GameTech International, Inc. Announces First Quarter Profit for 2012
RENO, Nev., March 14, 2012 /PRNewswire/ — GameTech International, Inc. (“GameTech” or the “Company”) a leading supplier of electronic bingo equipment and video lottery terminals, today announced a profitable quarter with net income per share of $0.07. For its first quarter of fiscal 2012, the Company reported net income of $858 thousand compared to a net loss of $288 thousand in the comparable quarter of 2011. Significant factors attributing to the improvement include $1 million in revenue from an intellectual property license agreement that will allow a third party to utilize five of the Company’s video lottery game titles in Illinois, a $898 thousand reduction in operating expenses, $500 thousand received from a legal settlement, and a $300 thousand reduction in employee costs.
Other significant events, with no income statement impact, that occurred during the reported period include the sale of the Company’s headquarters for $6.125 million. All of the net proceeds from the sale of the Company’s headquarters were used by the Company to reduce the outstanding obligations under its senior secured credit facility.
“We are very pleased to report a profitable quarter, while continuing to improve our balance sheet,” said Kevin Y. Painter, Chairman, President and CEO of GameTech. Mr. Painter further stated, “The results of our first quarter operations were significantly improved with the receipt of $1 million in licensing revenue, however, the improvements also relate directly to our ability to continue to reduce operating expenses. We are also very pleased with the progress we made during the quarter towards the development of our next generation bingo system and player terminal that we hope to release later this year.”
The Company also announced that it has filed its Quarterly Report on Form 10-Q for the first quarter of its 2012 fiscal year, with the Securities and Exchange Commission. The Quarterly Report includes information about GameTech’s financial position and results of operations for the reported period and is available online via the Securities and Exchange Commission’s EDGAR database at www.sec.gov.
About GameTech International, Inc.
GameTech International, Inc. is in the business of designing, manufacturing, and marketing electronic bingo and gaming equipment, systems, and services. Under the GameTech® product brand, the Company provides electronic bingo systems and equipment. Under the Summit Gaming(TM) product brand, the Company provides video lottery terminals, video gaming machines, and related software and content. GameTech International, Inc. serves customers in 40 U.S. States, Canada, Japan, and the Philippines. The Company was incorporated in 1994 and is headquartered in Reno, Nevada. More information on GameTech can be found at http://www.gametech-inc.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This press release includes various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent GameTech expectations or beliefs concerning future events. Statements containing expressions such as “believes,” “anticipates,” or “expects,” used in the Company’s press releases and periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission (“SEC”), are intended to identify forward-looking statements. All forward-looking statements involve risks and uncertainties. Although the Company believes its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurances that actual results will not differ materially from expected results. The Company cautions that these and similar statements included in this report are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. GameTech undertakes no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE GameTech International, Inc.