News Feed Item

Sentry Technology Reports First Quarter Results

RONKONKOMA, NY -- (Marketwired) -- 08/20/14 -- Sentry Technology Corporation (OTC Pink: SKVY) (PINKSHEETS: SKVY) today reported financial results for the Company's first quarter ended March 31, 2014.

Revenues for the first quarter of 2014 were $1,207,000 compared to revenues of $1,355,000 reported in the first quarter of the prior year. The operating loss was $179,000, or $(0.00) per share, in the first quarter of 2014 as compared to an operating loss of $214,000 or $(0.00) per share, in the first quarter of 2013. EBITDA for the first quarter was a negative ($162,000) in 2014 compared to a negative EBITDA of ($192,000) in the first quarter of 2013.

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™, 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, depreciation and amortization expense and net (loss) income attributable to the noncontrolling interest. 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 depreciation and amortization, as well as non-operating charges for interest and income taxes and net (loss) income attributable to the noncontrolling interest, 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, income taxes, and net (loss) income attributable to the noncontrolling interest, 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.

(In Thousands, Except Par Value Amounts)

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------

Current Assets:
  Cash                                           $         51  $         72
  Short-term investments                                  246           253
  Accounts receivable, net of allowance for
   doubtful accounts of $74 in 2014 and $79 in
   2013                                                   374           477
  Inventory, net                                        1,408         1,433
  Prepaid expenses and other current assets               160           174
                                                 ------------  ------------
Total current assets                                    2,239         2,409
PROPERTY AND EQUIPMENT, net                               261           283
OTHER ASSETS                                              141           145
                                                 ------------  ------------
TOTAL ASSETS                                     $      2,641  $      2,837
                                                 ============  ============

Current Liabilities:
  Amount due to related parties                  $      4,240  $      4,266
  Bank indebtedness and revolving line of credit        1,224         1,236
  Accounts payable                                      1,130         1,084
  Accrued liabilities                                     612           597
  Deferred income                                         236           221
  Promissory notes payable                                 38            38
                                                 ------------  ------------
Total current liabilities                               7,480         7,442

Deferred tax liabilities                                   41            42
                                                 ------------  ------------
Total long-term liabilities                                41            42
Total liabilities                                       7,521         7,484

  Sentry Technology Corporation stockholders'
    Preferred stock, $0.001 par value; authorized
     10,000 (2013 - 10,000) shares; none issued
     and outstanding
    Common stock, $0.001 par value; authorized
     300,000 (2013 - 300,000) shares; issued and
     outstanding 196,405 (2013 - 196,405) shares          196           196
    Additional paid-in capital                         51,759        51,755
    Accumulated deficit                               (58,367)      (58,069)
    Accumulated other comprehensive loss                   97            (8)
                                                 ------------  ------------
Total stockholders' deficit                            (6,315)       (6,126)
Noncontrolling interest in subsidiary                   1,435         1,479
                                                 ------------  ------------
Total deficit                                          (4,880)       (4,647)
                                                 ------------  ------------
                                                 ============  ============

(In Thousands, Except Per Share Amounts)

                                                     Three Months Ended
                                                          March 31,
                                                     2014          2013
                                                 ------------  ------------

  Sales                                          $      1,075  $      1,185
  Service, installation and maintenance revenues          132           170
                                                 ------------  ------------
                                                        1,207         1,355
  Cost of sales                                           655           749
  Customer service expenses                               151           183
  Selling, general and administrative expenses            565           580
  Research and development                                 73            85
  Foreign exchange gain                                   (58)          (28)
                                                 ------------  ------------
                                                        1,386         1,569
                                                 ------------  ------------
LOSS FROM OPERATIONS                                     (179)         (214)
INTEREST EXPENSE, net                                      96            94
                                                 ------------  ------------
 INTEREST                                                (275)         (308)
INCOME TAX EXPENSE                                         12             6
                                                 ------------  ------------
LOSS BEFORE NONCONTROLLING INTEREST                      (287)         (314)
 NONCONTROLLING INTEREST                                   11             5
                                                 ------------  ------------
NET LOSS                                                 (298)         (319)
                                                 ============  ============

NET LOSS PER SHARE - Basic and diluted           $      (0.00) $      (0.00)
                                                 ============  ============

    Basic and diluted                                 196,405       196,405
                                                 ============  ============

(In thousands)
                                                     Three Months Ended
                                                          March 31,
                                                     2014          2013
                                                 ------------  ------------

Net loss                                         $       (298) $       (319)
Reconciling items:
Interest expense, net                                      96            94
Income tax expense                                         12             6
Depreciation and amortization                              17            22
Net income attributable to the noncontrolling
 interest                                                  11             5
                                                 ------------  ------------

Adjusted EBITDA                                  $       (162) $       (192)
                                                 ============  ============

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

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
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.