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, 2008.
Revenues increased 66% on a comparative basis from $2,428,000 in the
second quarter of 2007 to $4,029,000 in the second quarter of 2008. The
Company achieved an operating profit of $349,000 and a net income of $8,000
in the second quarter this year compared to a net loss of $898,000, in the
second quarter last year. The net profit includes a foreign exchange loss
of $65,000 in the second quarter of 2008 as a result of the U.S. dollar
valuation of the Company's Canadian dollar bank loan as well as receivables
denominated in U.S. dollars.
For the first six months ended June 30, 2008, revenues were $6,071,000
compared to revenues of $5,096,000 reported in the first six months of the
prior year. Sentry had a net loss of $879,000 in the first half of 2008,
compared to a net loss of $1,622,000 in the first half of 2007.
"We are very pleased to report our first quarterly net profit since the
fourth quarter of 2004. At the beginning of 2005 we lost a major customer
that represented approximately 30% of our total revenue causing a
significant financial challenge for Sentry," said Peter L. Murdoch,
President and CEO of Sentry Technology Corporation. "Our dedicated team of
employees has battled to regain the lost revenue while introducing
important new products like OperationalVideo(TM). We are also benefiting
from strong international SmartTrack(TM) sales and the implementation of
cost reduction measures. The combination of sales and cost control
initiatives has resulted in the substantial improvement reported in the
second quarter."
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 STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited)
REVENUES
Sales $ 3,402 $ 1,991 $5,114 $4,320
Service, installation
and other revenues 627 437 957 776
4,029 2,428 6,071 5,096
COST OF SALES AND
EXPENSES:
Cost of sales 1,884 1,106 2,903 2,376
Customer service
expenses 555 485 1,105 940
Selling, general and
administrative expenses 1,095 1,395 2,074 2,592
Research and development 146 185 293 391
3,680 3,171 6,375 6,299
INCOME (LOSS) FROM
OPERATIONS 349 (743) (304) (1,203)
INTEREST AND FINANCING
EXPENSE, net 327 193 564 406
INCOME (LOSS) BEFORE
INCOME TAXES AND
MINORITY INTEREST 22 (936) (868) (1,609)
INCOME TAX EXPENSE
(RECOVERY) 6 (20) 6 7
INCOME (LOSS) BEFORE
MINORITY INTEREST 16 (916) (874) (1,616)
MINORITY INTEREST
EXPENSE (INCOME) 8 (18) 5 6
NET INCOME (LOSS) $8 $(898) $(879) $(1,622)
EARNINGS (LOSS)
PER SHARE
Basic and diluted $0.00 $(0.01) $(0.01) $(0.01)
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
Basic and diluted 120,744 120,744 120,744 120,744
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
June 30, December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $1,389 $256
Short-term investments 199 202
Accounts receivable, less
allowance for doubtful accounts of $149
in 2008 and $209 in 2007, respectively 845 3,014
Inventory, net 3,124 3,299
Prepaid expenses and other assets 899 858
Total current assets 6,456 7,629
PROPERTY AND EQUIPMENT, net 556 634
OTHER ASSETS 266 269
TOTAL ASSETS $7,278 $8,532
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Bank indebtedness, demand loan and
revolving line of credit $4,120 $4,551
Accounts payable 612 1,223
Accrued liabilities 1,667 1,539
Obligations under capital leases
- current portion 2 2
Deferred income 265 145
Convertible debenture 2,000 1,986
Total current liabilities 8,666 9,446
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 6 7
DEFERRED TAX LIABILITY 114 117
Total liabilities 8,786 9,570
MINORITY INTEREST 1,205 1,200
STOCKHOLDERS' DEFICIT (2,713) (2,238)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $7,278 $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 of Sentry
Technology Corporation, +1-631-739-2000
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