PokerTek Third Quarter 2009 Results Show 64% Fall In RevenueNovember 4, 2009 10:23 am
PokerTek is a company headquartered in Matthews, North Carolina, which develops and markets products for the casino and amusement industries, including the PokerPro electronic poker table and the Heads-Up Challenge video game.
The third quarter results announced by the company show that its revenue has decreased by 64% to $1.6 million in 2009 compared to its Q3 2008 figures.The overall revenue figure for the first nine months of 2009 was $5.2 million which shows a drop of 54% from 2008.
Recurring licensing and servicing fee revenue was down $0.2 million or 12% to $1.3 million. The overall recurring license and service fee revenue figure for the first nine months of 2009 was $3.9 million which shows a drop of 12% from 2008.
One-time product sales revenue was down $2.5 million to $0.2 million representing a fall of 92% from the third quarter of 2008. The first nine months of 2009 reveal product sales fell 81% to $1.3 million from $6.9 million in 2008.
Revenue from the sale of its Heads-Up Challenge video game had also dropped to $0.2 million from $1.5 million in 2008.
On the plus side third quarter direct costs had fallen by 68% to $0.9 million compared to 2008 and operating costs were also down by 41% to $1.9 million.
Following the announcement PokerTek, Inc. (PTEK) share price fell slightly to $0.8482 and commenting on the results, Acting Chief Executive and Chief Financial Officer, Mark Roberson said:
“Our goals entering the third quarter were aimed squarely at driving our expenses lower and strengthening our balance sheet. With clear progress in these areas, we now look forward to shifting focus from cost reduction to revenue growth.”
“During the quarter, we expanded into the Atlantic provinces of Canada, representing our first installations in non-traditional bar environments with our first lottery customer. In addition, rule changes were recently enacted in Mexico allowing electronic table games for the first time and we placed our first table in Puerto Vallarta this quarter. These are both examples of new market opportunities that play directly to the strengths of PokerPro.”