News Release
FOR
IMMEDIATE RELEASE
CONTACT: Peter L. Murdoch
President
& CEO
(631)
739-2000
SENTRY TECHNOLOGY CORPORATION REPORTS FIRST QUARTER RESULTS
RONKONKOMA, New York, May
15, 2007, -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today
reported financial results for the Company’s first quarter ended March 31,
2007.
Revenues for the first
quarter were $2,668,000, compared to revenues of $2,708,000 reported in the
first quarter of the prior year. Sentry
had a net loss of $724,000, or $(0.01) per share in the first quarter of 2007,
compared to a net loss of $730,000, or $(0.01) per share, in the first quarter
of 2006.
“We have reduced selling, general and administrative expenses by
12% in the first quarter of 2007 compared to 2006 while maintaining profit
margins,” said Peter L. Murdoch, President and CEO of Sentry Technology
Corporation. “Several sales opportunities with new large customers expected to
close in the first quarter were postponed.
However we are confident that contracts will be signed in the near
future. Our business opportunities are strong and we are optimistic that Sentry
will be profitable 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 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.
# # #
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 STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
|
|
Three Months Ended March 31, |
|
|||
|
|
|
2007 |
|
2006 |
|
|
REVENUES: |
|
|
|
|
|
|
Sales |
|
$ 2,329 |
|
$ 2,285 |
|
|
Service,
installation and other revenues |
|
339 |
|
423 |
|
|
|
|
2,668 |
|
2,708 |
|
|
COST OF SALES AND EXPENSES: |
|
|
|
|
|
|
Cost of
sales |
|
1,270 |
|
1,256 |
|
|
Customer service expenses |
|
455 |
|
523 |
|
|
Selling,
general and administrative expenses |
|
1,197 |
|
1,353 |
|
|
Research and development |
|
206 |
|
200 |
|
|
|
|
3,128 |
|
3,332 |
|
|
OPERATING LOSS |
|
(460) |
|
(624) |
|
|
INTEREST AND FINANCING EXPENSE, net |
|
213 |
|
82 |
|
|
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST |
|
(673) |
|
(706) |
|
|
INCOME TAX EXPENSE |
|
27 |
|
10 |
|
|
LOSS BEFORE MINORITY INTEREST |
|
(700) |
|
(716) |
|
|
MINORITY INTEREST |
|
24 |
|
14 |
|
|
NET LOSS |
|
$
(724) |
|
$ (730) |
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
Basic and diluted |
|
$ (0.01) |
|
$ (0.01) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
Basic and diluted |
|
120,744 |
|
120,648 |
|
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 276 $ 360
Short-term investments 262 259
Accounts receivable, less allowance for doubtful
accounts of $171
and $160, respectively 1,714 2,251
Inventory 3,322 3,005
Prepaid expenses and other assets 339 306
Total current assets 5,913 6,181
PROPERTY, PLANT AND
EQUIPMENT, net 598 609
GOODWILL 1,564 1,564
OTHER ASSETS 374 480
TOTAL ASSETS $ 8,449 $ 8,834
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Bank indebtedness, demand loan and revolving line of credit $ 2,983 $ 3,030
Accounts payable 864 609
Accrued liabilities 1,148 1,078
Obligations under capital leases - current portion 2 3
Deferred income 182 185
Total current liabilities 5,179 4,905
OBLIGATIONS UNDER CAPITAL
LEASES -
less current portion 8 8
DEFERRED TAX LIABILITY 91 91
CONVERTIBLE DEBENTURE 1,955 1,945
Total liabilities 7,233 6,949
MINORITY INTEREST 1,274 1,237
STOCKHOLDERS’ (DEFICIT)
EQUITY (58) 648
TOTAL LIABILITIES AND STOCKHOLDERS’
(DEFICIT) EQUITY $ 8,449 $ 8,834