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:Peter L. Murdoch
President & CEO
(631) 739-2000 ]]>
Read more http://feeds.mwnewsroom.com/article/rss?id=1781325