Shuffle Master grows revenues and profits in second quarter


Shuffle Master Gaming grew revenues and net income in the second quarter after shaking up the Las Vegas-based company's corporate structure by bringing on a new management team.

Shuffle Master, which supplies the industry with table games and casino management systems, said Wednesday its net income in the quarter that ended April 30 was $7.94 million, up slightly from $7.88 million in the same quarter a year ago. Earnings per share, however, was 14 cents, down from 15 cents per share in the 2010 second quarter.

Total revenue increased 18 percent to $59.9 million because of a growth in the gaming revenue shared with casinos from table games such as Three Card Poker and Let It Ride, the leases from automated card shufflers and other table game equipment. Shuffle Master also saw sales increase in dealerless electronic table games.

The company said Australia accounted for 41 percent of its revenue in the quarter while international revenue accounted for about 59 percent of total. Its share of U.S. operations fell from 49.2 percent to 40.7 percent. Australia's 41 percent share of revenue was up from last year's 28.9 percent.

Shuffle Master also said its base of installed leased automated card shufflers was up 22 percent from a year ago. The company is focused on leasing the equipment rather than selling the products.

The quarter was the first under new Chief Executive Officer Gavin Isaacs, who joined the company April 1.

"In my first two months as CEO, I have been impressed with the commitment of our employees to build upon our industry leadership, the depth and breadth of our strong intellectual property portfolio, and the many rich opportunities that I believe lie ahead for Shuffle Master," Isaacs said in a statement.

 

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