News Release
FOR
IMMEDIATE RELEASE CONTACT: Peter L. Murdoch
President
& CEO
(631)
739-2000
SENTRY TECHNOLOGY REPORTS FOURTH QUARTER RESULTS
RONKONKOMA, New York, March 19, 2009, --
Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported
financial results for the Company’s fourth quarter and year ended December 31,
2008.
Revenues for the fourth quarter of 2008 were
$3,064,000, compared to revenues of $4,341,000 reported in the fourth quarter
of the prior year. The net loss was $55,000, or $(0.00) per share, in the
fourth quarter of 2008 as compared to a net loss of $1,888,000, or $(0.02) per
share, in the fourth quarter of 2007 which included a non-cash goodwill
write-off of $1,564,000.
For the year ended December 31, 2008, revenues were $12,708,000 compared to $13,498,000 reported in 2007. The net loss was $1,138,000, or $(0.01) per share in 2008, compared to $3,678,000, or $(0.03) per share in 2007.
“We were able to produce a small operating profit in 2008 in part as a result of a foreign exchange gain,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “However the future is uncertain due to the economic outlook for our core customers in the retail sector.”
Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Video Surveillance System (VSS) solutions, Electro-Magnetic (EM) and RFID based Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The VSS 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
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2008 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 643 $ 256
Short-term investments 264 202
Accounts receivable, less allowance for doubtful
accounts of $179 in 2008 and $209 in 2007 971 3,014
Inventory, net 2,739 3,299
Prepaid expenses and other current assets 682 858
Total current assets 5,299 7,629
PROPERTY AND EQUIPMENT, net 439 634
OTHER ASSETS 232 269
$ 5,970 $ 8,532
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Bank indebtedness, demand loan and revolving line of credit $ 3,418 $ 4,551
Accounts payable 830 1,223
Accrued liabilities 1,211 1,539
Obligations under capital leases - current portion 2 2
Deferred income 175 145
Convertible debenture 2,000 1,986
Total current liabilities 7,636 9,446
Long-term debt – less current portion:
Obligations under capital leases 4 7
Deferred tax liabilities 90 117
Total long-term liabilities 94 124
Total liabilities 7,730 9,570
MINORITY INTEREST 1,311 1,200
STOCKHOLDERS’ DEFICIT
Common stock 121 121
Additional paid-in capital 50,196 49,420
Accumulated deficit (53,528) (52,390)
Accumulated other comprehensive income 140 611
Total stockholders’ deficit (3,071) (2,238)
$ 5,970 $ 8,532