HAUPPAUGE, N.Y., Aug. 14 /PRNewswire-FirstCall/ --
Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported
financial results for the Company's second quarter ended June 30, 2002.
Revenues for the second quarter were $3,181,000, compared to revenues of
$4,005,000 reported in the second quarter of the prior year. The decrease in
revenues is primarily related to lower sales to two of the Company's largest
EAS customers, which have opened up fewer new retail stores in 2002. The net
loss attributed to common shareholders in the first quarter of 2002 was
$1,085,000, or $(0.02) per share, compared to net loss attributable to common
shareholders of $861,000, or $(0.01) per share, in the second quarter of last
year.
For the first six months ended June 30, 2002, revenues were
$7,923,000, compared to $8,675,000 reported in the previous year. Net loss
attributable to common shareholders was $1,435,000, or $(0.02) per diluted
share, compared to a net income attributable to common shareholders of
$25,618,000, or $0.42 per diluted share. The share purchase agreement with
Dialoc ID Holdings BV triggered the redemption of all Class A Preferred shares
into common shares, resulting in a return to common shareholders of
$27,198,000 in the first quarter of 2001.
"While our EAS business in the 2nd quarter was adversely affected by the
slow retail economy, recent reports indicate improvement," said
Peter L. Murdoch, President and CEO. "We have been encouraged by repeat
orders from very large customers for our SmartTrack traveling CCTV system both
in the domestic and international markets and anticipate that our increasing
proposal backlog will generate improved results in the second half of the
year."
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 SentryVision(R), 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 partnership with Dialoc ID Holdings BV expands the
Company's product offering to include RFID and proximity Access Control
solutions. For further information, please visit our website at
http://www.sentrytechnology.com .
Information contained in this release contains
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 which can be identified by the use of
forward-looking terminology such as "believes," "expects," "may," "will,"
"should" or "anticipates" or the negative thereof, other variations thereon or
comparable terminology, or by discussions of strategy. These forward-looking
statements involve certain significant risks and uncertainties, and actual
results may differ materially from the forward-looking statements.
For further details and discussion of these risks and uncertainties see Sentry
Technology Corporation's SEC filings including, but not limited to, its annual
report on Form 10-K. No assurance can be given that future results covered by
the forward-looking statements will be achieved, and other factors could also
cause actual results to vary materially from the future results covered in
such forward-looking statements. The Company does not undertake to publicly
update or revise any of its forward-looking statements even if experience or
future changes show that the indicated results or events will not be realized.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
REVENUES $ 3,181 $ 4,005 $ 7,923 $ 8,675
COSTS AND EXPENSES:
Cost of sales 1,559 2,103 3,707 4,494
Customer service expenses 1,054 1,024 2,333 2,153
Selling, general and
administrative expenses 1,368 1,395 2,750 2,917
Research and development 145 208 296 383
4,126 4,730 9,086 9,947
OPERATING LOSS (945) (725) (1,163) (1,272)
INTEREST EXPENSE 140 136 272 283
LOSS BEFORE INCOME TAXES (1,085) (861) (1,435) (1,555)
INCOME TAXES --- --- --- ---
NET LOSS (1,085) (861) (1,435) (1,555)
PREFERRED STOCK DIVIDENDS --- --- --- 25
RETURN TO COMMON
SHAREHOLDERS FROM
REDEMPTION OF
PREFERRED STOCK --- --- --- 27,198
NET INCOME (LOSS)
ATTRIBUTED TO
COMMON SHAREHOLDERS $ (1,085) $ (861) $ (1,435) $ 25,618
NET INCOME (LOSS)
PER COMMON SHARE
Basic $ (0.02) $ (0.01) $ (0.02) $ 0.43
Diluted $ (0.02) $ (0.01) $ (0.02) $ 0.42
WEIGHTED AVERAGE COMMON SHARES
Basic 71,032 61,468 66,343 59,457
Diluted 71,032 61,468 66,343 60,291
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2002 2001
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 250 $ 423
Accounts receivable,
less allowance for
doubtful accounts of
$743 and $763,
respectively 2,097 2,713
Inventories 4,501 4,740
Prepaid expenses and other
current assets 417 399
Total current assets 7,265 8,275
PROPERTY, PLANT AND EQUIPMENT, net 2,782 2,962
OTHER ASSETS 381 324
$10,428 $11,561
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit
and term loan $ 2,272 $ 2,599
Accounts payable 2,182 1,153
Accrued liabilities 1,570 1,864
Obligations under capital leases
- current portion 128 121
Deferred income 227 303
Total current liabilities 6,379 6,040
OBLIGATIONS UNDER CAPITAL LEASES --
non-current portion 2,579 2,630
Total liabilities 8,958 8,670
SHAREHOLDERS' EQUITY
Common stock 78 62
Additional paid-in capital 44,521 44,403
Accumulated deficit (43,009) (41,574)
Note receivable from shareholder (120) ---
Total shareholders' equity 1,470 2,891
$ 10,428 $ 11,561
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 - Finance of
Sentry Technology Corporation, +1-631-232-2100
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