Innovative Gaming Corporation of America last week reported second quarter 2002 net revenues of $2,628,000, compared with net revenues of $4,728,000 in the second quarter 2001.
The company recorded a loss of $996,000, or 3 cents a share, versus a profit of $110,000, or 1 cent per share, in the same period last year. But officials said business revenues increased.
"Core business revenues, which excludes licensing fees of $3 million in the second quarter 2001, were $2.6 million versus $1.7 million for the same period last year representing a 53% increase," said Laus M. Abdo, president and CEO. "This increase in core business revenues is a result of the direction provided by our new national sales director, our new director of sales for Indian gaming and the IGCA sales team."
Abdo added that the company introduced eight new slot titles in the second quarter, with four additional games awaiting approval from regulatory labs in the third quarter. The company has targeted releasing 15-20 new slot titles each year.
Abdo also announced that IGCA has agreed to terminate the GET merger and agreed in principal to enter into one or more product-development and licensing agreements.
"GET and IGCA have been working closely together for the past seven months on several joint projects structured as arms-length transactions," he said. "Those projects further reinforced the synergies that can be obtained through a combination of the technology developed by the two companies. Through a strategic alliance and continued joint-development projects, we can achieve the benefit of those synergies without the necessity of merging the two companies, thereby avoiding the dilution that would have resulted from issuance of the merger shares to GET."
In other company news, IGCA reported that its board of directors unanimously approved a one-for-ten (1-for-10) reverse stock split scheduled for implementation on or about September 9, 2002. In its 10-Q filing, IGCA reported 29,783,000 common shares outstanding as of July 17, 2002.
Innovative Gaming develops, manufactures and distributes fast playing, high-entertainment gaming machines. The company distributes its products both directly to the gaming market and through licensed distributors.