Nasdaq-listed Entertainment Gaming Asia (EGT) posted a net loss of $261,000 for the three months ended September 30, up from a loss of $309,000 a year earlier.
The company, which is linked to Hong Kong-listed casino investor Melco International Development Ltd, is in the business of leasing slot machines to gaming venues in the Indochina region on a profit-sharing basis. The company is also a casino currency maker.
EGT’s revenue from gaming operations for the third quarter of 2014 was $4 million, down 9% from $4.3 million a year earlier, it said in a filing on Thursday.
The company said it was negatively affected by a drop in revenue from participation in slot machines at its Hong Kong-listed Naga World Casino Resort, operated by Naga Corp Ltd. The development is Cambodia’s largest casino complex and the only one in the Cambodian capital Phnom Penh.
“In addition to the increased player jackpot payments to Nagaworld operations, we experienced some business disruptions and temporary reductions in installation machines during the quarter due to Nagaworld’s casino floor-specific partial renovation,” said EGT Chairman and Chief Executive Officer Clarence Sucman in a statement. “Now that floor renovations are complete, the installation machine base and player traffic levels are back to more normalized levels,” added Chung.
The revenue from the game’s operations consisted only of slot participation when it halted operations at Dreamworld Palin Casino in Cambodia in June.
For the three months ended September 30, gaming product sales were $437,000, down from $1.1 million in the third quarter of 2013.
“This is the result of a decrease in sales to existing customers, a lack of absorption of fixed costs due to a decrease in sales volume, and certain production inefficiencies,” CEO Chung said.
He added: “During the quarter, we also focused our production efforts on achieving two previously announced orders of game chips and plaques for the Philippines totaling more than $4 million. These orders are expected to be delivered in Q4 2014.” 파워볼사이트
EGT’s adjusted EBITDA (continued operating income before interest, taxation, depreciation and non-cash expenses) for the third quarter of 2014 was $1.6 million, down 24% year-over-year.
The company was granted a six-month extension last month to re-compliance with Nasdaq’s minimum $1.0 per share bid requirement. The new deadline is April 13, 2015.
Shares of EGT, which traded in New York on Thursday before the earnings call, rose 2% to close at $0.51 apiece.