Acres Gaming losses widen

Slot designer Acres Gaming Inc. reported increased losses for the quarter and year ended June 30, results the Las Vegas-based company's plain-spoken president called "simply miserable."

Acres said it posted a net loss of $4.1 million for the fiscal 1999 fourth quarter, compared with a $706,000 loss in the 1998 period. Revenue fell to $1.2 million from $5 million.

For all fiscal 1999, Acres lost $7 million, compared with a $4.2 million loss a year ago. Revenue slipped to $14 million from $17.6 million.

"Financial results for the fourth quarter and the year were simply miserable," said Bud Glisson, Acres' president.

"We fell short of the revenue expected at the Mandalay Bay installation, and the cost of litigation associated with our patents has been more than expected," he said.

But the Acres executive was more upbeat about the company's future prospects.

"We have now substantially completed the reduction of overhead associated with outsourcing of our manufacturing and consolidation of our management and administrative staff in Las Vegas," Glisson said.

"We recently announced sales contracts totaling $8.5 million, and expect more soon. Everyone in the company is now focused on top-line growth, and we're determined to deliver it," Glisson said.

During 1999, Acres' sales to giant slot maker International Game Technology fell $9.9 million, $4.1 million of that because Acres granted IGT the right to manufacture Acres games in return for royalty payments.

Acres also recorded a $2.7 million drop in component sales to another slot developer and a $400,000 one-time charge for moving its headquarters from Oregon to Las Vegas.

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