Acres to double up?

Aug 27, 2002 8:51 AM

Coming off record fourth-quarter income, Acres Gaming expects to more than double its earnings this fiscal year.

"This was no small accomplishment,’’ CEO Bud Glisson said of last year’s performance. And with a hefty $20 million in back orders, the Las Vegas software developer is positively bullish about the future.

Base installations jumped from 42,000 to 62,000 during the past year. Over the next 12 months, Acres plans to have its casino management systems in place at eight MGM Mirage properties.

On the casino floor, Acres is connecting with more Bally/Alliance machines. And its customer-building bonusing programs with Station Casinos continue to expand.

Higher software sales and royalty fees boosted profit margins to a lusty 58 percent last year (up from 36 percent a year ago), Glisson said.

"We ended the year with a gross margin which equals $15.4 million gross profit, virtually equal to the gross profit we realized for the entire fiscal year we just completed,’’ he said.

Thanks to higher sales and lower operating costs, net income for the fourth quarter was $3 million, or 29 cents per diluted share, compared with net income of $1.7 million, or 16 cents per share in the year-ago quarter. Those results helped smooth out a fiscal year where net income totaled $3.9 million, or 38 cents per diluted share, compared with $4.2 million, or 41 cents per share previously.