Casino Data Systems earnings

Wednesday, Oct. 30, 1996 | 11:59 a.m.

COMMENTS: The company said the record results included $14.2 million of systems and product sales, up 135 percent from those of the 1995 third-quarter, and $7.1 million of progressive operations revenues, up 200 percent. Operating income for the 1996 third quarter rose to $3.4 million from $1.2 million. Per-share net was based on 18.4 million shares outstanding in the 1996 period, up from 14 million in the year-earlier quarter. The company said gross margins fell to 47 percent from 58 percent a year ago due to a material one-time cost as a result of an "early" jackpot on its Nevada link of Caribbean Stud and higher costs associated with its multisite progressive business because of a lower interest rate environment. Vice President Mark Lipparelli said CDS said the improved results occurred even though a "large number" of slot-machine sales carried volume discounts and the company has achieved "only initial levels of efficiencies in our production processes." He said the 1996 quarter also included a cash payment from International Game Technology; the amount wasn't disclosed. Nasdaq: CSDS

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