Table Trac Announces First Quarter 2010 Financial Results

MINNETONKA, Minn., May 17 /PRNewswire-FirstCall/ -- Table Trac, Inc. (OTC Bulletin Board: TBTC), a developer and provider of casino information and management systems that automate and monitor the operations of casinos, today announced financial results for the first quarter of 2010, the period ended March 31, 2010.

First Quarter Highlights:

• Recurring revenue from ongoing, contracted maintenance increased 9.9% to approximately $235,000 from $214,000 in the first quarter last year.
• Overall revenue decreased to approximately $368,000 from $1.1 million last year due to the absence of new installations in the first quarter of 2010. The first quarter last year included a significant number of new installations.
• During the quarter, Table Trac signed a letter of intent to install its Casino Trac casino management systems in the Celebrity Casinos of Deadwood South Dakota. The company expects to deploy this system and recognize the associated system sales revenue during the current (second) quarter.
• Subsequent to the end of the quarter, Table Trac signed a definitive agreement to install its Casino Trac casino management systems in the Keetoowah Cherokee Casino in Tahlequah, Oklahoma. The company expects to deploy this system and recognize the associated system sales revenue during the current (second) quarter.

"In the last 60 days, we have signed two new customers, setting the stage for a strong second quarter," commented Chad Hoehne, Table Trac's President and Chief Executive Officer. "The first quarter was impacted by a challenging comparison to a particularly strong first quarter last year, but we made progress in continued margin expansion and an increase in our recurring revenue from contracted maintenance fees. In the second quarter, we expect to generate approximately $500,000 in system sales revenue, and coupled with our expanding base of recurring revenue, this should result in a particularly strong quarter. This reinforces our confidence that we are on the right path."

Financial Results

Revenue for the first quarter was approximately $368,000, a decrease of 67.8% compared to revenue of $1.1 million for the prior year period. The first quarter last year included approximately $917,000 in system sales revenue from new installations, while the first quarter of 2010 had no new system sales revenue. Recurring revenue from maintenance of previously installed systems increased 9.9% to approximately $235,000 from approximately $214,000 in the year-ago period.

Gross profit for the first quarter of 2010 increased 320 basis points to 91.4% from 88.2% in the prior-year second quarter.

Selling, general and administrative expense increased 10.4% to approximately $477,000 from approximately $432,000 in the year-ago first quarter. The modest increase was due to an increase in professional fees, primarily related to Sarbanes-Oxley compliance efforts, as well as increased sales and marketing and research and development costs. The Company reported a loss from operations of approximately $141,000 compared to income from operations of approximately $577,000 in the first quarter last year. The net loss for the quarter was approximately $73,000, or $0.02 per basic and diluted share, compared to net income of approximately $361,000, or $0.09 per basic and $0.08 per fully diluted share for the first quarter last year.

Mr. Hoehne added, "We also made solid progress in the development of version 4.0, and we completed the initial testing with an existing customer in Costa Rica. We expect to progress to lab certification by the end of the second quarter and currently anticipate general availability by the end of the third quarter. This version represents a significant advancement for us, providing additional features and ease of use for current and potential customers. I believe that our stable Linux platform and Micro Focus web services architecture make Casino Trac unique in its ability to deploy on all computing devices; traditional PC's as well as iPad™, iPhones™, Mac's, Android phones."

The Company completed the quarter with $1.5 million in cash and working capital of $2.2 million. Stockholders' equity as of March 31, 2010 was $2.3 million. Table Trac has no long term debt.

About Table Trac

Table Trac, Inc. develops and sells casino information and management systems that automates and monitors the operations of casinos.  Products and services include modules for guest rewards and loyalty clubs, marketing analysis, guest services, promotions administration/management, vault/cage management, and audit/accounting. The company also offers products in the areas of promotions administration and management, customer mailers for tiered pre-encoded promotional marketing, gaming machine on-line management, touch screen customer service kiosks, and wireless handheld communications. In addition, it provides system sales, including installation, custom casino system configuration, training, as well as license and technical support to casinos. The company has systems installed with on-going support and maintenance contracts at 25 casinos in Minnesota, Wisconsin, Florida, Alabama, Oklahoma, Central America, and South America.

Table Trac, Inc. was founded in 1995. More information is available at www.tabletrac.com.

Forward Looking Statements

Statements made in this press release, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute "forward-looking statements" within the meaning of the federal securities laws. These certain statements are based on our assumptions and estimates and are subject to risks and uncertainties. You can identify these forward-looking statements by words like "strategy," "expects," "plans," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. For these statements, we claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.

For further information on factors that could impact Table Trac and statements contained in this press release, reference should be made to Table Trac's  filings with the Securities and Exchange Commission, including quarterly reports on Forms 10-Q, current reports on Form 8-K and annual reports on Form 10-K. You can access such filings at http://www.sec.gov.

SOURCE Table Trac, Inc.