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, 2007.
Revenues for the second quarter were $2,428,000 compared to revenues of
$2,932,000 reported in the second quarter of the prior year. Principally as
a result of lower revenue levels, Sentry had a net loss of $898,000, or
$(0.01) per share, in the second quarter of 2007 compared to net loss of
$598,000 or $(0.00) per share, in the second quarter of last year. In the
second quarter of 2007 the Company booked a foreign exchange loss of
$292,000 and $337,000 year to date as a result of an increase in the value
of the Canadian dollar.
For the first six months ended June 30, 2007, revenues were $5,096,000
compared to revenues of $5,640,000 reported in the first six months of the
prior year. Sentry had a net loss of $1,622,000, or $(0.01) per share, in
the first half of 2007, compared to a net loss of $1,328,000, or $(0.01)
per share, in the first half of 2006.
"While revenues for the first half of the year were below forecast, we
expect a dramatic increase in business in the third and fourth quarters,"
said Peter L. Murdoch, President and CEO of Sentry Technology Corporation.
"The order rate over the past two months has exceeded our expectations. Our
year to date order backlog has increased from $1.4 million as of December
31, 2006 to $3.3 million as of June 30, 2007 and $6.1 million as of July
31, 2007. Export orders for SmartTrack(TM) have more than doubled compared
with the same period last year and the introduction of OperationalVideo(TM)
in 34 locations at Steve & Barry's will create a significant new revenue
stream while proving the concept for other major retailers that are
interested in our new technology. Our library business continues to be
strong with major wins for self-service systems at the Dallas Public and
Palm Beach public libraries. Contracts are being signed both in our library
and video market sectors with existing satisfied customers and with new
accounts. We expect this momentum to continue into future quarters."
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 BALANCE SHEETS
(In thousands)
June 30, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $266 $360
Short-term investments 94 259
Accounts receivable, less allowance
for doubtful accounts of $183 and $160,
respectively 1,310 2,251
Inventory 3,384 3,005
Prepaid expenses and other assets 334 306
Total current assets 5,388 6,181
PROPERTY, PLANT AND EQUIPMENT, net 625 609
GOODWILL 1,564 1,564
OTHER ASSETS 314 480
TOTAL ASSETS $7,891 $8,834
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank indebtedness, demand loan and
revolving line of credit $3,035 $3,030
Accounts payable 1,038 609
Accrued liabilities 1,005 1,078
Obligations under capital leases -
current portion 2 3
Deferred income 246 185
Total current liabilities 5,326 4,905
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 8 8
DEFERRED TAX LIABILITY 99 91
CONVERTIBLE DEBENTURE 1,966 1,945
Total liabilities 7,399 6,949
MINORITY INTEREST 1,243 1,237
STOCKHOLDERS' (DEFICIT) EQUITY (751) 648
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY $7,891 $8,834
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
(Unaudited) (Unaudited)
REVENUES
Sales $1,991 $2,526 $4,320 $4,811
Service, installation and
other 437 406 776 829
2,428 2,932 5,096 5,640
COST OF SALES AND EXPENSES:
Cost of sales 1,106 1,302 2,376 2,558
Customer service expenses 485 558 940 1,081
Selling, general and
administrative expenses 1,395 1,324 2,592 2,677
Research and development 185 204 391 404
3,171 3,388 6,299 6,720
OPERATING LOSS (743) (456) (1,203) (1,080)
INTEREST AND FINANCING EXPENSE,
net 193 86 406 168
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (936) (542) (1,609) (1,248)
INCOME TAX (RECOVERY) EXPENSE (20) 30 7 40
LOSS BEFORE MINORITY INTEREST (916) (572) (1,616) (1,288)
MINORITY INTEREST 18 (26) (6) (40)
NET LOSS $(898) $(598) $(1,622) $(1,328)
LOSS PER SHARE
Basic and diluted $(0.01) $(0.00) $(0.01) $(0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted 120,744 120,729 120,744 120,689
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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