Shuffle Master reports record quarter

Friday, Aug. 24, 2001 | 11:12 a.m.

Shuffle Master Inc., Las Vegas, reported record revenues and earnings for its fiscal third quarter that ended July 31.

The gaming supply company reported net income of $3.2 million, 17 cents a share, on revenue of $12.6 million. That compares with net income of $2 million, 12 cents a share, on revenue of $9.2 million for the same period a year earlier. Analysts surveyed by Thomson/First Call estimated earnings would be 15 cents a share for the quarter.

The maker of automatic shuffling machines used in several table games reported higher sales of table games, particularly Three Card Poker, which now has more than 500 units installed. The company also said it now has more than 8,000 shufflers installed, which resulted in lease revenues of $4 million for the quarter.

Company officials said the only disappointment for the quarter was the decrease in the number of installed cooperative slot games the company has in a venture with International Game Technology. Some customers removed the partnership's Three Stooges slot machines from their casinos.

A company spokesman said the removal of the machines is part of the process of slot managers determining what games work best for their casinos. In a conference call Thursday reviewing results, Mark Yoseloff, president and chief executive officer of Shuffle Master, also said the regulatory process has slowed growth.

"The biggest disappointment we've had is the timing of the approvals," Yoseloff said of the partnership's New Jersey application for approval of the Three Stooges and Let's Make a Deal. "Unfortunately, we have no control over the regulatory process."