FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark  One)
[  X  ]     QUARTERLY  REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE     ACT  OF  1934

                      For the quarter ended March 31, 2005

                                       OR

[    ]     TRANSITION  REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE     ACT  OF  1934

             For the transition period from __________ to __________


                 Commission File Number                  1-12727
                                                      ----------


                            SENTRY TECHNOLOGY CORPORATION
                            -----------------------------
        (Exact name of small business issuer as specified in its charter)


       Delaware                                        96-11-3349733
     ----------                                        -------------
 (State  or  other  jurisdiction  of               (I.R.S. Employer
incorporation  or organization)                        Identification No.)


     1881  Lakeland  Avenue,  Ronkonkoma,  NY                    11779
-------------------------------------------------                -----
      (Address of principal executive offices)               (Zip Code)


                                 631-739-2000
                                 ------------
              (Registrant's telephone number, including area code)


    (Former name, former address and former fiscal year, if changed since last
                                     report)


Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by  Section  13  or 15 (d) of the Securities Exchange Act of 1934
during  the  preceding 12 months (or for such shorter period that the registrant
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.

Yes     X          No
        -


As  of  May 13, 2005, there were 120,558,804 shares of Common Stock outstanding.





<PAGE>



                          SENTRY TECHNOLOGY CORPORATION
                          -----------------------------
                                      INDEX
                                      -----




                                                        Page  No.
                                                        ---------

PART  I.   FINANCIAL  INFORMATION
---------------------------------

Item  1.     Financial  Statements  (Unaudited)

     Consolidated  Balance  Sheets  --
     March  31,  2005  and  December  31,  2004               3

     Consolidated  Statements  of  Operations  --
     Three  Months  Ended  March  31,  2005  and  2004        4

     Consolidated  Statements  of  Cash  Flows  --
     Three  Months  Ended  March  31,  2005  and  2004        5

     Notes  to  Condensed  Consolidated  Financial
     Statements  -  March  31,  2005                       6  -  9


Item  2.     Management's  Discussion  and  Analysis  of
     Financial  Condition  and  Results  of  Operations    9  -  12


Item  3.     Controls  and  Procedures                        12



PART  II.   OTHER  INFORMATION
------------------------------

Item  6.     Exhibits  and  Reports  on  Form  8-K        12  -  13


Signatures                                                    13









PART  I.   FINANCIAL  INFORMATION
---------------------------------

Item  1.     Financial  Statements  (Unaudited)







SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  BALANCE  SHEETS
(In  thousands)

<TABLE>
<CAPTION>
                                                                March 31,    December 31,
<S>                                                            <C>          <C>
                                                                     2005            2004
                                                               -----------  --------------

ASSETS
-------------------------------------------------------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . . . . . . . . . . .  $    1,211   $       1,965
  Accounts receivable, less allowance for doubtful
     accounts of $200 and $338, respectively. . . . . . . . .       2,018           3,500
  Inventories . . . . . . . . . . . . . . . . . . . . . . . .       3,736           3,314
  Prepaid expenses and other current assets . . . . . . . . .         489             525
                                                               -----------  --------------
    Total current assets. . . . . . . . . . . . . . . . . . .       7,454           9,304

PROPERTY, PLANT AND EQUIPMENT, net. . . . . . . . . . . . . .         659             689
GOODWILL. . . . . . . . . . . . . . . . . . . . . . . . . . .       1,564           1,564
OTHER ASSETS. . . . . . . . . . . . . . . . . . . . . . . . .         646             690
                                                               -----------  --------------

                                                               $   10,323   $      12,247
                                                               ===========  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------------------------------------------
CURRENT LIABILITIES
  Revolving line of credit and term loan. . . . . . . . . . .  $    1,875   $       2,640
  Accounts payable. . . . . . . . . . . . . . . . . . . . . .         629             799
  Accrued liabilities . . . . . . . . . . . . . . . . . . . .       1,177           1,146
  Obligations under capital leases - current portion. . . . .           6               5
  Deferred income . . . . . . . . . . . . . . . . . . . . . .          85             169
                                                               -----------  --------------
    Total current liabilities . . . . . . . . . . . . . . . .       3,772           4,759

NOTES PAYABLE . . . . . . . . . . . . . . . . . . . . . . . .          36             189
OBLIGATIONS UNDER CAPITAL LEASES -
  non-current portion . . . . . . . . . . . . . . . . . . . .           6               8
DEFFERED TAX LIABILITY. . . . . . . . . . . . . . . . . . . .          33              39
CONVERTIBLE DEBENTURES. . . . . . . . . . . . . . . . . . . .       1,873           1,862
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . .       1,031           1,045
                                                               -----------  --------------
    Total liabilities . . . . . . . . . . . . . . . . . . . .       6,751           7,902

