"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.