SOURCE: Sentry Technology Corporation

November 13, 2013 15:08 ET

Sentry Technology Reports Third Quarter Results

RONKONKOMA, NY--(Marketwired - Nov 13, 2013) -  Sentry Technology Corporation (OTC Pink: SKVY) today reported financial results for the Company's third quarter ended September 30, 2013. 

Revenues for the third quarter of 2013 were $1,806,000 compared to revenues of $1,925,000 reported in the third quarter of the prior year. The loss from operations was $11,000 compared to a gain of $72,000 in the third quarter of 2012. The net loss was $108,000, or $(0.00) per share, as compared to a net loss of $76,000, or $(0.00) per share, in the third quarter of 2012. 

Excluding foreign exchange charges related to intercompany loans, the Company reported an operating profit of $26,000 in the third quarter this year compared to an operating profit of $128,000 in 2012.

For the first nine months ended September 30, 2013, revenues were $4,928,000 compared to revenues of $5,183,000 reported in the first nine months of the prior year. Sentry had a net loss of $556,000, or $(0.00) per share, compared to a net loss of $871,000, or $(0.00) per share, in the first nine months of 2012. 

"VideoRailway™, our new HD/IP traveling camera system has now been installed in leading retailers in the U.S., Canada and South Africa," said Peter Murdoch, President and CEO of Sentry Technology Corporation. "The sales cycles for new video products to large customers are relatively lengthy. However following initial successful installations, customers' repeat orders of tried and true technology, I am pleased to report that there is a strong interest in VideoRailway from our customers and new prospects. We expect substantial sales growth in 2014 both from VideoRailway and the recent establishment of very large reference accounts for new security labels manufactured by our subsidiary Customer Security Industries."

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)  
             
    September 30,     December 31,  
    2013     2012  
ASSETS            
Current Assets:            
  Cash   $ 90     $ 278  
  Short-term investments     258       205  
  Accounts receivable, net of allowance for doubtful accounts of $81 in 2013 and $81 in 2012     758       724  
  Inventory, net     1,527       1,495  
  Prepaid expenses and other current assets     216       222  
Total current assets     2,849       2,924  
PROPERTY AND EQUIPMENT, net     303       346  
OTHER ASSETS     150       159  
TOTAL ASSETS   $ 3,302     $ 3,429  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current Liabilities:                
  Amount due to related parties   $ 4,347     $ 3,954  
  Bank indebtedness and revolving line of credit     1,276       1,174  
  Accounts payable     1,192       1,038  
  Accrued liabilities     737       803  
  Deferred income     206       234  
  Promissory notes payable - short-term     75       38  
Total current liabilities     7,833       7,241  
                 
Amount due to related parties - long-term     -       151  
Promissory notes payable - long-term     -       37  
Deferred tax liabilities     49       50  
Total long-term liabilities     49       238  
                 
Total liabilities     7,882       7,479  
                 
STOCKHOLDERS' DEFICIT                
  Sentry Technology Corporation stockholders' deficit:                
    Preferred stock, $0.001 par value; authorized 10,000 (2012 - 10,000) shares; none issued and outstanding                
    Common stock, $0.001 par value; authorized 300,000 (2012 - 300,000) shares; issued and outstanding 196,405 (2012 - 196,405) shares     196       196  
    Additional paid-in capital     51,753       51,748  
    Accumulated deficit     (57,936 )     (57,380 )
    Accumulated other comprehensive loss     (102 )     (192 )
Total stockholders' deficit     (6,089 )     (5,628 )
Noncontrolling interest in subsidiary     1,509       1,578  
Total deficit     (4,580 )     (4,050 )
      TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 3,302     $ 3,429  
                       
                       
   
SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In Thousands, Except Per Share Amounts)  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2013     2012     2013     2012  
REVENUES:                        
  Sales   $ 1,579     $ 1,718     $ 4,337     $ 4,564  
  Service, installation and maintenance revenues     227       207       591       619  
      1,806       1,925       4,928       5,183  
COST OF SALES AND EXPENSES:                                
  Cost of sales     924       900       2,656       2,573  
  Customer service expenses     161       168       522       573  
  Selling, general and administrative expenses     603       656       1,810       2,143  
  Research and development     92       73       257       246  
  Foreign exchange loss (gain)     37       56       (39 )     55  
      1,817       1,853       5,206       5,590  
(LOSS) GAIN FROM OPERATIONS     (11 )     72       (278 )     (407 )
INTEREST EXPENSE, net     101       153       294       442  
NON-CASH AMORTIZATION COSTS RELATED TO FINANCING     1       1       2       9  
LOSS BEFORE INCOME TAXES AND NONCONTROLLING INTEREST     (113 )     (82 )     (574 )     (858 )
INCOME TAX (RECOVERY) EXPENSE     -       (3 )     -       7  
LOSS BEFORE NONCONTROLLING INTEREST     (113 )     (79 )     (574 )     (865 )
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST     (5 )     (3 )     (18 )     6  
NET LOSS     (108 )     (76 )     (556 )     (871 )
                                 
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 www.sentrytechnology.com

Contact Information

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