GameTech posts $2.7 million profit for fiscal year

GameTech International Inc., a Renobased

maker of electronic bingo equipment,

earned $2.7 million, or 23 cents a

share, on revenues of $48.9 million in its

fiscal year ended Oct. 31.

This compares with a loss of $4.4 million,

or 41 cents a share, on revenues of

$48.5 million in GameTech's previous

fiscal year.

For the fourth quarter, the company

reported a loss of $385,000, or 3 cents a

share, on revenues of $12.4 million. This

compares with a loss of $4 million, or 37

cents a share, on revenues of $11.8 million

a year earlier.

GameTech said the number of its

units used by bingo operators increased

by 20 percent during the year.

Installations of its back-office accounting

systems rose by 200 percent from yearearlier

figures.

The company's fourth-quarter revenues

were dampened by the discovery

that a former employee had violated

security systems.

The discovery led to temporary shutdowns

of GameTech's equipment in three

states.

Equally important were indirect

effects such as delayed development of

new products as GameTech completed

its internal investigation, said Clarence

Thiesen, the company's chief executive

officer.

All of GameTech's units now have

been restored to play.

He said that the security crisis pointed

out, however, the benefits of steps

GameTech had taken earlier in the year

to bolster its management team.

In a release, Thiesen said GameTech's

management tackled the security issue

"with resolve and commitment" and he

said the company is stronger for having

weathered the storm.

In other developments, Thiesen said

GameTech's capital expenditures during

the fiscal year totaled $12.1 million.

Most of that, he said, was used to modernize

equipment and increase the number

of GameTech units in the field.

The electronic bingo equipment manufactured

by GameTech includes handheld

units, fixed-based units and

accounting and management software.