SOURCE: Sentry Technology Corporation

Sentry Technology Corporation

March 31, 2010 16:38 ET

Sentry Technology Reports Fourth Quarter Results

RONKONKOMA, NY--(Marketwire - March 31, 2010) - Sentry Technology Corporation (PINKSHEETS: SKVY) today reported financial results for the Company's fourth quarter and year ended December 31, 2009.

Revenues for the fourth quarter of 2009 were $2,676,000, compared to revenues of $3,064,000 reported in the fourth quarter of the prior year. The net loss was $311,000, or $(0.00) per share, in the fourth quarter of 2009 as compared to a net loss of $55,000, or $(0.00) per share, in the fourth quarter of 2008.

For the year ended December 31, 2009, revenues were $9,665,000 compared to $12,708,000 reported in 2008. The net loss was $1,850,000, or $(0.02) per share in 2009, compared to $1,138,000, or $(0.01) per share in 2008.

"We are pleased to report an operating profit in the fourth quarter," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "While sales were down due to recent market conditions, several new products were developed in the second half of the year that we believe will contribute to future growth."

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. Our CCTV product line features SentryVision®, SmartTrack™, a proprietary, patented traveling Surveillance System. 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. More information can be found 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,
                                                   2009          2008
                                                ------------  ------------

ASSETS
CURRENT ASSETS
  Cash and cash equivalents                     $        315  $        643
  Short-term investments                                 193           264
  Accounts receivable, less allowance for
   doubtful accounts of $190 in 2009 and
   $179 in 2008                                        1,109           971
  Inventory, net                                       2,062         2,739
  Prepaid expenses and other current assets              723           682
                                                ------------  ------------
Total current assets                                   4,402         5,299

PROPERTY AND EQUIPMENT, net                              487           439
OTHER ASSETS                                             213           232
                                                ------------  ------------

  TOTAL ASSETS                                  $      5,102  $      5,970
                                                ============  ============


LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
  Demand loan and revolving line of credit      $      3,831  $      3,418
  Accounts payable                                       902           830
  Accrued liabilities                                  1,038         1,217
  Deferred income                                        197           175
  Convertible debenture                                2,153         2,000
                                                ------------  ------------
Total current liabilities                              8,121         7,640

Deferred tax liabilities                                  76            90
                                                ------------  ------------

Total liabilities                                      8,197         7,730

STOCKHOLDERS' DEFICIT
  Common stock                                           121           121
  Additional paid-in capital                          50,742        50,196
  Accumulated deficit                                (55,378)      (53,528)
  Accumulated other comprehensive (loss) income          (86)          140
                                                ------------  ------------
Total Sentry Technology Corporation
 stockholders' deficit                                (4,601)       (3,071)
Noncontrolling interest in subsidiary                  1,506         1,311
                                                ------------  ------------
Total deficit                                         (3,095)       (1,760)

  TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $      5,102  $      5,970
                                                ============  ============




SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


                                   Three Months Ended  Twelve Months Ended
                                       December 31,        December 31,
                                     2009      2008      2009       2008
                                   --------  --------  ---------  --------

REVENUES
  Sales                            $  2,400  $  2,644  $   8,581  $ 10,859
  Service, installation &
   maintenance revenues                 276       420      1,084     1,849
                                   --------  --------  ---------  --------
                                      2,676     3,064      9,665    12,708

COST OF SALES AND EXPENSES:
  Cost of sales                       1,271     1,540      4,754     6,261
  Customer service expenses             332       488      1,463     2,115
  Selling, general and
   administrative expenses              914     1,081      3,616     4,339
  Research and development              117       127        465       562
  Foreign exchange loss (gain)           26      (600)       161      (817)
                                   --------  --------  ---------  --------

                                      2,660     2,636     10,459    12,460
                                   --------  --------  ---------  --------

(LOSS) INCOME FROM OPERATIONS            16       428       (794)      248

INTEREST EXPENSE, net                   128       130        495       545

NON-CASH AMORTIZATION COSTS RELATED
 TO FINANCING                           132       176        511       636
                                   --------  --------  ---------  --------

LOSS BEFORE INCOME TAXES AND
 NONCONTROLLING INTEREST               (244)      122     (1,800)     (933)

INCOME TAX EXPENSE                        2        79          2        94
                                   --------  --------  ---------  --------

NET LOSS                               (246)       43     (1,802)   (1,027)

LESS: NET INCOME ATTRIBUTABLE TO
 THE NONCONTROLLING INTEREST             65        98         48       111
                                   --------  --------  ---------  --------

NET LOSS ATTRIBUTABLE TO SENTRY
 TECHNOLOGY CORPORATION            $   (311) $    (55) $  (1,850) $ (1,138)
                                   ========  ========  =========  ========

LOSS PER SHARE BASED ON LOSS
 ATTRIBUTABLE TO SENTRY
 TECHNOLOGY CORPORATION
  Basic and diluted                $  (0.00) $  (0.00) $   (0.02) $  (0.01)
                                   ========  ========  =========  ========

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUSTANDING
  Basic and diluted                 120,744   120,744    120,744   120,744
                                   ========  ========  =========  ========

Contact Information

  • CONTACT:
    Peter L. Murdoch
    President & CEO
    (631) 739-2000