Today, Galaxy Gaming, Inc. announced that it has filed its third quarter operating results. Separately, the company also announced that it recently completed private equity fundraising. In a private placement of its securities, the company originally intended to raise $400,000. Due to investor demand, the offering was oversubscribed and the Company raised $600,000. The offering is now closed.
Galaxy Gaming also took the opportunity to announce some of their third quarter highlights. The company reported a 47% growth in third quarter revenues, from last year’s data of $533,375 to 2009’s $782,493. The growth marks a new company record. Additionally, gross profit was $691,335, up from $512,106 of last year, representing a 35% increase, also a new record. The company also reported its first positive EBITDA, $15,327, since becoming public. Finally, during the third quarter, the Galaxy completed 86 new Bonus Jackpot System installations.
Galaxy CEO, Robert Saucier, stated, “As evidenced by the over-subscription of our recent offering, our investors seemed to be pleased with the progress our Company is making. While our third quarter was yet another record breaker, our team’s focus remains to continually build Galaxy Gaming into a major innovator in the gaming industry.”
Saucier added, “Anyone who follows micro-cap companies knows how challenging it can be to raise capital, particularly in light of current economic conditions. However, we have been fortunate to have a strong core of supporters, especially our employees who again made substantial investments into our (their) company. Curiously, we also had a long-time competitor make a very significant investment in us as well. What I heard most from our investors is that they liked the fact that we are building a solid base of high-margin recurring revenue. Of course, having three consecutive record breaking quarters since becoming a public company didn’t hurt either.”
Mr Saucier also clarified the use of proceeds from the latest fundraising, “Whereas many small companies need to raise capital to cover losses or retire excessive debt, that was not the case here. He continued, “The funds we raised are earmarked primarily for revenue growth initiatives during the next two quarters.”
The financial report is available on the EDGAR website at http://www.sec.gov/edgar.shtml. As of late, the company has not scheduled a conference call for its third quarter results, but interested parties are encouraged to call the Galaxy directly at (702) 939-3254.