PokerTek Announces Results for Q1
PokerTek, Inc. today announced financial results for its first quarter ended March 31, 2006. Net loss for the first quarter of fiscal 2006 was approximately $1,591,000, or ($0.17) per diluted share, compared with net loss of approximately $725,000, or ($0.11) per diluted share, in the first quarter of 2005. Revenues from both license fees and equipment sales totaled approximately $473,000, up from zero in the same period in 2005. Revenues consisted of monthly license fees totaling approximately $360,000 from the Seminole Hardrock properties in Florida and the Chickasaw Properties in Oklahoma and the remainder from equipment sales to our international distributor, Aristocrat, for its use in demonstrations of the PokerPro(TM) system to international licensing bodies and potential customers.
As expected, the net loss increased to approximately $1,591,000 from approximately $725,000 in the same period in 2005, creating a net loss per common share, basic and diluted, of ($0.17) compared to ($0.11) for the first quarter of fiscal year 2005. The following factors were the main components affecting the loss for the first quarter of 2006 as compared to the first quarter of 2005: increase in employees and related salaries and benefits; increase of approximately $133,000 of legal and professional fees primarily associated with being a public company; and an increase of approximately $120,000 related to non-cash stock option expense in accordance with Statement of Financial Accounting Standards No. 123R. Partially offsetting the increase in expenses was an increase in interest income of approximately $192,000.
At March 31, 2006, the Company had no debt and approximately $18.3 million total cash and cash equivalents.
"We believe that we are gaining sales momentum as we continue to aggressively pursue sales opportunities in the United States and Canada. We understand that Aristocrat, our international distributor, is doing the same on a global basis," stated Lou White, Chief Executive Officer of PokerTek. "We believe it is only a matter of time before many venues realize the win-win impact our PokerPro(TM) system should have on both the player's poker-playing experience and the casinos ability to operate more profitably. Expense growth was as expected as we continue to gear up for our anticipated expansion."