PDS profit improves despite stagnant revenue

Wednesday, Aug. 1, 2001 | 10:38 a.m.

PDS Gaming Corp. of Las Vegas, a supplier to the casino industry, reported a second quarter profit of $528,000 or 14 cents per share, up from $230,000 or 6 cents in the year-ago quarter.

Revenue fell slightly from $14 million to $13.9 million for PDS, which leases, sells, manufactures and refurbishes gaming equipment and has its own gaming operations.

PDS said it completed $31.9 million in originations during the quarter ended June 30, compared with $3.3 million in the year-earlier quarter. Shipments of gaming devices increased from 472 units in the prior-year quarter to 1,270 in the quarter ended June 30.

Revenue decreased because the 2000 quarter included significant sales of previously leased equipment, which did not recur in the most recent quarter

"We are pleased with these results, which reflect continued growth in our gaming-related businesses," said Peter Cleary, president and chief operating officer. "As reflected in our financial results, our finance and lease division turned in a strong performance during the second quarter, and shipments of gaming devices to customers through our Casino Slot Exchange division increased significantly from the prior-year quarter."

"Our Table Games division did not contribute to second quarter results, because we encountered certain issues that need to be resolved before shipments can resume. We have now improved the product and are in the process of resubmitting the games for approval by regulatory authorities. Further, we continue to review opportunities to expand our Casino Operations division through acquisitions and remain committed to our long-term strategy of growing each of these business units," he said.