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, 2003.
Revenues for the second quarter were $2,326,000, compared to revenues of
$3,181,000 reported in the second quarter of the prior year. The reduction
in revenues is primarily attributable to the timing of orders received from
major customers, which we see improving in the third quarter. The net profit
in the second quarter of 2003 was $530,000, or $0.01 per share, compared to
net loss of $1,085,000, or $(0.02) per share, in the second quarter of last
year. Included in the net income for the second quarter of 2003 was an
extraordinary gain related to the negotiated settlement with trade creditors
of past due debt of $522,000, or $0.01 per share, net of $348,000 of income
taxes.
For the first six months ended June 30, 2003, revenues were $5,900,000,
compared to $7,923,000 reported in the previous year. Net profit was $36,000,
or $0.00 per diluted share, compared to a net loss of $1,435,000, or $(0.02)
per diluted share, in the first six months of last year.
"We have completed many steps in our turn around including restructuring
80% of past due supplier debt, a 50% reduction in the work force and
termination of the long term lease of our current premises, while retaining
key customers," said Peter L. Murdoch, President and CEO of Sentry Technology
Corporation. "Cost cutting has very significantly reduced operating expenses
and our decision to out-source manufacturing has added 20% to gross profits.
These changes have dramatically improved the Company's cash flow allowing us
to concentrate on building sales. Recent SmartTrack orders from Lowe's
Companies, Fred Meyer and Cabelas Sporting Goods in the US, combined with
strong performance in Europe from B&Q, CORA, Auchan, Carrefour and Iper give
us confidence when the world's largest retailers are reordering Sentry's
market leading core product line."
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, including our latest SmartTrack 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, B.V. 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.
CONTACT: Peter J. Mundy,
Vice President - Finance
(631) 232-2100
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $107 $266
Accounts receivable, less allowance for doubtful
accounts of $342 and $303, respectively 934 1,472
Inventories 2,205 3,145
Prepaid expenses and other current assets 172 237
Total current assets 3,418 5,120
PROPERTY, PLANT AND EQUIPMENT, net 2,390 2,563
OTHER ASSETS 287 309
$6,095 $7,992
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $1,297 $2,067
Accounts payable and accrued liabilities 2,205 3,330
Other current liabilities 316 491
Total current liabilities 3,818 5,888
NOTES PAYABLE 74 ---
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,509 2,555
Total liabilities 6,401 8,443
SHAREHOLDERS' EQUITY (DEFICIT) (306) (451)
$6,095 $7,992
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
REVENUES $2,326 $3,181 $5,900 $7,923
COSTS AND EXPENSES:
Cost of sales 837 1,559 2,489 3,707
Customer service
expenses 697 1,054 1,818 2,333
Selling, general and
administrative expenses 857 1,368 1,881 2,750
Research and development 175 145 335 296
2,566 4,126 6,523 9,086
OPERATING LOSS (240) (945) (623) (1,163)
INTEREST EXPENSE 100 140 211 272
LOSS BEFORE INCOME TAXES (340) (1,085) (834) (1,435)
INCOME TAXES (BENEFIT) (348) --- (348) ---
PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEM 8 (1,085) (486) (1,435)
EXTRAORDINARY ITEM - Gain on
extinguishment of debt,
net of$348 income taxes 522 --- 522 ---
NET PROFIT (LOSS) $530 $(1,085) $36 $(1,435)
NET PROFIT (LOSS) PER SHARE
Profit (loss) before
extraordinary item $0.00 $(0.02) $(0.01) $(0.02)
Extraordinary item 0.01 0.00 0.01 0.00
Basic and diluted $0.01 $(0.02) $0.00 $(0.02)
WEIGHTED AVERAGE SHARES
Basic and diluted 82,943 71,032 82,601 66,343
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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