News Release
FOR
IMMEDIATE RELEASE CONTACT: Peter L. Murdoch
President
& CEO
(631)
739-2000
SENTRY TECHNOLOGY REPORTS FOURTH QUARTER RESULTS
RONKONKOMA, New York, April 15, 2008, -- Sentry Technology Corporation
(OTC Bulletin Board: SKVY) today reported financial results for the Company’s
fourth quarter and year ended December 31, 2007.
Revenues for the fourth quarter of 2007 were $4,341,000, compared to
revenues of $3,752,000 reported in the fourth quarter of the prior year. The
net loss was $1,888,000, or $(0.02) per share, in the fourth quarter of 2007 as
compared to a net loss of $293,000, or $(0.00) per share, in the fourth quarter
of 2006. The fourth quarter loss
included a non-cash $1,564,000 write-off of goodwill.
For the year ended December 31, 2007, revenues were $13,498,000 compared to $12,135,000 reported in 2006. The increase is primarily related to the successful introduction of OperationalVideo™, a new solution to manage business operations as well as safety and security using the SentryVision® SmartTrack™ traveling camera system. The net loss was $3,678,000, or $(0.03) per share in 2007, compared to $2,304,000, or $(0.02) per share in 2006. In addition to the $1,564,000 goodwill write-off, the 2007 results include a $607,000 foreign exchange loss related to the decline in the U.S. dollar relative to the Company’s Canadian bank line and accounts receivable.
“Sales in 2007 increased 11% while our operating loss, excluding foreign exchange, was reduced by 58%,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “We also reduced fixed expenses and successfully introduced OperationalVideo™ in two key national accounts. OperationalVideo dramatically increases the addressable market for SmartTrack, our core video product. We believe the Company will continue to grow both the library and video business segments in 2008.”
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.
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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,
2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 256 $ 360
Short-term investments 202 259
Accounts receivable, less allowance for doubtful
accounts of $209 and $160, respectively 3,014 2,251
Inventory 3,299 3,005
Prepaid expenses and other current assets 858 306
Total current assets 7,629 6,181
PROPERTY AND EQUIPMENT, net 634 609
GOODWILL --- 1,564
OTHER ASSETS 269 480
$ 8,532 $ 8,834
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
CURRENT LIABILITIES
Bank indebtedness, demand loan and revolving line of credit $ 4,551 $ 3,030
Accounts payable 1,223 609
Accrued liabilities 1,539 1,078
Obligations under capital leases - current portion 2 3
Deferred income 145 185
Total current liabilities 7,460 4,905
OBLIGATIONS UNDER CAPITAL LEASES -
less current portion 7 8
DEFERRED TAX LIABILITY 117 91
CONVERTIBLE DEBENTURE 1,986 1,945
Total liabilities 9,570 6,949
MINORITY INTEREST 1,200 1,237
STOCKHOLDERS’ (DEFICIT) EQUITY
Common stock 121 121
Additional paid-in capital 49,420 49,037
Accumulated deficit (52,390) (48,712)
Accumulated other comprehensive income 611 202
Total stockholders’ (deficit) equity (2,238) 648
$ 8,532 $ 8,834