Elixir Gaming Technologies Inc (EGT, Financial) filed Quarterly Report for the period ended 2009-09-30.
Vendingdata Corp is a Las Vegas-based developer, manufacturer and distributor of products for the gaming industry including the SecureDrop System, Deck-Checker and Random Ejection Shuffler line. Their products are currently installed in casinos throughout the United States, including Caesars Palace, Circus Circus, Harrah's Entertainment, Luxor, Oneida Bingo & Casino and the Venetian. International customers include casinos in Argentina, China, Columbia, Korea, Malaysia, Peru, United Kingdom, and Uruguay. Elixir Gaming Technologies Inc has a market cap of $37.9 million; its shares were traded at around $0.33 with a P/E ratio of 0.4 and P/S ratio of 3.1.
We have successfully executed various cost reduction initiatives. Such reductions are critical given the current economic climate and provide a much leaner cost structure to expand our core gaming machine participation operations and derive greater benefits from the leverage inherent in our operating model. During the three-month and nine-month periods ended September 30, 2009, we reduced cash selling, general and administrative expenses by $2.3 million and $5.1 million, respectively, compared to the prior year periods. Based on our cost reduction measures and the current scale of operations, we believe we can maintain quarterly selling, general and administrative cash expenses in the approximate range of $1.5 to $1.8 million.
As a result of the above efforts, our financial performance has improved materially during the three-month and nine-month periods ended September 30, 2009. Our consolidated revenues for the three-month and nine-month periods ended September 30, 2009 were $3.6 million and $11.1 million, of which revenue from our gaming machine participation operations, our primary business, comprised 51% and 41%, respectively, of total revenues. This compares to $3.4 million and $9.1 million for the respective periods in 2008, of which revenue from our gaming machine participation operations comprised 33% and 26%, respectively, of total revenues.
Operating loss from continuing operations declined $3,612,241 to $3,514,690 for the three-month period ended September 30, 2009 compared to an operating loss of $7,126,931 in the same period of the prior year. Net loss from continuing operations declined $3,552,340 to $3,675,070 compared to a net loss of $7,227,410 for the same period of the prior year. The decline in operating and net loss from continuing operations was primarily the result of a lower gross loss and significantly reduced operating expenses.
Operating loss from continuing operations decreased $11,303,850 to $11,528,730 for the nine-month period ended September 30, 2009 compared to a net loss of $22,832,580 in the same period of the prior year. Net loss from continuing operations decreased $10,315,725 to $11,590,345 for the nine-month period ended September 30, 2009 compared to a net loss of $21,906,070 in the same period of the prior year. The operating and net profit losses were positively impacted by lower gross losses, significantly reduced operating expenses, gains related to the settlement of the legacy lawsuits with Purton and Shuffle Master, and reduced interest expense, partially offset by a write-down of an intangible asset associated with our chip washer patents, lower interest income, and
Gross loss from gaming machine participation operations decreased $409,486 to $1,182,485 for the three-month period ended September 30, 2009 compared to a gross loss of $1,591,969 for the same period of the prior year as revenue from gaming machine participation increased disproportionately greater than depreciation expenses for our gaming machine participation operations. However, revenues have yet to cover the cost of machine depreciation, which is recorded in cost of operations. Our cost of goods sold for the three-month period ended September 30, 2009 included $2,533,508 depreciation of electronic gaming machines and $370,20
Read the The complete Report
Vendingdata Corp is a Las Vegas-based developer, manufacturer and distributor of products for the gaming industry including the SecureDrop System, Deck-Checker and Random Ejection Shuffler line. Their products are currently installed in casinos throughout the United States, including Caesars Palace, Circus Circus, Harrah's Entertainment, Luxor, Oneida Bingo & Casino and the Venetian. International customers include casinos in Argentina, China, Columbia, Korea, Malaysia, Peru, United Kingdom, and Uruguay. Elixir Gaming Technologies Inc has a market cap of $37.9 million; its shares were traded at around $0.33 with a P/E ratio of 0.4 and P/S ratio of 3.1.
