VendingData(TM) Corporation Reports Third Quarter 2003 Financial
Results Revenues Increased 18 Percent Over Prior Quarter LAS VEGAS,
Nov. 13 /PRNewswire-FirstCall/ -- VendingData(TM) Corporation
(BULLETIN BOARD: VNDC) , a manufacturer and distributor of products
for the gaming industry that are intended to increase customers'
security, productivity and profitability, today reported revenues
for the third quarter ended September 30, 2003 of $2.6 million
compared to $2.2 million for the second quarter of 2003 and
$625,000 for the third quarter of 2002. Revenues for the quarter
consisted of, in part, SecureDrop(R) sales of $790,000; shuffler
sales of $602,000; shuffler rentals of $217,000; and Deck
Checker(TM) sales of $1.0 million. Overseas revenues amounted to
$600,000 for the third quarter compared to $75,000 in the second
quarter of 2003. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020325/LAM034LOGO ) The
Company reported a quarterly net loss applicable to common
stockholders of $(1.2) million or $(0.15) per share for the third
quarter of 2003. This compares to a second quarter 2003 loss of
$(1.3) million or $(0.18) per share and a loss of $(1.7) million or
$(0.23) per share for the third quarter of 2002. Interest expense
in the quarter totaled $760,000 compared to $505,000 for the third
quarter of 2002. VendingData(TM)'s gross margin during the third
quarter averaged 45.9 percent. The transitioning costs of moving
operations to China and the cost of running dual operations during
the months of July and August coupled with separation costs at the
Las Vegas facility put pressure on third quarter margins. The
Company expects its gross margin to improve as it benefits from
lower costs associated with the transfer of its manufacturing
operations to China and as economies of scale are achieved through
increased unit production. The Company's selling, general and
administrative (SG&A) expenses for the third quarter increased
$402,000 or 47.0 percent to $1.3 million over 2002 third quarter
levels. The increase primarily reflects travel and lodging expenses
required to establish assembly and warehouse operations in China
and increased legal fees associated with the Shuffle Master
litigation and regulatory expenses. Steven J. Blad, CEO of the
Company, commented, "After years of development and laying the
foundation to commercialize our technology, the company has reached
the point in its life cycle where we are aggressively introducing
the benefits of our technology throughout the worldwide gaming
industry." Mr. Blad continued, "We effectively implemented cost
reductions over the last two quarters as we successfully shifted
the majority of our manufacturing to Guangdong Province in China,
the effects of which we believe will be realized in the coming
quarters. We are confident that these and other initiatives will
have a positive impact on our gross margins and our overall
profitability going forward." QUARTER HIGHLIGHTS AND RECENT
DEVELOPMENTS VendingData(TM) Corporation Filed a Registration
Statement for its Proposed Public Offering A registration statement
has been filed with the Securities and Exchange Commission for a
public offering of at least 3,000,000 shares and up to 5,000,000
shares of VendingData(TM) common stock. The shares will be offered
on a best efforts basis through Philadelphia Brokerage Corporation
which is serving as the placement agent for the offering. The
registration statement for the proposed offering has not yet been
declared effective. VendingData(TM) Corporation Received OTC
Bulletin Board Listing Approval Effective September 10, 2003, the
Company's common stock was quoted on the OTC Bulletin Board (OTCBB)
under the ticker symbol "VNDC". Concurrently, Brockington
Securities was approved to publish quotes for shares of
VendingData(TM) Corporation common stock. Seasoned Gaming Executive
Hired as Vice President of Corporate Sales Larry McCoy joined
VendingData(TM) in September 2003 and assumed the responsibility of
marketing SecureDrop(R) to major companies throughout the gaming
industry, with emphasis on North and South America. McCoy has
extensive experience in the gaming industry, including positions as
Vice President of Sales at Shuffle Master Gaming, Director of Sales
at Aristocrat Technologies, Director of Casino Sales at JCM
Corporation and National Manager of Sales and Marketing at Sigma
Gaming Inc. SecureDrop(R) has been installed in Six Park Place
Entertainment Locations During the third quarter, VendingData(TM)
completed the installation of its SecureDrop(R) Soft Count Module
in 8,025 slot machines at six of Park Place Entertainment's 29
locations; Caesars Palace Las Vegas, Caesars Tahoe, Flamingo Las
Vegas, O'Sheas, Bally's Las Vegas and Paris Las Vegas. The first
SecureDrop(R) Soft Count Module went live in June 2002, with
current installations in 8 casinos worldwide. 15 Deck-Checkers(TM)
were delivered to China - RGB Group to handle distribution into
Asia During the third quarter, VendingData(TM) executed purchase
agreements for 15 Deck-Checkers(TM), which have been delivered to
RGB Group for eventual distribution in various locations in Asia
including Macau, China, one of the largest entertainment centers in
Asia with a reputation of offering the widest range of casino games
in the world. Deck-Checkers(TM) were delivered to TCSJOHNHUXLEY for
Overseas Distribution During the third quarter, VendingData(TM)
executed a purchase agreement for DeckCheckers(TM) and ancillary
products totaling $225,000 with TCS Aces, the Australian based
subsidiary of TCSJOHNHUXLEY for delivery to facilities in both
Australia and the United Kingdom. Random Ejection Shufflers(TM)
were installed in Harrah's New Orleans Casino Harrah's New Orleans
Casino replaced its stock of multiple deck automatic shufflers with
the purchase of 53 VendingData(TM) Random Ejection Shufflers(TM).
