Shuffle Master Inc. (SHFL, Financial) filed Annual Report for the period ended 2011-10-31.
Shuffle Master Inc. has a market cap of $641.8 million; its shares were traded at around $11.85 with a P/E ratio of 20.5 and P/S ratio of 2.9.
We believe that one of our strengths is identifying new product opportunities and developing new products, therefore we expect to continue to spend a significant portion of our annual revenues on research and development, including the acquisition of intellectual property from third parties. Total R&D expense was $27.6 million, $21.8 million and $17.3 million for fiscal 2011, 2010 and 2009, respectively.
Decreased ETS lease revenue driven by a 14.5% reduction in Rapid Table Games®, Table Master® and Vegas Star® average monthly lease price in the United States, primarily due to Table Master® removals in Pennsylvania and Delaware in the prior year, partially offset by increased seats on lease due to favorable regulatory changes and new facility openings in the prior year.
The favorable regulatory changes in Pennsylvania and Delaware that drove new placements of Utility and PTG products were partially offset by the return of approximately 420 Table Master® seats previously leased in that market. This resulted in a decrease in ETS lease revenue of approximately $1.6 million compared to the prior year. We have begun to return these Table Master® seats to active service in other markets such as Latin America.
A decrease of 14.5% in Rapid Table Games®, Vegas Star® and Table Master® average monthly lease price, driven primarily by the return of approximately 420 Table Master® seats previously leased in Pennsylvania and Delaware in the prior year. This resulted in a decrease in ETS lease revenue of approximately $3.3 million during the fiscal 2011;
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Shuffle Master Inc. has a market cap of $641.8 million; its shares were traded at around $11.85 with a P/E ratio of 20.5 and P/S ratio of 2.9.
Highlight of Business Operations:
With respect to our PTG segment, in addition to companies such as International Game Technology (“IGT”), Bally Technologies, Inc. (“Bally”), Aristocrat Gaming (“Aristocrat”) and WMS Industries Inc. (“WMS”) that primarily market EGMs, we also compete with both non-proprietary table games such as blackjack and several companies which primarily develop and license proprietary table games. Some of those competitors' widely known proprietary table game titles include Galaxy Gaming's Lucky Ladies™ and Emperor's Challenge®, Masque Publishing's Spanish 21® and DEQ Systems EZ Baccarat™. Additionally, competition with our progressive bet system for table games includes DEQ Systems. Competition in this segment is focused on price, brand recognition, player appeal and the strength of underlying intellectual property. Smaller developers and vendors are more able to participate in developing and marketing table games, compared to other gaming products, because of the lower cost and complexity associated with the development of these products and a generally less stringent regulatory environment. We compete on these bases, as well as on the strength of our extensive sales, service and distribution channels. We have been able to increase our placements of table games not only because of the general growth of table games, but also by displacing other table game products. In the future, table game competitors as well as slot machine companies could market table games that displace our products.We believe that one of our strengths is identifying new product opportunities and developing new products, therefore we expect to continue to spend a significant portion of our annual revenues on research and development, including the acquisition of intellectual property from third parties. Total R&D expense was $27.6 million, $21.8 million and $17.3 million for fiscal 2011, 2010 and 2009, respectively.
Decreased ETS lease revenue driven by a 14.5% reduction in Rapid Table Games®, Table Master® and Vegas Star® average monthly lease price in the United States, primarily due to Table Master® removals in Pennsylvania and Delaware in the prior year, partially offset by increased seats on lease due to favorable regulatory changes and new facility openings in the prior year.
The favorable regulatory changes in Pennsylvania and Delaware that drove new placements of Utility and PTG products were partially offset by the return of approximately 420 Table Master® seats previously leased in that market. This resulted in a decrease in ETS lease revenue of approximately $1.6 million compared to the prior year. We have begun to return these Table Master® seats to active service in other markets such as Latin America.
A decrease of 14.5% in Rapid Table Games®, Vegas Star® and Table Master® average monthly lease price, driven primarily by the return of approximately 420 Table Master® seats previously leased in Pennsylvania and Delaware in the prior year. This resulted in a decrease in ETS lease revenue of approximately $3.3 million during the fiscal 2011;
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