Sentry Technology Reports Third Quarter Results
November 13 2013 - 3:08PM
Marketwired
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.
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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 |
|
|
|
|
|
|
|
|
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LIABILITIES
AND STOCKHOLDERS' DEFICIT |
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|
|
|
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Current Liabilities: |
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
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Total liabilities |
|
|
7,882 |
|
|
|
7,479 |
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|
|
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|
|
|
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STOCKHOLDERS' DEFICIT |
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|
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Sentry Technology Corporation stockholders'
deficit: |
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|
|
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|
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|
|
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Preferred stock, $0.001 par value; authorized 10,000
(2012 - 10,000) shares; none issued and outstanding |
|
|
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|
|
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
) |
|
|
|
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LOSS PER SHARE ON LOSS ATTRIBUTABLE TO SENTRY
TECHNOLOGY CORPORATION |
|
|
|
|
|
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|
|
|
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|
Basic
and diluted |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
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|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted |
|
|
196,405 |
|
|
|
196,405 |
|
|
|
196,405 |
|
|
|
196,405 |
|
|
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* Additional financial statements are available on the Company's
website at www.sentrytechnology.com
CONTACT: Peter L. Murdoch President & CEO (631) 739-2000
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