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Howard Stutz

Profits for SHFL entertainment rise 22 percent

5 June 2013

LAS VEGAS -- Gaming equipment supplier SHFL Entertainment grew profits 22 percent in the second quarter thanks in part of sales of products to casinos in Australia and Asia.

Las Vegas based SHFL said Tuesday that its net income for the quarter that ended April 30 was $11.8 million, or 21 cents per share. In the same quarter a year ago, the company’s net income was $9.7 million, or 17 cents per share.

Total revenues for the quarter were $77.4 million, a 17 percent increase compared with $66 million a year ago.

SHFL said sales of automated card shufflers, electronic gaming machines and table games all experienced double-digit growth margins.

“Our slot machine, shuffler, and specialty table games businesses continued to gain momentum, with each segment reporting record revenue in the quarter,” SHFL CEO Gavin Isaacs said in a statement.

SHFL’s table games include Three Card Poker and Ultimate Texas Hold’em, in which the company shares revenues with casinos. The company’s slot machine business has grown in the past year.

“SHFL remains the dominate provider of automated shufflers to the gaming industry with multiple product upgrade cycles under way,” Eilers Research principal Todd Eilers. “(The company) has attractive growth opportunities and in the interactive space and the North American slot sector.”

Brean Capital gaming analyst Justin Sebastiano said the company’s push into the U.S slot market and progress in Internet gaming with online operators in Europe are the company’s key expansion vehicles.

“These segments, combined with the strong recurring revenue component of SHFL’s businesses, put the company on a clear growth trajectory,” Sebastiano said.