Galaxy Gaming Reports Record Third Quarter Results
Company Posts Tenth Consecutive Quarter of Increased Recurring Revenue
LAS VEGAS, Nov. 10, 2010 (GLOBE NEWSWIRE) -- Galaxy Gaming, Inc. (OTCBB:GLXZ) announced today its results for the third quarter ended September 30, 2010:
Q-3 2010 vs. Q-3 2009 Financial Highlights
Recurring Revenue of $758K increased 18% or $116K from $642K. Gross Revenues less Costs of Ancillary Products and Assembled Components (formerly reported as Gross Profit) of $752K increased 9% or $61K from $691K. EBITDA of $77K increased 413% or $62K from $15K. Net Profit of $44K compared to a Net Loss of ($32K).
Q-3 2010 vs. Q-2 2010 Financial Highlights
Recurring Revenue increased 5%, marking the tenth consecutive quarter of increased recurring revenue. EBITDA increased 38%. Net Profit increased 110%.
Balance Sheet Highlights
Cash balance of $538K compared to last year's comparable quarter of $9K. Positive working capital of $333K compared to negative working capital of ($325K). Shareholders' Equity of $116K compared to Stockholders' Deficit of ($773K). This marks the first quarter the Company has reported a positive Shareholder's Equity.
During the quarter, the Company:
Added two key executives, Ron Marks, VP of Sales and Greg Flowers, Marketing and Corporate Communications Manager. Expanded operations into Colorado and Pennsylvania. Obtained approvals in Nevada and Washington for its Bonus Jackpot System – Andromeda Series. Won Casino Journal's "Best New Table Game for 2010" for its Triple Attack Blackjack game and began the game's Nevada Field Trial at Harrah's - Las Vegas.
Andrew Zimmerman, Galaxy Gaming's CFO commented, "The Company is now at its strongest financial position ever, thanks to increased recurring revenues, profits and balance sheet improvements. Our progress positions us to effectively execute our future business endeavors. These trends now provide for us the opportunity to step-up our cost structure."
"We have repeatedly expressed to our shareholders that our financial objectives at this stage of our corporate life is to grow our recurring revenues significantly while maintaining at least a slight profit," stated Robert Saucier, CEO of Galaxy Gaming. "In all candor, while I am pleased with our increased profits in the third quarter, I am disappointed with the current rate of our recurring revenue growth. That being said, I believe we accomplished a number of strategic actions and initiatives in the third quarter which could begin to bear fruit and contribute to future results."
Today's Conference Call
The Company will hold a conference call to discuss its results today at 1:30 p.m. PT (4:30 p.m. ET). The call will be accessible by calling (888) 329-8893. The conference call ID is 6295043.
About Galaxy Gaming
Headquartered in Las Vegas, Nevada, Galaxy Gaming (www.galaxygaming.com) is the world's second largest developer, manufacturer and distributor of casino table games including Lucky Ladies, Texas Shootout, Emperor's Challenge, Deuces Wild and Triple Attack Blackjack. In addition, it develops innovative and enhanced electronic wagering platforms and systems such as its Bonus Jackpot System and its Inter-Casino Jackpot Network. Galaxy Gaming distributes its products to casinos throughout North America and on cruise ships worldwide.
This release may contain certain "forward-looking statements" relating to the Company's business which may be subject to various factors that may cause actual results to be materially different from those described herein as anticipated, estimated, or expected. The Company disclaims any obligation to update or alter its forward-looking statements.
CONTACT: Galaxy Gaming Robert B. Saucier, CEO Andrew Zimmerman, CFO 702-939-3254 Fax: 702-939-3255
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Released November 10, 2010