PokerTek reports second quarter 2011 financial results

Mark Roberson, CEO and CFO, commented, “During the quarter, we continued to improve our margins, control our operating expenses and drive revenue growth on a year-over-year basis. In addition, the private placement transaction further improved our balance sheet and provides additional growth capital.

“We are seeing exceptional results from our recent ProCore Blackjack installations, and our entire inventory stock has been installed at customer locations. With our PokerPro business generating strong margins and solid financial results, we expect ProCore to be a powerful growth catalyst as we expand our market penetration,” Roberson added.

Financial summary

Total revenue for the second quarter of 2011 increased 23% to us$ 1.6 million compared to us$ 1.3 million for the second quarter of 2010. For the first half of 2011, revenue increased 14% to us$ 3.3 million from us$ 2.9 million in the prior year period. Revenue growth was driven primarily by the increase in revenue producing gaming tables in our target markets.

Gross profit increased 46% to us$ 1.1 million for the second quarter of 2011 as compared to us$ 0.8 million for the second quarter of 2010. Gross profit margin increased 36% to 71% compared to 60% for the prior year period. For the first half of 2011, gross profit increased from us$ 1.7 million to us$ 2.3 million. The increase in gross profit was primarily attributable to increased revenues, improved asset utilization and reduced product costs.

Operating expenses decreased 8% to us$ 1.5 million for the second quarter of 2011 from us$ 1.6 million for the second quarter of 2010. For the first half of 2011, operating expenses decreased 5% from us$ 3.3 million to us$ 3.1 million. We continue to maintain a lean operating structure, even as we invest in the development of Blackjack on the ProCore platform and drive increased market penetration with PokerPro.

Net loss from continuing operations improved 55% for the second quarter of 2011 to us$ 0.4 million from us$ 0.9 million for comparable period of 2010. For the first half of 2011, net loss from continuing operations improved 49% from us$ 1.7 million to us$ 0.9 million.

Including the results of discontinued operations, quarterly net loss improved 80% to us$ 0.4 million from us$ 2 million and, on a year to date basis, improved 70% from us$ 2.9 million to us$ 0.9 million.

EBITDAS from continuing operations, a non-GAAP financial measure, improved to a profit of us$ 133 thousand for the second quarter for 2011, compared to a loss of us$ 223 thousand in the prior–year period. For the first half of 2011, EBITDAS improved from a loss of us$ 121 thousand to a profit of us$ 254 thousand.