Recent

% | $
Quotes you view appear here for quick access.

Entertainment Gaming Asia Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • pjv2xyw9dww4b5 pjv2xyw9dww4b5 Nov 13, 2006 4:06 PM Flag

    LINK TO CC

    Hold on, the 3.4 million loss was loss FROM OPERATIONS. I still have a chance....

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Please help me to understand this ....


      "The Company reported a loss from operations for the quarter of $3.4 million compared to a loss from operations of $5.5 million for the third quarter of 2005. Excluding the impact of the Dolphin acquisition the loss from operations for the current quarter would have been $2.6 million."


      "The Company's revenues for the third quarter included $594,000 of core gaming product revenue and $1.8 million of non-gaming revenue attributable to the Company's acquisition of Dolphin Advanced Technologies on July 11, 2006. During the quarter, the DeckChecker(TM) accounted for 41% of the gaming revenue, with the shuffler line and casino chips contributing 20% and 11%, respectively."


      How can they calculate their loss "excluding the Dolphin Aquisition" and not also exclude the revenue generated by Dolphin?

      Granted, if they were simply a Dolphin reseller (as they once were prior to the aquisition) they would have a (small) wholesale-to-retail markup ... but as a chip manufacturer they only booked 65K in RFID revenue (11% of 594K core gaming revenue) for RFID.....65K!!!

      Am I looking at this wrong?


      The majority of their revs (1.8M) came from Dolphin non-gaming.

      Seems like they are putting all of their effort into pursuing gaming and RFID which is the lewast profitable, least productive part of their overall business. Seems to me you would drop the money-losing divisions and look for ways to continue to grow the winners.

      • 3 Replies to kidecar
      • ...busy listening to the last part of the call....

      • goal---to decipher:

        "The Company reported net revenues of $2.4 million, a significant increase over the prior year third quarter of $299,000. The Company's gross revenues from gaming operations during the third quarter increased by $275,033, or 86%, over the prior year period. The Company's revenues for the third quarter included $594,000 of core gaming product revenue and $1.8 million of non-gaming revenue attributable to the Company's acquisition of Dolphin Advanced Technologies on July 11, 2006. During the quarter, the DeckChecker(TM) accounted for 41% of the gaming revenue, with the shuffler line and casino chips contributing 20% and 11%, respectively."

        In http://www.sec.gov/Archives/edgar/data/1004673/000114420405035305/v029205_10qsb.htm#SOO the net revenue for the quarter ending 09/30/05 is stated as $298,981, and the gross revenue for the quarter ending 09/30/05 is stated as $318,983. The quotient obtained by dividing $275,033 by $318,983 is about 0.862218363, which does round to 86%. Adding $275,033 to $318,983 gives a total of $594,016 for the company's gross revenues from gaming operations during the third quarter.

        It thus appears to me, according to the third sentence in the top quotation that ALL of the company's gross revenues from gaming operations during the third quarter were attributable to the Company's acquisition of Dolphin Advanced Technologies on July 11, 2006. Also, as you note, 11% of $594,016 is $65,341.76.

        I'll be reading the 10-Q when it is available.

        I shall not be reaching for the "BUY" button any time soon.

      • "...as a chip manufacturer they only booked 65K in RFID revenue..."

        If I read the press release correctly, that 65K revenue includes RFID chips as well as standard (aka non-RFID) chips.

 
EGT
2.5365-0.0735(-2.82%)May 29 2:43 PMEDT