Cost cutting boosts net at GameTech

Cost-cutting at Reno-based GameTech International continued to pay off during the quarter that ended Jan. 31.

Jay Meilstrup, the president and chief executive officer of the maker of electronic bingo systems, said GameTech reduced its personnel costs, decreased its depreciation expenses and generally trimmed its operating expenses.

As a result, he said, the publicly traded company's gross profit margin rose to 62.3 percent from 55.6 percent a year earlier, and its operating expenses totaled 52 percent of revenue compared with 55.9 percent a year ago.

The company reported a profit of $839,000 for the quarter compared with a year-earlier profit of $1,000. Revenue was essentially flat at $12.3 million.

Among the steps that trimmed costs, Meilstrup said, was a reduction in litigation. The company previously was embroiled in lawsuits with distributors in Texas, Mississippi and Kentucky.