GPI reports net income decrease

During the fourth quarter ended December 31, 2013, the Company posted net income of us$0.6 million, or $0.08 per basic and diluted share, compared to net income of us$1.7 million, or us$0.22 per basic and diluted share, for the fourth quarter of 2012. 

For the year ended 2013, the Company posted net income of us$1.2 million, or us$0.15 per basic and diluted share, compared to net income of us$6.1 million, or us$0.75 per basic and diluted share, for the year ended 2012. 

During the fourth quarter of 2013, the Company had revenues of us$13.7 million, compared to revenues of us$17.5 million in the fourth quarter of 2012. The primary reason for the decrease in revenues was a decrease in casino currency sales in the United States and in the Asia-Pacific region.

For the full year 2013, the Company posted revenues of us$56.2 million compared to revenues of us$62.9 million in the year 2012. Gross profit for the year 2013 was us$17.6 million, or 31% of revenues, compared to us$22.5 million, or 36% of revenues, in the same period of the prior year. 

The reason for the decrease in revenues in 2013 compared to 2012, was primarily related to fewer casino openings/expansions in 2013 compared to 2012.

"Our results for both the quarter and the year are disappointing," commented Greg Gronau, GPIC President and CEO. 

"While the smaller number of casino openings has certainly hurt, efforts to better balance production, develop and obtain regulatory approval for new product offerings have not progressed as quickly as we anticipated,” Greg Gronau, GPIC President and CEO said.

On the positive side, we have increased revenues from sales of RFID solutions and have increased market share in cards and other consumables, a source of recurring revenue not contingent on new casino openings," Gronau concluded.