SHAREHOLDERS' EQUITY
  Common stock. . . . . . . . . . . . . . . . . . . . . . . .         121             121
  Additional paid-in capital. . . . . . . . . . . . . . . . .      48,780          48,779
  Accumulated deficit . . . . . . . . . . . . . . . . . . . .     (45,478)        (44,718)
  Equity adjustment from foreign currency translation . . . .         149             163
                                                               -----------  --------------
  Total shareholders' equity. . . . . . . . . . . . . . . . .       3,572           4,345
                                                               -----------  --------------
                                                               $   10,323   $      12,247
                                                               ===========  ==============



See notes to the condensed consolidated financial statements.


</TABLE>

<PAGE>












SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(In  thousands,  except  per  share  data)


<TABLE>
<CAPTION>



                                                                        Three Months Ended
                                                                            March 31,
                                                                ------------------------------
<S>                                                             <C>                   <C>
                                                                               2005      2004
                                                                --------------------  --------


REVENUES
  Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $             1,913   $ 1,846
  Service, installation and other. . . . . . . . . . . . . . .                  580     1,128
                                                                --------------------  --------
                                                                              2,493     2,974
COSTS AND EXPENSES:
  Cost of sales. . . . . . . . . . . . . . . . . . . . . . . .                  980       941
  Customer service expenses. . . . . . . . . . . . . . . . . .                  749     1,015
  Selling, general and administrative expenses . . . . . . . .                1,221       925
  Research and development . . . . . . . . . . . . . . . . . .                  233       160
                                                                --------------------  --------
                                                                              3,183     3,041
                                                                --------------------  --------
OPERATING LOSS . . . . . . . . . . . . . . . . . . . . . . . .                 (690)      (67)
INTEREST AND FINANCING EXPENSES. . . . . . . . . . . . . . . .                   91       125
                                                                --------------------  --------
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST . . . . . . . .                 (781)     (192)
INCOME TAX (BENEFIT)                                                            (17)      ---
                                                                --------------------  --------
LOSS BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . .                 (764)     (192)
MINORITY INTEREST                                                                (4)      ---
                                                                --------------------  --------
NET LOSS . . . . . . . . . . . . . . . . . . . . . . . . . . .  $              (760)  $  (192)
                                                                ====================  ========

NET LOSS PER SHARE
          Basic and diluted. . . . . . . . . . . . . . . . . .  $             (0.01)  $ (0.00)
                                                                ====================  ========

WEIGHTED AVERAGE SHARES
          Basic and diluted. . . . . . . . . . . . . . . . . .              120,551    85,756
                                                                ====================  ========



See notes to the condensed consolidated financial statements.

</TABLE>




<PAGE>

























SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
(In  thousands)


<TABLE>
<CAPTION>



                                                                      Three Months Ended
                                                                           March 31,
                                                                ----------------------------
<S>                                                             <C>                   <C>
                                                                               2005    2004
                                                                --------------------  ------


CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss . . . . . . . . . . . . . . . . . . . . . . . . . .  $              (760)  $(192)
  Adjustments to reconcile net loss
     to net cash provided by (used in) operating activities:
     Depreciation and amortization . . . . . . . . . . . . . .                   80      47
     Provision for bad debts . . . . . . . . . . . . . . . . .                    3      10
     Non cash consideration                                                      16     ---
     Minority interest in net loss of consolidated subsidiary                   (14)    ---
  Changes in operating assets and liabilities:
     Accounts receivable . . . . . . . . . . . . . . . . . . .                1,479    (291)
     Inventories . . . . . . . . . . . . . . . . . . . . . . .                 (422)   (121)
     Accounts payable and other current assets and liabilities                 (347)      3
                                                                --------------------  ------

    Net cash provided by (used in) operating activities. . . .                   35    (544)
                                                                --------------------  ------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                                             (9)    ---
  Intangibles. . . . . . . . . . . . . . . . . . . . . . . . .                   (1)     (3)
                                                                --------------------  ------

    Net cash used in investing activities. . . . . . . . . . .                  (10)     (3)
                                                                --------------------  ------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net borrowings (payments) under the revolving line
     of credit and term loan . . . . . . . . . . . . . . . . .                 (765)    419
  Proceeds from bridge loan                                                     ---     100
  Repayment of obligations under capital leases. . . . . . . .                   (1)     (1)
  Proceeds from sale of stock, net                                                1     ---
                                                                --------------------  ------

    Net cash (used in) provided by financing activities. . . .                 (765)    518
                                                                --------------------  ------

EFFECTS OF EXCHANGE RATES ON CASH                                               (14)    ---
                                                                --------------------  ------

DECREASE IN CASH AND CASH EQUIVALENTS. . . . . . . . . . . . .                 (754)    (29)

CASH AND CASH EQUIVALENTS, at beginning of period. . . . . . .                1,965     210
                                                                --------------------  ------
CASH AND CASH EQUIVALENTS, at end of period. . . . . . . . . .  $             1,211   $ 181
                                                                ====================  ======


See notes to the condensed consolidated financial statements.


