SEARCH NEWS:

 

Silicon Gaming Reports Q1 2000 Results

For the first quarter, the Company reported a net loss of $2.7 million or $0.09 per share compared to a net loss before extraordinary items of $6.9 million or $0.37 per share in the prior quarter. For the same period last year the Company reported a net loss of $9.0 million or $0.64 per share.

Revenue for the quarter was $3.1 million, compared to $3.5 million for the previous quarter and $5.7 million for the same period last year.

"During the first quarter, the Company focused on executing its sales plan as well as furthering its new development initiatives," said Andrew Pascal, President and Chief Executive Officer of Silicon Gaming. "In the past we have focused our efforts on creating new game applications to support the sale of our Odyssey and Quest machines. While we remain committed to these product lines, we have invested considerable resource in a new product paradigm that we believe will enhance our operating performance. We have already realized some of the benefits of this new model by off-setting operating expenses and reducing the net loss in the current quarter." Pascal further noted, "We look forward to the coming months as we again establish a new standard of innovation and entertainment value for our industry."

Silicon Gaming, Inc. designs and manufacturers a full line of innovative wagering products, including the Odyssey and Quest slot machines, and an extensive library of game applications, including Phantom Belle, Eureka, Cash Cruise, Bananarama, and Hot Reels. Headquartered in Palo Alto, California, the Company is traded on the OTC Bulletin Board as SGIC.

Forward-Looking Statements

This press release may contain certain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the Company's capital requirements, expectation of losses, dependence on a single product, risk of technical errors in the Company's product, uncertain market acceptance of the Company's product, regulatory approval of the Company's product, the Company's management of its growth, intense competition, rapidly changing technology, dependence on key personnel and those other risks identified in the Company's Form 10-K and 10-K/A for the year ended December 31, 1999 and Form 10-Q for the quarter ended March 31, 2000.

For more information on Silicon Gaming, visit the company's website at http://www.silicongaming.com .

                               SILICON GAMING, INC.
STATEMENT REGARDING COMPUTATION OF LOSS PER SHARE
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
                                                   March 31       March 31
                                                     2000           1999

    Revenue                                         $3,102         $5,661
    Net loss                                        $2,729         $9,040
    Weighted average common & equivalent shares     30,959         14,115
    Net loss per basic and diluted share             $0.09          $0.64

SILICON GAMING, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                     March 31     December 31,
                                                       2000           1999
ASSETS
CURRENT ASSETS:
     Cash & investments                                 $837           $877
     Short-term investments                               --          1,000
     Accounts receivable                               1,963          1,188
     Inventories                                       5,801          7,331
     Prepaid and other                                   834          1,069
      Total current assets                             9,435         11,465

    PROPERTY AND EQUIPMENT, NET                        3,313          3,795
    OTHER ASSETS, NET                                    299            321

      TOTAL ASSETS                                   $13,047        $15,581

LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
     Accounts payable                                 $1,252         $1,389
     Accrued liabilities                               1,545          1,655
     Deferred revenue                                  1,131            240
     Line of credit                                       --            622
     Current portion of long-term obligations          1,152          1,165
      Total current liabilities                        5,080          5,071

    OTHER LONG-TERM LIABILITIES                        1,609          1,611
    LONG TERM-OBLIGATIONS                             16,156         16,260

SHAREHOLDERS' EQUITY:
     Common stock                                     69,665         64,123
     Preferred Stock                                  20,000         20,000
     Warrants                                                         5,542
     Notes receivable from shareholders                 (344)          (345)
     Deferred stock compensation                      (4,355)        (4,646)
     Accumulated deficit                             (94,764)       (92,035)
      Total shareholders' equity                      (9,798)        (7,361)

      TOTAL LIABILITIES & SHAREHOLDERS' EQUITY       $13,047        $15,581

< Gaming News