GPI reports financial results for the second quarter and first half 2011

These results compare to revenues of us$ 19.9 million and net income of us$ 2.7 million for the second quarter of 2010. Gross profit for the second quarter of 2011 was us$ 4.6 million, or 31% of revenues, compared to us$ 8.6 million, or 43% of revenues, for the prior year quarter.

The decrease in revenue for the second quarter of 2011, compared to the same prior year period, was due to the significant sales recorded in the second quarter of 2010 to casinos in Pennsylvania, Delaware, and West Virginia, offset by the recognition of us$ 1 million in revenue in the second quarter of 2011 from the installation of RFID hardware and software solutions at the Galaxy Macau casino, as well as expanded software maintenance activity.

For the first six months of 2011, the company posted revenues of us$ 32.6 million and net income of us$ 2.6 million. These results compare to revenues of us$ 30.9 million and net income of us$ 2.7 million, for the first six months of 2010. Gross profit for the first six months of 2011 was us$ 10.9 million, or 33% of revenues, compared to us$ 12.3 million, or 40% of revenues, for the first six months of 2010.

The increase in revenue for the first six months of 2011, compared to the same prior year period, was due primarily to a us$ 3 million increase in sales of gaming chips to casinos in Macau and the us$ 1 million in revenue in the second quarter of 2011 from the installation of RFID hardware and software solutions, offset by a decrease of us$ 2.3 million in sales of furniture, accessories and layouts in the Americas, mainly due to the significant 2010 sales to casinos in Pennsylvania, Delaware, and West Virginia.  

The company ended the quarter with us$ 27.1 million in cash, cash equivalents and marketable securities, following the payoff of its us$ 7 million French line of credit at the end of the second quarter.

"Our results for the second quarter and the first half of the year were driven by higher revenues in Asia. We created a new subsidiary based in Macau to provide sales and service support in this region, as it currently represents the area of greatest expansion in gaming worldwide," commented Greg Gronau, President and CEO.

"Asian results were offset by declining activity in Europe and the Americas, which have been hard hit by the continuing economic downturn.  We have successfully expanded our RFID casino currency solutions through the delivery of RFID hardware and software products to Galaxy Macau.  As this business grows, it has the potential to provide recurring maintenance revenue, while providing substantially enhanced security for our customers' casino currency. Lastly, we were recently selected to provide gaming chips and plaques for the new Sands Cotai Central Project in Macau. This order totals nearly us$ 3 million and is scheduled for delivery in 2012," he concluded.