Shuffle Master shares drop 8 percent

Tuesday September 11, 2012 :  DISAPPOINTING THIRD QUARTER FROM SHUFFLE MASTER
 
Failed Ongame bid, executive costs impact results
 
Shuffle Master paid a price for a set of Q3-2012 results that did not meet analyst expectations this week, seeing its share price drop by 8 percent.
 
Shares slumped in after-market trading Monday after the US gambling supply company reported that expenses increased after it hired a chief strategy officer and filled its general counsel position, and suffered higher costs as a result of its abandoned $39 million bid for online poker provider Ongame Network Ltd.
 
On the positive side, net income and revenue both improved due to increased leases of the firm's MD3 shuffler and greater sales of premium and progressive games.
 
Net income rose 14 percent in the quarter ended July 31 to $10.4 million, up from $9.1 million.
 
Revenue increased 9 percent, to $63.4 million from $58.3 million.