PDS Financial posts loss

PDS Financial Corp. of Las Vegas, which finances gaming industry equipment leases and sells used slot machines, said it had a $170,000 net loss in the second quarter, compared with net income of $291,000, or 8 cents a share, in the 1998 period.

Revenue for the quarter slipped to $10.5 million from $14.3 million, the company said.

PDS President Peter Cleary said that while the company could have posted "substantial gains" in the latest quarter by selling some of its leases, "we would have had to give up future recurring revenues, which is contrary to our core strategy."

"The net income over the term of these leases will far outweigh the one-time gain which could have been taken this quarter," he said.

PDS originated a record $55.3 million in leases in the 1999 second quarter, up 168 percent from $20.6 million in the year-earlier period, Cleary said.

For the 1999 first half, PDS posted a net loss of $37,000, compared with net income of $740,000, or 19 cents a share, in the 1998 first half. Revenue fell to $17.4 million from $23.7 million.

The company recorded $63.9 million of lease originations in the 1999 first half, exceeding the $60.3 million posted in all of 1998, Cleary said.

Sales and leasing of used gaming machines fell to 1,540 units in the latest quarter from 2,100 in the year-ago period, the company said.

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