</TABLE>

<PAGE>














SENTRY  TECHNOLOGY  CORPORATION
NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS
March  31,  2005


NOTE  A  --  Basis  of  Presentation
------------------------------------
The  consolidated  financial  statements  include the accounts of Sentry and its
majority-owned  subsidiaries.  All  intercompany  accounts and transactions have
been  eliminated  in  consolidation.

The accompanying unaudited condensed consolidated financial statements have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States  of  America  for  interim  financial  information  and  with the
instructions  to  Form  10-QSB.  Accordingly,  they  do  not  include all of the
information  and  footnotes required by accounting principles generally accepted
in  the  United  States  of  America  for  complete financial statements. In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered  necessary  for  a  fair  presentation  have  been included.  Interim
results are not necessarily indicative of the results that may be expected for a
full  year.  These  financial  statements should be read in conjunction with the
audited consolidated financial statements and notes thereto included in Sentry's
Annual  Report to Stockholders on Form 10-KSB for the fiscal year ended December
31,  2004,  as  filed  with  the  Securities  and  Exchange  Commission.

Certain prior period amounts have been reclassified to conform to current period
presentation.


NOTE  B  --  ID  Systems  Acquisition
-------------------------------------
On  April  30, 2004, Sentry purchased from Saburah Investments, Inc., an Ontario
corporation,  all  of  the  outstanding  common shares and Series "A" preference
shares  of  ID  Security Systems Canada Inc., an Ontario corporation, and all of
the  outstanding  capital  stock  of  ID  Systems  USA,  Inc.,  a  Pennsylvania
corporation  (collectively,  "ID  Systems").  Mr.  Peter Murdoch, President, CEO
and Director of Sentry, is the owner of Saburah.  Effective January 1, 2005, the
names of the acquired subsidiaries were changed to Sentry Technology Canada Inc.
and  Sentry  Technology  USA  Inc.

Our  condensed  consolidated  statements  of operations include the revenues and
expenses  of ID Systems in the three month period ending March 31, 2005, but not
for  the  corresponding  three  month  period  ended  March  31,  2004.

The  following supplemental pro forma information is presented to illustrate the
effects  of  the  acquisition  on the historical operating results for the three
month  period  ended  March  31,  2004  as if the acquisition had occurred as of
January  1,  2004:

                                              Three  Months  Ended
                                                March  31,  2004
                                     (in  thousands,  except  per  share  data)

Revenues                                          $       4,154
Income  (loss)  before  extraordinary  item       $        (113)
Net  income  (loss)                               $        (113)
Net  income  (loss)  per share                    $       (0.00)






NOTE  C  --  Inventories
------------------------
Inventories  consist  of  the  following:
                                  March  31,  2005          December  31,  2004
                                  ----------------          -------------------
                                               (in  thousands)
Raw  materials                     $     1,323                $     1,206
Work-in-process                            298                        292
Finished  goods                          2,115                      1,816
                                         -----                      -----
                                   $     3,736                $     3,314
                                   =     =====                =     =====


Reserves  for excess and obsolete inventory totaled $1,527,000 and $1,528,000 as
of  March 31, 2005 and December 31, 2004, respectively and have been included as
a  component  of  the  above  amounts.





NOTE  D  --  Credit  Facilities
-------------------------------
Balances  under  credit  facilities  consist  of  the  following:

                                  March  31,  2005          December  31,  2004
                                  ----------------          -------------------
                                               (in  thousands)
The CIT Group/Business Credit Inc.
     revolving  credit                 $  1,051                 $   1,769
Bank of Montreal overdraft lending          675                       734
Bank of Montreal non-revolving demand       149                       137
                                            ---                       ---
                                       $  1,875                 $   2,640
                                       =  =====                 =   =====


The  Company  is  currently in the final negotiations with a Canadian commercial
bank  to replace the facilities listed above with a single global line of credit
under  terms  and conditions substantially in line with the existing facilities.


