Unprofitable divisions cut

Wednesday, May 8, 2002 | 11:02 a.m.

A Las Vegas-based company that finances and leases gambling equipment has discontinued two unprofitable divisions and laid off nine employees.

PDS Gaming Corp., announcing first-quarter earnings today, announced that it has discontinued its table games and slot machine exchange divisions and will focus instead on equipment sales and leases and the operation of a small downtown Reno restaurant and casino.

PDS reported a loss of $1.9 million, 50 cents a share, on revenue of $9.5 million for the quarter ended March 31. That compares with earnings of $464,000, 12 cents a share, on revenue of $7.5 million for the same period a year earlier.

The company said losses from the discontinued operations totaled $3.9 million, 58 cents per share, last year.

"Obviously, the company is unsatisfied with the results this quarter," said Johan Finley, chief executive officer of PDS, which was an unsuccessful suitor for the PT's Pubs chain and the Four Queens hotel-casino when they were sold in separate deals. "The discontinuation of these unprofitable businesses will ultimately improve the strength of the company going forward."

The company also reported losses in its operation of Rocky's Sports Pub and Grill in Reno, saying a $481,000 loss resulted from lower-than-anticipated revenues, construction costs and $238,000 in pre-opening costs at the two-story restaurant and casino.