Today’s announcement by Ainsworth Game Technology (AGT) of an expected loss of around US$8.4 million, after taxes, for the financial year ended 30 June 2005 is somewhat alleviated by the company’s 31% increase in revenues. There are several reasons why last year’s results have been more down than up for AGT, and its Board remains confident that the next financial year will bring continuing growth as the company positions itself to take advantage of new opportunities in the global slot machine market.

The failed merger with Russia’s Unicum Group was a contributing factor to the US$3.82 million in expenses incurred over the last year, and restructuring and legal costs also took their toll. The company in addition had about US$2.67 in overhead costs for Research & Development, licence applications and increased staff. These one-off charges should mean that AGT faces the new financial year in a good position to return to profitability.

Len Ainsworth, executive chairman and founder of AGT, is to underwrite a A$12 million (US$9.17) rights issue that should provide the company with the capital needed for continued growth in global markets, including the Americas, Macau, Russia, and at home in Australia. 2004/2005 sales in Europe, South Africa and Australia may have been lower than anticipated but the restructured AGT, with reduced production and overhead costs, is looking to gain further US licences and a share in the growing Latin American market, as well as improved performance elsewhere.

Ainsworth Game Technology, with its slogan ‘Excellence,’ is still very much in the game. (E-06.30.05)

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