Although Shuffle Master reported record revenue of $53.6 million in the fourth quarter, its losses amounted to $15 million for the period that ended on Oct. 31.
During the same period last year, the industry supplier reported a profit of $8.2 million. According to Shuffle Master, the loss can be attributed to a goodwill impairment charge of $22.1 million related to the company's electronic tables systems segment.
The company’s product leases and royalties brought in $18.2 million, an uptick from last year’s $15.5 million. Yet there was a slight decline in Shuffle Master’s main revenue stream in product sales, which slid from $36.2 million to $35.3 million.
Roth Capital Partners called the fourth quarter results “strong,” even though the analysts took the 2009 revenue estimates down from $202.6 million to $196.2 million. However, earnings per share estimates remained unchanged at 28 cents as analysts believe cost cutting measures by Shuffle Master will “make up the difference.”