Catching up on unfiled earnings reports for the previous operating year, Bally Technologies Inc. (BYI) has listed the fiscal experiences for Sept. 30 and Dec. 31, 2005 periods that showed continuing losses.
In the first quarter of fiscal 2006, that ended on Sept. 30, 2005, the company showed a loss of $0.16 per share on revenue of $106.4 million. Wall Street had expected a loss of $0.10 per share on revenue of $114 million.
For the second fiscal quarter of 2006, that ended on Dec. 31, 2005, Bally Technologies said its loss widened to $0.17 per share on revenue of $128.4 million. Again, analysts had expected the loss to be $0.06 per share on revenue of $124 million.
As for other filings, Bally said it planned to file reports for the third quarter and full year fiscal 2006 before March 31, 2007.
At that time, the company said it expected the loss for the year to be between $0.66 and $0.76 per share. The loss, the company said, included a charge of $0.52 per share related to depreciation, inventory writedowns and a reserve for a legal settlement.
Also awaited from the company is the report for fiscal 2007. During the first half of 2007, the company said, it expects a further loss of $65 million in its systems business.
The promising factor was in the sale of gaming devices which rose to about 9,000 units from 6,500 units in the comparable period.
Also, the company said it had received a number of gaming machine purchase commitments during the G2E Trade Show in November, 2006.
CEO Richard Haddrill commented, "In the first half of our fiscal 2007, we are beginning to see the benefits of our efforts."
Record revenue during fiscal 2006 was hailed by company officials as a major success for the year but the amount of expected earnings was lowered by costs related to the acquisition of a foreign game maker.
Revenue for the period increased 39% to $46.1 million while adjusted EBITDA, earnings before interest, taxes, depreciation and amortization, jumped 7% to $17.7 million.
Earnings from continuing operations were only $0.14 per share.
Several factors affected the earnings, the company said. Included in these were an equity investment write-down that had a $0.03 negative impact; a book to physical inventory write-off of Stargames, its recent acquisition, inventory totaled a $0.02 loss, and another $0.02 loss resulted from the actual acquisition.
Options granted during the year cost the company another $0.03 in profit.
Mark Yoseloff, chairman and CEO, explained the situation by saying, "Fiscal 2006 was a year characterized by many successes and also many challenges. During the year we achieved record revenue in all categories, including a 30% gain in utility revenue and a 67% gain in entertainment revenue.
"Despite this, net income and earnings per share lagged our traditional growth rates as a result of lower gross margins and increased expenses.
However, he added, the company now has a "greater market opportunity"