Gaming supplier projects growth of 25 percent

Wednesday, Dec. 5, 2001 | 10:38 a.m.

Shuffle Master Inc. of Las Vegas said today it expects to see revenue and net income grow by about 25 percent in fiscal 2002, driven primarily by growth in the second half of the year.

The company is projecting fiscal 2002 earnings per share of 75 cents to 80 cents, up from the 63 cents to 64 cents projected for fiscal 2001. Shuffle Master's fiscal year ends on Oct. 31.

However, earnings are expected to remain flat during the first two quarters, Shuffle Master said.

"Fiscal 2002 is shaping up to be another strong growth year, driven by new product revenues coming primarily in the second half of the year," Shuffle Master Chief Financial Officer Gary Griffin said.

However, analysts had been expecting 82 cents per share for fiscal 2002. Disappointed investors shaved nearly 15 percent from Shuffle Master, which fell $2.54 to $14.90 in morning trading.

Shuffle Master hopes to release its "Honeymooners" slot next year, and believes its slot business should see strong growth in 2002.

Revenue from proprietary table games such as "Three Card Poker" should also show continued strong growth, the company said.

Shuffler revenue is expected to grow only modestly, primarily because of struggles in casino markets dependent on air travel, the company said.