News Release
FOR
IMMEDIATE RELEASE CONTACT: Peter L. Murdoch
President
& CEO
(631)
739-2000
SENTRY TECHNOLOGY SUSPENDS SEC REPORTING
RONKONKOMA, New York, June 5, 2009, -- Sentry
Technology Corporation (OTC Bulletin Board: SKVYE) today announced that it will
file Form 15 with the Securities and Exchange Commission to voluntarily suspend
its reporting obligations. The stock will continue to trade on the Pink Sheets.
The Company has taken this action as part of its continuing efforts to reduce
expenses and anticipates annual savings of more than $150,000. Press releases
will be issued announcing quarterly financial results and other noteworthy
activities.
Revenues for the first quarter of 2009 were
$2,513,000 compared to revenues of $2,042,000 reported in the first quarter of
the prior year. The net loss was $486,000 in the first quarter of 2009 as
compared to a net loss of $887,000 in the first quarter of 2008. In addition to increasing sales by 23% the Company
increased gross margins by 5% and decreased expenses by $278,000 on a
comparative basis, excluding foreign exchange adjustments. Additional expense
cuts have been implemented beginning April 1, 2009 including a 5% across the
board pay cut for all Sentry employees.
Management has been successful in
restructuring the terms of its $2,000,000 debenture. The debenture holder has
agreed to a 12-month interest holiday and upon the Company raising $1,000,000
in additional working capital, the debenture converts to a term loan amortized
over 10 years with a balloon payment of the remaining amount owing at the end
of the 5th year. The term
loan will not have the right to convert into Company stock.
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)
March 31, December 31,
2009 2008
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 340 $ 643
Short-term investments 159 264
Accounts receivable, net of allowance for doubtful
accounts of $178 in 2009 and $179 in 2008 1,319 971
Inventory, net 2,596 2,739
Prepaid expenses and other current assets 555 682
Total current assets 4,969 5,299
PROPERTY AND EQUIPMENT, net 409 439
OTHER ASSETS 224 232
TOTAL ASSETS $ 5,602 $ 5,970
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Bank indebtedness, demand loan and revolving line of credit $ 3,407 $ 3,418
Accounts payable 849 830
Accrued liabilities 1,257 1,211
Obligations under capital leases - current portion 2 2
Deferred income 213 175
Convertible debenture 2,000 2,000
Total current liabilities 7,728 7,636
Long-term debt – less current portion:
Obligations under capital leases 3 4
Deferred tax liabilities 87 90
Total long-term liabilities 90 94
Total liabilities 7,818 7,730
MINORITY INTEREST 1,324 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 50,200 50,196
Accumulated deficit (54,014) (53,528)
Accumulated other comprehensive income 153 140
Total stockholders’ deficit (3,540) (3,071)
TOTAL
LIABILITIES AND STOCKHOLDERS’
DEFICIT $ 5,602 $ 5,970