SOURCE: Sentry Technology Corporation

September 18, 2013 11:54 ET

Sentry Technology Reports Second Quarter Results

RONKONKOMA, NY--(Marketwired - Sep 18, 2013) - Sentry Technology Corporation (OTC Pink: SKVY) today reported financial results for the Company's second quarter ended June 30, 2013.

Revenues for the second quarter of 2013 were $1,767,000 compared to revenues of $1,661,000 reported in the second quarter of the prior year. The loss from operations was $53,000 compared to a loss of $178,000 in the second quarter of 2012. The net loss was $129,000, or $(0.00) per share, as compared to a net loss of $362,000, or $(0.00) per share, in the second quarter of 2012.

For the first six months ended June 30, 2013, revenues were $3,122,000 compared to revenues of $3,258,000 reported in the first six months of the prior year. Sentry had a net loss of $448,000, or $(0.00) per share, compared to a net loss of $795,000, or $(0.00) per share, in the first half of 2012.

"Our new VideoRailway™, HD/IP traveling camera system has started to ship to customers," said Peter Murdoch, President and CEO of Sentry Technology Corporation. "As recently reported, CSI, our 51% owned label subsidiary, is now selling its new security label products which have a much larger addressable market compared with the company's historic offerings. We have been able to complete the development of two entirely new, major product lines while maintaining sales levels comparable with previous periods. In addition, YTD expenses have been reduced by a further 16%. We expect these changes will bring sales growth and profitability for Sentry."

Sentry Technology Corporation designs, manufactures, sells and installs Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library security and self-service systems. Our CCTV product line features VideoRailway™ and SmartTrack™, a proprietary, traveling camera technology. Our OperationalVideo™, OVportal™ software application assists retailers with on-line management of safety and security, merchandising audits and employee procedure compliance. Products are used by libraries to secure inventory and improve operating efficiency, by retailers to deter theft and enhance productivity, and by industrial/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 AND SUBSIDIARIES            
CONSOLIDATED BALANCE SHEETS            
(In Thousands, Except Par Value Amounts)            
(Unaudited)            
             
             
    June 30,     December 31,  
    2013     2012  
                 
ASSETS                
Current Assets:                
  Cash   $ 98     $ 278  
  Short-term investments     194       205  
  Accounts receivable, net of allowance for doubtful accounts of $81 in 2013 and $81 in 2012     715       724  
  Inventory, net     1,663       1,495  
  Prepaid expenses and other current assets     214       222  
Total current assets     2,884       2,924  
PROPERTY AND EQUIPMENT, net     310       346  
OTHER ASSETS     148       159  
TOTAL ASSETS   $ 3,342     $ 3,429  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current Liabilities:                
  Amount due to related parties   $ 4,065     $ 3,954  
  Bank indebtedness and revolving line of credit     1,272       1,174  
  Accounts payable     1,187       1,038  
  Accrued liabilities     803       803  
  Deferred income     186       234  
  Promissory notes payable - short-term     75       38  
Total current liabilities     7,588       7,241  
                 
Amount due to related parties - long-term     143       151  
Promissory notes payable - long-term     -       37  
Deferred tax liabilities     48       50  
Total long-term liabilities     191       238  
Total liabilities     7,779       7,479  
                 
STOCKHOLDERS' DEFICIT                
    Common stock     196       196  
    Additional paid-in capital     51,752       51,748  
    Accumulated deficit     (57,828 )     (57,380 )
    Accumulated other comprehensive loss     (39 )     (192 )
Total stockholders' deficit     (5,919 )     (5,628 )
Noncontrolling interest in subsidiary     1,482       1,578  
Total deficit     (4,437 )     (4,050 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 3,342     $ 3,429  
                 
                 
                 
SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In Thousands, Except Per Share Amounts)  
(Unaudited)  
   
   
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2013     2012     2013     2012  
                         
                                 
REVENUES:                                
  Sales   $ 1,573     $ 1,470     $ 2,758     $ 2,846  
  Service, installation and maintenance revenues     194       191       364       412  
      1,767       1,661       3,122       3,258  
COST OF SALES AND EXPENSES:                                
  Cost of sales     983       864       1,732       1,673  
  Customer service expenses     178       198       361       405  
  Selling, general and administrative expenses     627       708       1,207       1,487  
  Research and development     80       95       165       173  
  Foreign exchange gain     (48 )     (26 )     (76 )     (1 )
      1,820       1,839       3,389       3,737  
LOSS FROM OPERATIONS     (53 )     (178 )     (267 )     (479 )
INTEREST EXPENSE, net     100       145       193       289  
NON-CASH AMORTIZATION COSTS RELATED TO FINANCING    
-
     
4
     
1
     
8
 
LOSS BEFORE INCOME TAXES AND NONCONTROLLING INTEREST    
(153
)    
(327
)    
(461
)    
(776
)
INCOME TAX (RECOVERY) EXPENSE     (6 )     10       -       10  
LOSS BEFORE NONCONTROLLING INTEREST     (147 )     (337 )     (461 )     (786 )
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST    
(18
)    
25
     
(13
)    
9
 
NET LOSS     (129 )     (362 )     (448 )     (795 )
                                 
LOSS PER SHARE ON LOSS ATTRIBUTABLE TO SENTRY TECHNOLOGY CORPORATION                                
    Basic and diluted   $ (0.00 )   $ (0.00 )   $ (0.00 )   $ (0.00 )
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                
    Basic and diluted     196,405       196,405       196,405       196,405  
                                 
                                 
* Additional financial statements are available on the Company's website at http://www.sentrytechnology.com/.     

Contact Information

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