Highlight of Business Operations:
On March 16, 2009, we entered into a Purchase and Settlement Agreement with Shuffle Master, Inc. (the Purchase and Settlement Agreement) pursuant to which we sold to Shuffle Master our portfolio of automated card verification machines and electronic card shuffling systems, all related intellectual property, and certain inventory of such products and settled all outstanding litigation between Shuffle Master and the Company, which traced back to October 5, 2004. The total consideration paid by Shuffle Master was $2.8 million, of which $2.4 million was received in March 2009 and $400,000 was received in April 2009. In relation to this Purchase and Settlement Agreement, we terminated a distributorship arrangement of the relevant products with our distributor in Europe. Pursuant to the termination arrangement, we were required to buy back certain inventory of the relevant products kept by the distributor. After taking into account such buy-back obligation, we recognized a gain relating to the asset disposal of approximately $1.71 million in the second quarter 2009. As a result of the transactions under the Purchase and Settlement Agreement, which were completed in April 2009, the China facility became redundant and, therefore, was closed at the end of April 2009. At March 31, 2009, we incurred a restructuring charge of $29,416 relating to the write-down of the remaining plant equipment. We believe that the above transaction provided significant financial benefits to us as it improved our cash position and freed resources to focus on addressing market opportunities that further our strategy of expanding our core electronic gaming machine participation business.We have successfully executed various cost reduction initiatives. Such reductions are critical given the current economic climate and provide a much leaner cost structure to expand our core gaming machine participation operations and derive greater benefits from the leverage inherent in our operating model. During the three-month and nine-month periods ended September 30, 2009, we reduced cash selling, general and administrative expenses by $2.3 million and $5.1 million, respectively, compared to the prior year periods. Based on our cost reduction measures and the current scale of operations, we believe we can maintain quarterly selling, general and administrative cash expenses in the approximate range of $1.5 to $1.8 million.
As a result of the above efforts, our financial performance has improved materially during the three-month and nine-month periods ended September 30, 2009. Our consolidated revenues for the three-month and nine-month periods ended September 30, 2009 were $3.6 million and $11.1 million, of which revenue from our gaming machine participation operations, our primary business, comprised 51% and 41%, respectively, of total revenues. This compares to $3.4 million and $9.1 million for the respective periods in 2008, of which revenue from our gaming machine participation operations comprised 33% and 26%, respectively, of total revenues.
Operating loss from continuing operations declined $3,612,241 to $3,514,690 for the three-month period ended September 30, 2009 compared to an operating loss of $7,126,931 in the same period of the prior year. Net loss from continuing operations declined $3,552,340 to $3,675,070 compared to a net loss of $7,227,410 for the same period of the prior year. The decline in operating and net loss from continuing operations was primarily the result of a lower gross loss and significantly reduced operating expenses.
Operating loss from continuing operations decreased $11,303,850 to $11,528,730 for the nine-month period ended September 30, 2009 compared to a net loss of $22,832,580 in the same period of the prior year. Net loss from continuing operations decreased $10,315,725 to $11,590,345 for the nine-month period ended September 30, 2009 compared to a net loss of $21,906,070 in the same period of the prior year. The operating and net profit losses were positively impacted by lower gross losses, significantly reduced operating expenses, gains related to the settlement of the legacy lawsuits with Purton and Shuffle Master, and reduced interest expense, partially offset by a write-down of an intangible asset associated with our chip washer patents, lower interest income, and
Gross loss from gaming machine participation operations decreased $409,486 to $1,182,485 for the three-month period ended September 30, 2009 compared to a gross loss of $1,591,969 for the same period of the prior year as revenue from gaming machine participation increased disproportionately greater than depreciation expenses for our gaming machine participation operations. However, revenues have yet to cover the cost of machine depreciation, which is recorded in cost of operations. Our cost of goods sold for the three-month period ended September 30, 2009 included $2,533,508 depreciation of electronic gaming machines and $370,20
Read the The complete Report
