Shuffle Master Pops on Q3 Earnings Results

Shares of Shuffle Master SHFL are trading higher in the after-hours following the release of the company's Q3 earnings results. Currently, shares are higher by 3.39%, trading at $9.16; they ended the regular session higher by 2.07%, at $8.86. Shuffle Master reported Q3 EPS of $0.17 on revenues of $58.3 million; the Street was looking for $0.15 per share on revenues of $58.2 million. Revenues increased 13.2% year over year. Net debt was $38.6 million as compared to $56.3 million as of October 31, 2010. "We achieved record EBITDA in the quarter through superior execution on three fronts: product innovation, continued commitment to grow recurring revenue, and disciplined expense management," commented Gavin Isaacs, Chief Executive Officer of Shuffle Master. "Innovation has driven the success of the Equinox cabinet and this quarter was no exception with EGM sales of nearly $18 million. Recurring revenue growth of 11% highlights our continued commitment to create greater stability through product leasing. And finally, we remained focused on cost controls as part of an overall effort to drive operational excellence. However, our biggest accomplishment is how we have positioned Shuffle Master to take advantage of significant opportunities across the globe, providing an even stronger foundation for long-term, sustainable earnings growth." Shuffle Master, Inc. is engaged in developing, manufacturing and marketing technology and entertainment-based products for the gaming industry for placement on the casino floor.