RONKONKOMA, N.Y., Sept. 14, 2011 /PRNewswire/ -- Sentry Technology
Corporation (OTC Markets: SKVY) today reported financial results
for the Company's second quarter ended June
30, 2011.
Revenues for the second quarter of 2011 were $2,177,000 compared to revenues of $2,487,000 reported in the second quarter of the
prior year. The loss from operations was $192,000 compared to income of $12,000 in the second quarter of 2010. The
net loss was $595,000, or
$(0.00) per share, as compared to a
net loss of $254,000, or $(0.00) per share, in the second quarter of 2010.
The net loss includes a noncash charge related to financing
of $244,000 and $163,000 in the second quarter of 2011 and 2010,
respectively.
For the first six months ended June 30,
2011, revenues were $4,412,000
compared to revenues of $4,713,000
reported in the first six months of the prior year. Sentry
had a net loss of $1,192,000, or
$(0.01) per share, compared to a net
loss of $714,000, or $(0.01) per share, in the first half of 2010.
The net loss includes a noncash charge related to financing
of $489,000 and $295,000 in the first six months of 2011 and
2010, respectively.
"During the second quarter, considerable effort was made to
restructure the Company's debt and continue to develop new
products," said Peter Murdoch,
President and CEO of Sentry Technology Corporation. "In August this
resulted in the purchase of the $3,164,000 Royal Bank of Canada loan by two Sentry Directors who
control the majority of the Company's common stock. Sentry will
benefit from reduced debt service costs of approximately
$190,000 on an annual basis. The
purchase of the Company's largest debt confirms the commitment of
Sentry's shareholders to the future of the Company."
Mr. Murdoch goes on to say, "We have a high level of confidence
in the opportunity to grow our business via the continued
development of our RFID products for libraries as evidenced by a
recent contract award from the Lower Merion Public Library to
install complete RFID systems in 6 locations beginning in November
of this year. The total value of the contract is estimated to be
$650,000. In addition a prototype of
our new VideoRailway™ traveling camera system is installed in the
Sentry engineering department. We are enthusiastic about its
initial performance. VideoRailway™ is key to our success and we
believe the product launch will lead to significant growth in our
traveling camera sales."
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
SentryVision®, SmartTrack™, a proprietary, patented traveling
Surveillance System. 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.
CONTACT: Peter L.
Murdoch
President & CEO
(631) 739-2000
SENTRY TECHNOLOGY
CORPORATION
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CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS *
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(In thousands, except per share
data)
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Three Months
Ended
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Six Months
Ended
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June
30,
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June
30,
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2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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Revenues
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$ 2,177
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$ 2,487
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$ 4,412
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$ 4,713
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Cost of sales
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1,140
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1,315
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2,240
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2,416
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Operating expenses
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1,229
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1,160
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2,550
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2,479
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(Loss) income from
operations
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(192)
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12
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(378)
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(182)
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Interest expense, net
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178
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135
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350
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261
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Non-cash amortization costs
related to financing
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244
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163
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489
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295
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Loss before income taxes and
noncontrolling interest
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(614)
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(286)
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(1,217)
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(738)
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Income tax recovery
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---
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(4)
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---
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---
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Net loss
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(614)
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(282)
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(1,217)
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(738)
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Less: net loss attributable to
the noncontrolling interest
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(19)
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(28)
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(25)
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(24)
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Net loss
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$
(595)
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$
(254)
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$
(1,192)
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$
(714)
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Loss per share
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Basic and diluted
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$
(0.00)
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$
(0.00)
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$
(0.01)
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$
(0.01)
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Weighted average number of
common shares outstanding
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Basic and diluted
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143,617
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120,744
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143,617
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120,744
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* Full financial statements are available on the Company's
website at www.sentrytechnology.com.
SOURCE Sentry Technology Corporation