Welcome!

News Feed Item

Sentry Technology Reports Year End Results

RONKONKOMA, NY -- (Marketwired) -- 03/28/14 -- Sentry Technology Corporation (OTC Pink: SKVY) (PINKSHEETS: SKVY) today reported financial results for the Company's year ended December 31, 2013.

Revenues for the year ended December 31, 2013 were $6,575,000 compared to $7,171,000 reported in 2012. Net loss on operations was $286,000 in 2013, compared to a net loss of $530,000 in 2012. The net loss for the year was $689,000, or $(0.00) per share in 2013, compared to a net income of $1,510,000, or $0.01 per share in 2012. The net income in 2012 was a result of a $2,628,000 extraordinary gain resulting from the purchase of a debenture by the company.

Revenue for the quarter ended December 31, 2013 was $1,647,000 compared to $1,988,000 reported in 2012. EBITDA for the fourth quarter was a positive $13,000 in 2013 compared to a negative EBITDA of ($199,000) in the fourth quarter of 2012.

"Despite a reduction in revenue, we had improved results on operations in 2013 compared with 2012 which resulted in an EBITDA gain in the fourth quarter," said Peter Murdoch, President and CEO of Sentry Technology. "This is largely due to continued cost cutting as we focus efforts to promote VideoRailway™, our new HD/IP traveling camera system. VideoRailway™ reference sites have now been established with several large retailers. In particular systems have been installed in multiple store locations of one of the world's largest companies. We expect to take advantage of references from premier accounts as we continue to introduce the product in 2014."

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.

Adjusted EBITDA

Sentry Technology Corporation uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net income (loss) interest, income taxes, non-cash amortization costs related to financing, depreciation and amortization expense, net (loss) income attributable to the noncontrolling interest and gain from exinguishment of debt. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Sentry Technology Corporation's financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as non-cash amortization costs related to financing, depreciation and amortization, as well as non-operating charges for interest and income taxes, net (loss) income attributable to the noncontrolling interest and gain from exinguishment of debt, investors can evaluate the Company's operations and can compare its results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.

Sentry Technology Corporation considers Adjusted EBITDA to be an indicator of the Company's operational strength and performance of its business and a useful measure of the Company's operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest income and expense, non-cash amortization costs related to financing, net (loss) income attributable to the noncontrolling interest and gain from exinguishment of debt, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets which benefit multiple periods. Sentry Technology Corporation believes that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the schedule below.


SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value Amounts)
(Unaudited)


                                                 December 31,  December 31,
                                                     2013          2012
                                                 ------------  ------------

                      ASSETS
Current Assets:
  Cash                                           $         72  $        278
  Short-term investments                                  253           205
  Accounts receivable, net of allowance for
   doubtful accounts of $79 in 2013 and $81 in
   2012                                                   477           724
  Inventory, net                                        1,433         1,495
  Prepaid expenses and other current assets               174           222
                                                 ------------  ------------
Total current assets                                    2,409         2,924
PROPERTY AND EQUIPMENT, net                               283           346
OTHER ASSETS                                              145           159
                                                 ------------  ------------
TOTAL ASSETS                                     $      2,837  $      3,429
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
  Amount due to related parties                  $      4,266  $      3,954
  Bank indebtedness and revolving line of credit        1,236         1,174
  Accounts payable                                      1,084         1,038
  Accrued liabilities                                     597           803
  Deferred income                                         221           234
  Promissory notes payable - short-term                    38            38
                                                 ------------  ------------
Total current liabilities                               7,442         7,241

Amount due to related parties - long-term                   -           151
Promissory notes payable - long-term                        -            37
Deferred tax liabilities                                   42            50
                                                 ------------  ------------
Total long-term liabilities                                42           238

Total liabilities                                       7,484         7,479

STOCKHOLDERS' DEFICIT
  Sentry Technology Corporation stockholders'
   deficit:
    Preferred stock, $0.001 par value; authorized
     10,000 (2012 - 10,000) shares; none issued
     and outstanding
    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                         51,755        51,748
    Accumulated deficit                               (58,069)      (57,380)
    Accumulated other comprehensive loss                   (8)         (192)
                                                 ------------  ------------
Total stockholders' deficit                            (6,126)       (5,628)
Noncontrolling interest in subsidiary                   1,479         1,578
                                                 ------------  ------------
Total deficit                                          (4,647)       (4,050)
                                                 ------------  ------------
     TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $      2,837  $      3,429
                                                 ============  ============



