Earnings sink in fourth quarter

Thursday, Feb. 7, 2002 | 10:52 a.m.

Acres Gaming Inc. of Las Vegas reported a 52 percent decline in net income for the quarter ended Dec. 31.

Acres reported net income of $729,000, or 7 cents per diluted share, compared to net income of $1.5 million, or 13 cents per share, in the year-ago quarter. Revenues fell 48 percent to $5.3 million.

Acres did not record any revenues from one of its largest contracts, an order from Station Casinos Inc. to install a bonus system that ties in with Station's "Boarding Pass" slot card. Acres has begun installing the systems, but the company said revenues weren't recorded because of a "contractual requirement to deliver other bonusing modules in the future." Acres estimated this contract could result in $4 million during the fiscal year ending June 30.

"Prospects for new orders have improved as business has returned to more normal conditions since Sept. 11, and we have several new contracts under negotiation for delivery during this fiscal year," Acres Chief Executive Bud Glisson said.

Acres produces systems that add bonus features to existing casino games.