Earnings fall in fourth quarter

Tuesday, March 26, 2002 | 11:24 a.m.

PDS Gaming Corp. reported a 64 percent decline in net income for the quarter ending Dec. 31, 2001.

The Las Vegas-based gaming equipment and financing company reported net income of $52,000, or 1 cent per share, down from net income of $146,000, or 4 cents per share. Revenues fell 21 percent to $7.58 million.

PDS' quarter included a variety of one-time gains and charges. The company recorded a one-time gain of $475,000 after tax from discounts related to the early extinguishment of debt and a pretax charge of $355,000 from its settlement of claims against the former owner of the Rampart Casino (formerly Regent Las Vegas). The company said it also paid a higher tax rate due to warrant expenses and amortization; without these taxes, the company would have posted net income of $187,000.

The company reported a slowing of slot machine orders and financing agreements during the quarter, as machines sold fell 47 percent to 1,030 units. However, Chief Executive Johan Finley said he expected business activity to return to "normalized" levels in the second quarter.

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