Galaxy Gaming, a casino table game developer, manufacturer and distributor, posted a wider loss for its second quarter, weighed down by debt extinguishment costs. But the company said game placements helped boost revenue.
In a 10-Q report filed this week with the Securities and Exchange Commission, the Las Vegas-based company said its net loss was $596,000, or 1 cent per share, for the three months ended June 30, compared with a net loss of $79,759, or break-even per share, a year earlier.
Revenue rose 24 percent to $4.5 million from $4.3 million, helped by wider placement of the company’s Heads Up Hold ’em and Player’s Edge games.
Earnings before interest, taxes, depreciation and amortization, a measure of cash flow, rose 54 percent to $1.6 million from $1.1 million.
In a statement announcing the results, Galaxy Chief Financial Officer Harry Hagerty said debt refinancing lowered interest expenses.
“We were cash-flow positive in Q2, adding $313,000 in cash and equivalents,” he said.
For the quarter, Galaxy Gaming said product leases and royalties generated $4.6 million, offset by $2.6 million in general and administrative expenses.
In the filing, Galaxy said it invested in research and table game systems development and applied for licenses in several jurisdictions but gave no specifics. Costs related to these moves, the company said, may postpone similar investment in the future.
“To the extent we are not able to achieve our growth objectives or raise additional capital, we will need to evaluate the reduction of operating expenses,” the company wrote.
Also, Galaxy Gaming said although it expects to meet its current liquidity needs with cash on hand, it couldn’t promise it can raise more funding or find any at company-favorable terms.
“If we are not able to secure additional funding, the implementation of our business plan could be impaired,” the company said.
Galaxy Gaming shares closed at $1.27 Friday. The share price has risen 15 percent since 2018 trading opened Jan. 2.
Follow Matthew Crowley on Twitter @copyjockey
