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PokerTek, Inc. (NASDAQ: PTEK) today reported financial results for the second quarter ended June 30, 2011.
Mark Roberson, Chief Executive Officer and Chief Financial Officer, commented, “During the quarter, we continued to improve our margins, control our operating expenses and drive revenue growth on a year-over-year basis. In addition, the private placement transaction further improved our balance sheet and provides additional growth capital.
“We are seeing exceptional results from our recent ProCore Blackjack installations, and our entire inventory stock has been installed at customer locations. With our PokerPro business generating strong margins and solid financial results, we expect ProCore to be a powerful growth catalyst as we expand our market penetration.”
Total revenue for the second quarter of 2011 increased 23% to $1.6 million compared to $1.3 million for the second quarter of 2010. For the first half of 2011, revenue increased 14% to $3.3 million from $2.9 million in the prior year period. Revenue growth was driven primarily by the increase in revenue producing gaming tables in our target markets.
Gross profit increased 46% to $1.1 million for the second quarter of 2011 as compared to $0.8 million for the second quarter of 2010. Gross profit margin increased 36% to 71% compared to 60% for the prior year period. For the first half of 2011, gross profit increased from $1.7 million to $2.3 million. The increase in gross profit was primarily attributable to increased revenues, improved asset utilization and reduced product costs.
Operating expenses decreased 8% to $1.5 million for the second quarter of 2011 from $1.6 million for the second quarter of 2010. For the first half of 2011, operating expenses decreased 5% from $3.3 million to $3.1 million. We continue to maintain a lean operating structure, even as we invest in the development of Blackjack on the ProCore platform and drive increased market penetration with PokerPro.