Hey Jeff....
Another great quarter...thanks for the link...I have copied the entire NR :
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Wednesday July 21, 4:40 pm Eastern Time
Company Press Release
SOURCE: Casino Data Systems
Casino Data Systems Reports Profitable Quarter
LAS VEGAS, July 21 /PRNewswire/ -- Casino Data Systems (Nasdaq: CSDS - news) today reported its profit for the second quarter of fiscal 1999, its sixth consecutive profitable quarter.
Performance Overview
The Company reported total revenue of $22.8M for the current quarter, an increase of $7.0M over the preceding quarter and $11.1M over the same quarter of the prior year. Year-to-date revenue was $38.5M, an increase of $14.1M over the same period in the prior year.
Income from operations for the current quarter was $2.4M, compared with $183K in the preceding quarter and $121K in the same quarter of the prior year. Year-to-date income from operations was $2.6M compared with $230K for the same prior year period.
Net income for the current quarter was $1.9M compared with $192K in the preceding quarter and $364K in the same quarter of the prior year. Basic earnings per share were $.11 for the current quarter compared with $.01 for the preceding quarter and $.02 for the same quarter in the preceding year. For the six month periods ended June 30, 1999 and 1998, net income was $2.1M and $684K, respectively, and basic earnings per share were $.12 and $.04, respectively.
The balance sheet remained strong as of June 30, 1999 with unrestricted and restricted cash and investments of $30.9M combined with zero long term debt.
''This is a record quarter for revenue. We are very proud of our employees. While we know that there are still improvements to be made, our overall performance as a team has been demonstrated,'' stated Lee Lemas, Chief Operating and Financial Officer. ''Our revenue growth was the result of the success of our Bandit Bingo game and Oasis Windows system. Our continued focus on increased efficiencies and accountability combined with stronger spending controls provided the basis for our improved profitability over the past year.''
Revenue
Revenue from systems and services was $8.2M for the current quarter, an increase of $1.3M over the preceding quarter and $2.6M over the same quarter of the prior year. Year-to-date systems and services revenue was $15.1M compared with $11.0M for the same prior year period. These increases are principally due to the continued strong sales of the Company's Windows* based product which became available for sale late in the fourth quarter of 1998.
Games revenue was $10.7M for the current quarter, an increase of $6.0M over the preceding quarter and $8.0M over the same quarter in the prior year. Year-to-date revenue from games was $15.4M compared with $5.3M for the same period in the prior year. These revenue increases are primarily due to strong sales of the Bandit(TM) Bingo game which was approved late in the first quarter of 1999 by the Nevada Gaming Commission. Additional jurisdictional approval was received from Gaming Laboratories Inc. late in the second quarter of 1999. Bingo is the first of the Company's high-end multimedia games on its Bandit platform.
Recurring revenue products produced $1.9M of revenue for the current quarter, a decrease of $248K from the preceding quarter and $138K from the same quarter in the prior year. Year-to-date revenue was $4.2M compared with $4.9M for the same period in the prior year. These decreases are the result of a decline in the number of operating units in service combined with lower levels of play.
Signs and meter revenue was $1.4M and $2.7M for the three and six month periods ended June 30, 1999 compared with $846K and $2.2M for the same prior year periods, respectively. Revenue for the current quarter was $242K higher than the preceding quarter.
Revenue from the TurboPower Software subsidiary was $439K for the current quarter, compared with $740K for the preceding quarter and $455K for the same quarter in the prior year. Year-to-date revenue was $1.2M, an increase of $170K over the same prior year period.
''For the last six quarters we have executed to our strategic plan and have been focused on developing a tactical sensibility that has guided our performance,'' stated Steve Weiss, Chairman and Chief Executive Officer. ''Over the upcoming quarters we will continue to stay focused as we build on the excitement that Bandit Bingo and Oasis Windows products have generated with our casino customers through additional product offerings.''
Gross Margin Percentage
Consolidated gross margin was 44% for the current quarter and preceding quarter, compared with 49% for the same quarter in the prior year. Year-to- date gross margin was 44% compared with 48% for the same prior year period. These decreases are primarily attributable to a sales mix more heavily weighted toward game sales, which generally have lower gross margins than the Company's other products.
Expenses
Selling, general and administrative expenses for the current quarter of $5.3M increased $918K or 21% over the preceding quarter and $1.0M or 24% over the same quarter of the prior year. Year-to-date expenses were $9.8M compared with $8.7M for the same prior year period. These increases are principally due to increased legal costs and increased payroll expenses related to commissions.
