Gross profit margins increased to 74.7% in the first half of 2012 compared to 71.1% for the same period in 2011. Gross profit margins remained consistent between the quarterly periods, coming in at 71.1% in the second quarter of 2012 as compared to 71.3% in 2011. The changes in gross profit margin are primarily attributable to changes in revenue mix as well as reduced product costs and depreciation.
Operating expenses decreased 25.4% to $2.3 million for the first half of 2012 from $3.1 million in 2011. Operating expenses decreased 24.6% to $1.1 million in the second quarter of 2012 from $1.5 million in 2011. Cost reduction initiatives initiated in 2011 and prior years have resulted in lower spending on personnel-related costs, regulatory approvals, and professional fees in both the quarterly and year-to-date periods.
We are continuing to scrutinize our operating costs and recently implemented additional cost reduction initiatives intended to further streamline our organizational structure and increase our operating flexibility. Those initiatives are expected to result in further operating expense savings starting in the second half of 2012.
Net loss from continuing operations improved 53.3% to $336 thousand ($0.04 per share) for the first half of 2012 from $718 thousand ($0.11 per share) in 2011. Net loss from continuing operations improved 12.5% for the second quarter of 2012 to $395 thousand ($0.05 per share) compared to $452 thousand ($0.07 per share) for the comparable period of 2011.
Including results of discontinued operations, net loss improved 61.5% to $281 thousand ($0.04 per share) for the first half of 2012 from $729 thousand ($0.11 per share) in 2011. Net loss improved 22.4% to $351 thousand ($0.05 per share) for the second quarter of 2012 from $452 thousand ($0.07 per share) in 2011.
EBITDAS from continuing operations, a non-GAAP financial measure (described below), was a profit of $283 thousand for the first half of 2012, compared to a profit of $357 thousand in 2011. EBITDAS was a loss of $112 thousand for the second quarter of 2012, compared to a profit of $57 thousand in the prior-year period.
Balance Sheet and Cash Flow Information
The Company's cash used in continuing operations improved 52.4% to $131 thousand for the first half of 2012, compared to $276 thousand for 2011. The improvement in cash from operating activities was primarily due to improved profitability, partially offset by increases in working capital.
As of June 30, 2012, the Company's cash and cash equivalents totaled $720 thousand and total debt was $700 thousand.
Gaming Positions Information
Gaming positions deployed worldwide totaled 2,294 of June 30, 2012 composed of 2,174 PokerPro and 120 ProCore gaming positions. As of June 30, 2011, 2,710 gaming positions were deployed worldwide composed of 2,614 PokerPro gaming positions and 96 ProCore gaming positions. Excluding Mexico, gaming positions worldwide increased by 276 from June 2011 to June 2012.
The Company added 262 net gaming positions in the second quarter of 2012 at 13 discrete customer locations. This represents the largest number of discrete operator locations installed in a single quarterly period and represents the second largest number of net gaming positions. The increase in gaming positions resulted from new placements in our target markets, primarily Canada, the United States, Latin America and Europe.
Most Popular Stories
- SEO Traffic Lab Celebrate Wins at Digital Marketing Event 'Internet World 2013' in London
- Social Media Initiatives Should Follow Customers' Lead
- Apple CEO: Offshore Units Not a 'Tax Gimmick'
- U.S. Senate Accuses Apple of Large-scale Tax Avoidance
- UTEP Water Recycling Project Wins Venture Titles
- Marketo Makes a Mint in IPO: Stock Shoots Up More than 50 Percent
- Bieber Booed at Billboard Awards
- Crude Oil Up, Gasoline Down
- Austin Startup Compare Metrics Raises $3.5 Million for Expansion
- Why So Many Top 'Car Guys' Are Actually Women