GPI net income dips in 16Q4

Gaming Partners International (GPI) saw net income dip 79.4 percent to US$700,000 in the fourth quarter of 2016, down from US$3.4 million recorded in the prior year period, due mainly to the impact of one time items, which included an impairment charge this year, compared with a gain in the prior period.

Revenue for the quarter reached US$23.1 million, down slightly from US$23.5 million in 15Q4.

For full year 2016, the company posted net income of US$5.2 million on revenues of US$82.1 million, down from net income of US$6.9 million and revenues of US$78.2 million in 2015.

“This increase in revenues is primarily due to the casino currency, the playing cards and the RFID solutions product lines, offset by a decrease in the table layouts product lines,” the company stated in a filing. However, it also warned that revenue is volatile and has depended on the timetable of the opening of new casinos.

“While there are a number of casinos scheduled to open in 2017 and 2018 in Macau, continuing uncertainty arising from regulators’ decisions on the timing of openings and the number of tables allotted to each new casino will impact both the amount of revenue we recognise and the timing of revenue recognition,” the company noted.

“We will continue to evaluate other potential strategic acquisitions and partnerships to grow our business; however, no assurance can be given that these efforts will result in completed transactions or that any completed transactions will be successful. Additionally, we will pursue growth internally by continuing our focus on market-driven research and development of new products and product enhancements.”