US-based gaming equipment company Gaming Partners International saw a decrease in revenues but an increase net income in the first six months of 2012.
During the first six months of 2012, the company posted revenues of $28.5m and net income of $3.1m. These results compare to revenues of $32.6m and net income of $2.6m for the first six months of 2011. Gross profit for the first six months of 2012 was $10.0m, or 35 per cent of revenues, compared to $11.1m, or 34 per cent of revenues for the first six months of 2011.
The decrease in revenue for the first six months of 2012 was attributed to a $7.8m decrease in sales of European-style casino chips for Asian casinos related to significant chip and RFID solutions sales in the first six months of 2011 to Macau casinos, offset by a $2.2m increase in sales of American-style chips in the US, primarily driven by sales of Paulson chips to casinos opening in New Jersey, Ohio, and Maine, and a $1.4m increase in sales of furniture, accessories, table layouts and cards to new and expanding casinos in the US.
The increase in net income for the first six months of 2012, compared to the same prior year period, is primarily driven by a reduction in general and administrative expenses due to the settlement of certain litigation and a reduction in income taxes from the utilisation of foreign tax credits offset, in part, by lower gross profit.
"While our worldwide sales were down to $28.5m for the first six months of the year, with our existing backlog of signed replacement and expansion orders and other potential sales, particularly in Asia, we believe that we will have stronger revenue performance in the second half of the year," said Greg Gronau, GPI president and CEO.
