Galaxy Gaming’s new leader sees wider third-quarter loss, rise in revenue

November 15, 2023 7:33 AM
Photo: CDC Gaming Reports
  • Matthew Crowley, CDC Gaming Reports
November 15, 2023 7:33 AM
  • Matthew Crowley, CDC Gaming Reports
  • United States
  • Nevada

Las Vegas-based casino table-games and systems developer and distributor Galaxy Gaming, one week removed from announcing new leadership, posted a wider third-quarter loss from a year earlier, though revenue rose.

On Nov. 6, the Galaxy board of directors named Matt Reback president and chief executive officer. Reback took his post Monday, succeeding Todd Cravens, who’d been CEO since 2017. The company didn’t explain Cravens’s departure.

“The board carefully considered this change, examined multiple candidates, and ultimately believed it was the right decision to bring a new perspective into the company as we embark on our next phase of growth,” board Chairman Mark Lipparelli said in a Monday statement.

Reback founded Bravery Gaming and served as its president. He also held senior management positions in product management, sales, marketing, and operations with PlayAGS, Konami Gaming, Red Rock Casinos, and Caesars Entertainment.

In the statement, Reback said, “I intend to quickly get up to speed and make sure our 2023 year-end goals and 2024 plans remain on track, while also taking a fresh look at our opportunities.”

Meanwhile, in a 10-Q report with the Securities and Exchange Commission, Galaxy said its net loss was $1.5 million, or 6 cents per diluted share, for the three months ended Sept. 30. Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, fell 3.4% to $1.5 million from $2.4 million. Revenue rose 3.3% to $6.1 million from $5.9 million.

In the Monday statement announcing its new CEO, Galaxy Gaming said perpetual-license-sales revenue in the third quarter was $1 million lower than in first and second quarters.

Cravens, in his last quarterly report as CEO, said Galaxy Gaming expects future sales of these perpetual licenses to make its quarterly results “lumpier” than in the past. “However,” Cravens said, “we will continue to pursue these sales, as they result in substantial increases to our installed base and offer additional recurring-revenue opportunities.”

The company forecast $7 million to $7.5 million in revenue and adjusted EBITDA of $2.8 million to $3.2 million in the fourth quarter, assuming about $200,000 in perpetual license sales and about $800,000 in net revenue from EZ Baccarat distribution.

Galaxy Gaming shares fell 7 cents, or 4.4%, to close at $1.67 on the Over-the-Counter Bulletin Board.

Follow Matthew Crowley on Twitter @copyjockey.