-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ftyk6NGi0n3hiESsFTFEEVCGJtu7gftNYYKyXWvB3OS3+9sTmWLSiY6SdPaIZRH3 UgL3UQNFhtn5QHz8eTG8Nw== 0001137403-05-000006.txt : 20050331 0001137403-05-000006.hdr.sgml : 20050331 20050331171353 ACCESSION NUMBER: 0001137403-05-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050331 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050331 DATE AS OF CHANGE: 20050331 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENTRY TECHNOLOGY CORP CENTRAL INDEX KEY: 0001030708 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 113349733 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12727 FILM NUMBER: 05721693 BUSINESS ADDRESS: STREET 1: 350 WIRELESS BLVD CITY: HAUPPAUGE STATE: NY ZIP: 11788 BUSINESS PHONE: 5142322100 MAIL ADDRESS: STREET 1: 350 WIRELESS BLVD CITY: HAUPPAUGE STATE: NY ZIP: 11788 8-K 1 doc1.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 March 31, 2005 Date of Report (Date of earliest reported event) Sentry Technology Corporation (Exact name of registrant as specified in its chapter) Delaware 1-12727 96-11-3349733 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) number) 1881 Lakeland Avenue, Ronkonkoma, New York 11779 (Address of principal executive offices) (Zip Code) 631-739-2000 Registrant's telephone number, including area code None (Former name or former address, if changed since last report ) INFORMATION TO BE INCLUDED IN THE REPORT Item 8.01 Other Events. On March 31, 2005, Sentry Technology Corporation ("Sentry" or the "Company") announced its financial results for the fourth quarter and year ended December 31, 2004. A copy of the Company's News Release issued on March 31, 2005 is filed as an exhibit to this report and is incorporated in this report by reference. Item 9.01. Financial Statements and Exhibits. Exhibit 99.1 Company News Release dated March 31, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Sentry Technology Corporation Date: 3/31/05 /s/ Peter J. Mundy - -------------- -------------------------------- Peter J. Mundy, VP and CFO EXHIBIT INDEX 99.1 Company News Release dated March 31, 2005. EXHIBIT 99.1 [GRAPHIC OMITED] [GRAPHIC OMITED] News Release FOR IMMEDIATE RELEASE CONTACT: Peter J. Mundy - ----------------------- Vice President - CFO (631) 739-2000 SENTRY TECHNOLOGY REPORTS FOURTH QUARTER PROFIT RONKONKOMA, New York, March 31, 2005, -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today reported financial results for the Company's fourth quarter and year ended December 31, 2004. Revenues for the fourth quarter of 2004 were $4,901,000, compared to revenues of $3,353,000 reported in the fourth quarter of the prior year. The Company generated operating income for the current quarter of $380,000 as compared to $47,000 for the same period of 2003. Net income was $172,000, or $0.00 per share, in the fourth quarter of 2004 as compared to a net loss of $109,000, or $(0.00) per share, in the fourth quarter of 2003. For the year ended December 31, 2004, revenues were $16,665,000, compared to $13,126,000 reported in the previous year. The increase in revenues is primarily related to higher sales of EAS products principally as a result of the ID Systems acquisition as well as an increase in sales of the Company's proprietary SmartTrack traveling camera systems. There was operating income of $665,000 in 2004, compared to an operating loss of $378,000 in 2003. Net income was $31,000, or $0.00 per share in 2004, compared to $181,000, or $0.00 per share in 2003. Included in the net income for 2003 were extraordinary gains of $738,000, or $0.01 per share, related to the settlement with trade creditors of past due debt and the termination of its long-term lease with its prior landlord for the Hauppauge, New York facility. "We are pleased to report growth in revenues and our third consecutive quarterly profit since the acquisition of ID Systems in May 2004," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "However, we are disappointed that Lowe's Home Center, our largest customer, decided not to renew its annual maintenance agreement for 2005. This contract represented $0.9 million of our revenues in 2004 and contributed towards the selection of Sentry as a vendor for replacement and add-on CCTV business in existing and new Lowe's locations. We anticipate that this decision will result in a substantial decrease in future revenues from Lowe's on a comparative basis. Customer service and administrative expense reductions have been made to compensate for this expected loss in business. At the same time, we have increased funding of sales and marketing programs, which we expect will continue to increase our business with new and existing customers. Recently we have installed our SentryVision Video Server along with wireless hand held controls for SmartTrack in two major accounts. We believe this application of our proprietary products will open new growth opportunities for Sentry." Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems and Closed Circuit Television (CCTV) solutions. The CCTV product line features the proprietary SentryVision SmartTrack 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 Company's acquisition of ID Systems expands the Company's product offering to include proximity Access Control and Radio Frequency Identification (RFID) solutions. For further information, please visit our website 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. SENTRY TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands)
