SKVY order in now on this news:
Tuesday May 15, 2:37 pm Eastern Time
Press Release
SOURCE: Sentry Technology Corporation
Sentry Technology Corporation Reports First Quarter Results; Includes $27.2 Million Return to
Common Shareholders
HAUPPAUGE, N.Y., May 15 /PRNewswire/ -- Sentry Technology Corporation (OTC Bulletin Board: SKVY - news) today reported financial results for the
Company's first quarter ended March 31, 2001.
Net income attributed to common shareholders in the first quarter was $26,479,000, or $0.46 per diluted share, compared to the net loss attributable to common
shareholders of $1,734,000, or $(0.18) per diluted share, in the first quarter of last year. The share purchase agreement with Dutch A&A, which closed on January
8, 2001, triggered the redemption of all Class A Preferred shares into common shares, resulting in a first quarter return to common shareholders of $27,198,000.
Revenues for the first quarter were $4,670,000, compared to revenues of $4,872,000 reported in the first quarter of the prior year. Sentry reported an operating
loss of $694,000 in the first quarter of 2001, down from a loss of $1,402,000 in the first quarter of 2000.
Highlights of the first quarter included:
* An investment of $3 million by Dutch A&A Holding BV in exchange for
37.5% of the Company's common stock.
* SentryVision® orders through our dealer ADT to Ashworth and Estee
Lauder and through Siemans to Sunguard Recovery.
* SentryVision® orders from Reno-Depot and Building Box in Canada,
Lowe's Companies Inc. and Mills Fleet Farm in the United States, and
Carrefour in Mexico.
* Additional CCTV orders in the retail market from Menards, Lowe's,
Goody's Family Clothing, Inc., The Kroger Co., Save-A-Lot, Shoe Carnival
and Kohl's.
* CCTV and EAS orders in the educational market from school districts in
California, Georgia, New York and Pennsylvania.
* Continued EAS orders from Goody's, Shoe Carnival, Norstan, and Wilsons
Leather.
* Additional EAS orders in the library market from Brooklyn and Cincinnati
Public Libraries.
``The share redemption resulting from the Dutch A&A transaction has been very beneficial for Sentry's common shareholders,'' said Peter L. Murdoch, President
and Chief Executive Officer. ``The Company now has positive equity and is well positioned to realize its goals. Our cost cutting program has been delivering results
and the Company's staff has responded with renewed commitments to customer satisfaction which has lead to recapturing some key accounts during the first quarter
''
Sentry Technology Corporation designs, manufactures, sells, installs and services a complete line of Radio Frequency (RF) and Electro-magnetic (EM) EAS and
Closed Circuit Television (CCTV) surveillance systems. The CCTV product line features SentryVision®, a proprietary, patented traveling Surveillance System. The
Company's products are used by retailers to deter shoplifting and internal theft, and by industrial and institutional customers to protect assets and people. The recent
partnership with Dutch A&A Holding BV expands the Company's product offerings to include proximity Access Control and Radio Frequency Identification (RFID)
solutions.
For further information, please visit our Web site at sentrytechnology.com.
Information contained in this release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 which can be
identified by the use of forward-looking terminology such as ``believes,'' ``expects,'' ``may,'' ``will,'' ``should'' or ``anticipates'' or the negative thereof, other
variations thereon or comparable terminology, or by discussions of strategy. These forward-looking statements involve certain significant risks and uncertainties, and
actual results may differ materially from the forward-looking statements. For further details and discussion of these risks and uncertainties see Sentry Technology
Corporation's SEC filings including, but not limited to, its annual report on Form 10-K. No assurance can be given that future results covered by the forward-looking
statements will be achieved, and other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.
The Company does not undertake to publicly update or revise any of its forward-looking statements even if experience or future changes show that the indicated
results or events will not be realized.
CONTACT: Peter J. Mundy, Vice President - Finance of Sentry Technology Corporation, 631-232-2100.
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2001 2000
ASSETS
CURRENT ASSETS
Cash and cash equivalents $550 $927
Accounts receivable, less allowance for doubtful
accounts of $896 and $890, respectively 3,277 3,178
Net investment in sales-type leases -
current portion 80 84
Inventories 4,562 5,274
Prepaid expenses and other current assets 288 202
Total current assets 8,757 9,665
NET INVESTMENT IN SALES-TYPE LEASES -
non-current portion 80 100
SECURITY DEVICES ON LEASE, net 31 36
PROPERTY, PLANT AND EQUIPMENT, net 3,203 3,324
OTHER ASSETS 273 720
$12,344 $13,845
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit $2,792 $2,920
Accounts payable 1,256 1,463
Accrued liabilities 1,888 2,633
Obligations under capital leases -
current portion 128 124
Deferred income 300 352
Total current liabilities 6,364 7,492
OBLIGATIONS UNDER CAPITAL LEASES -
non-current portion 2,735 2,768
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY 183 199
Total liabilities 9,282 10,459
REDEEMABLE CUMULATIVE PREFERRED STOCK -- 29,180
COMMON SHAREHOLDERS' EQUITY (DEFICIT)
Common stock 61 10
Additional paid-in capital 44,358 12,859
Accumulated deficit (39,357) (38,663)
Receivable from stock sale (2,000) --
Total common shareholders' equity 3,062 (25,794)
$12,344 $13,845
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
REVENUES $4,670 $4,872
COSTS AND EXPENSES:
Cost of sales 2,391 2,659
Customer service expenses 1,129 1,157
Selling, general and administrative expenses 1,522 1,773
Research and development 175 226
5,217 5,815
OPERATING LOSS (547) (943)
INTEREST EXPENSE 147 158
LOSS BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (694) (1,101)
INCOME TAXES -- --
NET LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE (694) (1,101)
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE -- 301
NET LOSS (694) (1,402)
PREFERRED STOCK DIVIDENDS (25) (332)
RETURN TO COMMON SHAREHOLDERS FROM
REDEMPTION OF PREFERRED STOCK 27,198 --
NET INCOME (LOSS) ATTRIBUTED TO
COMMON SHAREHOLDERS $26,479 $(1,734)
NET INCOME (LOSS) PER COMMON SHARE BEFORE CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE:
Basic and diluted $0.46 $(0.15)
NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted $0.46 $(0.18)
WEIGHTED AVERAGE COMMON SHARES
Basic and diluted 57,445 9,751
MAKE YOUR OPINION COUNT -- Click Here
tbutton.prnewswire.com
SOURCE: Sentry Technology Corporation |