NOTE  E  --  Related  Party  Transactions
-----------------------------------------
On  January 22, 2004, Robert Furst, a Sentry Director, made a bridge loan to the
Company  in  the  amount of $100,000.  The interest rate on the loan was 15% per
annum  and  the  loan  was  due  on  or  before  April  30, 2004.  As additional
consideration  for  the  loan,  Mr. Furst received a warrant to purchase 300,000
shares  of  Sentry  common  stock  at  a price of $0.17 per share, which was the
market  price on the date of the grant (valued at $3,000 and charged to interest
and financing expenses).  The warrant expires on January 21, 2009.  The note was
repaid  in  full  on  April  30,  2004.


NOTE  F  --  Earnings  Per  Share
---------------------------------
The  earnings  per  share calculations (basic and diluted) at March 31, 2005 and
2004  are  based  upon  the weighted average number of common shares outstanding
during  each  period.  There  are  no  reconciling  items  in  the  numerator or
denominator  of  the  earnings  per  share calculations in either of the periods
presented.  Options  to  purchase 1,299,512 and 1,581,924 shares of common stock
with  a  weighted  average exercise price of $0.58 and $0.57 were outstanding at
March 31, 2005 and 2004, but were not included in the computation of diluted net
loss  per  share  because  their  effect  would  be  antidilutive.

The  Company  accounts  for  stock-based awards to employees using the intrinsic
value  method  in  accordance  with  Accounting Principles Board Opinion No. 25,
"Accounting  for  Stock  Issued  to  Employees."



SFAS  No.  123, Accounting for Stock-Based Compensation, requires the disclosure
of  pro forma net income and earnings per share had the Company adopted the fair
value  method  as of the beginning of fiscal 1995.  Under SFAS No. 123, the fair
value of stock-based awards to employees is calculated through the use of option
pricing  models,  even  though  such  models were developed to estimate the fair
value  of  freely  tradable,  fully  transferable  options  without  vesting
restrictions,  which  significantly  differ  from  the  Company's  stock options
awards.  These  models  also  require  subjective  assumptions, including future
stock  price  volatility and expected time to exercise, which greatly affect the
calculated  values.  The  fair  value of each option granted is estimated on the
date  of  grant  using the Black-Scholes option-pricing model.  In 2005, 150,000
options  were granted at market price on of the date of the grant.  The weighted
average  fair  value of the options granted for the year ended December 31, 2005
is  estimated  at  $0.08,  using the Black-Scholes option pricing model with the
following  weighted  average  assumptions:  expected  life  of  two years; stock
volatility,  94%  in  2005;  risk  free  interest  rates,  4.0%  in 2005, and no
dividends  during  the expected term.  The Company's calculations are based on a
multiple option valuation approach and forfeitures are recognized as they occur.
No  options  were  granted  in  the  three  month  period  ended March 31, 2004.

If  the  computed  fair  values  of  the  post 1995 awards had been amortized to
expense  over  the vesting period of the awards, pro forma net income attributed
to  common  shareholders  would  have  been  as  follows:


<PAGE>













                                                         Three Months Ended
                                                         ------------------
                                                              March 31,
                                                              ---------
                                                      2005                 2004
                                                      ----                 ----
                                                           (In thousands,
                                                         except per share data)

Net  loss:
    As  reported                                  $   (760)            $   (192)
    Less stock based compensation expense
    determined  under  the fair value method
    for all awards, net of related tax effects          (6)                  (6)
                                                  ---------            ---------
    Pro  forma                                    $   (766)            $   (198)
                                                  =========            =========

Net  loss  per  share:
    As  reported                                  $  (0.01)            $  (0.00)
                                                  =========            =========
    Pro  forma                                    $  (0.01)            $  (0.00)
                                                  =========            =========


Note  G  --  Recent  Accounting  Pronouncements
-----------------------------------------------
In December 2004, the FASB issued SFAS No. 123R, "Share-Based Payment." SFAS No.
123R revises SFAS No. 123 and supersedes Accounting Principles Based Opinion No.
25, "Accounting for Stock Issued to Employees." In April 2005, the SEC announced
SFAS  123R  would  be  effective no later than the beginning of the first fiscal
year  beginning  after  June  15, 2005. We will adopt the provisions of SFAS No.
123R  effective January 1, 2006. SFAS No. 123R requires all share-based payments
to  employees  to be recognized in the financial statements based on fair value.
We  currently  account  for share-based payments to employees using APB No. 25's
intrinsic value method. Under SFAS No. 123R we will be required to follow a fair
value approach, such as the Black-Scholes or lattice option valuation models, at
the  date of a stock-based award grant. SFAS No. 123R permits one of two methods
of  adoption:  (1)  modified  prospective  method  or (2) modified retrospective
method.  We  plan  to adopt SFAS No. 123R using the modified prospective method.
This  method  requires  that  we  recognize  compensation expense for all share-
based payments granted on or after January 1, 2006 and for all awards granted to
employees  prior to January 1, 2006 that remain unvested on January 1, 2006. The
adoption  of  SFAS  No.  123R  is  not  expected  to  have a material impact the
Company's  financial  position  or  results  of  operations.



