HAUPPAUGE, N.Y., Nov. 15 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's third quarter ended September 30, 2002.
Revenues for the third quarter were $3,425,000, compared to revenues of
$4,329,000 reported in the third quarter of the prior year. The decrease in
revenues is primarily related to lower sales of EAS products to several of the
Company's larger customers, due to the continuing impact of a slowdown in the
retail economy in 2002. The net loss attributed to common shareholders in the
third quarter of 2002 was $1,048,000, or $(0.01) per share, compared to a net
loss attributable to common shareholders of $717,000, or $(0.01) per share, in
the third quarter of last year.
For the first nine months ended September 30, 2002, revenues were
$11,348,000, compared to $13,004,000 reported in the previous year. Net loss
attributable to common shareholders was $2,483,000, or $(0.04) per diluted
share, compared to a net income attributable to common shareholders of
$24,901,000, or $0.41 per diluted share. The share purchase agreement with
Dialoc ID Holdings BV triggered the redemption of all Class A Preferred shares
into common shares, resulting in a return to common shareholders of
$27,198,000 in the first quarter of 2001.
"We are disappointed that sales continued to be weak through the third
quarter," said Peter L. Murdoch, President and CEO. "Efforts continue to
raise additional outside investment through Balfour Capital Advisors, LLC to
strengthen the Company's financial position. New business opportunities
remain strong with first time orders for SmartTrack from large retailers both
domestically and internationally"
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. 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 BV expands the
Company's product offering to include RFID and proximity Access Control
solutions. For further information, please visit our website at
http://www.sentrytechnology.com.
Information contained in this release contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 which can be identified by the use of forward-looking terminology such
as "believes," "expects," "may," "will," "should" or "anticipates" or the
negative thereof, other variations thereon or comparable terminology, or by
discussions of strategy. These forward-looking statements involve certain
significant risks and uncertainties, and actual results may differ materially
from the forward-looking statements. For further details and discussion of
these risks and uncertainties see Sentry Technology Corporation's SEC filings
including, but not limited to, its annual report on Form 10-K. No assurance
can be given that future results covered by the forward-looking statements
will be achieved, and other factors could also cause actual results to vary
materially from the future results covered in such forward-looking statements.
The Company does not undertake to publicly update or revise any of its
forward-looking statements even if experience or future changes show that the
indicated results or events will not be realized.
CONTACT: Peter J. Mundy
Vice President - Finance
(631) 232-2100
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
REVENUES $3,425 $4,329 $11,348 $13,004
COSTS AND EXPENSES:
Cost of sales 1,884 2,219 5,591 6,713
Customer service expenses 977 1,174 3,310 3,327
Selling, general and
administrative expenses 1,389 1,417 4,139 4,334
Research and development 119 107 415 490
4,369 4,917 13,455 14,864
OPERATING LOSS (944) (588) (2,107) (1,860)
INTEREST EXPENSE 104 129 376 412
LOSS BEFORE INCOME TAXES (1,048) (717) (2,483) (2,272)
INCOME TAXES -- -- -- --
NET LOSS (1,048) (717) (2,483) (2,272)
PREFERRED STOCK DIVIDENDS -- -- -- 25
RETURN TO COMMON SHAREHOLDERS
FROM REDEMPTION OF
PREFERRED STOCK -- -- -- 27,198
NET INCOME (LOSS)
ATTRIBUTED TO COMMON
SHAREHOLDERS $(1,048) $(717) $(2,483) $24,901
NET INCOME (LOSS)
PER COMMON SHARE
Basic $(0.01) $(0.01) $(0.04) $0.41
Diluted $(0.01) $(0.01) $(0.04) $0.41
WEIGHTED AVERAGE
COMMON SHARES
Basic 78,044 61,468 70,243 60,127
Diluted 78,044 61,468 70,243 61,298
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2002 2001
ASSETS
CURRENT ASSETS
Cash and cash equivalents $529 $423
Accounts receivable, less allowance
for doubtful accounts of $639 and
$763, respectively 1,899 2,713
Inventories 3,721 4,740
Prepaid expenses and other current assets 301 399
Total current assets 6,450 8,275
PROPERTY, PLANT AND EQUIPMENT, net 2,674 2,962
OTHER ASSETS 355 324
$9,479 $11,561
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,248 $2,599
Accounts payable 2,191 1,153
Accrued liabilities 1,510 1,864
Obligations under capital leases -
current portion 112 121
Deferred income 421 303
Total current liabilities 6,482 6,040
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,578 2,630
Total liabilities 9,060 8,670
SHAREHOLDERS' EQUITY
Common stock 78 62
Additional paid-in capital 44,521 44,403
Accumulated deficit (44,057) (41,574)
Note receivable from shareholder (123) --
Total shareholders' equity 419 2,891
$9,479 $11,561
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 - Finance,
Sentry Technology Corporation, +1-631-232-2100
|
