RONKONKOMA, 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, 2006.
Revenues for the second quarter were $2,932,000 compared to revenues of
$4,267,000 reported in the second quarter of the prior year. Principally as
a result of lower revenue levels, Sentry had a net loss of $598,000, or
$(0.00) per share, in the second quarter of 2006 compared to net loss of
$30,000 or $(0.00) per share, in the second quarter of last year.
For the first six months ended June 30, 2006, revenues were $5,640,000
compared to revenues of $6,760,000 reported in the first six months of the
prior year. Sentry had a net loss of $1,328,000, or $(0.01) per share in
the first half of 2006, compared to a net loss of $790,000, or $(0.01) per
share, in the first half of 2005.
"We are disappointed with our financial results in the second quarter,"
said Peter L. Murdoch, President and CEO of Sentry Technology Corporation.
"Several large orders were delayed, including high value SmartTrack orders
from one of America's largest retailers due to changes in their management.
We expect to receive these orders shortly, which will have a positive
impact on both our order backlog and U.S. market presence. In addition, our
expanded sales team is attracting new, key customer opportunities and has
submitted quotations to large potential customers in big box retail,
grocery and public transportation sectors. We expect that these efforts
will impact both immediate revenue opportunities as well as expand our base
of repeat customers for future hardware sales and service revenues."
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 as well as
Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. 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 deter
shoplifting and internal theft and by industrial and institutional
customers to protect assets and people. 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 CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
2006 2005
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 672 $ 842
Accounts receivable, less allowance
for doubtful accounts of $86 and
$141, respectively 1,813 2,762
Inventories 3,053 2,709
Prepaid expenses and other current assets 543 318
Total current assets 6,081 6,631
PROPERTY, PLANT AND EQUIPMENT, net 646 637
GOODWILL 1,564 1,564
OTHER ASSETS 458 563
$8,749 $9,395
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,020 $2,039
Accounts payable 593 489
Accrued liabilities 1,320 925
Obligations under capital leases -
current portion 4 6
Deferred income 98 99
Total current liabilities 4,035 3,558
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion -- 1
DEFERRED TAX LIABILITY 60 58
CONVERTIBLE DEBENTURES 1,924 1,904
MINORITY INTEREST 1,228 1,140
OTHER LIABILITIES 55 36
Total liabilities 7,302 6,697
SHAREHOLDERS' EQUITY 1,447 2,698
$8,749 $9,395
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
(Unaudited) (Unaudited)
REVENUES
Sales $2,526 $3,462 $4,811 $5,375
Service, installation and other 406 805 829 1,385
2,932 4,267 5,640 6,760
COSTS AND EXPENSES:
Cost of sales 1,302 1,915 2,558 2,895
Customer service expenses 558 747 1,081 1,496
Selling, general and
administrative expenses 1,324 1,272 2,677 2,493
Research and development 204 214 404 447
3,388 4,148 6,720 7,331
OPERATING INCOME (LOSS) (456) 119 (1,080) (571)
INTEREST AND FINANCING EXPENSES 86 78 168 169
INCOME (LOSS) BEFORE INCOME TAXES
AND MINORITY INTEREST (542) 41 (1,248) (740)
INCOME TAX EXPENSE 30 37 40 20
INCOME (LOSS) BEFORE MINORITY
INTEREST (572) 4 (1,288) (760)
MINORITY INTEREST (26) (34) (40) (30)
NET INCOME (LOSS) $ (598) $ (30) $(1,328) $ (790)
NET INCOME (LOSS) PER SHARE
Basic and diluted $(0.00) $(0.00) $ (0.01) $(0.01)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,729 120,566 120,689 120,559
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
http://www.prnewswire.com/comp/494538.html /
CONTACT:
Peter J. Mundy, Vice President - CFO,
+1-631-739-2000
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