Galaxy Gaming reports higher revenue, narrows loss

Thursday, Nov. 5, 2009 | 12:47 p.m.

Headlines from the Vegas gaming industry

Galaxy Gaming Inc., a small Las Vegas-based casino industry supplier, today reported higher revenue and that it sold $600,000 in stock through a private equity deal aimed at financing growth.

The company lost about $32,000 in the quarter ended Sept. 30 vs. a loss of about $83,000 in the year-ago quarter. Revenue of about $783,000 was up from about $533,000 last year.

"Management believes that continued growth from existing and new products could result in positive cash flow by the end of 2009,'' the company said in its third quarter report.

Galaxy said that during the third quarter, it completed 86 new "Bonus Jackpot System'' installations compared to three in the first quarter and 31 in the second quarter.

The company said in a regulatory filing it needs to obtain loans and sell stock to finance growth, including the $600,000 disclosed today.

"Whereas many small companies need to raise capital to cover losses or retire excessive debt, that was not the case here," Chief Executive Robert Saucier said in a statement. "The funds we raised are earmarked primarily for revenue growth initiatives during the next two quarters."

The company develops, makes and sells casino table games and electronic enhancements and bonus systems for table games. Its systems, for instance, allow gamblers to make side bets. Its market is casinos throughout North America and on cruise ships worldwide.

Galaxy said that as of Sept. 30, its Side Bets and Premium Games systems were in service on 1,607 tables, up from 1,445 a year earlier.

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