traveling
camera systems to domestic customers. Principally as a result of lower
revenue levels, Sentry had a net loss of $790,000, or $(0.01) per share in the
first half of 2005, compared to a net loss of $180,000, or $(0.00) per share,
in the first half of 2004.
"We are pleased with the second quarter results," said Peter Murdoch,
President and CEO of Sentry Technology Corporation. "While total revenues in
the second quarter of 2005 are unchanged compared with second quarter of 2004,
we achieved this despite a $1.3 million reduction in business from Lowe's Home
Centers compared with the same quarter last year. Non-Lowe's revenue increased
by 45%."
Mr. Murdoch continued, "The fact that the revenue levels have recovered in
such a short time frame is a result of our strategy to focus on core business
and to increase the number of sales reps and international dealers. We now
have sales reps located across North America and more than 25 dealers in
international markets delivering a broad range of security applications in the
retail, library, public transportation, commercial and industrial markets.
Sentry no longer relies primarily on a single dominant customer to be
successful. We believe that this more balanced marketing approach will produce
positive results in the future."
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 SentryVision(R) SmartTrack system, a proprietary, 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 recent 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 Web site 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 CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
2005 2004
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 771 $ 1,965
Accounts receivable, less allowance for
doubtful accounts of $151 and $338,
respectively 2,954 3,500
Inventories 3,156 3,314
Prepaid expenses and other current assets 474 525
Total current assets 7,355 9,304
PROPERTY, PLANT AND EQUIPMENT, net 625 689
GOODWILL 1,564 1,564
OTHER ASSETS 624 690
$10,168 $12,247
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $ 1,492 $ 2,640
Accounts payable 908 799
Accrued liabilities 1,194 1,146
Obligations under capital leases -
current portion 6 5
Deferred income 66 169
Total current liabilities 3,666 4,759
NOTES PAYABLE 24 189
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 4 8
DEFERRED INCOME TAXES 42 39
CONVERTIBLE DEBENTURES 1,883 1,862
MINORITY INTEREST 1,040 1,045
Total liabilities 6,659 7,902
SHAREHOLDERS' EQUITY 3,509 4,345
$10,168 $12,247
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(Unaudited) (Unaudited)
REVENUES
Sales $ 3,462 $ 3,188 $ 5,375 $ 5,034
Service, installation and
other 805 1,091 1,385 2,219
4,267 4,279 6,760 7,253
COSTS AND EXPENSES:
Cost of sales 1,915 1,682 2,895 2,623
Customer service expenses 747 1,105 1,496 2,120
Selling, general and
administrative expenses 1,272 1,192 2,493 2,117
Research and development 214 180 447 340
4,148 4,159 7,331 7,200
OPERATING INCOME (LOSS) 119 120 (571) 53
INTEREST AND FINANCING
EXPENSES 78 79 169 204
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY INTEREST 41 41 (740) (151)
INCOME TAX EXPENSE 37 15 20 15
INCOME (LOSS) BEFORE MINORITY
INTEREST 4 26 (760) (166)
MINORITY INTEREST (34) (14) (30) (14)
NET INCOME (LOSS) $ (30) $ 12 $ (790) $ (180)
NET INCOME (LOSS) PER SHARE
Basic and diluted $ (0.00) $ 0.00 $ (0.01) $ (0.00)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,566 105,862 120,559 95,809
CONTACT: Peter J. Mundy
Vice President - CFO
(631) 739-2000
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, Sentry
Technology Corporation, +1-631-739-2000
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