Sentry Technology Reports First Quarter Results

RONKONKOMA, N.Y., May 11, 2011 /PRNewswire/ -- Sentry Technology Corporation (OTC Markets: SKVY) today reported financial results for the Company's first quarter ended March 31, 2011.  

Revenues for the first quarter of 2011 were $2,235,000 compared to revenues of $2,226,000 reported in the first quarter of the prior year. The operating loss was $186,000, or $(0.00) per share, in the first quarter of 2011 as compared to an operating loss of $194,000 or $(0.00) per share, in the first quarter of 2010.  

"First quarter sales and operating results are similar to the first quarter of last year," said Peter Murdoch, President and CEO of Sentry Technology Corporation. "We anticipate having a complete system prototype of our new VideoRailway™ in test next month. Our core customers have expressed strong interest in VideoRailway™ and we expect that the new design will create a much larger market for our traveling camera technology."

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.

SENTRY TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS *
(In thousands, except per share data)
	Three Months Ended
	March 31,
	2011	2010
	(Unaudited)
REVENUES:
Sales	$1,943	$1,970
Service, installation and maintenance revenues	292	256
	2,235	2,226
COST OF SALES AND EXPENSES:
Cost of sales	1,100	1,101
Customer service expenses	290	258
Selling, general and administrative expenses	904	868
Research and development	93	143
Foreign exchange loss	34	50
	2,421	2,420
LOSS FROM OPERATIONS	(186)	(194)
INTEREST EXPENSE, net	172	126
NON-CASH AMORTIZATION COSTS RELATED TO FINANCING	245	132
LOSS BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST	(603)	(452)
INCOME TAX EXPENSE	---	4
NET LOSS BEFORE NONCONTROLLING INTEREST	(603)	(456)
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE
NONCONTROLLING INTEREST	(6)	4
NET LOSS	$(597)	$(460)
LOSS PER SHARE
Basic and diluted	$(0.00)	$(0.00)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic and diluted	143,617	120,744
* Full financial statements are available on the Company's website at www.sentrytechnology.com.

CONTACT:	Peter L. Murdoch
	President & CEO
	[phone]

SOURCE Sentry Technology Corporation

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