Item 2.  Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of  Operations.
---------------

Certain  Factors  That  May  Affect  Future  Results
----------------------------------------------------

Information  contained  or  incorporated by reference in this periodic report on
Form  10-QSB  and  in  other  SEC  filings  by  Sentry contains "forward-looking
statements"  within  the meaning of the Private Securities Litigation Reform Act
of  1995  which can be identified by the use of forward-looking terminology such
as  "believes,"  "expects,"  "may,"  "will,"  "should"  or  "anticipates" or the
negative  thereof,  other  variations  thereon  or comparable terminology, or by
discussions  of  strategy.  These  forward-looking  statements  involve  certain
significant  risks  and  uncertainties, and actual results may differ materially
from the forward-looking statements. For further details and discussion of these
risks  and  uncertainties  see  Sentry  Technology  Corporation's  SEC  filings
including,  but  not  limited to, its annual report on Form 10-KSB. No assurance
can  be given that future results covered by the forward-looking statements will
be  achieved,  and  other  factors  could  also  cause  actual  results  to vary
materially  from  the future results covered in such forward-looking statements.
We  do  not  undertake  to  publicly update or revise any of our forward-looking
statements  even if experience or future changes show that the indicated results
or  events  will  not  be  realized.

Results  of  Operations:
------------------------

On  April  30,  2004, Sentry purchased from Saburah Investments, Inc. all of the
outstanding  common  shares  and  Series  "A"  preference  shares of ID Security
Systems Canada Inc., and all of the outstanding capital stock of ID Systems USA,
Inc.  (collectively,  "ID  Systems").  ID  Systems  is  a  Toronto based company
engaged  in  anti-shoplifting  technology,  security  labeling,  radio frequency
identification  (RFID),  access  control  and  library  security.  Our condensed
consolidated  statements  of  operations include the revenues and expenses of ID
Systems  in  the  three  month  period  ending  March  31, 2005, but not for the
corresponding  three  month  period ended March 31, 2004.   Effective January 1,
2005,  the  names of the acquired subsidiaries were changed to Sentry Technology
Canada  Inc.  and  Sentry  Technology  USA  Inc.

Consolidated revenues were 16% lower in the quarter ended March 31, 2005 than in
the quarter ended March 31, 2004.  ID Systems' revenues represented $0.9 million
of  the  total revenues for the first quarter ended March 31, 2005.  Our backlog
of  orders,  which we expect to deliver within the next twelve months, increased
to  $2.9  million  at March 31, 2005 as compared to $2.2 million at December 31,
2004.  The  backlog  was $3.0 million at March 31, 2004.  Total revenues for the
periods  presented  are  broken  out  as  follows:



                                  Q-1             Q-1           %  Change
                                 2005            2004           Incr  (Decr)
                                 ----            ----           ------------
                                    (in  thousands)

EAS                            $ 1,050         $  494               113
CCTV                               313            607               (48)
SentryVision                       550            745               (26)
                                   ---            ---               ----
Total  sales                     1,913          1,846                 4
Service, installation and
       other  revenues             580          1,128               (49)
                               -------         ------              -----
Total  revenues                $ 2,493         $2,974               (16)
                               =======         ======              =====

Sentry's  comparable  historical  sales were lower across all product lines.  ID
Systems  sales  of $0.9 million represented the majority of the total EAS sales.
The  prior year historical EAS sales included a higher number of systems as well
as  a  large  sale of reusable tags to a domestic customer.  In January 2005, we
were  notified  by Lowe's Home Center, our largest customer, that they would not
be  renewing their maintenance contract for 2005.  While the annual value of the
maintenance  contract was approximately $0.9 million, it contributed towards the
selection  of  vendors  for  replacement  and  add-on  CCTV  business in new and
existing Lowe's locations. As a result, revenues from Lowe's decreased from $1.1
million  in  the  first  quarter of 2004 to $0.5 million in the first quarter of
2005.  We  anticipate that this decision may result in a substantial decrease in
future  revenues  from  Lowe's  on  a  comparative  basis.

