GameTech Reports Q1 Results
GameTech International, Inc., a leading designer, developer and marketer of electronic bingo equipment and bingo systems, today announced financial results for the Company's first quarter ended January 31, 2006. Net income totaled $839,000 or $0.07 per fully diluted share compared with $1,000, or $0.00 per share in the same period in 2005. Revenue for the quarter totaled $12.3 million, slightly higher than in the first quarter of 2005.
The Company's increased profitability resulted from more favorable gross profit margins of 62.3% for the first quarter of 2006 compared with 55.6% in 2005 and reductions in operating expenses to 52.0% of revenue, down from 55.9% of revenue in 2005. Management's continuing cost-saving initiatives, such as personnel reductions, decreases in depreciation and reduced operating expenses, were instrumental in achieving more positive ratios.
While revenue for the quarter was only slightly higher than in the same period in 2005, the Company saw increased revenue in key markets, including Michigan, Kentucky and Nevada, among others. Revenue from these expanding markets offset decreased revenue due to the loss of certain accounts and the reduction of the Oklahoma market as a result of unfavorable legislative action.
"We are pleased that the first quarter of 2006 has allowed us to continue the successes we realized during the latter part of fiscal 2005. The substantial improvement in net income this quarter from the same period last year indicates we are seeing the beginning of the benefits of our cost-saving initiatives we have put into place and the early stages of our market expansion efforts. We have reduced litigation activity, which has substantially reduced our legal expense. At the same time, we have realigned our infrastructure and reduced our operating expenses in most areas," said Jay Meilstrup, GameTech's President and Chief Executive Officer.
Meilstrup continued, "We are pleased with our first quarter results. Our efforts moving forward are focused on increasing our current business base, developing new products and concepts and expanding into new markets."
GameTech International is a leading developer and marketer of a comprehensive line of electronic bingo equipment, including portable bingo terminals, fixed-base terminals, and turnkey accounting and management software systems. The Company supports its bingo operator customers with products that typically increase play, revenue and profits, and with software customized to enhance management and operations, all backed by unparalleled customer service and support.