Gaming News

VCAT Reports Loss Grows

SAN DIEGO, California -- (PRESS RELEASE) -- Venture Catalyst Incorporated ("VCAT") (OTCBB:VCAT) today reported operating results for the three months ended September 30, 2004.

First Quarter Results

VCAT reported a net loss for the three months ended September 30, 2004, of $57,000 or $.01 loss per share. This compares with a net loss of $11,000, or nil per share, for the three months ended September 30, 2003. Revenues for the three months ended September 30, 2004 were $1,744,000, as compared to $1,953,000 during the three months ended September 30, 2003. Revenues from consulting services in the current year quarter were $1,725,000, compared to $1,951,000 earned during the same quarter in the prior year. Revenues from software products and related services in the current year quarter were $19,000, as compared to $2,000 in the same quarter last year.

Costs of revenues were $1,029,000 during the three months ended September 30, 2004, as compared to $840,000 during the three months ended September 30, 2003.

Operating expenses, consisting of general and administrative, sales and marketing and research and development, were $874,000 during the three months ended September 30, 2004, compared to $882,000 during the three months ended September 30, 2003.

Other income was $14,000 during the three months ended September 30, 2004. During the three months ended September 30, 2003, other expense was $242,000, primarily relating to interest expense on VCAT's long-term debt.

For the three months ended September 30, 2004, VCAT recorded an income tax benefit of $88,000. VCAT did not record an income tax benefit for the three months ended September 30, 2003.

In July 2004, VCAT entered into an agreement to restructure its principal indebtedness. Pursuant to the terms of the restructuring agreement with the note holders, VCAT's aggregate outstanding debt was reduced from $11,969,000 to $4,300,000. The principal due under the new notes was paid in two installments, one in July 2004 and one in September 2004. As of September 30, 2004, no further payments are due under the notes and VCAT's long-term debt balance was zero.

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