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Casino Beacon > Online Casinos > New Casino Bonuses > Bonus Archive 11 September 2008 GameTech Reports 3rd Quarter Results GameTech International have announced financial results for the Company's third fiscal quarter and nine-month period ended July 31, 2008. Revenue for the third quarter of fiscal 2008 was $13.4 million compared with $16.6 million for the same period in fiscal 2007. The decrease in revenue for the quarter is attributed to the soft economy which has impacted the gaming industry nationwide, compounded by pricing pressures due to increased competition in the Bingo equipment segment, and software release delays in the VLT segment due to either approval from gaming authorities or a softness in certain markets. Revenue for the first nine months of fiscal 2008 was $42.4 million compared with $42.1 million for the same period in fiscal 2007. This slight increase in revenue for the nine months of 2008 is the result of having the full impact of revenues generated by the acquisition of Summit Amusement & Distributing, Ltd., a manufacturer and distributor of video lottery terminals, as compared to only four months in 2007. Loss from operations for the third quarter of fiscal 2008 was $0.01 million, compared with income from operations of $2.5 million for the same period in fiscal 2007. The decline in income from operations is directly related to the decline in revenue, combined with higher than normal write-offs of obsolete and slow moving parts and materials, and increased operating costs expended for developing new product lines (such as the previously announced California Keno game approved by GLI on August 7, 2008), new hardware and software development for a previously announced major video lottery contract that is expected to start delivery in the fourth quarter of fiscal 2008, and licensing costs and fees as we expand our products into new markets. Income from operations for the first nine months of fiscal 2008 was $2.9 million compared with income from operations of $6.1 million in the same period of fiscal 2007. With revenue relatively flat for the nine months ended 2008 as compared to 2007, the decline in income from operations of $3.2 million is primarily attributed to increased costs described above from development and testing of new products and content for expected delivery in future quarters, and higher licensing costs and fees as GameTech expand into new markets. |
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