Dave,
For whatever it's worth, here's my opinion about the earnings report and your concern about reverse splits. The earnings report looks about like I expected. Revenues are moving upward, a good sign since product introduction to the market is a fairly recent event. We're playing catch up with more established competitors, but making obvious inroads. And remember, Version 3 of MaxLite was just
introduced in mid-summer. For example, apparently Mississippi has a
unique set of rules for electronic bingo, and AGTI now complies. MS is a major bingo state and I'm not sure if any of the other competitors comply with the stringent product rules. If true, this should put us in a good position there. Expenses are up considerably, more than I would have liked in fact, but this seems to be primarily due to ramping up Operations and sales staffs, as well as the relocation costs and
increased overhead created by the move from Phoenix to a larger facility in Denver. Such increases in G&A are not uncommon at this stage in the game for a growing business. TPRO is in the same boat, right now. Maybe unpleasant, but temporary.
One other comment (and boy, I hate bringing up the "R" word) about the question of reverse splits. As I suggested in earlier posts, a reverse split is NOT on the table at the present time. I have been assured of this repeatedly by various AGTI personnel. But management has the right to revive this issue at any time, as a result of the last proxy vote. Doesn't mean it is going to happen, just that it could in the future.
I have been working diligently outside of my dialogue with AGTI to get some competitive intelligence. All part of DD, and if I can learn anything I'll be sure to post. Hope to hear something soon!
Hardrocker |
