PokerTek Inc develops and markets automated poker tables and related software for casinos and a heads-up poker table for amusement only at bars and restaurants. In reporting its financial results for the second quarter of 2008, the company states that revenues increased by 319% for the quarter and 367% for the first half of the year. It also claims operating expenses declined, directly attributable to the rapid growth in casino and amusement revenues combined with management initiatives to generate positive operating leverage by controlling costs as the business grows.
Consolidated revenues for the second quarter of 2008 were $3.8 million and $7 million for the first half. Revenue growth was driven by strong performance in both the casino and amusement product lines. Product sales totaled $2.4 million for the second quarter, an increase of 671% from the second quarter of 2007. For the first half of 2008, product sales were $4.1 million, an increase of 932% from the comparable period of 2007. The growth in product sales was partially attributable to the successful launch of the new Heads-Up Challenge amusement product.
On July 25, 2008, the Company entered into a $5.0 million credit facility with Silicon Valley Bank. The maximum availability under the facility is approximately $4.1 million, based on specified percentages of domestic and foreign accounts receivable and inventory, which will vary from time to time. This facility has a one-year term, bears interest at Prime plus 1.5% and contains restrictive covenants and other provisions customary for this type of facility. The credit facility provides an additional source of liquidity for PokerTek and will be available to support the Company’s working capital needs as it continues to execute its growth strategy.
According to Chris Halligan, CEO of PokerTek, “PokerTek is in growth mode. Our casino business is performing well all around the world. We’re adding prestigious new customers such as Trump Plaza in Atlantic City and many customers, like Carnival and Loto-Québec, continue to expand their PokerPro installations.” Chief Financial Officer Mark Roberson added, “Financially, we’re making progress in several key areas. Revenues are ramping, operating expenses are trending down, and our new credit facility positions us well for future growth.” (E-07.30.08)
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