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PokerTek Inc. Reports Operating Results (10-Q)

November 15, 2010 | About:
10qk

10qk

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PokerTek Inc. (PTEK) filed Quarterly Report for the period ended 2010-09-30.

Pokertek Inc. has a market cap of $11.56 million; its shares were traded at around $0.77 with and P/S ratio of 1.73.

Highlight of Business Operations:

Interest Expense, net. Interest expense decreased $42,430 (56%) for the three months ended September 30, 2010 to $33,973 from $76,403 for the three months ended September 30, 2009. The decrease was primarily attributable to the reduction in the principal balance of our Founders Loan from $2.0 million to $0.8 million on September 10, 2009, combined with lower interest rates. Interest expense for the three months ended September 30, 2010 was composed of the following items: Founders Loan interest of $18,148; loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $13,358; and interest on our capital lease of $2,467.

Net Loss from continuing operations. Net loss from continuing operations for the three months ended September 30, 2010 was $0.7 million, an improvement of $0.5 million (43%) from $1.2 million for the three months ended September 30, 2009. Net loss from continuing operations per share, basic and diluted, was $0.05 per share for the three months ended September 30, 2010, an improvement of $0.05 (55%) per share from net loss per share, basic and diluted, compared to $0.10 for the comparable period of 2009. The decrease in net loss was attributable to improved revenue and margins and stable operating expenses.

Net Income from discontinued operations. Net income from discontinued operations for the three months ended September 30, 2010 was $32,215, an improvement of $135,118 (131%) from a net loss of $102,903 for the three months ended September 30, 2009. Net income from discontinued operations per share, basic and diluted, was $0.00 for the three months ended September 30, 2010, an improvement of $0.01 (125%) per share from net loss per share, basic and diluted, compared to $0.01 for the comparable period of 2009.

Interest Expense, net. Interest expense, net decreased $154,128 (60%) for the nine months ended September 30, 2010 to $103,546 from $257,674 for the nine months ended September 30, 2009. The decrease was primarily attributable to the reduction in the principal balance of our Founders Loan from $2.0 million to $0.8 million on September 10, 2009, combined with lower interest rates. Interest expense for the nine months ended September 30, 2010 was composed of the following items: Founders Loan interest of $53,852; loan origination and unused line fees associated with the credit line from Silicon Valley Bank totaling $45,732; and interest on our capital lease of $4,027.

Net Loss from discontinued operations. Net loss from discontinued operations for the nine months ended September 30, 2010 was $1.2 million, an increase of $0.9 million (293%) from $0.3 million for the nine months ended September 30, 2009. Net loss per share, basic and diluted, was $0.08 per share for the nine months ended September 30, 2010, a decrease of $0.05 (204%) per share from net loss per share, basic and diluted, of $0.03 for the comparable period of 2009. The increase in net loss was primarily attributable to the $1.1 million in non-recurring charges recognized to reduce the Amusement assets to net realizable value and to recognize an unfavorable purchase commitment.

Net Loss. Net loss for the nine months ended September 30, 2010 was $3.5 million, an improvement of $1.2 million (25%) from $4.7 million for the nine months ended September 30, 2009. Net loss per share, basic and diluted, was $0.24 per share for the nine months ended September 30, 2010, an improvement of $0.18 (42%) per share from net loss per share, basic and diluted, of $0.42 for the comparable period of 2009. The decrease in net loss was attributable to the improved results from continuing gaming business, partially offset by the $1.1 million in non-recurring charges from the Amusement segment.

Read the The complete Report

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