Sentry Technology Corporation today reported financial results for the company's third quarter, which ended Sept. 30.
Revenues for the third quarter were $4,577,000, compared to revenues of $3,784,000 reported in the third quarter of the prior year. The increase in revenues is attributable to both increased sales of the SentryVision SmartTrack systems and the timing of orders received from major customers. The company generated an operating profit for the current quarter of $232,000 as compared to $67,000 for the same period in 2003. The net profit in the third quarter of 2004 was $40,000, or $0.00 per share, compared to $254,000, or 0.00 per share, in the third quarter of last year. Included in the net income for the third quarter of 2003 was an extraordinary gain related to the termination of its long-term lease with its prior landlord for the Hauppauge, New York facility of $212,000, or $0.00 per share, net of $141,000 of income taxes.
For the first nine months ended September 30, 2004, revenues were $11,764,000, compared to $9,684,000 reported in the previous year. Net loss was $141,000, or $(0.00) per diluted share, compared to a net profit of $290,000, or $0.00 per diluted share, in the first nine months of last year. In addition to the extraordinary gain indicated above, included in net income for the first nine months of 2003 were extraordinary gains related to the settlement with trade creditors of past due debt of $525,000, or $0.01 per share, net of $350,000 of income taxes.
"Our business is steadily improving and we are pleased to report our second consecutive quarterly net profit," said Peter L. Murdoch, President and CEO Sentry Technology Corporation. "While the profit is modest, it is a significant improvement over previous periods. The Company is growing its key SentryVison SmartTrack product line as well as security labeling and EAS business via the acquisition of ID Systems. In the U.S., the Sentry customer base is growing, our business in Europe is strong and recently the company has added new dealers in Japan, Korea, Lebanon and Mexico. We are confident about our future and look forward to continued growth in both sales and profits."