News Release
FOR
IMMEDIATE RELEASE CONTACT: Peter L. Murdoch
President
& CEO
(631)
739-2000
SENTRY TECHNOLOGY REPORTS SECOND QUARTER
RESULTS
RONKONKOMA, New York, August 18, 2009, --
Sentry Technology Corporation (Pink Sheets: SKVY.PK) today reported financial
results for the Company’s second quarter ended June 30, 2009.
Revenues for the second quarter of 2009 were
$1,870,000 compared to revenues of $4,029,000 reported in the second quarter of
the prior year. The net loss was
$643,000 in the second quarter of 2009 as compared to a net income of $8,000 in
the second quarter of 2008.
For the first six months ended June 30, 2009,
revenues were $4,383,000 compared to revenues of $6,071,000 reported in the first
six months of the prior year. Sentry
had a net loss of $1,129,000 in the first half of 2009, compared to a net loss
of $879,000 in the first half of 2008.
“Revenue was down in the
second quarter in part due to delayed shipments from a key supplier,” said
Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “This is reflected in an increase in our
order backlog from $2.6 million at December 31, 2008 to $3.4 million as of June
30, 2009. ”
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.
SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value Amounts)
June 30, December 31,
2009 2008
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 226 $ 643
Short-term investments 172 264
Accounts receivable, net of allowance for doubtful
accounts of $172 in 2009 and $179 in 2008 780 971
Inventory, net 2,409 2,739
Prepaid expenses and other current assets 443 682
Total current assets 4,030 5,299
PROPERTY AND EQUIPMENT, net 426 439
OTHER ASSETS 231 232
TOTAL ASSETS $ 4,687 $ 5,970
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Bank indebtedness, demand loan and revolving line of credit $ 3,544 $ 3,418
Accounts payable 618 830
Accrued liabilities 1,061 1,211
Obligations under capital leases - current portion 2 2
Deferred income 279 175
Convertible debenture 2,000 2,000
Total current liabilities 7,504 7,636
Long-term debt – less current portion:
Obligations under capital leases 3 4
Deferred tax liabilities 95 90
Total long-term liabilities 98 94
Total liabilities 7,602 7,730
MINORITY INTEREST 1,307 1,311
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value; authorized 10,000
(2008 – 10,000) shares; none issued and outstanding
Common stock, $0.001 par value; authorized 190,000
(2008 – 190,000) shares; issued and outstanding 120,744
(2008 - 120,744) shares 121 121
Additional paid-in capital 50,205 50,196
Accumulated deficit (54,657) (53,528)
Accumulated other comprehensive income 109 140
Total stockholders’ deficit (4,222) (3,071)
TOTAL
LIABILITIES AND STOCKHOLDERS’
DEFICIT $ 4,687 $ 5,970