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, 2008, -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported financial results for the Company’s first quarter ended March 31, 2008.
Revenues for the first quarter were $2,042,000, compared to revenues of $2,668,000 reported in the first quarter of the prior year. Sentry had a net loss of $887,000, or $(0.01) per share in the first quarter of 2008, compared to a net loss of $724,000, or $(0.01) per share, in the first quarter of 2007.
“Sales revenue was short of expectation
primarily as a result of several large orders that were received too late in
the quarter to be installed and recognized in Q1 revenue,” said Peter L. Murdoch,
President and CEO of Sentry Technology Corporation. “This
resulted in an increase in our order backlog to a total of $5.6 million as of
March 31, 2008 compared with $1.7 million at the end of March ’07. Several strategic sales were closed in the
first quarter including a large SmartTrack™ sale to the Mexico City Metro as
well as orders for OperationalVideo™ from one of our most important customers
in the courier business.”
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 including QuickCheck™ patron self-service kiosks. 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 manage operations, deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. Recently the Company launched OVportal™, a video information portal over the internet offering retailers an OperationalVideo™ solution to manage security, merchandising, sign placement and procedure compliance. OVportal™ uses the SmartTrack™ traveling CCTV system and the Company’s real-time video server to provide remote viewing and control of retail operations. OperationalVideo™ is the next major trend in online video and OVportal™ is a leading, cost effective, market proven solution. 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 AND
COMPREHENSIVE LOSS (Unaudited)
(In thousands, except per share data)
|
|
Three Months Ended March 31, |
|
|||
|
|
|
2008 |
|
2007 |
|
|
REVENUES: |
|
|
|
|
|
|
Sales |
|
$ 1,712 |
|
$ 2,329 |
|
|
Service,
installation and other revenues |
|
330 |
|
339 |
|
|
|
|
2,042 |
|
2,668 |
|
|
COST OF SALES AND EXPENSES: |
|
|
|
|
|
|
Cost of
sales |
|
1,019 |
|
1,270 |
|
|
Customer service expenses |
|
550 |
|
455 |
|
|
Selling,
general and administrative expenses |
|
979 |
|
1,197 |
|
|
Research and development |
|
147 |
|
206 |
|
|
|
|
2,695 |
|
3,128 |
|
|
OPERATING LOSS |
|
(653) |
|
(460) |
|
|
INTEREST AND FINANCING EXPENSE, net |
|
237 |
|
213 |
|
|
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST |
|
(890) |
|
(673) |
|
|
INCOME TAX EXPENSE |
|
--- |
|
27 |
|
|
LOSS BEFORE MINORITY INTEREST |
|
(890) |
|
(700) |
|
|
MINORITY INTEREST |
|
(3) |
|
24 |
|
|
NET LOSS |
|
$
(887) |
|
$ (724) |
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
Basic and diluted |
|
$ (0.01) |
|
$ (0.01) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
Basic and diluted |
|
120,744 |
|
120,744 |
|
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31,
December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,221 $ 256
Short-term investments 101 202
Accounts receivable, less allowance for doubtful
accounts of $214
and $209, respectively 1,358 3,014
Inventory 3,328 3,299
Prepaid expenses and other assets 595 858
Total current assets 6,603 7,629
PROPERTY AND EQUIPMENT, net 582 634
OTHER ASSETS 268 269
TOTAL ASSETS $ 7,453 $ 8,532
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Bank indebtedness, demand loan and revolving line of credit $ 4,504 $ 4,551
Accounts payable 1,220 1,223
Accrued liabilities 1,479 1,539
Obligations under capital leases - current portion 2 2
Deferred income 140 145
Total current liabilities 7,345 7,460
OBLIGATIONS UNDER CAPITAL
LEASES -
less current portion 6 7
DEFERRED TAX LIABILITY 113 117
CONVERTIBLE DEBENTURE 1,997 1,986
Total liabilities 9,461 9,570
MINORITY INTEREST 1,197 1,200
STOCKHOLDERS’ (DEFICIT)
EQUITY (3,205) (2,238)
TOTAL LIABILITIES AND STOCKHOLDERS’
(DEFICIT) EQUITY $ 7,453 $ 8,532