International  sales  of  SentryVision  continued  to  improve in 2005, but were
offset  by  lower  domestic  sales  to  several  other  customers.  Our sales of
SentryVision  products  to  our  international  dealers  and  distributors  are
denominated  in  U.S. dollars, therefore the strengthening of the Euro and other
foreign  currencies  against  the  U.S.  dollar  had  no  significant  impact on
revenues.  While  service revenues were approximately the same in 2005 and 2004,
installation  revenues  were significantly lower in the first quarter of 2005 as
compared  to  the first quarter of 2004, due to lower domestic sales of CCTV and
SentryVision  systems.  Even  though  EAS  sales  increased  substantially,  the
installation  revenues  associated  with EAS systems are lower than for CCTV and
SentryVision  sales.  Maintenance  revenues  were lower primarily as a result of
cancellation  of  the  Lowe's  maintenance  contract.

Cost  of  sales  were  51% of total sales in the each of the three month periods
ended  March  31, 2005 and 2004.  We continue to see margin improvements in 2005
on  Sentry's  historical costs as a result of the outsourcing of all significant
manufacturing  operations.  However,  as  a  percentage of sales, the ID Systems
cost  of sales were higher than Sentry's historical costs as a higher portion of
its  sales  are  made  through dealers and distributors that carry lower margins
than sales made direct to end users.  In addition, lower sales volume at our 51%
owned  labeling  subsidiary  resulted  in  underabsorbed overhead resulting in a
higher  than  normal  cost  of  sales  percentage.

The  decrease  in  customer  service  expenses  in  the first quarter of 2005 as
compared to the first quarter of 2004 is primarily a result of a decrease in the
number  of  customer  service employees and increased the use of outside service
contractors  in  order  to  better  manage  our total net customer service costs
during  fluctuations in activity levels from quarter to quarter.  As a result of
the loss of the Lowe's maintenance agreement, we terminated an additional twelve
customer  service  employees  as  of  the  end  of  March  2005.

Selling,  general  and  administrative expenses increased 32% in the three month
period  ended  March  31,  2005 when compared to the same period of the previous
year.  ID System expenses represent $389,000 of the total current year expenses.
We  have  made  certain  administrative  expense  reductions  to  help
compensate  for the expected reduction in Lowe's business.  At the same time, we
have  increased  funding  of  sales and marketing programs, which we expect will
increase  our  business  with  new  and  existing  customers.

The  increase  in  research  and  development  in the first quarter of 2005 when
compared  to  the  first  quarter  of  2004  includes the research efforts of ID
Systems and increased prototype costs associated with the development of our new
EAS  antenna.

Total  interest  and  financing  costs decreased in the first quarter of 2005 as
compared  to  the  first  quarter  of 2004.  The reduction in total costs in the
first quarter of 2005 was a result of the convertible debt facility entered into
with  the Brascan Technology Fund on April 30, 2004, which eliminated the costly
financing  associated  with  purchase  order  financing.

The  income  tax  benefit  recorded  in the first quarter of 2005 is a result of
investment  tax  credits and the utilization of net operating loss carryforwards
at  one  of  the  Company's  subsidiaries.

As a result of the foregoing, Sentry had a loss of $760,000 in the quarter ended
March  31, 2005 as compared to a loss of $192,000 in the quarter ended March 31,
2004.

Liquidity  and  Capital  Resources  as  of  March  31,  2005

At March 31, 2005, we had cash of $1.2 million, working capital of $3.7 million,
total assets of $10.3 million and shareholders' equity of $3.6 million.  We have
eliminated  the  use  of  expensive  purchase  order financing to fund inventory
purchases  and  we  are  continuing  to reestablish credit with new and existing
vendors.  While  we  had a loss of $0.8 million in the first quarter of 2005, we
generated  cash  from  operating  activities  in  the  first  quarter of 2005 of
$35,000.  This  was  principally  due to a reduction of $1.5 million in accounts
receivable  resulting  from  lower sales, which was used to fund the purchase of
inventory for $0.4 million and payments to creditors of $0.3 million in addition
to  funding  the  loss.

We  utilized $0.8 million in financing activities through a pay down of balances
under  our  credit  facilities.  Availability  under  the  credit  facilities is
principally  based  on the level of our receivables, which declined in the first
quarter.

As  of March 31, 2005, we had borrowings of approximately $1.1 million with CIT,
the  maximum  amount  available  under  the  revolving  credit facility and $0.8
million  with the Bank of Montreal.  We are in the final stages of documentation
with  a  Canadian  commercial bank to replace the facilities listed above with a
single  global  line  of credit under terms and conditions substantially in line
with  the  existing  facilities.

We  are  encouraged  by the recent increase in orders as well as the increase in
backlog  at  the  end  of March 2005.  Sales reps and international distributors
have  been added to the sales group plus new print ads and trade show attendance
will  assist  in  improving  our  sales  results.  We  anticipate  a  return  to
profitability with the combination of increased sales volume and additional cost
cuts  in  the  near  term  future.

