RONKONKOMA, N.Y., Aug. 18 /PRNewswire-FirstCall/ -- Sentry Technology Corporation (Pink Sheets: SKVY) today reported financial results for the Company's second quarter ended June 30, 2009.
Revenues for the second quarter of 2009 were $1,870,000 compared to revenues of $4,029,000 reported in the second quarter of the prior year. The net loss was $643,000 in the second quarter of 2009 as compared to a net income of $8,000 in the second quarter of 2008.
For the first six months ended June 30, 2009, revenues were $4,383,000 compared to revenues of $6,071,000 reported in the first six months of the prior year. Sentry had a net loss of $1,129,000 in the first half of 2009, compared to a net loss of $879,000 in the first half of 2008.
"Revenue was down in the second quarter in part due to delayed shipments from a key supplier," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "This is reflected in an increase in our order backlog from $2.6 million at December 31, 2008 to $3.4 million as of June 30, 2009. "
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 SentryVision, 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 http://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) June 30, December 31, 2009 2008 ---- ---- (Unaudited) (Audited) ASSETS ------ Current Assets: Cash and cash equivalents $ 226 $ 643 Short-term investments 172 264 Accounts receivable, net of allowance for doubtful accounts of $172 in 2009 and $179 in 2008 780 971 Inventory, net 2,409 2,739 Prepaid expenses and other current assets 443 682 --- --- Total current assets 4,030 5,299 PROPERTY AND EQUIPMENT, net 426 439 OTHER ASSETS 231 232 ------ ------ TOTAL ASSETS $4,687 5,970 ====== ====== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- Current Liabilities: Bank indebtedness, demand loan and revolving line of credit $3,544 $3,418 Accounts payable 618 830 Accrued liabilities 1,061 1,211 Obligations under capital leases - current portion 2 2 Deferred income 279 175 Convertible debenture 2,000 2,000 ------ ------ Total current liabilities 7,504 7,636 Long-term debt - less current portion: Obligations under capital leases 3 4 Deferred tax liabilities 95 90 ------ ------ Total long-term liabilities 98 94 ------ ------ Total liabilities 7,602 7,730 MINORITY INTEREST 1,307 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 50,205 50,196 Accumulated deficit (54,657) (53,528) Accumulated other comprehensive income 109 140 ------ ------ Total stockholders' deficit (4,222) (3,071) ------ ------ TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $4,687 $5,970 ====== ====== SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) Three Months Ended Six Months Ended June 30, June 30, --------------- -------------- 2009 2008 2009 2008 (Unaudited) (Unaudited) REVENUES Sales $1,635 $3,402 $ 3,819 $5,114 Service, installation and maintenance revenues 235 627 564 957 ------- ------- ------- ------- 1,870 4,029 4,383 6,071 COST OF SALES AND EXPENSES: Cost of sales 916 1,884 2,122 2,903 Customer service expenses 361 555 787 1,105 Selling, general and administrative expenses 838 1,030 1,831 2,150 Research and development 121 146 241 293 Foreign exchange loss (gain) 65 65 46 (76) ------- ------- ------- ------- 2,301 3,680 5,027 6,375 ------- ------- ------- ------- (LOSS) INCOME FROM OPERATIONS (431) 349 (644) (304) INTEREST, net 127 169 247 277 NON-CASH AMORTIZATION COSTS RELATED TO FINANCING 117 158 242 287 ------- ------- ------- ------- (LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (675) 22 (1,133) (868) INCOME TAX (RECOVERY) EXPENSE (15) 6 --- 6 ------- ------- ------- ------- (LOSS) INCOME BEFORE MINORITY INTEREST (660) 16 (1,133) (874) MINORITY INTEREST (INCOME) EXPENSE (17) 8 (4) 5 ------- ------- ------- ------- NET (LOSS) INCOME $ (643) $ 8 $(1,129) $ (879) ======= ======= ======= ======= (LOSS) EARNINGS PER SHARE Basic and diluted $(0.01) $ 0.00 $ (0.01) $(0.01) ======= ======= ======= ======= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic and diluted 120,744 120,744 120,744 120,744 ======= ======= ======= =======
Sentry Technology Corporation
CONTACT: Peter L. Murdoch, President & CEO, +1-631-739-2000
Web Site: http://www.sentrytechnology.com/
