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News Release
FOR
IMMEDIATE RELEASE CONTACT: Peter J. Mundy
Vice
President - CFO
(631)
739-2000
SENTRY TECHNOLOGY REPORTS FOURTH QUARTER RESULTS
RONKONKOMA,
New York, April 13, 2006, -- Sentry Technology Corporation (OTC Bulletin Board:
SKVY) today reported financial results for the Company’s fourth quarter and
year ended December 31, 2005.
Revenues for the fourth
quarter of 2005 were $2,949,000, compared to revenues of $4,966,000 reported in
the fourth quarter of the prior year.
The decrease in revenues is primarily related to a reduction in Lowe’s
revenues by approximately $0.9 million as well as a reduction in sales to other
repeat customers. Net loss was
$604,000, or $(0.01) per share, in the fourth quarter of 2005 as compared to a
net income of $172,000, or $0.00 per share, in the fourth quarter of 2004.
For the year ended December 31, 2005, revenues were $13,570,000 compared to $16,863,000 reported in the previous year. The decrease in revenues is primarily related to a reduction in Lowe’s revenues by approximately $4.0 million on a comparable basis. Net loss was $1,690,000, or $(0.01) per share in 2005, compared to $31,000, or $0.00 per share in 2004.
“We had a disappointing financial results
in the fourth quarter of 2005 thatwhich
we expect will continued
into the first quarter of Q1 2006,”
said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “At the same time, since joining the company Company
in 2001, I believe that our business opportunities
and company Company
structure has
have never been better.”
Mr. Murdoch goes on to saycontinued,
“Orders in Q1 the
first quarter of 2006 exceeded Q1 the
first quarter of 2005 by approximately 233%. We expect that orders
will continue to increase on a comparative basis throughout 2006. Several new
multibillion dollar customers are installing SmartTrack™ and without exception
current customers are sales references, supporting the quality of our flagship
traveling CCTV system. Our library business is growing with many new
installations of QuickCheck™, a self-service kiosk with RFID interface.
The library sector sales are strong both domestically and internationally where
we have recently added key distributors that previously purchased significant
yearly quantities of product from competitors.”
“At the end of 2005,
we hired additional, industry experienced sales reps in the U.S.
and the sales and marketing team is now lead by Joe
Ryan, Sensormatic’s former VP Marketing, Joe
Ryan who joined Sentry at the end of January this year. We are confidence confident
that the work we have done to effectively reposition the
business following the loss of Lowe’s,
including
the acquisition of several new key accounts
and, the introduction of new applications
related to SmartTrack™, along with and the
continued support of core customers,
will result in significant future growth. In support of the Company’s plans, Robert Furst, a
Sentry director and I have agreed to guarantee a proposed $860,000 increase in borrowing
availability under our bank line of credit.”
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 SentryVisionâ, 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 www.sentrytechnology.com.
Sentry Technology Corporation designs,
manufactures, sells and installs a complete line of Closed Circuit Television
(CCTV) solutions as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS
systems. The CCTV product line features
the SentryVisionâ 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. For further information, please
visit our website at 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.
SENTRY TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 842 $ 1,965
Accounts receivable, less allowance for doubtful
accounts of $141 and $338, respectively 2,762 3,500
Inventories 2,709 3,314
Prepaid expenses and other current assets 318 525
Total current assets 6,631 9,304
PROPERTY, PLANT AND EQUIPMENT, net 637 689
GOODWILL 1,564 1,564
OTHER ASSETS 563 690
$ 9,395 $ 12,247
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $ 2,039 $ 2,640
Accounts payable 489 799
Accrued liabilities 925 1,146
Obligations under capital leases - current portion 6 5
Deferred income 135 169
Total current liabilities 3,594 4,759
NOTES PAYABLE --- 189
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 1 8
DEFERRED INCOME TAXES 58 39
CONVERTIBLE DEBENTURES 1,904 1,862
MINORITY INTEREST 1,140 1,045
Total liabilities 6,697 7,902
SHAREHOLDERS’ EQUITY
Common stock 121 121
Additional paid-in capital 48,783 48,779
Accumulated deficit (46,408) (44,718)
Equity adjustment from foreign currency translation 202 163
Total shareholders’ equity 2,698 4,345
$ 9,395 $ 12,247