Monday August 30th, 9:00 AM Eastern Time
SOURCE: GameTech International, Inc.
RENO, Nev., Aug. 30 -- GameTech International, Inc., a leading supplier of electronic bingo equipment, today announced financial results for the Company's third fiscal quarter and the nine-month period ended July 31, 2004. Revenues for the quarter were $12.9 million, an increase of $140,000 over revenues for the third quarter of 2003. Net income for the quarter was approximately $33,000, or less than $0.01 per diluted share, down $219,000 from the prior year's third quarter net income of $252,000, or $0.02 per diluted share. For the nine-months ended July 31, 2004, revenues were $38.9 million compared to $39.3 million for the comparable period of fiscal 2003. Net income for the nine-months ended July 31, 2004 amounted to $76,000, or $0.01 per diluted share, compared to $999,000, or $0.08 per diluted share for the comparable period of 2003.
According to Clarence Thiesen, chief executive officer, the Company's revenue has not reached anticipated levels due to delays in the installation of the Company's new Traveler(TM) terminal. "We have been simultaneously encouraged by the outstanding reception of this new innovation in the marketplace and disappointed by the slower than expected rollout of the Traveler(TM) terminal," Thiesen said. "We are concentrating our efforts on accelerating this rollout of the Traveler(TM) terminal and other new products and services while continuing our aggressive R&D efforts which have been the focus for the Company. We expect that future product releases will drive improvements in operating results."
Thiesen emphasized that products and services introduced to the market in addition to the Traveler(TM) terminal are also receiving positive customer reception. "Customer response to the Company's new products and services has been positive. New products include Pay-N-Play(TM), the fast-action, credit-based pari-mutuel like bingo system as well as the latest version of the Company's bingo management system, AllTrak(TM). We also anticipate strong response to Bingo Enhanced Tabs System(TM), the Class II pull-tab game engine that can be played on the GameTech bingo unit before, during and after bingo sessions, which is currently in beta testing," said Thiesen. "The succession of new and improved products and services over the past year has been the result of our emphasis on better serving our customers by anticipating their needs through investment in R&D."Paragraph 4!!
The Company's third quarter operating expenses increased by $290,000, or approximately 2 percent over the comparable quarter in 2003. R&D costs continued to increase and depreciation grew resulting from purchase of new product for installation in customer locations. Although legal costs decreased over the comparable quarter in 2003, the Company expects legal costs to increase in the fourth quarter due to the scheduled trials of two lawsuits aimed at protecting the Company's market share and intellectual property rights.
GameTech International, Inc. is a leading supplier of a comprehensive
line of electronic bingo equipment, including hand-held bingo terminals,
fixed base terminals and turnkey accounting and management software. The
Company supports its bingo operator customers with products that typically
increase play, revenues and profits, and software customized to enhance
management and operations, all backed by unparalleled customer service and
support.
Certain statements contained in this press release may be deemed to be
forward-looking statements under federal securities laws, and GameTech
intends that such forward-looking statements be subject to the safe harbor
created thereby. Such forward-looking statements include expectations for
the Company's revenues, earnings, and operating results of the Company, the
success and results of the Company's new products and new market expansions,
the success of the Company's development of new products and services that
respond to the needs of the customers, the success of the Company's research
and development efforts, and the ability of the Company to generate returns
for its stockholders. GameTech cautions that these statements are qualified
by important factors that could cause actual results to differ materially
from those reflected by the forward looking statements contained herein.
Such factors include (a) the ability of the Company to introduce products in
the future that achieve commercial success; (b) the level of research and
development costs and legal expenses, (c) changes in the regulatory
environment for the Company's products and the ability of the Company and
its products to be licensed; (d) the ability of the Company's management,
individually or collectively, to guide the Company in a successful manner;
and (e) the ability of the Company to collect damage awards from legal
actions. Additional information on these risk factors that could potentially
affect the Company's financial results may be found in documents filed by
the Company with the Securities and Exchange Commission.
GAMETECH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
(In thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
July 31, July 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Revenue $12,916 $12,776 $38,889 $39,295
Operating expenses:
Cost of revenues 6,340 5,905 18,036 16,768
General and
administrative 2,314 2,650 8,051 8,651
Sales and marketing 3,028 2,929 9,459 9,324
Research and
development 1,066 974 3,079 2,851
12,748 12,458 38,625 37,594
Income from operations 168 318 264 1,701
Interest income and
other (expense), net 31 (14) 11 13
Income before provision
for income taxes 199 304 275 1,714
Provision for income taxes 166 52 199 715
Net income $33 $252 $76 $999
Basic net income
per share $0.00 $0.02 $0.01 $0.09
Diluted net income
per share $0.00 $0.02 $0.01 $0.08
Shares used in the
calculation of net
income per share:
Basic 11,781,942 11,732,222 11,758,750 11,682,194
Diluted 11,971,145 11,754,021 11,923,559 11,861,622
Balance Sheet Data
July 31, October 31,
2004 2003
(unaudited) (audited)
Cash and equivalents $5,440 $10,202
Short-term investments 2,513 1,750
Total current assets 14,644 18,361
Total assets 58,662 60,175
Total current liabilities 3,922 3,555
Total liabilities 7,886 7,554
Total stockholders' equity 50,776 52,621
Total liabilities and
stockholders' equity $58,662 $60,175
Source: GameTech International, Inc. |