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Canada – DEQ reports slight increase in quarterly revenue

By - 1 August 2016

Progressive table game specialist DEQ has reported a two per cent increase in total revenue to $2,355,000 in the second quarter of 2016 compared to $2,304,000 for the same period in 2015.

Table systems were flat at $1,469,000 in Q2-2016 as compared to $1,467,000 in Q2-2015 but there was a 23 per cent increase in proprietary table games to $790,000 in Q2-2016 as compared to $641,000 in Q2-2015.

Gross profit of $2,142,000 in Q2-2016, was up from $1,817,000 in Q2-2015, an increase of 18 per cent.

Research and development expenses increased by 16 per cent to $316,000 in Q2-2016 from $273,000 in Q2-2015. The quarter-over-quarter expense is consistent with the company’s efforts to expand and enhance its product offerings.

As of Q2-2016, DEQ had 2,311 installed products worldwide – directly and through global distribution partners. This compares to 2,348 installed products as of Q2-2015.

Joe Bertolone, President and Chief Executive Officer of DEQ, said: “As we have discussed over the last several quarters, we continued our planned investments in jurisdictional and product licenses and sales personnel. These increases to operating costs are reflective of the necessary staffing in order to drive a competitive and growing business in regulated marketplaces. The Company is anticipating higher product placements in Macau, however is experiencing delays in casino property openings due to the regulatory approvals process. We do, however, expect these new placements to be forthcoming, and will provide revenue growth in the upcoming quarters. Since March of 2016, the company has continued its corporate and product licensure expansion and investment efforts and has applied for corporate licenses in six new North American regulated jurisdictions (five of those non tribal) and has submitted over 31 approval requests for its recently released and existing products in both new and existing jurisdictions. I am very encouraged as we continue to grow our global and North American footprint, and our presence and reach will be beneficial to our margins in the future.”

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