SENTRY TECHNOLOGY CORP. 
By 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 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
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TOTAL ASSETS $4,687 5,970
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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
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Total long-term liabilities 98 94
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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)
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TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $4,687 $5,970
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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)
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(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
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SOURCE Sentry Technology Corporation