Research and development expense for the current quarter of $1.2M decreased $72K from the preceding quarter and increased $535K over the same prior year period. Year-to-date research and development expense was $2.6M compared with $1.5M for the same period in the prior year. These fluctuations are principally due to changes in headcount.
Depreciation and amortization expense for the current quarter of $1.0M remained even with the preceding quarter and increased $450K over the same prior year period. Year-to-date depreciation and amortization expense was $2.1M, an increase of $847K over the prior year. This increase is primarily due to increased units on the Xtreme(TM) link.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward-looking statements contained in this release (as well as information included in oral statements or other written statements made or to be made by the Company). Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. In addition to factors discussed above, other factors that could cause actual results to differ materially are the following: business and economic conditions, and growth in the gaming industry in various geographic regions; competitive factors, such as improvements in rival systems functionality or game acceptance; pricing pressures; changes in player preferences; timing of software systems product introductions and upgrades; timely development, implementation, production and customer acceptance of new games in a cost- effective manner; execution of the manufacturing ramp; the ability to successfully enter new market segments and manage the growth of such businesses; unanticipated costs or adverse effects of changes in the gaming industry; final resolution of pending shareholder litigation and other litigation; and other risk factors listed from time to time in the Company's SEC reports.
Founded in 1990 with headquarters in Las Vegas, Nevada, Casino Data Systems is a leading designer, manufacturer and distributor of innovative, technology-driven products for the gaming industry. The Company's diversified product line reaches into virtually all facets of the casino floor; including complete casino management systems, games and meters, multiple site progressive systems and casino signage.* Windows is a registered trademark of Microsoft Corporation.
For more information on the Company, visit Casino Data Systems' website at: csds.com
CASINO DATA SYSTEMS
Selected Financial Results
Statement of Operations
Three and Six Months Ended June 30, 1999 and 1998
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
(in thousands, except per share data)
Revenue
Systems and services $8,187 $5,601 $15,083 $10,974
Games 10,741 2,695 15,435 5,316
Recurring revenue 1,952 2,090 4,152 4,901
Signs 1,449 846 2,656 2,184
TurboPower 439 455 1,179 1,009
22,768 11,687 38,505 24,384
Cost of goods sold 12,763 5,963 21,531 12,735
Gross margin 10,005 5,724 16,974 11,649
Costs and expenses
Selling, general and
administrative 5,337 4,295 9,756 8,653
Research and development 1,244 709 2,560 1,513
Depreciation and
amortization 1,049 599 2,100 1,253
7,630 5,603 14,416 11,419
Income from operations 2,375 121 2,558 230
Other income 625 439 737 815
Income before income tax 3,000 560 3,295 1,045
Income tax expense 1,050 196 1,153 361
Net income $1,950 $364 $2,142 $684
Basic net income per
common share $0.11 $0.02 $0.12 $0.04
Diluted net income per
common share $0.11 $0.02 $0.12 $0.04
Basic weighted average
shares outstanding 18,143 18,066 18,105 18,066
Diluted weighted average
shares outstanding 18,498 18,092 18,345 18,094
CASINO DATA SYSTEMS
Selected Financial Results
Balance Sheet
As of June 30, 1999 and December 31, 1998
June 30, December 31,
1999 1998
(in thousands)
ASSETS
Current assets
Cash - unrestricted $5,076 $5,141
Cash - restricted 7,727 8,111
Investments 3,447 2,650
Accounts receivable, net 23,303 16,347
Inventory, net 20,955 19,147
Other current assets 2,330 2,342
62,838 53,738
Property and equipment, net 18,688 19,828
Investments 14,698 14,623
Note receivable 708 1,137
Intangible assets, net 3,850 4,649
Software development, net 3,046 3,804
Deposits 390 391
Deferred tax asset 840 840
42,220 45,272
Total assets $105,058 $99,010
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $54 $211
Accounts payable 3,804 3,687
Accrued expenses 10,061 8,026
Accrued slot liability 1,870 2,107
15,789 14,031
Non current liabilities
Accrued slot liability 20,544 18,839
20,544 18,839
Shareholders' equity
Common stock 84,233 83,790
Retained deficit (15,508) (17,650)
68,725 66,140
Total liabilities and
shareholders' equity $105,058 $99,010
SOURCE: Casino Data Systems
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