Shuffle Master Up 8% After Beating Earnings Estimates

Shuffle Master SHFL is up 8% after the company beat earnings estimates yesterday. Total revenue increased year-over-year by 28% to $56.1 million, a first quarter record, due to strong Electronic Gaming Machine performance as well as lease, royalty and service revenue growth in the Company's Utility and Proprietary Table Games segments. Total recurring revenue was up 10% year-over-year and totaled $27.8 million, or 50% of total revenue. GAAP net income grew 59% year-over-year to $7.6 million. Diluted earnings per share grew 56% year-over-year to $0.14, compared to $0.09 in the prior year period. "I couldn't be more pleased with the great momentum and excitement that Shuffle Master has generated lately and the first quarter was no exception. Our record quarterly results, coupled with today's announcement about our entering into an agreement to acquire Ongame Network, demonstrates that we're growing our core businesses and successfully executing on our strategies to accelerate growth in the future," said Gavin Isaacs, Chief Executive Officer of the Company. "We achieved impressive first quarter record revenue and EBITDA driven by strong demand for our new MD3™ shuffler, increasing popularity of our progressive table games offerings, and continued momentum in our slot business. As our performance clearly highlights, our customer-centric philosophy remains at the core of everything we do. The execution of our agreement to acquire Ongame Network is a great example of how we will continue to partner with our customers to make gaming more fun for players and more profitable for operators."