MINNETONKA, Minn., Aug. 16 /PRNewswire-FirstCall/ -- Table Trac, Inc. (OTC Bulletin Board: TBTC), a developer and provider of casino information and management systems that automate and monitor the operations of casinos, today announced financial results for its second quarter and six months, the periods ended June 30, 2010.

Second Quarter Highlights

    --  Overall revenue in the second quarter of 2010 increased 24.1%        sequentially to approximately $457,000 from $368,000 in the first        quarter of 2010.    --  Two installations, related to the Keetoowah Cherokee Casino in        Tahlequah, Oklahoma and the Fort Belknap Casino in Harlem, Montana, were        delayed but have been completed in the third (current) quarter. This        resulted in more than $500,000 in system sale revenue being recognized        already in the third quarter.    --  Recurring revenue for the second quarter of 2010 from ongoing,        contracted maintenance increased 5.5% to approximately $248,000 from        $235,000 in the first quarter of 2010. Revenues from recurring        contracted maintenance increased from $246,000 in the second quarter        last year.    --  The Company has four Casino Trac Systems in its backlog; two were in        process at June 30, 2010.    --  The Company is currently working with gaming establishments in eight        U.S. states, as well as countries in Central and South America to        purchase new systems and expand service offerings for existing        customers.

Second Quarter Financial Results

Net revenue for the three months ended June 30, 2010 increased 24.1% sequentially to approximately $457,000 from $368,000 in the first quarter of 2010 but decreased 56.3% from $1.0 million in last year's comparable period because no large system installations were completed in 2010 compared to one large installation in 2009. Two installations that were scheduled for a second-quarter deployment were delayed but have been completed already in the third quarter. Recurring revenue from ongoing, contracted maintenance increased 5.5% to approximately $248,000 from $235,000 in the first quarter of 2010 but decreased 19.2% from $307,000 in the second quarter last year. Revenues from license and maintenance fees decreased for 2010 mainly due to a one-time license fee of $61,000 on the Company's one system sale in 2009 that did not recur in 2010.

"The delay of two deployments impacted our second quarter but will substantially benefit the third quarter, and one of these delays was due to an expansion of the original agreement which added more than $100,000 to our system sale revenue," said Chad Hoehne, Table Trac President and CEO. "With these two deployments already completed, we will experience a particularly strong third quarter. In addition, we are in final discussions with another potential client, and expect to announce this additional sale in the coming weeks. Together, these three projects should increase our base of recurring revenue, benefiting the company in the coming quarters."

Gross profit for the quarter was $399,000, or 87.3% gross margin, compared sequentially to $331,000, or 90.6% gross margin, and compared to $667,000, or 63.8% gross margin, during the comparable period in 2009. The overall increase in gross margin was primarily due to a decrease in system installations completed during the current period compared to the large system installation completed in last year's comparable period. Generally, system sales have a lower gross profit compared to license and maintenance fee revenue.

Total operating expenses decreased 5.4% to $612,000 for the quarter ended June 30, 2010 compared to $647,000 for the year-ago period. Sales and marketing, research and development, professional fees, stock compensation and insurance all increased over the prior year period offset by a decrease in bad debt expense.

Table Trac reported a loss from operations of approximately $(213,000) for the second quarter ended June 30, 2010 compared to operating income of approximately $20,000 in the second quarter last year. Net loss was approximately $(126,000) or $(0.03) loss per basic and diluted share (based on approximately 4.2 million basic and diluted weighted average shares outstanding) compared to net income of approximately $60,000, or $0.01 per basic and diluted share (based on approximately 4.2 million basic and 4.5 million diluted weighted average shares outstanding, respectively) in the year ago period.

"We have significantly increased our sales and marketing efforts, and our pipeline of opportunities is growing each month," Mr. Hoehne added. "In the coming weeks, we expect to launch two new products at important industry trade shows, further bolstering our reputation in the industry and extending our competitive advantage. Increasingly, we are being recognized for our technology and our rapid return on investment, and this message is resonating outside the tribal market with other casinos around the world."

Year-to-Date Financial Results

Net revenue for the six months ended June 30, 2010 decreased 62.3% to $825,000 from $2.2 million for last year's comparable period. Recurring revenues from ongoing, contracted maintenance decreased to $484,000 from $521,000 in last year's comparable period. Revenues and recurring revenues decreased for the same reasons mentioned above offset by other sales, which include printers, kiosk software, mailing services, and consulting services which increased over the comparable period in 2009 when they began being offered.

Gross profit for the six months ended June 30, 2010 was $736,000, or 89.2% gross margin, compared to gross profit of $1.7 million, or 76.5% gross margin, in the comparable period last year.

Total operating expenses for the six months ended June 30, 2010 were $1.1 million, flat with $1.1 million for the year-ago period.

Table Trac's loss from operations was $(353,000) compared to operating income of $597,000 in the same period last year. Net loss was approximately $(199,000) or $(0.05) loss per basic and diluted share (based on approximately 4.2 million basic and diluted weighted average shares outstanding) compared to net income of approximately $421,000, or $0.10 per basic and $0.09 per diluted share (based on approximately 4.2 million basic and 4.5 million diluted weighted average shares outstanding, respectively) in the year ago period.

