RONKONKOMA, 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, 2004.
Revenues for the third quarter were $4,577,000, compared to revenues of
$3,784,000 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 $232,000 as
compared to $67,000 for the same period in 2003. The net profit in the third
quarter of 2004 was $40,000, or $0.00 per share, compared to $254,000, or 0.00
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, 2004, revenues were
$11,764,000, compared to $9,684,000 reported in the previous year. Net loss
was $141,000, or $(0.00) per diluted share, compared to a net profit of
$290,000, or $0.00 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.
"Our business is steadily improving and we are pleased to report our
second consecutive quarterly net profit," said Peter L. Murdoch, President and
CEO Sentry Technology Corporation. "While the profit is modest, it is a
significant improvement over previous periods. The Company is growing its key
SentryVison(R) SmartTrack product line as well as security labeling and EAS
business via the acquisition of ID Systems. In the US, the Sentry customer
base is growing, our business in Europe is strong and recently the Company has
added new dealers in Japan, Korea, Lebanon and Mexico. We are confident about
our future and look forward to continued growth in both sales and profits."
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)
September 30, December 31,
2004 2003
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,446 $210
Accounts receivable, less allowance for doubtful
accounts of $413 and $304, respectively 3,469 1,482
Inventories 3,384 1,855
Prepaid expenses and other current assets 410 126
Total current assets 8,709 3,673
PROPERTY, PLANT AND EQUIPMENT, net 658 209
GOODWILL 1,697 ---
OTHER ASSETS 558 211
$11,622 $4,093
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $2,904 $1,515
Accounts payable and accrued liabilities 2,064 2,167
Other current liabilities 155 276
Total current liabilities 5,123 3,958
NOTES PAYABLE & OTHER LONG-TERM LIABILITIES 227 260
CONVERTIBLE DEBENTURES 1,852 ---
MINORITY INTEREST 951 ---
Total liabilities 8,153 4,218
SHAREHOLDERS' EQUITY (DEFICIT) 3,469 (125)
$11,622 $4,093
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
REVENUES $4,577 $3,784 $11,764 $9,684
COSTS AND EXPENSES:
Cost of sales 1,915 1,490 4,538 3,979
Customer service
expenses 1,100 1,094 3,220 2,912
Selling, general and
administrative
expenses 1,064 976 3,115 2,726
Research and development 266 157 606 492
4,345 3,717 11,479 10,109
OPERATING INCOME (LOSS) 232 67 285 (425)
INTEREST AND FINANCING
EXPENSES 105 171 309 513
INCOME (LOSS) BEFORE
INCOME TAXES 127 (104) (24) (938)
INCOME TAX EXPENSE
(BENEFIT) 62 (143) 77 (491)
INCOME (LOSS) BEFORE
MINORITY INTEREST
AND EXTRAORDINARY ITEM 65 39 (101) (447)
MINORITY INTEREST (25) --- (40) ---
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 40 39 (141) (447)
EXTRAORDINARY ITEM -
Gain on extinguishment
of debt, net of $143 and
$491 income taxes --- 215 --- 737
NET INCOME (LOSS) $40 $254 $(141) $290
NET INCOME (LOSS) PER SHARE
Income (loss) before
extraordinary item $0.00 $0.00 $(0.00) $(0.01)
Extraordinary item 0.00 0.00 0.00 0.01
Basic and diluted $0.00 $0.00 $(0.00) $0.00
WEIGHTED AVERAGE SHARES
Basic and diluted 115,753 85,656 102,457 83,619
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 - CFO, Sentry
Technology Corporation, +1-631-739-2000
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