Commenting on the third quarter and the current outlook,
STEN Corporation and subsidiaries, headquartered in
STEN Corporation common stock is traded on the Nasdaq Capital Market under the symbol STEN. More information about STEN Corporation is available at the Company's website: http://www.stencorporation.com. Except for historical information contained herein, the disclosures in this news release are forward-looking statements that could be affected by certain risks and uncertainties, and actual results may differ materially, depending on a variety of factors. These risks are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no duty or obligation to update any of the forward-looking statements after the date of this release.
STEN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the For the For the For the thirteen thirteen thirty-nine thirty-nine weeks ended weeks ended weeks ended weeks ended June 29, 2008 July 1, 2007 June 29, 2008 July 1, 2007 REVENUES Stencor sales $556,411 $304,454 $1,513,766 $951,902 Vehicle sales, interest, and other 4,479,502 752,150 9,305,595 1,153,356 TOTAL REVENUES 5,035,913 1,056,604 10,819,361 2,105,258 COST AND EXPENSES Costs of goods sold related to Stencor 533,637 394,255 1,457,496 1,147,863 Expenses related to STEN Financial Cost of autos sold 2,575,875 219,235 5,776,600 281,535 Salaries and benefits 324,683 231,370 942,356 405,208 Occupancy and operation expenses 207,232 87,784 513,391 137,148 Depreciation and amortization 61,993 60,940 187,140 137,884 Provision for credit losses 692,085 88,319 1,484,331 95,305 Interest expense, net 761,567 193,196 2,006,140 318,291 Selling, general and administrative 305,250 240,764 866,455 695,861 TOTAL COST AND EXPENSES 5,462,322 1,515,863 13,233,909 3,219,095 Loss from Continuing Operations Before Income Taxes (426,409) (459,259) (2,414,548) (1,113,837) BENEFIT FROM INCOME TAXES (159,900) (176,705) (902,598) (412,100) NET LOSS FROM CONTINUING OPERATIONS (266,509) (282,554) (1,511,950) (701,737) Income (loss) from Discontinued Operations (40,802) 56,669 (134,484) (274,017) Provision for (benefit from) income taxes from Discontinued Operations (15,300) 21,805 (50,568) (110,100) Net income (loss) from discontinued operations (25,502) 34,864 (83,916) (163,917) NET LOSS $(292,011) $(247,690) $(1,595,866) $(865,654) NET LOSS PER SHARE FROM CONTINUING OPERATIONS: Basic $(0.11) $(0.14) $(0.62) $(0.35) Diluted $(0.11) $(0.14) $(0.62) $(0.35) NET INCOME (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS: Basic $(0.01) $0.02 $(0.03) $(0.08) Diluted $(0.01) $0.02 $(0.03) $(0.08) NET LOSS PER SHARE: Basic $(0.12) $(0.12) $(0.65) $(0.44) Diluted $(0.12) $(0.12) $(0.65) $(0.44) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Basic 2,528,751 1,990,990 2,450,880 1,989,601 Diluted 2,528,751 1,990,990 2,450,880 1,989,601 STEN CORPORATION AND SUBSIDIARIES CONDENSED BALANCE SHEETS ASSETS June 29, September 30, 2008 2007 (unaudited) (audited) CURRENT ASSETS Cash, cash equivalents $286,167 $156,399 Current portion of loans receivable 2,786,918 2,057,475 Other current assets 6,320,702 4,341,292 Total Current Assets 9,393,787 6,555,166 PROPERTY AND EQUIPMENT, NET 1,282,512 1,051,013 OTHER ASSETS Intangible assets, net 1,073,381 1,228,889 Loan receivable, net of current portion 6,613,197 4,487,466 Other assets 3,695,166 3,990,145 Total Other Assets 11,381,744 9,706,500 TOTAL ASSETS $22,058,043 $17,312,679 LIABILITIES AND STOCKHOLDERS' EQUITY TOTAL CURRENT LIABILITIES Line of credit, bank $0 680,000 Current portion of long term debt 5,093,881 2,886,265 Other current liabilities 2,991,048 2,791,762 Total Current Liabilities 8,084,929 6,358,027 LONG-TERM LIABILITIES Dealer reserves 41,792 1,076,707 Long-term debt, net of current portion 8,948,840 4,457,458 TOTAL LIABILITIES 17,075,561 11,892,192 TOTAL STOCKHOLDERS' EQUITY 4,982,482 5,420,487 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,058,043 $17,312,679 NET BOOK VALUE PER SHARE $1.97 $2.72
SOURCE STEN Corporation