Shares of Shuffle Master Inc. gained in Thursday trading on Wall Street after the gaming technology supplier posted a 56% leap in third-quarter profit, beating analyst expectations.
The Las Vegas-based company earned US$9.1 million, or 17 cents per share, ahead of the 15 cents per share projected by the analysts. Revenue went up by 13% to US$58.3 million. Shuffle Master added that the rise applied to most of its product lines. Strong sales of its recently-launched Equinox slots cabinets and games helped boost results. The company makes a wide range of casino products including its eponymous secure card shufflers and electronic table games.
The company and analysts pointed to 11% growth in recurring revenue as a highlight of the figures. A key aim identified by management is to shift the company toward a leased-based revenue model on many of its products to provide solid and sustainable revenue growth in future reporting periods.
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