Gaming industry weakness
The weak gaming market across the United States took its toll on profits at GameTech International Inc., a Reno company that makes electronic bingo systems as well as video lottery machines.
The company said in a filing with the Securities and Exchange Commission that it lost $683,000 during the quarter that ended Feb. 1, which compared with profits of $331,000 in the comparable period a year earlier.
Revenues fell to $12.7 million in the just-completed quarter from $15.2 million a year ago.
Problems were most severe in its video gaming business, which posted a $1.4 million loss during the quarter, GameTech said in the SEC filing. That equipment is made by Summit Amusement & Distributing, which GameTech acquired two years ago.
Video gaming sales were hurt by the slow economy as well as by delays in winning regulatory approval for upgraded software, GameTech said.
Its bingo business, meanwhile, was pinched by the closure of bingo halls nationally and stiff price competition resulting from the economic downturn. GameTech said it made up some of the lost ground with new products and by opening of new markets. The company sells to bingo operators in 40 states.
GameTech is moving into a 100,000-square-foot South Meadows building it purchased for $7.2 million last year. The building will house its manufacturing and office operations.
The company’s common stock, which was trading above $10 a share in early 2007, was quoted at 86 cents last week.
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