Sentry Technology Reports Year End Results

RONKONKOMA, N.Y., April 9, 2013 /PRNewswire/ -- Sentry Technology Corporation (OTC Markets: SKVY) today reported financial results for the Company's year ended December 31, 2012. 

"During 2012, we substantially reduced costs and restructured more than $2.6 million in debt," said Peter Murdoch, President and CEO of Sentry Technology. "Significant investments have been made in new products including our new VideoRailway™ traveling camera system and OperationalVideo™ visual merchandising, audit software. Patent applications have been filed for both products that will be key to the growth of our company."

"VideoRailway™ offers important new features including an HD, IP camera that travels along straight and curved, ceiling mounted rail segments. The rail can also be configured in a continuous loop. We have received our first VideoRailway™ system order that will be installed in a home improvements retailer at the end of April. Additional installations will be completed in a food retailer and a major discount department store."      

Mr. Murdoch goes on to say, "HD, IP video is the future of the CCTV industry and our new VideoRailway™, traveling video system, delivers many advantages over fixed position cameras. In addition to offering a superior security solution, VideoRailway™ is designed to complement OperationalVideo™ by using the pinpoint angles and HD camera quality to audit store operations, product pricing and merchandise displays."

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 SentryVisiona, SmartTrack™ and VideoRailway™, a proprietary, 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




CONSOLIDATED BALANCE SHEETS




(In thousands)




(Unaudited)













December 31,


December 31,


2012


2011





                    ASSETS




Current Assets:




     Cash

$              278


$              360

     Short-term investments

205


200

     Accounts receivable, net of allowance for doubtful




        accounts of $81 in 2012 and $80 in 2011

724


540

     Inventory, net

1,495


1,944

     Prepaid expenses and other current assets

222


222

Total current assets

2,924


3,266

PROPERTY AND EQUIPMENT, net

346


399

OTHER ASSETS

159


128

     TOTAL ASSETS

$           3,429


$           3,793





                    LIABILITIES AND STOCKHOLDERS' DEFICIT




Current Liabilities:




     Amount due to related parties

$           3,954


$           3,544

     Bank indebtedness and revolving line of credit

1,174


1,080

     Accounts payable

1,038


988

     Accrued liabilities

803


697

     Deferred income

234


240

     Convertible debenture

---


2,531

     Promissory notes payable – short-term

38


---

Total current liabilities

7,241


9,080





Amount due to related parties– long-term

151


197

Promissory notes payable – long-term

37


---

Deferred tax liabilities

50


67

Total long-term liabilities

238


264





Total liabilities

7,479


9,344





STOCKHOLDERS' DEFICIT:




     Common stock

196


196

     Additional paid-in capital

51,748


51,733

     Accumulated deficit

(57,380)


(58,890)

     Accumulated other comprehensive loss

(192)


(136)

Total stockholders' deficit 

(5,628)


(7,097)

Noncontrolling interest in subsidiary

1,578


1,546

Total deficit

(4,050)


(5,551)





     TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$           3,429


$           3,793





 

SENTRY TECHNOLOGY CORPORATION




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(In thousands, except per share data)




(Unaudited)













 Years Ended December 31,


2012


2011





REVENUES

$           6,392


$           7,519

     Sales

779


1,069

     Service, installation & maintenance revenues

7,171


8,588









COST OF SALES AND EXPENSES:




     Cost of sales

3,720


4,348

     Customer service expenses

747


1,068

     Selling, general and administrative expenses

2,859


3,339

     Research and development

332


371

     Foreign exchange loss (gain)

43


(27)


7,701


9,099

LOSS FROM OPERATIONS

(530)


(511)

INTEREST EXPENSE, net

596


900

NON-CASH AMORTIZATION COSTS RELATED TO FINANCING

9


556

LOSS BEFORE INCOME TAXES, NONCONTROLLING INTEREST




          AND EXTRAORDINARY ITEM

(1,135)


(1,967)

INCOME TAX (BENEFIT) EXPENSE

(15)


3

LOSS BEFORE NONCONTROLLING INTEREST AND  EXTRAORDINARY ITEM

(1,120)


(1,970)

LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NONCONTROLLING  




          INTEREST

(2)


11

LOSS BEFORE EXTRAORDINARY ITEM

(1,118)


(1,981)





EXTRAORDINARY ITEM:




     Gain from extinguishment of debt, net of tax

(2,628)


---

NET INCOME (LOSS)

$           1,510


$          (1,981)





LOSS PER SHARE BEFORE EXTINGUISHMENT OF DEBT - Basic and diluted

$            (0.01)


$            (0.01)

EXTINGUISHMENT OF DEBT PER SHARE - Basic and diluted

0.01


---

NET INCOME (LOSS) PER SHARE - Basic and diluted

$             0.01


$            (0.01)





WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING




     Basic and diluted

196,405


153,802





SOURCE Sentry Technology Corporation



RELATED LINKS
http://www.sentrytechnology.com

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