We  will  require  liquidity  and  working  capital  to  finance  increases  in
receivables  and inventory associated with sales growth and, to a lesser extent,
for  capital  expenditures.  We  had no material capital expenditure or purchase
commitments  as  of  March 31, 2005.  We believe that our anticipated cash needs
for the foreseeable future can be funded from cash and cash equivalents on hand,
availability  under  our current and future credit facilities and cash generated
from  future  operations


On  March  28,  2005,  our  Board of Directors and a majority of the outstanding
shareholders  approved  an  increase in the authorized number of Sentry's common
shares  from  140,000,000  to  160,000,000,  principally  in  order  to meet the
requirements  of  the  Brascan  Technology  Fund  investment.


Related  Party  Transactions
----------------------------
Details  of  related  party  transactions  are  included  in Note E of this Form
10-QSB.


Item  3.  Controls  and  Procedures

As  of  the  end  of  the  period  covered  by  this  report,  Sentry Technology
Corporation  carried  out  an  evaluation,  under  the  supervision and with the
participation  of  the  Company's  management,  including  the  Company's  Chief
Executive  Officer  and  Chief  Financial  Officer,  of the effectiveness of the
design  and  operation  of  the  Company's  disclosure  controls  and procedures
pursuant  to Rule 13a-15 of the Securities and Exchange Act of 1934.  Based upon
that  evaluation,  the  Chief  Executive  Officer  and  Chief  Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
timely  alerting  them  to  material  information related to the Company that is
required to be included in Sentry Technology Corporation's periodic SEC filings.

There  has  been  no  change  in  the  Company's internal control over financial
reporting during the period covered by this report that has materially affected,
or  is  reasonable  likely  to materially affect, the Company's internal control
over  financial  reporting.

<PAGE>


SENTRY  TECHNOLOGY  CORPORATION
PART  II  -  OTHER  INFORMATION


Item  6  -  Exhibits

(a)     Exhibits:

31.1  -  Certification by the Chief Executive Officer Pursuant to Section 302 of
the  Sarbanes-Oxley  Act  of  2002.

31.2  -  Certification by the Chief Financial Officer Pursuant to Section 302 of
the  Sarbanes-Oxley  Act  of  2002.

32.1  -  Certification  by  the  Chief  Executive  Officer Pursuant to 18 U.S.C.
Section  1350  Adopted  Pursuant  to  Section  906  of the Sarbanes-Oxley Act of
2002.***

32.2  -  Certification  by  the  Chief  Financial  Officer Pursuant to 18 U.S.C.
Section  1350  Adopted  Pursuant  to  Section  906  of the Sarbanes-Oxley Act of
2002.***

***     In  accordance  with Item 601(b)(32)(ii) of Regulation S-K, this exhibit
shall not be deemed "filed" for the purposes of Section 18 of the Securities and
Exchange  Act of 1934 or otherwise subject to the liability of that section, nor
shall  it be deemed incorporated by reference in any filing under the Securities
Act  of  1933  or  the  Securities  Exchange  Act  of  1934.


<PAGE>



SIGNATURES


Pursuant  to  the  requirements  of the Securities and Exchange Act of 1934, the
registrant  had  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.

                                      SENTRY  TECHNOLOGY  CORPORATION
                                      -------------------------------


Date:     May  13,  2005              By:     /s/PETER  J.  MUNDY
          --------------              ---------------------------------
                                      Peter  J.  Mundy, Vice  President
                                      Finance  and  Chief  Financial  Officer
                                      (Principal  Financial  and
                                                Accounting Officer)

<PAGE>





































SECTION  302  CERTIFICATION:


Exhibit  31.1

                            CERTIFICATION PURSUANT TO
                                 SECTION 302 OF
                         THE SARBANES-OXLEY ACT OF 2002

Certification  of  CEO

I,  Peter  L.  Murdoch,  certify  that

1.   I  have  reviewed this quarterly report on Form 10-QSB of Sentry Technology
Corporation;

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-15(e)  and  15d-15(e)) for the registrant and we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  and presented in this report our conclusions about the effectiveness
of  the  disclosure controls and procedures, as of the end of the period covered
by  this  report  based  on  such  evaluation;  and

c)     disclosed  in this report any change in the registrant's internal control
over  financial  reporting  that  occurred  during  the registrant's most recent
fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely to
materially  affect,  the registrant's internal control over financial reporting;
and

5.  The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
function):

a)     all  significant  deficiencies  and  material weaknesses in the design or
operation  of  internal  controls  over financial reporting which are reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize  and  report  financial  information;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees  who  have  a  significant role in the  registrant's internal controls
over  financial  reporting.