Installation was completed on October 31, 2003. About
VendingData(TM)Corporation VendingData(TM) Corporation is a
manufacturer and distributor of products for the gaming industry
including the SecureDrop(R) System, Deck-Checker(TM) and Random
Ejection Shuffler(TM) line. The Company's products are currently
installed in casinos throughout the world, including Caesars
Palace, Circus Circus, Harrah's Entertainment, Luxor, Oneida Bingo
& Casino, Sunset Station and the Venetian in the United States,
and in casinos in Argentina, China, Columbia, Korea, Malaysia,
Peru, United Kingdom and Uruguay. Visit the VendingData(TM) website
at http://www.vendingdata.com/ . This release contains
forward-looking statements. Such statements reflect and are subject
to risks and uncertainties that could cause actual results to
differ materially from expectations. Factors that could cause
actual results to differ materially from expectations include, but
are not limited to, the following the success of the transition of
our manufacturing and assembly to China; the successful placement
of the Company's common stock pursuant to the proposed public
offering: changes in the level of consumer or commercial acceptance
of the Company's existing products and new products as introduced;
competitive advances; acceleration and/or deceleration of various
product development and roll out schedules; higher than expected
manufacturing, service, selling, administrative, product
development and/or roll out costs; current and/or unanticipated
future litigation; regulatory and jurisdictional issues involving
VendingData(TM) Corporation or its products specifically, and for
the gaming industry in general; general and casino industry
economic conditions; the financial health of the Company's casino
and distributor customers both nationally and internationally; and
the risks and factors described from time to time in the Company's
reports filed with the Securities and Exchange Commission,
including, but not limited to the company's Form 10- QSB for the
quarter ended September 30, 2003. For further information, please
contact: John Spina, Chief Financial Officer of VendingData(TM)
Corporation, +1-702-733-7195, , or Yvonne L. Zappulla, Managing
Director, Wall Street Investor Relations Corp., +1-845-680-0300, ,
for VendingData(TM) Corporation. VENDINGDATA CORPORATION Statements
of Operations (UNAUDITED) Three Months Ended Nine Months Ended
September 30, September 30, 2003 2002 2003 2002 Sales $2,403,395
$252,893 $5,967,715 $1,780,764 Rental 216,818 358,044 847,561
1,073,478 Other 9,399 14,431 9,531 26,068 2,629,612 625,368
6,824,807 2,880,310 Operating expenses: Cost of sales 1,421,595
619,727 3,629,520 2,384,200 Selling, general and administrative
1,267,831 864,979 4,303,496 2,314,672 Research and development
336,910 356,914 709,770 1,077,838 Loss from operations (396,724)
(1,216,252) (1,817,979) (2,896,400) Interest expense, unrelated
parties 620,569 389,749 1,709,430 1,006,314 Interest expense,
related parties 139,256 115,439 413,559 299,608 Total interest
expense, net 759,825 505,188 2,122,989 1,305,922 Net loss
$(1,156,549) $(1,721,440) $(3,940,968) $(4,202,322) Basic loss per
share $(0.15) $(0.23) $(0.51) $(0.55) Weighted average shares
outstanding 7,700,814 7,625,814 7,675,957 7,625,814 VENDINGDATA
CORPORATION Balance Sheet 9-30-03 12-31-02 ASSETS (Unaudited)
Current assets: Cash and cash equivalents $314,009 $1,778,297
Current portion of accounts receivable, trade, net of allowance for
uncollectables of $25,530 and $25,530 3,138,172 106,791 Due from
affiliate 45,029 30,593 Other receivables 175,373 39,305
Inventories 3,747,627 1,850,051 Prepaid expenses 172,879 236,579
7,593,089 4,041,616 Equipment rented to customers, net of
accumulated depreciation of $1,229,870 and $1,406,574 754,530
1,353,925 Property & equipment, net of accumulated depreciation
of $1,720,240 and $1,422,313 930,608 593,253 Intangible assets, net
of accumulated amortization of $249,130 and $191,520 1,317,713
352,603 Due from affiliate - non current 118,800 118,800 Accounts
receivable, trade, net of current portion, less unamortized
discount 1,439,244 -- Deferred expenses 615,644 100,000 Deposits
1,073,313 868,520 Other assets 496,481 638,029 $14,339,422
$8,066,746 LIABILITIES AND STOCKHOLDERS' EQUITY DEFICIENCY Current
liabilities: Current portion of leases payable $ 2,215,939
$2,286,243 Accounts payable 2,079,829 1,084,637 Accrued expenses
254,334 385,570 Accrued wages 195,176 249,147 Accrued interest
1,059,420 461,308 Short-term debt 920,743 904,743 Current portion
of convertible debt 4,953,076 -- Customer deposits 672,333 386,819
12,350,850 5,758,467 Convertible debt, net of current portion
12,949,996 8,853,072 Leases payable, net of current portion
2,447,776 3,497,859 27,748,622 18,109,398 Stockholders' equity
deficiency: Preferred stock, $.001 par value, 10,000,000 shares
authorized, no shares issued and outstanding -- -- Common stock,
$.001 par value, 25,000,000 shares authorized, 7,700,814 and
7,625,814 shares issued and outstanding 7,701 7,626 Additional
paid-in capital 27,294,325 26,719,980 Deficit (40,711,226)
(36,770,258) Total stockholders' equity deficiency (13,409,200)
(10,042,652) Total liabilities and stockholders' equity deficiency
$14,339,422 $8,066,746
http://www.newscom.com/cgi-bin/prnh/20020325/LAM034LOGO
http://photoarchive.ap.org/ DATASOURCE: VendingData Corporation
CONTACT: John Spina, Chief Financial Officer of VendingData(TM)
Corporation, +1-702-733-7195, , or Yvonne L. Zappulla, Managing
Director, Wall Street Investor Relations Corp., +1-845-680-0300, ,
for VendingData(TM) Corporation Web site:
http://www.vendingdata.com/
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