June 9, 2009 / 8:39 PM / 10 years ago

UPDATE 2-Shuffle Master Q2 profit up, shares jump

* Q2 profit up 50 pct

* Rev stands at $45.3 mln

* Shares jump 19 pct (Adds conference call details, updates stock activity)

June 9 (Reuters) - Shuffle Master Inc SHFL.O, which makes gambling tables, slot machines and card shufflers, posted a 50 percent jump in second-quarter profit, helped in part by higher lease and service revenue, sending its shares up 19 percent.

On a conference call with analysts, a company executive said the increase in lease and service revenue was mainly due to the placements of its proprietary titles such as Three Card Poker.

“This trend indicates that much like the evolution of the floor in traditional casinos, proprietary titles in e-tables will take share away from the public domain games,” CEO Timothy Parrott said on the call.

For the quarter ended April 30, the company earned $4.6 million, or 9 cents a share, compared with $3.0 million, or 9 cents a share, a year earlier.

Latest-quarter results included 5 cents a share for severance charges related to the retirement of the company’s former CEO and the departure of a senior executive, 2 cents related to the gain on debt extinguishment, and 2 cents for discrete tax events.

Net sales fell 8 percent to $45.3 million.

Analysts were expecting earnings of 4 cents a share, before special items, on revenue of $43 million, according to Reuters Estimates.

The company, which competes with Elixir Gaming Technologies Inc EGT.A, Bally Technologies Inc BYI.N and International Game Technology (IGT.N), said lease and service revenue rose nearly 7 percent to $20.5 million.

Shares of the Las Vegas-based company were trading at $5.50 after the bell. They closed at $4.61 Tuesday on Nasdaq. (Reporting by Amitha Rajan in Bangalore; Editing by Jarshad Kakkrakandy and Deepak Kannan)

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