SENTRY TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share
 Amounts)
(Unaudited)
                               Three Months Ended          Years Ended
                             ----------------------  ----------------------
                                  December 31,            December 31,
                             ----------------------  ----------------------
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------

REVENUES
  Sales                      $    1,456  $    1,828  $    5,793  $    6,392
  Service, installation &
   maintenance revenues             191         160         782         779
                             ----------  ----------  ----------  ----------
                                  1,647       1,988       6,575       7,171
                             ----------  ----------  ----------  ----------

COST OF SALES AND EXPENSES:
  Cost of sales                     893       1,147       3,549       3,720
  Customer service expenses         157         174         679         747
  Selling, general and
   administrative expenses          573         716       2,383       2,859
  Research and development           82          86         339         332
  Foreign exchange (gain)
   loss                             (50)        (12)        (89)         43
                             ----------  ----------  ----------  ----------
                                  1,655       2,111       6,861       7,701
                             ----------  ----------  ----------  ----------
LOSS FROM OPERATIONS                 (8)       (123)       (286)       (530)
INTEREST EXPENSE, net                98         154         392         596
NON-CASH AMORTIZATION COSTS
 RELATED TO FINANCING                 -           -           2           9
                             ----------  ----------  ----------  ----------
LOSS BEFORE INCOME TAXES,
 NONCONTROLLING INTEREST AND
 EXTRAORDINARY ITEM                (106)       (277)       (680)     (1,135)
INCOME TAX EXPENSE (BENEFIT)          6         (22)          6         (15)
                             ----------  ----------  ----------  ----------
LOSS BEFORE NONCONTROLLING
 INTEREST AND EXTRAORDINARY
 ITEM                              (112)       (255)       (686)     (1,120)
LESS: NET INCOME (LOSS)
 ATTRIBUTABLE TO THE
 NONCONTROLLING INTEREST             21          (8)          3          (2)
                             ----------  ----------  ----------  ----------
LOSS BEFORE EXTRAORDINARY
 ITEM                              (133)       (247)       (689)     (1,118)

EXTRAORDINARY ITEM:
  Gain from exinguishment of
   debt, net of tax                   -      (2,628)          -      (2,628)
                             ----------  ----------  ----------  ----------
NET (LOSS) INCOME            $     (133) $    2,381  $     (689) $    1,510
                             ==========  ==========  ==========  ==========

LOSS PER SHARE BEFORE
 EXTINGUISHMENT OF DEBT -
 Basic and diluted           $    (0.00) $    (0.00) $    (0.00) $    (0.01)
EXTINGUISHMENT OF DEBT PER
 SHARE - Basic and diluted            -        0.01           -        0.01
                             ----------  ----------  ----------  ----------
NET (LOSS) INCOME PER SHARE -
 Basic and diluted           $    (0.00) $     0.01  $    (0.00) $     0.01
                             ==========  ==========  ==========  ==========

WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUSTANDING
  Basic and diluted             196,405     196,405     196,405     196,405
                             ==========  ==========  ==========  ==========


RECONCILIATION OF ADJUSTED
 EBITDA TO NET LOSS
(In thousands)
                               Three Months Ended          Years Ended
                             ----------------------  ----------------------
                                  December 31,            December 31,
                             ----------------------  ----------------------
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------

Net (loss) income            $     (133) $    2,381  $     (689) $  $ 1,510
Reconciling items:
Interest expense, net                98         154         392         596
Non-cash amortization costs
 related to financing                 -           -           2           9
Income tax expense (benefit)          6         (22)          6         (15)
Depreciation and amortization        21          28          87          99
Net income (loss)
 attributable to the
 noncontrolling interest             21          (8)          3          (2)
Gain from extinguishments of
 debt, net of tax                     -      (2,628)          -      (2,628)
                             ----------  ----------  ----------  ----------

Adjusted EBITDA              $       13  $      (95) $     (199) $     (431)
                             ==========  ==========  ==========  ==========


* Additional financial statements are available on the Company's website at http://www.sentrytechnology.com/.

CONTACT:
Peter L. Murdoch
President & CEO
(631) 739-2000

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...