Shuffle Master earnings climb to new heights

May 28, 2002 7:59 AM

On the heels of record second quarter earnings, Shuffle Master chairman and CEO Mark Yoseloff said the slot industry, "is ripe for expansion."

The gaming supply company reported revenues of $13.4 million, an 8.8 percent increase over the $12.3 record for the same period last year. Shuffle Master specializes in providing innovative products and services to the casino industry.

"We have about 15 games in the works," Yoseloff said during a conference call last Thursday. "We have a 10-year history of expansion and growth. Our expanded business in the UK (United Kingdom) has a lot to do with our record revenue."

Shuffle Master did receive one bit of bad news when a federal judge ruled in favor of rival gaming supplier Vendingdata Corp, stating that the sale of card shufflers did not infringe on gaming patents.

The setback did not blunt the enthusiasm of Shuffle Master chief financial officer Gerald Koslow, who said his company was continuing to work with regulators to produce the best games. Shuffle Master was ranked as the 32nd best small company in America by Forbes magazine in its 2001 survey.

"Technology is way more complicated than 10 years ago," Koslow said. "There is so much testing because regulators want to see machines made that provide a fair gamble for customers."

Highlights of the second quarter included:

  • slot games up 48.7 percent over the second quarter of 2001.

  • table games up a record 1,374 units, a rise of 19.8 percent from the second quarter of 2001.

  • cash and investment balances up to $26.9 million as of April 30.

  • recurring revenue producing Shuffle Master’s 18th consecutive quarterly increase.

"Our Three Card Poker price was increased to $11.95 on April 1, which reflected on the table game revenue exceeding a record $4.3 million," Yoseloff said. "We are developing a Five Card, Crazy For Poker game, and have about 15 other new games and titles in the works."

Yoseloff also announced that the company was developing machines around The Hulk, Video Keno and Spiderman, and an IGT upgrade kit with a cap of 15,000 machines.

"Our company is rock solid," he said. "We had a few one-time medical and legal expenses, but we should be past those now."

Koslow said the process of "tweaking" is ongoing, but that the company is pushing forward with a "business as usual" focus.

"We are out kissing frogs," he said. "We haven’t found our prince yet, but we are getting there."