Free 7-day Trial
All Articles and Columns »

PokerTek Inc. Reports Operating Results (10-Q)

August 16, 2010 | About:
10qk

10qk

18 followers
PokerTek Inc. (PTEK) filed Quarterly Report for the period ended 2010-06-30.

Pokertek Inc. has a market cap of $9.25 million; its shares were traded at around $0.63 with and P/S ratio of 1.38.
This is the annual revenues and earnings per share of PTEK over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PTEK.


Highlight of Business Operations:

Interest expense, net. Interest expense decreased $59,546 (62%) for the three months ended June 30, 2010 to $37,018 from $96,564 for the three months ended June 30, 2009. The decrease was primarily attributable to the reduction in the principal balance of our Founders Loan from $2.0 million at June 30, 2009 to $0.8 million at June 30, 2010, combined with lower interest rates. Interest expense for the three months ended June 30, 2010 was composed of the following items: Founders Loan interest of $17,951; loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $18,426; and interest on our capital lease of $705.

Net Loss. Net loss for the three months ended June 30, 2010 was $2.0 million, an increase of $0.4 million (24%) from $1.6 million for the three months ended June 30, 2009. Net loss per share, basic and diluted, was $0.14 per share for the three months ended June 30, 2010, an improvement of $0.01 (7%) per share from $0.15 for the comparable period of 2009. The increase in net loss was directly attributable to the $1.1 million in Amusement segment charges.

Depreciation. Depreciation increased by $126,202 (97%) for the six months ended June 30, 2010 to $256,750 from $130,548 for the comparable period in 2009. The increase in depreciation was primarily attributable to acceleration of depreciation of tooling relating to the disposition of the Amusement business. Excluding the Amusement business, depreciation decreased by $26,798 (27%) for the six months ended June 30, 2010 to $73,705 from $100,503 for the comparable period in 2009. The decrease in depreciation was due primarily to certain assets being fully depreciated.

Interest Income (Expense), net. Interest expense decreased $111,698 (62%) for the six months ended June 30, 2010 to $69,573 from $181,271 for the six months ended June 30, 2009. The decrease was primarily attributable to the reduction in the principal balance of our Founders Loan from $2.0 million at June 30, 2009 to $0.8 million at June 30, 2010, combined with lower interest rates. Interest expense for the six months ended June 30, 2010 was composed of the following items: Founders Loan interest of $35,704; loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $32,374; and interest on our capital lease of $1,560.

Net Loss. Net loss for the six months ended June 30, 2010 was $2.9 million, an improvement of $0.6 million (16%) from $3.5 million for the six months ended June 30, 2009. Net loss per share, basic and diluted, was $0.20 per share for the six months ended June 30, 2010, an improvement of $0.11 (35%) per share from $0. 31 for the comparable period of 2009. The decrease in net loss was attributable to our cost reduction initiatives partially offset by the $1.1 million in Amusement segment charges.

We entered into a registration rights agreement with LPC whereby we agreed to file a registration statement related to the transaction within 20 days with the U.S. Securities & Exchange Commission (“SEC”) covering the shares that have been issued or may be issued to LPC under the purchase agreement. After the SEC has declared effective the registration statement related to the transaction, we has the right over a 30-month period to sell shares of common stock to LPC every two business days in the amount of $50,000. This amount may be increased by $100,000 if the closing price of our shares is above $1.25, by $200,000 if the closing price is above $1.75, by $350,000 if the closing price is above $2.50 and by $500,000 if the closing price is above $3.75.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide