HAUPPAUGE, N.Y., Nov. 4 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's third quarter ended September 30, 2003.
Revenues for the third quarter were $3,784,000, compared to revenues of
$3,425,000 reported in the third quarter of the prior year. The increase in
revenues is attributable to both increased sales of the SentryVision(R)
SmartTrack systems and the timing of orders received from major customers. The
Company generated an operating profit for the current quarter of $67,000 as
compared to an operating loss of $944,000 for the same period in 2002. The net
profit in the third quarter of 2003 was $254,000, or $0.00 per share, compared
to net loss of $1,048,000, or $(0.01) per share, in the third quarter of last
year. Included in the net income for the third quarter of 2003 was an
extraordinary gain related to the termination of its long-term lease with its
prior landlord for the Hauppauge, New York facility of $212,000, or $0.00 per
share, net of $141,000 of income taxes.
For the first nine months ended September 30, 2003, revenues were
$9,684,000, compared to $11,348,000 reported in the previous year. Net profit
was $290,000, or $0.00 per diluted share, compared to a net loss of
$2,483,000, or $(0.04) per diluted share, in the first nine months of last
year. In addition to the extraordinary gain indicated above, included in net
income for the first nine months of 2003 were extraordinary gains related to
the settlement with trade creditors of past due debt of $525,000, or $0.01 per
share, net of $350,000 of income taxes.
"Delivering the first quarterly operating profit in seven years marks a
major achievement, particularly without additional debt or equity financing"
said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "We
were able to increase sales, double margins and reduce costs due to the
support of our employees, customers and business partners. These results are
very encouraging. We believe that the many positive steps taken in our
restructuring efforts will lead to improved business and better access to
capital markets."
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.
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.
CONTACT: Peter J. Mundy
Vice President - Finance
(631) 739-2000
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September December
30, 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $215 $266
Accounts receivable, less allowance for doubtful
accounts of $357 and $303, respectively 1,944 1,472
Inventories 2,197 3,145
Prepaid expenses and other current assets 135 237
Total current assets 4,491 5,120
PROPERTY, PLANT AND EQUIPMENT, net 190 2,563
OTHER ASSETS 281 309
$4,962 $7,992
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $1,895 $2,067
Accounts payable and accrued liabilities 2,559 3,330
Other current liabilities 247 491
Total current liabilities 4,701 5,888
NOTES PAYABLE 263 --
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 15 2,555
Total liabilities 4,979 8,443
SHAREHOLDERS' EQUITY (DEFICIT) (17) (451)
$4,962 $7,992
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
REVENUES $3,784 $3,425 $9,684 $11,348
COSTS AND EXPENSES:
Cost of sales 1,490 1,884 3,979 5,591
Customer service
expenses 1,094 977 2,912 3,310
Selling, general and
administrative
expenses 976 1,389 2,726 4,139
Research and
development 157 119 492 415
3,717 4,369 10,109 13,455
OPERATING PROFIT (LOSS) 67 (944) (425) (2,107)
INTEREST AND FINANCING
EXPENSES 171 104 513 376
LOSS BEFORE INCOME TAXES (104) (1,048) (938) (2,483)
INCOME TAXES (BENEFIT) (143) -- (491) --
PROFIT (LOSS) BEFORE
EXTRAORDINARY ITEM 39 (1,048) (447) (2,483)
EXTRAORDINARY ITEM - Gain
on extinguishment of debt,
net of $143 and $491
income taxes 215 -- 737 --
NET PROFIT (LOSS) $254 $(1,048) $290 $(2,483)
NET PROFIT (LOSS) PER SHARE
Profit (loss) before
extraordinary item $0.00 $(0.01) $(0.01) $(0.04)
Extraordinary item 0.00 0.00 0.01 0.00
Basic and diluted $0.00 $(0.01) $0.00 $(0.04)
WEIGHTED AVERAGE SHARES
Basic and diluted 85,656 78,044 83,619 70,243
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, +1-631-739-2000
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