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, 2006.
Revenues for the third quarter were $2,743,000, compared to revenues of
$3,861,000 reported in the third quarter of the prior year. There was a
decrease in revenues across all product lines during the quarter.
Principally as a result of lower revenue levels, Sentry had a net loss in
the third quarter of 2006 was $683,000, or $(0.01) per share, compared to a
net loss of $296,000, or (0.00) per share, in the third quarter of last
year.
For the first nine months ended September 30, 2006, revenues were
$8,383,000, compared to $10,621,000 reported in the previous year. The
decrease in revenues is principally attributable to a reduction in Lowe's
revenues by approximately $1 million on a comparable basis. Sentry had a
net loss of $2,011,000, or $(0.02) per diluted share, in the first nine
months of 2006 compared to a net loss of $1,086,000, or $(0.01) per diluted
share, in the first nine months of 2005.
"Despite the third quarter loss, we are pleased to see our backlog
increase to $2.8 million as of September 30, 2006, a 75% increase over the
third quarter of 2005," said Peter L. Murdoch, President and CEO of Sentry
Technology Corporation. "With current orders holding the trend and planned
fix cost reductions, we expect to return to profitability in 2007."
Sentry Technology Corporation designs, manufactures, sells and installs
a complete line of Closed Circuit Television (CCTV) solutions,
Electro-Magnetic (EM) and RFID based Library Management systems as well as
Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The CCTV
product line features SentryVision(R), SmartTrack, a proprietary, patented
traveling Surveillance System. 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. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2006 2005
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $397 $842
Accounts receivable, less allowance
for doubtful accounts of $135 and
$141, respectively 2,122 2,762
Inventories 3,277 2,709
Prepaid expenses and other current assets 472 318
Total current assets 6,268 6,631
PROPERTY, PLANT AND EQUIPMENT, net 623 637
GOODWILL 1,564 1,564
OTHER ASSETS 410 563
$8,865 $9,395
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit $2,416 $2,039
Accounts payable 703 489
Accrued liabilities 1516 925
Obligations under capital leases -
current portion 5 6
Deferred income 105 99
Total current liabilities 4,745 3,558
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 9 1
DEFERRED TAX LIABILITY 60 58
CONVERTIBLE DEBENTURES 1,935 1,904
MINORITY INTEREST 1,247 1,140
OTHER LIABILITIES 63 36
Total liabilities 8,059 6,697
SHAREHOLDERS' EQUITY 806 2,698
$8,865 $9,395
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
(Unaudited) (Unaudited)
REVENUES
Sales $2,252 $3,343 $7,063 $8,718
Service, installation
and other 491 518 1,320 1,903
2,743 3,861 8,383 10,621
COSTS AND EXPENSES:
Cost of sales 1,217 1,793 3,775 4,688
Customer service expenses 520 587 1,601 2,038
Selling, general and
administrative expenses 1,287 1,479 3,964 4,017
Research and development 210 191 614 638
3,234 4,050 9,954 11,381
OPERATING LOSS (491) (189) (1,571) (760)
INTEREST AND FINANCING EXPENSES 141 80 309 249
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (632) (269) (1,880) (1,009)
INCOME TAX EXPENSE 30 9 70 29
LOSS BEFORE MINORITY INTEREST (662) (278) (1,950) (1,038)
MINORITY INTEREST (21) (18) (61) (48)
NET LOSS $(683) $(296) $(2,011) $(1,086)
NET LOSS PER SHARE
Basic and diluted $(0.01) $(0.00) $(0.02) $(0.01)
WEIGHTED AVERAGE SHARES
Basic and diluted 120,744 120,629 120,707 120,582
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
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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