Sentry Technology Reports Year End Results

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Apr 09, 2013, 01:48 ET

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