Shuffle Master reverses net loss

12 March 2010

By Howard Stutz

LAS VEGAS, Nevada -- Gaming equipment provider Shuffle Master reversed a quarterly net loss from a year ago but disappointed analysts who expected stronger profits.

The Las Vegas-based company, which provides casinos with table games and casino management equipment, said Thursday its net income was $3.7 million, or 7 cents a share, in the first quarter ended Jan. 31. A year earlier, the company had a net loss of $1 million, or 2 cents a share.

Analysts polled by Thomson Reuters expected the company to report 8 cents a share in net profit.

Shuffle Master's overall revenue was $40.3 million, a 17 percent increase compared with $34.5 million a year ago. Revenues from the sales of table games, such as Three Card Poker and Let It Ride, fell 6 percent to $9 million.

Shuffle Master Chief Executive Officer Tim Parrott expects the company to benefit this year through the expansion of table games into new markets, such as Pennsylvania.

"The continued strong acceptance of our varied and improved product offerings in existing and new markets are exciting as we enter the new year," Parrott said.

The company reported earnings after the end of trading on the Nasdaq National Market. Shuffle Master closed Thursday at $8.93, up 32 cents, or 3.72 percent.

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