GPI reports financial results for the first quarter of 2009

Gross profit for the quarter was us$ 2.4 million, or 27% of revenues, compared to us$ 3.6 million, or 30% of revenues, in the same period a year ago. Net loss for the first quarter of 2009 was us$ 499,000, or us$ 0.06 per basic and diluted share, compared to a net loss of us$ 412,000, or us$ 0.05 per basic and diluted share, in the first quarter of 2008.

As of March 31 the company had cash and marketable securities of us$ 16.4 million, compared to us$ 13.1 million as of December 31, 2008. It also had us$ 37.6 million of stockholders' equity, compared to us$ 38.8 million as of December 31, 2008. As of March 31, 2009, our backlog of unfilled orders, which are expected to be filled in 2009, was us$ 11.6 million. At March 31, 2008, our backlog was us$ 14 million.

Commenting on the results, Gerard Charlier, President and CEO, said: "The gaming industry continues to face tough economic times, as the worldwide recession negatively impacts business. We previously announced that we expected the first quarter to be difficult given the current economic environment. Having said that, our continued efforts to reduce costs helped mitigate the impact.”

“Our lower gross margins were a function of a change in product mix, as sales of our high margin European-style casino chips suffered in the first quarter. But we are currently producing the City of Dreams and Newport City orders that are scheduled to ship mid-year, and these orders largely consist of higher margin products. Moreover we feel we are well positioned for additional business with new casinos opening in both the United States and abroad later this year," concluded Charlier.