GameTech Posts $11 Million Loss for 2008

4 February 2009

Last week GameTech International Inc. posted a net loss of $11.2 million for the 2008 fiscal year -- a stark contrast when compared to 2007 net income of $4.7 million.

The bingo machine supplier said the loss can be attributed to a $10.8 million goodwill impairment charge as well as a $3.4 million decrease in revenue.

Net revenue for the year was posted at $55 million, a year-over-year decrease of 5.7 percent. The dip in revenue comes from “a declining economy, increased regional competition and pricing pressures,” the company said in its filing on Jan. 30.

In a research note, Todd Eilers, an analyst with Roth Capital Partners, wrote that financial year 2009 estimates for GameTech remain higher at $66 million due to a pending sale of 500 units in Montana.