Company posts flat earnings

Friday, Feb. 22, 2002 | 10:54 a.m.

Shuffle Master Inc., a Las Vegas-based gaming equipment manufacturer, today reported flat earnings for the quarter ending Jan. 31.

The company reported net income of $2.55 million for the quarter, which was identical to its net income in the year-ago period. The company earned 14 cents per diluted share, also unchanged. This fell 1 cent below analyst expectations for the quarter.

Shuffle Master was able to increase revenues 6 percent to $11.9 million. But higher research and development costs, combined with declining card shuffler revenues, kept earnings down.

The company reported it had more than 800 slots installed in casinos as of Jan. 31, up 60 percent from the year-ago period. As a result, revenue from slot operations more than doubled, increasing to $1.76 million. Shuffle Master also reported a 17 percent increase in table game revenue, to $4.1 million.

However, sales of Shuffle Master's primary product -- card shufflers -- declined 31 percent to $2 million, while shuffler lease revenues were flat at $4 million.

The company also reported a 21 percent increase in operating expenses, driven primarily by higher research and development costs.