GameTech International’s year report

GameTech International is a leading designer, developer and marketer of electronic bingo equipment and bingo systems. The company recently announced the end of its fourth fiscal year of activity and issued a report.

$4.4 million was the 2006 net income, huge compared to the net income of $1.3 million in 2005. Fiscal 2006 revenue was $49.3 million, meaning 0.7% behind 2005 revenue of $49.7 million. The explanation is the continuously growing competition in the area and the recent pricing pressures, the growing interest for slots instead of bingo and the elimination of certain unprofitable accounts.

Some product lines became depreciated, especially because of new products that invaded the market in the second half of the year. Reducing personnel related costs and reducing litigation costs led to the improved operating expenses of last year.

The company was more focused on research and development project costs this year. Hall closures and a general decrease in attendance during the last quarter of the year led to big differences compared to the last quarter of 2005, from $12.0 million, down from $12.1 million for one year before.

GameTech's President and Chief Executive Officer Jay Meilstrup declared that the passing year was one of cost reducing and technology development for his company. They launched the Tracker, the 2-way wireless devices and network, and the GameTech Mini a next generation wireless device which will allow them to reach new segments of the market. They hope to expand in 2007 reaching markets such as Mexico or UK.