LV company reports profitable quarter

Thursday, Jan. 20, 2000 | 11:36 a.m.

Acres Gaming Inc. of Las Vegas reported its second straight profitable quarter today, assisted by big contracts in Detroit and Australia.

Acres reported net income of $420,000, or 5 cents per share, for the quarter ending Dec. 31. That's up from a net loss of $2.1 million, or 24 cents per share, in the year-ago quarter.

Revenue rose 75 percent to $5.4 million.

Acres attributed stronger earnings to the completion of its installation at the new MotorCity casino in Detroit, as well as a continuing contract at Crown Casino in Melbourne, Australia. However, the company warned future earnings will remain volatile.

"Looking forward, we expect our revenues to continue to come in the form of large contracts which can cause significant variations in our quarterly revenues depending on the timing of order receipt and product delivery," said Reed Alewel, Acres' chief financial officer.

Over the first six months of the fiscal year, the company reported net income of $814,000, or 9 cents per share, on revenues of $11.6 million. In the year-ago period, the company lost $3 million on revenues of $6.3 million.

Acres produces and sells a variety of hardware and software systems to casinos worldwide.