GameTech International Inc. (GMTC, Financial) filed Quarterly Report for the period ended 2011-07-31.
Gametech International Inc. has a market cap of $0.59 million; its shares were traded at around $0 with and P/S ratio of 0.02.
Our VLT business generates revenue from the sale of new and used video lottery terminals (VLT s) and related gaming equipment, software conversion kits, content fees, license fees, parts, and services. For the 13 week periods ended July 31, 2011 and August 1, 2010, we generated approximately 87.3% and 85.1%, respectively, of our VLT business sales from the sale of new and used equipment, conversion kits, and parts. Increasing market share, replacement of outdated equipment in existing markets and expanding product placement into new markets drive revenue growth.
Bingo - Historically, Bingo revenue for the third quarter is the lowest of the year. As of July 31, 2011, we had bingo devices, games, and systems in service in 39 states, various Native American locations, the Philippines, and Canada. We market portable, handheld and stationary, fixed-base bingo player devices; unique electronic and paper bingo games, such as Big Bad Bingo™ (“B3”™) and Crystal Ball Bingo®; other related for-fun games, such as solitaire; and bingo management systems. Our devices display electronic bingo card images for each game and assist the players in managing and marking their bingo cards in physical bingo facilities operated in charitable, Native American, commercial, and military locations. These devices enable players to purchase and play substantially more bingo cards compared to paper cards, typically leading to more fun and greater spend for the player and increased profits for the operator. Our bingo management systems, such as Diamond Plus® and AllTrak 2®, provide bingo operators with important information regarding the profitability of their bingo hall(s), inventory systems, and player tracking demographics, among other modules. We generally enter into one to three year contracts with bingo operators for the use of the bingo devices and management systems.
The decrease in Bingo revenue caused the 4.1 percentage point decrease in Bingo gross profit. VLT gross margin decreased 51.9 percentage points from the prior year period due to the mix of sales, as current period cost of revenue was comprised of high cost new equipment and parts compared to the prior year period.
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Gametech International Inc. has a market cap of $0.59 million; its shares were traded at around $0 with and P/S ratio of 0.02.
Highlight of Business Operations:
We generate bingo revenue by placing electronic bingo systems in bingo halls under contracts based on (1) a fixed fee per unit; (2) a fixed weekly fee per terminal; or (3) a percentage of the revenue generated by each terminal. The degree of player acceptance of electronic bingo as an addition or an alternative to paper bingo affects the revenue growth of our Bingo segment. Additionally, our revenue growth is dependent on our ability to expand operations into new markets and our ability to increase our market share in our current markets. Fixed-base bingo terminals generate greater revenue per terminal than portable bingo terminals, but also require a greater initial capital investment. For the 13 week period ended July 31, 2011, approximately 77.1% of our bingo revenues were generated from our portable bingo systems as opposed to fixed-based bingo units, compared to 78.4% in the comparable prior year period.Our VLT business generates revenue from the sale of new and used video lottery terminals (VLT s) and related gaming equipment, software conversion kits, content fees, license fees, parts, and services. For the 13 week periods ended July 31, 2011 and August 1, 2010, we generated approximately 87.3% and 85.1%, respectively, of our VLT business sales from the sale of new and used equipment, conversion kits, and parts. Increasing market share, replacement of outdated equipment in existing markets and expanding product placement into new markets drive revenue growth.
Bingo - Historically, Bingo revenue for the third quarter is the lowest of the year. As of July 31, 2011, we had bingo devices, games, and systems in service in 39 states, various Native American locations, the Philippines, and Canada. We market portable, handheld and stationary, fixed-base bingo player devices; unique electronic and paper bingo games, such as Big Bad Bingo™ (“B3”™) and Crystal Ball Bingo®; other related for-fun games, such as solitaire; and bingo management systems. Our devices display electronic bingo card images for each game and assist the players in managing and marking their bingo cards in physical bingo facilities operated in charitable, Native American, commercial, and military locations. These devices enable players to purchase and play substantially more bingo cards compared to paper cards, typically leading to more fun and greater spend for the player and increased profits for the operator. Our bingo management systems, such as Diamond Plus® and AllTrak 2®, provide bingo operators with important information regarding the profitability of their bingo hall(s), inventory systems, and player tracking demographics, among other modules. We generally enter into one to three year contracts with bingo operators for the use of the bingo devices and management systems.
The decrease in Bingo revenue caused the 4.1 percentage point decrease in Bingo gross profit. VLT gross margin decreased 51.9 percentage points from the prior year period due to the mix of sales, as current period cost of revenue was comprised of high cost new equipment and parts compared to the prior year period.
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