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Gaming Guru

Howard Stutz

Shuffle Master posts net loss

13 March 2009

LAS VEGAS, Nevada -- Gambling equipment provider Shuffle Master, which will change over chief executives next week, posted a net loss of $973,000, or 2 cents a share, for the quarter ended Jan. 31.

Outgoing Shuffle Master Chief Executive Officer Mark Yoseloff in his final earnings report with the company said revenues fell 9 percent because of weakening currency in Australia and Europe.

Yoseloff, who has been with Shuffle Master for 15 years, will be replaced next week by Tim Parrott, who most recently oversaw the American operations for Australian slot machine maker Aristocrat.

"As I officially hand the reins to the new CEO Tim Parrott next week, I feel more confident in the long-term growth and sustainability of this company than I did walking through the doors of Shuffle Master nearly 15 years ago," said Yoseloff, who remains the company's largest shareholder with almost 779,000 shares.

A year ago, Shuffle Master had a net loss $1.8 million, or 5 cents a share.

Quarterly revenues fell to $34.5 million from $37.9 million.

Shuffle Master said lease and service revenue, which was 59 percent of total revenue, was $20.3 million, up 8 percent.

Shuffle Master said its cash flow grew 53 percent in the quarter to $9.1 million, compared with $6 million a year ago.

Yoseloff said Shuffle Master has seen increased interest in its electronic table games segment, which saw revenues increase 16 percent. As of Jan. 31, the company had 7,315 electronic table games in gaming jurisdictions, compared with 6,477 a year ago.

Also, the company was approved during the quarter to distribute its Three Card Poker table game in Macau.

Shares of Shuffle Master, traded on the Nasdaq National Market, closed at $2.57 on Thursday, up 37 cents, or 16.82 percent.