Merger costs cut into Casino Data earnings

Friday, April 20, 2001 | 11:24 a.m.

Casino Data Systems, a Las Vegas casino game software designer, reported a decrease in first-quarter earnings as the company prepares for a $180.5 million merger with an Australian company.

CDS reported net income of $1.2 million, 6 cents a share, on revenues of $22.4 million compared with $1.6 million, 9 cents a share, on revenues of $16.8 million in the same quarter a year ago.

Steve Weiss, chairman and chief executive, said the company is continuing to get regulatory and shareholder approvals to complete its merger with Aristocrat Leisure Ltd., an Australian game producer that holds more than 100 licenses and sells products in more than 30 countries.

The merger was announced Jan. 17. CDS officials attributed transaction costs among the higher operating expenses that affected income for the quarter.

Operating expenses were up $2.6 million to $10.1 million and included increased litigation expenses and greater investment in research and development in addition to the merger expenses.

CDS also announced that it would receive an undisclosed amount as part of a settlement between the company and Acres Gaming Inc., Las Vegas.

The settlement, announced earlier this week, provides for the dismissal of all claims against each other and an agreement to conduct nonbinding mediation of any future patent disputes between the two companies.

Under the settlement, Acres agreed to pay CDS an undisclosed amount in addition to promising not to sue over CDS' OASIS/ProTurbo progressive product, which was the subject of the litigation.

archive