By Ian Neubauer
Ainsworth Gaming Technology has posted a loss of $10.8 million for the first half of the 2007-08 fiscal year as a result of product rationalisation strategies and initiatives to reduce inventory holdings.
Ainsworth’s receipts over the six-month period totalled $21.7 million, an increase of 4.7 per cent over the prior period in 2006. International revenue accounted for 62 per cent of receipts, a 71 per cent increase over 2006.
Ainsworth CEO Danny Gladstone said the company would continue to invest in product development, a direct sales distribution model and the key North American market.
“Despite difficult domestic market conditions, the company continues to progress its development plans to capitalise on additional revenue opportunities,” he said. “Progress has been made within all international markets, particularly North America, and the company is on track to achieve further revenue growth in these markets.”
Gladstone said tight cost controls have resulted in a reduction in overheads of 33 per cent that will translate into a financial turnaround in the medium term.
“I am confident in the progress to date and the ability of the company to affect a financial turn around in the medium term,” he said. “This is evidenced by my ongoing commitment and financial support of the company to enable it to establish a profitable trading position in the global gamin market.”
Ainsworth shares were trading at 24 cents today.