SHFL Entertainment 3Q net income falls 38 percent

SHFL Entertainment 3Q net income tumbles 38 percent as merger-related expenses rise

Associated Press

LAS VEGAS (AP) -- Gambling supply seller SHFL Entertainment Inc. said Friday its net income sank 38 percent in its fiscal third quarter, dragged down by expenses related to its sale to Bally Technologies Inc.

SHFL makes a variety of casino equipment, including automatic card shufflers, gambling tables and online games. Gambling devices maker Bally agreed in July to buy the Las Vegas company for about $1.31 billion in cash.

For the three months ended July 31, SHFL reported net income of $6.4 million, or 11 cents per share, compared with net income of $10.4 million, or 18 cents per share, in the prior-year quarter.

Costs related to the Bally merger agreement helped drive SHFL's total expenses to $65.1 million in the latest quarter, an increase of 30 percent from a year earlier.

Excluding the impact of one-time costs, SHFL's earnings amounted to 16 cents per share.

That was still below analysts' consensus forecast, which called for earnings of 21 cents per share, according to FactSet.

Revenue grew 16 percent to $73.5 million, aided by a sharp increase in sales of electronic table systems. Analysts had expected $77.8 million.

SHFL said revenue from its various segments all contributed to the quarter's revenue growth.

Shares in the company ended regular trading up a penny to $22.79. The stock slipped 14 cents to $22.65 in after-market trading.

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