Cost control boosts GameTech's net

Pricing pressures and the migration of bingo halls to slot-machine-styled gaming kept a lid on revenue growth at Reno-based GameTech International during fiscal year that ended Oct. 31.

But sharp cost control allowed the Reno-based developer of electronic bingo systems to boost its net income to $4.4 million for the fiscal year compared with $1.3 million a year earlier.

The company said it reduced its litigation expense and personnel-related costs. It also reduced its research-and-development budget as it refocused that work.

GameTech said its net revenue for the fiscal year was $49.3 million compared with $49.6 million a year earlier.

The company said that pricing pressures were strong during the year, and some operators of bingo halls either shut down or converted to more profitable slot-style machines.

For the fourth quarter of its fiscal year, GameTech reported net income of $1 million on revenues of $12 million. In the comparable quarter a year earlier, it earned $947,000 on revenues of $12 million.

The company's stock was a top performer in the gaming sector last year as investors got excited about its line of wireless gaming devices.