Earnings up for casino supplier

Friday, Feb. 21, 2003 | 11:09 a.m.

Shuffle Master Inc. -- which makes card shuffling equipment, table games and slot machine components -- reported net income of $3.3 million in the first fiscal quarter ended Jan. 31, or 19 cents per share, compared to earnings of $2.5 million, or 14 cents per share in the previous year's quarter.

Wall Street analysts, on average, had expected the company to earn 18 cents per share.

The earnings per share increase was partly driven by a decrease in shares outstanding related to the company's share repurchase program in the past year, executives said.

Overall, the company said it reported strong growth in table game revenue and a significant increase in slot product revenue during the period. Card shuffler revenue also rose, resulting in a year-over-year revenue increase for all product segments.

The company reported revenue of $14.2 million, up from 19 percent from the same period a year ago.

"Our ongoing commitment to diversification of product offerings in our existing three segments has again resulted in impressive gains in all product categories," Shuffle Master Chairman and Chief Executive Officer Mark Yoseloff said.

The company has a positive outlook for this year, driven by a number of new initiatives including the legalization of blackjack at tribal casinos in Arizona and the approval of a game software upgrade in Nevada, Yoseloff said.