Las Vegas-based gaming equipment manufacturer PlayAGS reported mixed second-quarter financial results Wednesday but executives expect the introduction of new products at this year’s Global Gaming Expo show in October to get the company on track.
For the quarter that ended June 30, PlayAGS reported a 2.3 percent increase in revenue to $74.5 million over the second quarter of 2018, but still missed analysts’ projections of $82.9 million.
Losses widened to $7.4 million, or 21 cents a share. Adjusted cash flow also faltered.
“The decrease was related to increased operating expenses as we continue to invest in strategic areas of our business, particularly in research and development, to capitalize on the vast white space (opportunities) in front of us,” said PlayAGS President and CEO David Lopez. “With our many upcoming product launches, including the Orion Upright (slot machine case) and three new slot innovations, which we’ll showcase at G2E, we remain confident in the many opportunities for sustainable growth in the back half of 2019 and beyond.”
The company is a key player in Class II slot machines. Class II games are used primarily in tribal casinos and don’t use random number generators to produce game results.
PlayAGS’ biggest customer is the Chickasaw tribe in Oklahoma with more than 74,000 slots. The company also is a market leader in Alabama and Texas and is ramping up operations in Florida, Montana and California.
The company attributed the widening of losses to impairments in goodwill and intangible assets associated with the company’s interactive gaming segment.
PlayAGS shares fell 79 cents, 4.4 percent, to $17.30 a share in light trading volume Wednesday. After hours, shares plunged another 9 percent, $1.55, to end at $15.75 a share.
Second-quarter revenue and earnings for Las Vegas-based PlayAGS Inc., a gaming equipment and slot machine manufacturer. (NYSE: AGS).
2Q 2019: $74.5 million
2Q 2018: $72.8 million
2Q 2019: $7.4 million
2Q 2018: $5.3 million
Loss per share
2Q 2019: 21 cents
2Q 2018: 15 cents