Message #14 From:
NewsBot Date: September 25, 2006 01:30:00 PM
VCAT News VCAT Reports Results for the Fourth Quarter and Fiscal Year Ended June 30, 2006
SAN DIEGO--(BUSINESS WIRE)--Venture Catalyst Incorporated (“VCAT”)
(OTCBB:VCAT), today reported the operating results for the fourth
quarter and fiscal year ended June 30, 2006.
Fourth Quarter Results
VCAT reported a net loss for the fourth quarter of fiscal 2006 of
$180,000, or $.02 loss per share. This compares with net income of
$378,000, or $.05 per share, for the fourth quarter of fiscal 2005.
Revenues for the fourth quarter of fiscal 2006 were $2,204,000 as
compared to $3,201,000 during the fourth quarter of fiscal 2005.
Revenues from consulting services in the fourth quarter of fiscal 2006
were $2,026,000 compared to $1,861,000 earned during the fourth quarter
of fiscal 2005. Revenues from software products and services in the
fourth quarter of fiscal 2006 were $178,000, as compared to $1,340,000
in the fourth quarter of fiscal 2005. Revenues from software products
and services declined between the periods because fewer software
contracts were completed during the fourth quarter of fiscal year 2006
and revenue is realized upon completion of the contracts.
Cost of revenues was $1,127,000 during the fourth quarter of fiscal 2006
as compared to $1,440,000 during the fourth quarter of fiscal 2005.
Operating expenses, consisting of general and administrative, sales and
marketing, and research and development expenses, were $1,362,000 during
the fourth quarter of fiscal 2006 as compared to $1,206,000 during the
fourth quarter of fiscal 2005.
Net other income during the fourth quarter of fiscal 2006 was $50,000.
Net other income during the fourth quarter of fiscal 2005 was $20,000.
During the fourth quarter of fiscal 2006, VCAT recorded an income tax
benefit of $55,000. During the fourth quarter of fiscal 2005, VCAT
recorded an income tax provision of $198,000.
Fiscal 2006 Results
VCAT reported a net loss for fiscal 2006 of $185,000, or $0.03 loss per
share. This compares with net income of $337,000, or $0.05 per share,
for fiscal 2005.
Revenues for fiscal 2006 were $8,861,000 as compared to $8,858,000
during fiscal 2005. Revenues from consulting services in fiscal 2006
increased to $7,857,000 from $7,161,000 during fiscal 2005. Revenues
from software products and services in fiscal 2006 decreased to
$1,004,000 from $1,697,000 during fiscal 2005. Revenues from software
products and services declined between the fiscal years because fewer
software contracts were completed during fiscal 2006 and revenue is
realized upon completion of the contracts.
Cost of revenues was $4,407,000 during fiscal 2006 as compared to
$4,281,000 during fiscal 2005.
Operating expenses, consisting of general and administrative, sales and
marketing, and research and development were $5,122,000 during fiscal
2006 as compared to $4,188,000 during fiscal 2005.
Net other income during fiscal 2006 was $501,000. Net other income
during fiscal 2005 was $81,000.
During fiscal 2006, VCAT recorded a provision for income taxes of
$18,000. During fiscal 2005, VCAT recorded a provision for income taxes
of $133,000.
VCAT’s cash and cash equivalents increased to
$4,352,000 at the end of fiscal 2006 from a balance of $3,839,000 at the
end of fiscal 2005.
Although revenues from software products and services declined between
the fiscal years, as of June 30, 2006, VCAT had uncompleted software
contracts that, if completed, will result in additional aggregate
revenues of $4,760,000, exclusive of any potential support fees, at the
time of their completion, compared to $1,090,000 as of June 30, 2005.
On August 28, 2006, VCAT announced that it had signed a definitive
agreement whereby IGT, a wholly-owned subsidiary of International Game
Technology, will acquire all of the outstanding shares of VCAT for $2.58
per share in cash. In connection with the proposed transaction, VCAT
will file a proxy statement and other relevant documents with the
Securities and Exchange Commission (the "SEC"). SHAREHOLDERS OF VCAT ARE
URGED TO CAREFULLY READ THE PROXY STATEMENT AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT VCAT AND THE PROPOSED
TRANSACTION. Investors will be able to obtain free copies of the proxy
statement and other documents when they become available by contacting
Investor Relations, VCAT, 591 Camino De La Reina, Suite 418, San Diego,
California 92108. In addition, documents filed with the SEC by VCAT will
be available free of charge at the SEC's web site at http://www.sec.gov.
VCAT, International Game Technology and their respective executive
officers and directors may be deemed, under SEC rules, to be
participants in the solicitation of proxies from the shareholders of
VCAT with respect to the proposed transaction. Certain directors and
executive officers of VCAT may have direct or indirect interests in the
merger due to securities holdings, pre-existing or future
indemnification arrangements, vesting of options, or rights to severance
or retention payments in connection with the merger. Additional
information regarding VCAT and the interests of its executive officers
and directors in the acquisition will be contained in the proxy
statement regarding the acquisition that will be filed by VCAT with the
SEC in connection with the proposed transaction.
This press release contains forward-looking statements that are made
pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995, including any implications as to future
results. Forward-looking statements relating to expectations about
future results or events are based upon information available to VCAT as
of today's date, and VCAT does not assume any obligation to update any
of these statements, except as otherwise required by law. The
forward-looking statements are not guarantees of the future performance
of VCAT and are subject to risks and uncertainties, including risks
described in VCAT’s periodic reports filed
with the SEC. Actual results may vary materially from the results and
expectations discussed.
About Venture Catalyst Incorporated
VCAT is a provider of consulting services and technology in the gaming
and hospitality market. VCAT is headquartered in San Diego, California
and has offices in Las Vegas, Nevada.
VENTURE CATALYST INCORPORATED
STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months Ended June 30,
2006
2005
Revenues:
Consulting services
2,025,930
1,860,972
Software products and services
177,866
1,340,382
Total revenues
2,203,796
3,201,354
Cost of revenues:
Consulting services
795,448
896,510
Software products and services
331,360
543,887
Total cost of revenues
1,126,808
1,440,397
Gross profit
1,076,988
1,760,957
Operating expenses:
General and administrative
1,069,745
1,051,201
Sales and marketing
212,939
129,253
Research and development
79,121
25,193
Total operating expenses
1,361,805
1,205,647
Operating (loss) profit
(284,817)
555,310
Other income (expense):
Interest income
49,837
22,536
Other gains (losses)
469
(2,118)
Other income
50,306
20,418
(Loss) income before income tax benefit (provision)
