SOURCE: Sentry Technology Corporation

Sentry Technology Corporation

May 18, 2010 13:48 ET

Sentry Technology Reports First Quarter Results

RONKONKOMA, NY--(Marketwire - May 18, 2010) - Sentry Technology Corporation (PINKSHEETS: SKVY) today reported financial results for the Company's first quarter ended March 31, 2010.

Revenues for the first quarter of 2010 were $2,226,000 compared to revenues of $2,513,000 reported in the first quarter of the prior year. The operating loss net of foreign exchange was $144,000, or $(0.00) per share, in the first quarter of 2010 as compared to a net operating loss of $232,000 or $(0.00) per share, in the first quarter of 2009.

"We have been successful in implementing expense reductions while continuing to develop new products," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "During the first quarter we designed an unlocking device for DVDs as an add-on feature to our QuickCheck™ library self-service system. The first units were installed in one of America's largest municipal libraries. Our SmartTrack™ traveling camera systems are beginning to be shipped under an OEM agreement with one of the world's largest video systems integrators. Orders are anticipated to increase in the coming quarters as technical and sales training is completed at the customer's many European offices. Recently, two shareholders loaned the company a total of $450,000 dollars and management negotiated to postpone all non-supplier debt until June 30, 2011."

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)
                                                 March 31,    December 31,
                                                    2010          2009
                                               -------------  ------------

ASSETS
CURRENT ASSETS
  Cash and cash equivalents                    $          92  $        315
  Short-term investments                                 200           193
  Accounts receivable, less allowance for
   doubtful accounts of $161 in 2010 and $178
   in 2009                                             1,204         1,109
  Inventory, net                                       2,111         2,062
  Prepaid expenses and other current assets              585           723
                                               -------------  ------------
Total current assets                                   4,192         4,402
PROPERTY AND EQUIPMENT, net                              498           487
OTHER ASSETS                                             207           213
                                               -------------  ------------
  TOTAL ASSETS                                 $       4,897  $      5,102
                                               =============  ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
  Demand loan and revolving line of credit     $       3,974  $      3,831
  Accounts payable                                     1,177           902
  Accrued liabilities                                    887         1,038
  Deferred income                                        149           197
  Convertible debenture                                2,197         2,153
                                               -------------  ------------
Total current liabilities                              8,384         8,121

Deferred tax liabilities                                  79            76
                                               -------------  ------------

Total liabilities                                      8,463         8,197

STOCKHOLDERS' DEFICIT
  Common stock                                           121           121
  Additional paid-in capital                          50,747        50,742
  Accumulated deficit                                (55,838)      (55,378)
  Accumulated other comprehensive loss                  (152)          (86)
                                               -------------  ------------
Total Sentry Technology Corporation
 stockholders' deficit                                (5,122)       (4,601)
Noncontrolling interest in subsidiary                  1,556         1,506
                                               -------------  ------------
Total deficit                                         (3,566)       (3,095)
                                               -------------  ------------
  TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $       4,897  $      5,102
                                               =============  ============


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

                                                      Three Months Ended
                                                           March 31,
                                                   -----------------------
                                                       2010        2009
                                                   -----------  ----------
                                                          (Unaudited)

REVENUES:
  Sales                                            $     1,970  $    2,184
  Service, installation and maintenance revenues           256         329
                                                   -----------  ----------
                                                         2,226       2,513
COST OF SALES AND EXPENSES:
  Cost of sales                                          1,101       1,206
  Customer service expenses                                258         426
  Selling, general and administrative expenses             868         993
  Research and development                                 143         120
  Foreign exchange (loss) gain                              50         (19)
                                                   -----------  ----------
                                                         2,420       2,726
                                                   -----------  ----------
LOSS FROM OPERATIONS                                      (194)       (213)
INTEREST EXPENSE, net                                      126         120
NON-CASH AMORTIZATION COSTS RELATED TO FINANCING           132         125
                                                   -----------  ----------
LOSS BEFORE INCOME TAXES AND NONCONTROLLING
 INTEREST                                                 (452)       (458)
INCOME TAX EXPENSE                                           4          15
                                                   -----------  ----------
NET LOSS                                                  (456)       (473)
LESS: NET INCOME ATTRIBUTABLE TO THE NONCONTROLLING
 INTEREST                                                    4          13
                                                   -----------  ----------
NET LOSS ATTRIBUTABLE TO SENTRY TECHNOLOGY
 CORPORATION                                       $      (460) $     (486)
                                                   ===========  ==========

LOSS PER SHARE
  Basic and diluted                                $     (0.00) $    (0.00)
                                                   ===========  ==========

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

Contact Information

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