Message #15 From:
NewsBot Date: November 8, 2006 01:15:00 PM
VCAT News VCAT Reports Results for the Three Months Ended September 30, 2006
SAN DIEGO--(BUSINESS WIRE)--Venture Catalyst Incorporated (“VCAT”)
(OTCBB:VCAT), today reported operating results for the three months
ended September 30, 2006.
Three Months Ended September 30, 2006
Results
VCAT reported a net loss for the three months ended September 30, 2006,
of $90,000 or $.01 loss per share. This compares with a net loss of
$85,000, or $.01 loss per share, for the three months ended September
30, 2005.
Revenues for the three months ended September 30, 2006 were $2,073,000,
as compared to $2,071,000 during the three months ended September 30,
2005. Revenues from consulting services in the current period were
$1,923,000, compared to $1,946,000 earned during the same period in the
prior year. Revenues from software products and related services in the
current period were $150,000, as compared to $125,000 in the same period
last year.
Costs of revenues were $1,009,000 during the three months ended
September 30, 2006, as compared to $993,000 during the three months
ended September 30, 2005.
Operating expenses, consisting of general and administrative, sales and
marketing, and research and development, were $1,347,000 during the
three months ended September 30, 2006, compared to $1,357,000 during the
three months ended September 30, 2005.
Other income was $50,000 during the three months ended September 30,
2006, compared to $79,000 during the three months ended September 30,
2005.
For the three months ended September 30, 2006, VCAT recorded an income
tax benefit of $142,000. VCAT recorded an income tax benefit for the
three months ended September 30, 2005 of $114,000.
As of September 30, 2006, VCAT’s unrestricted
cash and cash equivalents balance was $4,614,000.
As of September 30, 2006, VCAT had uncompleted software contracts that,
if completed, will result in additional aggregate revenues of
$5,154,000, exclusive of any potential support fees, at the time of
their completion, compared to $4,760,000 as of June 30, 2006.
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 has
filed a preliminary proxy statement and other relevant documents with
the Securities and Exchange Commission (the "SEC"). SHAREHOLDERS OF VCAT
ARE URGED TO CAREFULLY READ THE PRELIMINARY PROXY STATEMENT AND ANY
OTHER RELEVANT DOCUMENTS, INCLUDING THE DEFINITIVE PROXY STATEMENT 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 definitive 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 is contained in the preliminary proxy
statement and will be contained in the definitive 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 and the proposed merger. 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 and risks associated with the
proposed merger described in the preliminary proxy statement 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.
