Science & Technology
Science and Technology
Science and Technology
Wed, July 15, 2009
Tue, July 14, 2009
Wells-Gardner Electronics Corp.: Wells-Gardner Updates Expectations on 2nd Quarter 2009
CHICAGO, IL--(Marketwire - July 14, 2009) - Wells-Gardner Electronics Corporation (
-- Sales for the second quarter 2009 are now expected to be approximately $14 million compared to previous expectations of $12.5 to $13 million. This compares to $14.5 million in the prior year quarter. -- Net income for the second quarter is now expected to be between $350,000 and $500,000 compared to previous expectations that the Company probably would be more profitable in the second quarter than the first. This compares to $170,000 in the prior year quarter. It is anticipated that this will be the best quarterly net income the Company has had this decade. -- Debt declined to approximately $3.2 million as of June 30, 2009 or approximately 22% of equity. This is a $2.0 million reduction of our debt since year end when our debt to equity ratio was 37%.
"The OEM manufacturing business was stronger than expected in the second quarter 2009," said Tony Spier, Chairman, President and CEO. "The cost reductions we have implemented have lowered our breakeven point, thus enhancing profitability when sales are above that point. While many end markets are still weak, the market seems to have stabilized though at a lower level than the last several years. This is positive news for our customers as well as our Company."
Spier continued, "I would also like to address a question asked by some shareholders regarding the listing requirements at our current share price. The NYSE Amex requires the Company to maintain net equity of $2 to $6 million depending upon certain criteria. The Company currently more than meets the continued listing requirements as it has net equity in excess of $14 million."
The Company expects sales will be around $50 million for the full year 2009. Although average selling prices and margins are expected to be slightly lower in the second half of 2009, management continues to take proactive steps to control expenses and expects to remain profitable.
Wells Gardner is scheduled to release financial results for the second quarter 2009 during the week of August 3 to 7, 2009. The Company will publicize the quarterly conference call.
Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. The Company has the majority of its LCDs and CRT monitors manufactured in Mainland China. In addition, the Company's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to over 700 casinos in North America with offices in Las Vegas, Nevada, Egg Harbor Township, New Jersey, Miami, Florida and McCook, Illinois. AGE also sells refurbished gaming machines on a global basis as well as installs and services some brands of gaming machines in casinos in North America.
This press release contains forward-looking statements within the meaning of the federal securities laws. Those statements include statements regarding the intent, belief or expectations of the Company and its management. Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, the regulatory process and regulatory and legislative changes affecting the gaming industry. Wells-Gardner assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. For additional investor information, please contact Jim Brace - Wells-Gardner at (708) 290-2120 or Alan Woinski - Gaming USA Corporation at (201) 599-8484.
