RONKONKOMA, N.Y. , May 15 /PRNewswire-FirstCall/ -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported financial results for the Company's first quarter ended March 31, 2008 .
Revenues for the first quarter were
"Sales revenue was short of expectation primarily as a result of several
large orders that were received too late in the quarter to be installed and
recognized in Q1 revenue," said Peter L. Murdoch , President and CEO of Sentry
Technology Corporation. "This resulted in an increase in our order backlog to
a total of
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 including QuickCheck(TM) patron self-service kiosks. The CCTV product line features SentryVision(R), 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 manage operations, deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. Recently the Company launched OVportal(TM), a video information portal over the internet offering retailers an OperationalVideo(TM) solution to manage security, merchandising, sign placement and procedure compliance. OVportal(TM) uses the SmartTrack(TM) traveling CCTV system and the Company's real-time video server to provide remote viewing and control of retail operations. OperationalVideo(TM) is the next major trend in online video and OVportal(TM) is a leading, cost effective, market proven solution. 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.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (In thousands, except per share data) Three Months Ended March 31, 2008 2007 REVENUES: Sales $1,712 $2,329 Service, installation and other revenues 330 339 2,042 2,668 COST OF SALES AND EXPENSES: Cost of sales 1,019 1,270 Customer service expenses 550 455 Selling, general and administrative expenses 979 1,197 Research and development 147 206 2,695 3,128 OPERATING LOSS (653) (460) INTEREST AND FINANCING EXPENSE, net 237 213 LOSS BEFORE INCOME TAXES AND MINORITY INTEREST (890) (673) INCOME TAX EXPENSE - 27 LOSS BEFORE MINORITY INTEREST (890) (700) MINORITY INTEREST (3) 24 NET LOSS $(887) $(724) LOSS PER SHARE Basic and diluted $(0.01) $ (0.01) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic and diluted 120,744 120,744 CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 31, December 31, 2008 2007 (Unaudited) (Audited) ASSETS Current Assets: Cash and cash equivalents $1,221 $256 Short-term investments 101 202 Accounts receivable, less allowance for doubtful accounts of $214 and $209, respectively 1,358 3,014 Inventory 3,328 3,299 Prepaid expenses and other assets 595 858 Total current assets 6,603 7,629 PROPERTY AND EQUIPMENT, net 582 634 OTHER ASSETS 268 269 TOTAL ASSETS $7,453 $8,532 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Bank indebtedness, demand loan and revolving line of credit $4,504 $4,551 Accounts payable 1,220 1,223 Accrued liabilities 1,479 1,539 Obligations under capital leases - current portion 2 2 Deferred income 140 145 Total current liabilities 7,345 7,460 OBLIGATIONS UNDER CAPITAL LEASES - less current portion 6 7 DEFERRED TAX LIABILITY 113 117 CONVERTIBLE DEBENTURE 1,997 1,986 Total liabilities 9,461 9,570 MINORITY INTEREST 1,197 1,200 STOCKHOLDERS' (DEFICIT) EQUITY (3,205) (2,238) TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY $7,453 $8,532SOURCE Sentry Technology Corporation
