RONKONKOMA, N.Y., Nov. 13 /PRNewswire-FirstCall/ -- Sentry
Technology Corporation (Pink Sheets: SKVY) today reported financial
results for the Company's third quarter ended September 30, 2009.
Revenues for the third quarter of 2009 were $2,606,000, compared to
revenues of $3,573,000 reported in the third quarter of the prior
year. Sentry had a net loss of $410,000 in the third quarter of
2009, or $(0.00) per share, compared to a net loss of $204,000, or
$(0.00) per share, in the third quarter of last year. The net loss
in both periods includes a non-cash amortization expense related to
financing of $129,000 and $172,000, respectively. The results in
the third quarter also include a foreign exchange loss of $89,000
in 2009 and a gain of $141,000 in 2008. Net of foreign exchange and
non-cash financing expenses the 2009 third quarter loss increased
by $19,000 compared to the third quarter 2008. For the first nine
months ended September 30, 2009, revenues were $6,989,000, compared
to $9,644,000 reported in the previous year. Sentry had a net loss
of $1,539,000, or $(0.01) per share, in the first nine months of
2009 compared to a net loss of $1,083,000, or $(0.01) per share, in
the first nine months of 2008. The net loss in both periods
includes a non-cash amortization expense related to financing of
$379,000 and $460,000, respectively. The results in the third
quarter also include a foreign exchange loss of $135,000 in 2009
and a gain of $217,000 in 2008. "It has become nearly a cliche to
say that 2009 has been a difficult year," said Peter L. Murdoch,
President and CEO of Sentry Technology Corporation. "Despite lower
sales due to reduced customer budgets, several new RFID products
for libraries have been introduced and recently a contract was
signed with an engineering firm to design an improved version of
our SmartTrack traveling camera system. Significant cuts have been
made to fixed costs and we are operating at near EBITDA breakeven.
Having weathered the storm, we see improvements in the current
business environment and a growing market opportunity for our new
RFID library products and video management software." 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) September 30, December 31, 2009 2008 (Unaudited) (Audited)
ASSETS Current Assets: Cash and cash equivalents $145 $643
Short-term investments 186 264 Accounts receivable, net of
allowance for doubtful accounts of $175 in 2009 and $179 in 2008
1,037 971 Inventory, net 2,239 2,739 Prepaid expenses and other
current assets 923 682 Total current assets 4,530 5,299 PROPERTY
AND EQUIPMENT, net 479 439 OTHER ASSETS 221 232 TOTAL ASSETS $5,230
$5,970 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities:
Bank indebtedness, demand loan and revolving line of credit $3,764
$3,418 Accounts payable 782 830 Accrued liabilities 1,088 1,211
Obligations under capital leases - current portion 2 2 Deferred
income 233 175 Convertible debenture 2,110 2,000 Total current
liabilities 7,979 7,636 Long-term debt - less current portion:
Obligations under capital leases 2 4 Deferred tax liabilities 103
90 Total long-term liabilities 105 94 Total liabilities 8,084 7,730
MINORITY INTEREST 1,294 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
50,737 50,196 Accumulated deficit (55,067) (53,528) Accumulated
other comprehensive income 61 140 Total stockholders' deficit
(4,148) (3,071) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $5,230
$5,970 SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended September 30, September 30,
2009 2008 2009 2008 (Unaudited) (Unaudited) REVENUES Sales $2,362
$3,101 $6,181 $8,215 Service, installation and maintenance revenues
244 472 808 1,429 2,606 3,573 6,989 9,644 COST OF SALES AND
EXPENSES: Cost of sales 1,361 1,818 3,483 4,721 Customer service
expenses 344 522 1,131 1,627 Selling, general and administrative
expenses 871 1,108 2,702 3,258 Research and development 107 142 348
435 Foreign exchange loss (gain) 89 (141) 135 (217) 2,772 3,449
7,799 9,824 (LOSS) INCOME FROM OPERATIONS (166) 124 (810) (180)
INTEREST, net 128 139 367 415 NON-CASH AMORTIZATION COSTS RELATED
TO FINANCING 129 172 379 460 LOSS BEFORE INCOME TAXES AND MINORITY
INTEREST (423) (187) (1,556) (1,055) INCOME TAX RECOVERY --- 9 ---
15 LOSS BEFORE MINORITY INTEREST (423) (196) (1,556) (1,070)
MINORITY INTEREST (INCOME) EXPENSE (13) 8 (17) 13 NET LOSS $(410)
$(204) $(1,539) $(1,083) LOSS PER SHARE Basic and diluted $(0.00)
$(0.00) $(0.01) $(0.01) WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING Basic and diluted 120,744 120,744 120,744 120,744
DATASOURCE: Sentry Technology Corporation CONTACT: Peter L.
Murdoch, President & CEO, +1-631-739-2000 Web Site:
http://www.sentrytechnology.com/
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