                              /s/  PETER  L.  MURDOCH
                          -------------------------------------------------

                              Peter  L.  Murdoch
                              President  and  Chief  Executive  Officer

                              May  13,  2005





<PAGE>














SECTION  302  CERTIFICATION:


Exhibit  31.2

                            CERTIFICATION PURSUANT TO
                                 SECTION 302 OF
                         THE SARBANES-OXLEY ACT OF 2002

Certification  of  CFO

I,  Peter  J.  Mundy,  certify  that

1.   I  have  reviewed this quarterly report on Form 10-QSB of Sentry Technology
Corporation;

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-15(e)  and  15d-15(e)) for the registrant and we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  and presented in this report our conclusions about the effectiveness
of  the  disclosure controls and procedures, as of the end of the period covered
by  this  report  based  on  such  evaluation;  and

c)     disclosed  in this report any change in the registrant's internal control
over  financial  reporting  that  occurred  during  the registrant's most recent
fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely to
materially  affect,  the registrant's internal control over financial reporting;
and

5.  The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
function):

a)     all  significant  deficiencies  and  material weaknesses in the design or
operation  of  internal  controls  over financial reporting which are reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize  and  report  financial  information;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees  who  have  a  significant role in the  registrant's internal controls
over  financial  reporting.


                              /s/  PETER  J.  MUNDY
                          -------------------------------------------------

                              Peter  J.  Mundy
                              Vice  President  and  Chief  Financial  Officer

                              May  13,  2005

<PAGE>















SECTION  906  CERTIFICATION:


Exhibit  32.1


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                               ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



Certification  of  CEO

In  connection  with  the Quarterly Report of Sentry Technology Corporation (the
"Company")  on Form 10-QSB for the period ended March 31, 2005 as filed with the
Securities and Exchange Commission on the date hereof (the Report"), I, Peter L.
Murdoch, Chief Executive Officer of the Company, certify, pursuant to Section 18
U.S.C.  1350,  as  adopted  pursuant to Section 906 of the Sarbanes-Oxley Act of
2002,  that:

(1)     The  Report  fully  complies  with the requirements of Section 13(a) and
15(d)  of  the  Securities  Exchange  Act  of  1934;  and

(2)     The information contained in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.



                           /s/  PETER  L.  MURDOCH
                          -------------------------------------------------

                               Peter  L.  Murdoch
                               President  and  Chief  Executive  Officer

                              May  13,  2005


A  signed  original  of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears  in  typed  form  within  the  electronic  version  of  this     written
statement  required by Section 906, has been provided to the Company and will be
retained  by the Company and furnished to the Securities and Exchange Commission
or  its  staff  upon  request.

This  certification  accompanies  this Report on Form 10-QSB pursuant to Section
906  of  the  Sarbanes-Oxley  Act  of  2002  and shall not, except to the extent
required  by such Act, be deemed filed by the Company for purposes of Section 18
of  the Securities Exchange Act of 1934, as amended  (the "Exchange Act").  Such
certification will not be deemed to be incorporated by reference into any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except to the
extent  that  the  Company  specifically  incorporates  it  by  reference.










<PAGE>























SECTION  906  CERTIFICATION:


Exhibit  32.2


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                               ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



Certification  of  CFO

In  connection  with  the Quarterly Report of Sentry Technology Corporation (the
"Company")  on Form 10-QSB for the period ended March 31, 2005 as filed with the
Securities and Exchange Commission on the date hereof (the Report"), I, Peter J.
Mundy,  Chief  Financial Officer of the Company, certify, pursuant to Section 18
U.S.C.  1350,  as  adopted  pursuant to Section 906 of the Sarbanes-Oxley Act of
2002,  that:

(1)     The  Report  fully  complies  with the requirements of Section 13(a) and
15(d)  of  the  Securities  Exchange  Act  of  1934;  and

(2)     The information contained in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.



                              /s/  PETER  J.  MUNDY
                          -------------------------------------------------

                              Peter  J.  Mundy
                              Vice  President  and  Chief  Financial  Officer

                              May  13,  2005


A  signed  original  of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears  in  typed  form  within  the  electronic  version  of  this     written
statement  required by Section 906, has been provided to the Company and will be
retained  by the Company and furnished to the Securities and Exchange Commission
or  its  staff  upon  request.

This  certification  accompanies  this Report on Form 10-QSB pursuant to Section
906  of  the  Sarbanes-Oxley  Act  of  2002  and shall not, except to the extent
required  by such Act, be deemed filed by the Company for purposes of Section 18
of  the Securities Exchange Act of 1934, as amended  (the "Exchange Act").  Such
certification will not be deemed to be incorporated by reference into any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except to the
extent  that  the  Company  specifically  incorporates  it  by  reference.