DEQ released its 2008 second quarter results

2008 second quarter highlights are the following: An increase from 815 to 1033 in the number of systems in Leased Table Equivalent Patent Royalties in the second quarter compared to the first quarter, a 49% increase in recurring revenue from us$ 519,000 in second quarter 2007 to us$ 775,000 in second quarter 2008.

A 48% increase in gross profit for the second quarter from us$ 529,000 in 2007 to us$ 785,000 in 2008, a 86% gross margin, a 28% average annual growth in recurring revenue in the last three years, us$ 1 million one-time royalty payment received from Station Casinos for G3 approval in Nevada. There is a continued stability in the operating costs at us$ 850,000 per quarter or us$ 3.4 million per year.

Operational results show a G3 System Approval in Nevada, Real Link Wireless Table Game Linking System released. Mike Telesmanic was named Chairman of the Board. Besides, DEQ wins a Top 20 USA Gaming Innovation Award and Philippines remote betting patent was granted. On top of that, Pechanga Casino converts over 60% of its Baccarat tables to EZ Baccarat with EZTRAK.

“During the second quarter of 2008, our efforts were focused on completing and obtaining our Nevada certification which was the kick-off of our USA commercialization,” stated Earle G. Hall. “Also, in conjunction with the Nevada certification, we completed numerous individual state and jurisdictional operating license applications to begin commercialization and installations outside of Nevada. Our financial performance in the quarter is starting to yield results in the United States and we are very proud that all the hard work is paying off”.