Sentry Technology Corp., a manufacturer and installer of CCTV solutions, and radio frequency (RF) and electro magnetic (EM) EAS systems, reported its financial results for the second quarter ended June 30, 2003.
Revenues for the second quarter were $2.3 million compared to revenues of $3.2 million reported in the second quarter of the prior year. The reduction in revenues is primarily attributed to the timing of orders received from major customers, which Sentry believes will improve in the third quarter. The net profit in the second quarter of 2003 was $530,000, or 1 cent per share, compared to net loss of $1.1 million or 2 cents per share in the second quarter of last year. Included in the net income for the second quarter of 2003 was an extraordinary gain related to the negotiated settlement with trade creditors of past due debt of $522,000, or 1 cent per share, net of $348,000 of income taxes.
For the first six months ended June 30, 2003, revenues were $5.9 million, compared to $7.9 million reported in the previous year. Net profit was $36,000, or 0 cents per diluted share, compared to a net loss of $1.4 million, or 2 cents per diluted share, in the first six months of last year.
“We have completed many steps in our turn around including restructuring 80 percent of past due supplier debt, a 50-percent reduction in the workforce and termination of the long term lease of our current premises, while retaining key customers,” said Peter L. Murdoch, president and CEO of Sentry. “Cost-cutting has very significantly reduced operating expenses, and our decision to outsource manufacturing has added 20 percent to gross profits. These changes have dramatically improved the company’s cash flow, allowing us to concentrate on building sales. Recent SmartTrack orders from Lowes, Fred Meyer and Cabelas Sporting Goods in the U.S., combined with strong performance in Europe from B&Q, CORA, Auchan, Carrefour and Iper, give us confidence when the world’s largest retailers are reordering Sentry’s core product line.”
