RONKONKOMA, N.Y., Aug. 16 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's second quarter ended June 30, 2004.
Revenues for the second quarter were $4,241,000, compared to revenues of
$2,326,000 reported in the second quarter of the prior year. The reported
results include the impact of the $2 million Brascan Technology Fund financing
and the acquisition of ID Systems Canada Inc. and ID Systems USA, Inc. ("ID
Systems"), which were completed at the beginning of May 2004. Sentry's
historical revenues increased by approximately $1.0 million principally as a
result of strong increases in sales of SentryVision(R) and CCTV products. ID
Systems contributed $0.9 million in EAS sales to the total revenue increase
for the months of May and June. As a result of the restructuring of
operations, increased revenue levels and the acquisition of ID Systems, we
were able to report an operating profit of $120,000 in the second quarter of
2004 as compared to an operating loss of $188,000 in the second quarter of
2003. The net profit in the second quarter of 2004 was $12,000, or $0.00 per
share, compared to $530,000, or $0.01 per share, in the second quarter of last
year. Included in the net income for the second quarter of 2003 was a pretax
extraordinary gain totaling $870,000 related to the negotiated settlement with
trade creditors of past due debt.
For the first six months ended June 30, 2004, revenues were $7,187,000,
compared to $5,900,000 reported in the previous year. There was an operating
profit of $53,000 in the first half of 2004 compared to an operating loss of
$492,000 in the first half of 2003. Net loss was $180,000, or $(0.00) per
diluted share in the first six months of 2004, compared to net income of
$36,000, or $0.00 per diluted share, in the first six months of last year
after the impact of the extraordinary gain.
"Second quarter results confirm that significant progress has been made at
Sentry," said Peter L. Murdoch, President and CEO Sentry Technology
Corporation. "With the completion of our recent financing, substantial
improvement in our balance sheet, the benefits derived from the acquisition of
ID Systems and the very significant increase in sales, operating and net
profits, Sentry is now better positioned to grow the business than at any time
in recent years."
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 the SentryVision(R) SmartTrack system, 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 acquisition of ID Systems
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.
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,
2004 2003
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $1,339 $210
Accounts receivable,
less allowance for
doubtful accounts of
$407 and $304,
respectively 3,519 1,482
Inventories 3,170 1,855
Prepaid expenses and
other current
assets 1,039 126
Total current
assets 9,067 3,673
PROPERTY, PLANT AND
EQUIPMENT, net 613 209
GOODWILL 1,588 ---
OTHER ASSETS 413 211
$11,681 $4,093
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of
credit and term loan $2,831 $1,515
Accounts payable
and accrued
liabilities 2,273 2,167
Other current
liabilities 190 276
Total current
liabilities 5,294 3,958
NOTES PAYABLE &
OTHER LONG-TERM
LIABILITIES 286 260
CONVERTIBLE DEBENTURES 1,842 --
MINORITY INTEREST 890 --
Total liabilities 8,312 4,218
SHAREHOLDERS' EQUITY
(DEFICIT) 3,369 (125)
$11,681 $4,093
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
REVENUES $4,241 $2,326 $7,187 $5,900
COSTS AND EXPENSES:
Cost of sales 1,682 837 2,623 2,489
Customer service
expenses 1,105 697 2,120 1,818
Selling, general and
administrative
expenses 1,154 805 2,051 1,750
Research and
development 180 175 340 335
4,121 2,514 7,134 6,392
OPERATING INCOME (LOSS) 120 (188) 53 (492)
INTEREST AND FINANCING
EXPENSES 79 152 204 342
LOSS BEFORE INCOME TAXES 41 (340) (151) (834)
INCOME TAX EXPENSE (BENEFIT) 15 (348) 15 (348)
INCOME (LOSS) BEFORE
MINORITY INTEREST
AND EXTRAORDINARY ITEM 26 8 (166) (486)
MINORITY INTEREST (14) -- (14) --
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 12 8 (180) (486)
EXTRAORDINARY ITEM -
Gain on extinguishment
of debt, net of $348
income taxes -- 522 -- 522
NET INCOME (LOSS) $12 $530 $(180) $36
NET INCOME (LOSS) PER SHARE
Income (loss) before
extraordinary
item $0.00 $0.00 $(0.00) $(0.01)
Extraordinary item 0.00 0.01 0.00 0.01
Basic and diluted $0.00 $0.01 $(0.00) $0.00
WEIGHTED AVERAGE SHARES
Basic and diluted 105,862 82,943 95,809 82,601
SOURCE Sentry Technology Corporation
 back to top
Related links:
http://www.sentrytechnology.com
Company News On-Call:
http://www.prnewswire.com/comp/494538.html
CONTACT:
Peter J. Mundy Vice, President-CFO, Sentry
Technology Corporation, +1-631-739-2000
|