December 31, December 31, 2004 2003 ------------ ------------ ASSETS - ------------------------------------------------------ CURRENT ASSETS Cash and cash equivalents. . . . . . . . . . . . . . $ 1,965 $ 210 Accounts receivable, less allowance for doubtful accounts of $338 and $304, respectively . . . . . 3,500 1,482 Inventories. . . . . . . . . . . . . . . . . . . . . 3,314 1,855 Prepaid expenses and other current assets. . . . . . 525 126 -------------- --------- Total current assets . . . . . . . . . . . . . . . 9,304 3,673 PROPERTY, PLANT AND EQUIPMENT, net . . . . . . . . . . 689 209 GOODWILL 1,564 --- OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . 690 211 -------------- --------- $ 12,247 $ 4,093 ============== ========= LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------------------------ CURRENT LIABILITIES Revolving line of credit and term loan . . . . . . . $ 2,640 $ 1,515 Accounts payable . . . . . . . . . . . . . . . . . . 799 566 Accrued liabilities. . . . . . . . . . . . . . . . . 1,146 1,601 Obligations under capital leases - current portion . 5 5 Deferred income. . . . . . . . . . . . . . . . . . . 169 271 -------------- --------- Total current liabilities. . . . . . . . . . . . . 4,759 3,958 NOTES PAYABLE. . . . . . . . . . . . . . . . . . . . . 189 247 OBLIGATIONS UNDER CAPITAL LEASES - non-current portion. . . . . . . . . . . . . . . . . 8 13 DEFERRED INCOME TAXES 39 --- CONVERTIBLE DEBENTURES 1,862 --- MINORITY INTEREST 1,045 --- -------------- --------- Total liabilities. . . . . . . . . . . . . . . . . 7,902 4,218 SHAREHOLDERS' EQUITY Common stock . . . . . . . . . . . . . . . . . . . . 121 86 Additional paid-in capital . . . . . . . . . . . . . 48,779 44,658 Accumulated deficit. . . . . . . . . . . . . . . . . (44,718) (44,749) Note receivable from shareholder --- (120) Equity adjustment from foreign currency translation 163 --- -------------- --------- Total shareholders' equity (deficit) . . . . . . . 4,345 (125) -------------- --------- $ 12,247 $ 4,093 ============== =========
SENTRY TECHNOLOGY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------------------------ 2004 2003 2004 2003 ------------------------------------------------------ REVENUES. . . . . . . . . . . . . . . . . . . . $ 4,901 $ 3,353 $ 16,665 $ 13,126 COSTS AND EXPENSES: Cost of sales . . . . . . . . . . . . . . . . 1,813 1,200 6,351 5,179 Customer service expenses . . . . . . . . . . 955 1,065 4,175 3,977 Selling, general and administrative expenses. 1,527 877 4,642 3,692 Research and development. . . . . . . . . . . 226 164 832 656 ---------------------------- ----------------------- 4,521 3,306 16,000 13,504 ---------------------------- ----------------------- OPERATING INCOME (LOSS) . . . . . . . . . . . . 380 47 665 (378) INTEREST AND FINANCING EXPENSES . . . . . . . . 103 158 412 671 ---------------------------- ------------------------ INCOME (LOSS) BEFORE INCOME TAXES . . . . . . . 277 (111) 253 (1,049) INCOME TAX EXPENSE (BENEFIT). . . . . . . . . . 63 (1) 140 (492) ---------------------------- ------------------------ INCOME (LOSS) BEFORE MINORITY INTEREST AND EXTRAORDINARY ITEM . . . . . . . . . . 214 (110) 113 (557) MINORITY INTEREST (42) --- (82) -- ---------------------------- ------------------------ INCOME (LOSS) BEFORE EXTRAORDINARY ITEM . . . . 172 (110) (110) 31 EXTRAORDINARY ITEM - Gain on extinguishment of debt, net of $1 and $492 income taxes --- 1 -- 738 ---------------------------- ------------------------ NET INCOME (LOSS) . . . . . . . . . . . . . . . $ 172 $ (109) 31 181 ============================ ======================== NET INCOME (LOSS) PER SHARE Income (loss) before extraordinary item . . . . $ 0.00 $ (0.00) $0.00 $(0.01) Extraordinary item. . . . . . . . . . . . . . . 0.00 0.00 0.00 $ 0.01 ---------------------------- ------------------------ Basic and diluted . . . . . . . . . . . . . . $ 0.00 $ (0.00) 0.00 $ 0.00 ============================ ======================== WEIGHTED AVERAGE SHARES Basic and diluted . . . . . . . . . . . . . . 118,757 85,754 106,532 84,153
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