Shuffle Master 4Q profit falls on charges

Associated Press

Thursday, Jan. 13, 2011 | 6:14 p.m.

Casino equipment maker Shuffle Master Inc. said Thursday that its fourth-quarter net income fell 8 percent, dragged down by a legal settlement and financing costs.

The company, which makes automatic card shufflers, chip sorters and other equipment, said its net income in the quarter that ended Oct. 31 was $5.7 million, or 10 cents per share, compared with $6.2 million, or 12 cents per share, a year earlier.

The results included a charge of 3 cents per share for a legal settlement that covered licensing fees to Prime Table Games and a penny per share for financing costs under a previous credit agreement.

Analysts expected Shuffle Master to report net income of 13 cents per share, excluding such one-time charges so the results met analyst estimates.

Revenue rose 7 percent to $58.6 million, boosted by a 12 percent gain in lease, royalty and service revenue, which accounts for nearly half the company's sales. Analysts expected $54.6 million.

For the fiscal year, the company earned $23.1 million, or 43 cents per share, compared with $15 million, or 28 cents per share, a year ago. Revenue rose to $201.3 million from $179.4 million.

The shares rose 41 cents, or 3.7 percent, to end regular trading at $11.58.