The Company generated approximately $153,000 in operating cash flow in the period ended June 30, 2010, and had $1.4 million in cash and cash equivalents, or $0.34 per share, as of June 30, 2010 compared to $1.3 million, or $0.29 per share, at December 31, 2009. The Company has no debt.

About Table Trac, Inc.

Founded in 1995, Table Trac, Inc. develops and sells casino information and management systems. The company provides system sales, installation, training, as well as license and technical support to casinos. The company has systems installed in North, South, and Central America.

More information is available at http://www.tabletrac.com/.

Forward Looking Statements

Statements made in this press release, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute "forward-looking statements" within the meaning of the federal securities laws. These certain statements are based on our assumptions and estimates and are subject to risks and uncertainties. You can identify these forward-looking statements by words like "strategy," "expects," "plans," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. For these statements, we claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.

For further information on factors that could impact Table Trac and statements contained in this press release, reference should be made to Table Trac's filings with the Securities and Exchange Commission, including quarterly reports on Forms 10-Q, current reports on Form 8-K and annual reports on Form 10-K. You can access such filings at http://www.sec.gov.

Tables Follow

    TABLE TRAC, INC.    CONDENSED BALANCE SHEETS (Unaudited)

                                             June 30,       December 31,                                               2010           2009                                           ---------    -------------    Cash                                    $1,440,614       $1,320,946    Accounts receivable, net of allowance     for doubtful accounts of $182,054 at     June 30, 2010 and December 31, 2009       675,378        1,141,114    Inventory                                  317,419          189,482    Prepaid expenses                           106,294           34,219    Other current assets                           610            5,039    Income taxes receivable                    146,675          172,434    TOTAL CURRENT ASSETS                     2,686,990        2,863,234    Patent, net of accumulated     amortization                                9,144            9,826    Property and equipment, net of     accumulated depreciation                   57,101           34,219    Other long term assets                       2,060                -    Long-term accounts receivable -     financed contracts                         74,261          236,466    TOTAL ASSETS                            $2,829,556       $3,143,745    LIABILITIES AND  STOCKHOLDERS' EQUITY    CURRENT LIABILITIES    Accounts payable                           $73,481         $139,697    Accrued expenses                             2,180                -    Deferred revenue                            40,000                -    Deferred tax liability                     365,000          574,000    TOTAL CURRENT LIABILITIES                  480,661          713,697    LONG-TERM LIABILITIES    Deferred tax liability                       9,000            9,000    TOTAL LIABILITIES                          489,661          722,697    STOCKHOLDERS' EQUITY    Common stock, 0.001 par value;     5,000,000 shares authorized:     4,229,805 and 4,162,234 shares issued     and outstanding at June 30, 2010 and     December 31, 2009, respectively          4,230      4,162    Additional paid-in capital               1,522,801        1,404,619    Retained earnings                          814,286        1,013,689                                             2,341,317        2,422,470    Treasury stock, 1,000 shares (at cost)     at June 30, 2010 and December 31,     2009                                       (1,422)          (1,422)    TOTAL STOCKHOLDERS' EQUITY               2,339,895        2,421,048    TOTAL LIABILITIES AND STOCKHOLDERS'     EQUITY                                 $2,829,556       $3,143,745

    TABLE TRAC, INC.    CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

                                                 Six Months Ended June                     Three Months Ended June 30,                       30,                     --------------------------- ----------------------                           2010              2009      2010        2009                           ----              ----      ----        ----    Revenues           $456,822        $1,045,449  $824,987  $2,190,295    Cost of sales        57,829           378,882    89,364     514,479                         ------           -------    ------     -------    Gross profit        398,993           666,567   735,623   1,675,816    Operating     Expenses:     Selling,      general and      administrative    611,738           646,853 1,088,911   1,078,800                        -------           ------- ---------   ---------    Income (loss)     from     operations        (212,745)           19,714  (353,288)    597,016    Interest income      13,338            71,702    35,470      85,752                         ------            ------    ------      ------    Net income     (loss) before     taxes             (199,407)           91,416  (317,818)    682,768    Income tax     expense     (benefit)          (73,424)           31,066  (118,415)    261,550                        -------            ------  --------     -------    Net (loss)     income           $(125,983)          $60,350 $(199,403)   $421,218                      =========           ======= =========    ========    Basic earnings     (loss) per     common share        (0.030)            0.014    (0.048)      0.101                         ======             =====    ======       =====    Weighted-     average basic     shares     outstanding      4,212,727         4,162,234 4,187,620   4,162,234                      =========         ========= =========   =========    Diluted     earnings     (loss) per     common share        (0.030)            0.013    (0.048)      0.094                         ======             =====    ======       =====    Weighted-     average     diluted shares     outstanding      4,212,727         4,477,530 4,187,620   4,478,587                      =========         ========= =========   =========

SOURCE Table Trac, Inc.