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PokerTek Inc. Reports Operating Results (10-Q)

November 10, 2011 | About:
10qk

10qk

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PokerTek Inc. (PTEK) filed Quarterly Report for the period ended 2011-09-30.

Pokertek Inc. has a market cap of $6.3 million; its shares were traded at around $0.9 with and P/S ratio of 1.
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:

Gross Profit. Gross profit increased by $0.1 million (7.9%) to $1.1 million for the three months ended September 30, 2011 as compared to $1.0 million for the three months ended September 30, 2010. Gross profit as a percent of revenue was 69.1% and 72.3% for the three months ended September 30, 2011 and 2010, respectively. The gross profit percentage declined primarily due to higher internal product support expenses, partially offset by lower product costs.

Net Income from Discontinued Operations. Net income from discontinued operations for the three months ended September 30, 2011 was $1,216, a decrease of $30,999 (96.2%) from net income of $32,215 for the three months ended September 30, 2010. Net income from discontinued operations per share as of September 30, 2011 was $0.0 compared to $0.01 net income per share for the three months ended September 30, 2010. As we continue to liquidate the discontinued operations inventory at prices near carrying cost, we are not generating any significant income or loss from these sales in the current quarterly period.

Gross Profit. Gross profit increased by $0.7 million (25.4%) to $3.5 million for the nine months ended September 30, 2011 as compared to $2.8 million for the nine months ended September 30, 2010. Gross profit as a percent of revenue was 70.6% and 64.1% for the nine months ended September 30, 2011 and 2010, respectively. The increase in gross profit was primarily attributable to increased revenues, improved asset utilization and reduced product costs.

Net Loss from Continuing Operations. Net loss from continuing operations for the nine months ended June 30, 2011 was $1.4 million, an improvement of $1.0 million (41.9%) from $2.4 million for the nine months ended September 30, 2010. Net loss from continuing operations was $0.21 per share for the nine months ended September 30, 2011, an improvement of $0.20 (48.8%) per share compared to $0.41 for the comparable period of 2010. The improvement in net loss was attributable to improved revenue and gross margins, along with a reduction in operating expenses.

Net Loss from Discontinued Operations. Net loss from discontinued operations for the nine months ended September 30, 2011 was $9,187, an improvement of $1,170,185 (99.2%) from a net loss of $1,179,372 for the nine months ended September 30, 2010. Net loss from discontinued operations per share as of September 30, 2011 was $0.0 compared to $0.20 net loss per share for the nine months ended September 30, 2010. During the 2010 period, we incurred $1.0 million in asset revaluation charges related to the impairment of inventory and other assets associated with the discontinued amusement operations. As we continue to liquidate the discontinued operations inventory at prices near carrying cost, we are not generating any significant income or loss from these sales in the current quarterly period.

Read the The complete Report

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