Sentry Technology Reports Year End Results
10 March 2011 - 7:49AM
Marketwired
Sentry Technology Corporation (PINKSHEETS: SKVY) today reported
financial results for the Company's year ended December 31, 2010.
Revenues for the year ended December 31, 2010 were $9,914,000
compared to $9,665,000 reported in 2009. The net loss was
$1,531,000, or $(0.01) per share in 2010, compared to $1,850,000,
or $(0.02) per share in 2009.
"We made good progress during 2010 resulting in an adjusted
EBITDA profit for the year of $36,000 excluding a foreign exchange
expense of $80,000 caused by an increase in the value of the
Canadian dollar relative to U.S. currency," said Peter Murdoch,
President and CEO of Sentry Technology Corporation. "This is a
significant improvement over 2009 and results from an increase of
3% in sales and a reduction in expenses of approximately 11%.
"Several new products were developed during the year including
GateKeeper™, a software program to manage RFID systems in
libraries; an upgrade to our QuickCheck™ library self-service
systems to open CD/DVD cases; and a program to allow the payment of
fines and fees using QuickCheck. Our OperationalVideo™ software as
a service platform has been upgraded to include several new
features and we are in the process of completing a prototype of an
entirely new travelling camera system."
Mr. Murdoch goes on to say, "Sentry's international customer
base for SmartTrack™, our traveling video system, grew in 2010
partly as a result of an OEM agreement with one of the world's
largest security companies. Our new customer purchased more than
100 systems in 2010, primarily in the second half of the year. We
expect sales of SmartTrack will more than double in 2011.
"We have cut costs, increased sales and refocused our business
around a strong product set that serves our exceptional library,
retail and security dealer customers. Additional information about
products and customers is available on our new website at
www.sentrytechnology.com. Based on recent results, we expect a
successful 2011."
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 SentryVision®,
SmartTrack™, a proprietary, patented 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.
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 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 non-cash amortization costs related to
financing, 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,
non-cash amortization costs related to financing 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.
SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Twelve Months Ended
December 31,
---------------------
2010 2009
-------- --------
Revenues $ 9,914 $ 9,665
Cost of sales 5,018 4,754
Operating expenses 5,090 5,705
-------- --------
Loss from operations (194) (794)
Interest expense, net 589 495
Non-cash amortization costs related to financing 769 511
-------- --------
Loss before income taxes and noncontrolling interest (1,552) (1,800)
Income tax (benefit) expense (7) 2
-------- --------
Net loss before noncontrolling interest (1,545) (1,802)
Less: net (loss) income attributable to the
noncontrolling interest (14) 48
-------- --------
Net loss $ (1,531) $ (1,850)
======== ========
Loss per share
Basic and diluted $ (0.01) $ (0.02)
======== ========
Weighted average number of common shares outstanding
Basic and diluted 124,038 120,744
======== ========
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
Twelve Months Ended
December 31,
2010 2009
-------- --------
(unaudited)
Net loss $ (1,531) $ (1,850)
Reconciling items:
Interest expense, net 589 495
Non-cash amortization costs related to financing 769 511
Income tax (benefit) expense (7) 2
Depreciation and amortization 150 130
Net (loss) income attributable to the noncontrolling
interest (14) 48
-------- --------
Adjusted EBITDA $ (44) $ (664)
======== ========
-- Full financial statements are available on the Company's website at
www.sentrytechnology.com.
CONTACT: Peter L. Murdoch President & CEO (631) 739-2000
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