RONKONKOMA, N.Y., Nov. 13 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's third quarter ended September 30, 2007.
Revenues for the third quarter increased by 48% to $4,061,000, compared
to revenues of $2,743,000 reported in the third quarter of the prior year.
Sentry had a small operating profit and a net loss in the third quarter of
2007 of $168,000, or $(0.00) per share, compared to a net loss of $683,000,
or (0.01) per share, in the third quarter of last year. The net loss was a
result of a third quarter 2007 foreign exchange loss of $255,000 and
$592,000 year to date caused by an increase in the value of the Canadian
dollar. Excluding the foreign exchange loss, the Company had a net profit
of $87,000, or $(0.00) per share.
For the first nine months ended September 30, 2007, revenues were
$9,157,000, compared to $8,383,000 reported in the previous year. The
increase in revenues is principally attributable to strong third quarter
revenue across all product lines and the successful introduction of the
Company's OperationalVideo(TM) solution using SmartTrack(TM) to deliver
real- time images over the internet to help retailers control safety and
security as well as remote viewing of store operations, merchandising,
signage, displays, pricing and employee procedure compliance. Sentry had a
net loss of $1,790,000, or $(0.01) per diluted share, in the first nine
months of 2007 compared to a net loss of $2,011,000, or $(0.02) per diluted
share, in the first nine months of 2006.
"We are very pleased with the third quarter revenue increase," said
Peter L. Murdoch, President and CEO of Sentry Technology Corporation.
"Except for the foreign exchange adjustment Sentry achieved a net profit.
This result is a substantial improvement over previous periods. We
anticipate that this is the beginning of a trend that will continue in the
fourth quarter and throughout 2008."
Sentry designs, manufactures, sells and installs a complete line of
Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID
based Library Management systems including QuickCheck(TM) patron
self-service kiosks. 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. The CCTV product line features
SentryVision(R), SmartTrack(TM), a proprietary, patented traveling camera
system. OperationalVideo(TM), a Sentry innovation, uses SmartTrack(TM) to
deliver real-time images over the internet to help retailers control safety
and security as well as remote viewing of store operations, merchandising,
signage, displays, pricing and employee procedure compliance. 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)
September 30, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $361 $360
Short-term investments 200 259
Accounts receivable, less allowance for
doubtful accounts of $199 and $160,
respectively 2,662 2,251
Inventory 3,114 3,005
Prepaid expenses and other current assets 805 306
Total current assets 7,142 6,181
PROPERTY AND EQUIPMENT, net 638 609
GOODWILL 1,564 1,564
OTHER ASSETS 302 480
TOTAL ASSETS $9,646 $8,834
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current Liabilities:
Bank indebtedness, demand loan and revolving
line of credit $3,796 $3,030
Accounts payable 1,289 609
Accrued liabilities 1,478 1,078
Obligations under capital leases - current
portion 2 3
Deferred income 183 185
Total current liabilities 6,748 4,905
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 8 8
DEFERRED TAX LIABILITY 106 91
CONVERTIBLE DEBENTURE 1,976 1,945
Total liabilities 8,838 6,949
MINORITY INTEREST 1,199 1,237
STOCKHOLDERS' (DEFICIT) EQUITY (391) 648
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY $9,646 $8,834
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
(Unaudited) (Unaudited)
REVENUES
Sales $3,222 $2,252 $7,542 $7,042
Service, installation and
other revenues 839 491 1,615 1,341
4,061 2,743 9,157 8,383
COST OF SALES AND EXPENSES:
Cost of sales 1,799 1,217 4,175 3,775
Customer service expenses 692 520 1,632 1,601
Selling, general and
administrative expenses 1,403 1,287 3,995 3,964
Research and development 165 210 556 614
4,059 3,234 10,358 9,954
OPERATING INCOME (LOSS) 2 (491) (1,201) (1,571)
INTEREST AND FINANCING EXPENSE,
net 221 141 627 309
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (219) (632) (1,828) (1,880)
INCOME TAX (RECOVERY) EXPENSE (7) 30 --- 70
LOSS BEFORE MINORITY INTEREST (212) (662) (1,828) (1,950)
MINORITY INTEREST 44 (21) 38 (61)
NET LOSS $(168) $(683) $(1,790) $(2,011)
LOSS PER SHARE
Basic and diluted $(0.00) $(0.01) $(0.01) $(0.02)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted 120,744 120,744 120,744 120,707
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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