Shares of Electronic Game Card Inc. (OTCBB: EGMI) were trading up 2 cents (4 percent) to 36 cents per share on volume of 60,800. The stock spiked all the way up to a 52-week high of 48 cents in mid-May after announcing the company’s first profitable quarter.
EGMI recently completed the shift from a development stage company to a commercialized entity, generating a material improvement in revenues and achieving profitability for the first time in its history. Revenues for the first quarter of 2007 were $990,000 which approximately equaled the revenues achieved during the entire year of 2006. The company achieved profitability during the quarter reporting net income of $215,113, or 1 cent per share, compared to a net loss of $1.9 million, or 8 cents per share, for the first quarter of 2006. EGMI’s cash position as of March 31, 2007 was approximately $2.8 million.
“Electronic Game Card has completed the turn around begun in the first quarter of 2006 and is now a fully commercial entity addressing a large and expanding market opportunity,” commented a company spokesperson in a press release. “Having right-sized the company, and templatized the GameCard to potentially capture maximum gross margin, we are now prepared to meaningfully penetrate various target markets in conjunction with channel partners.”
EGMI also recently confirmed that Mecca Bingo, a subsidiary of The Rank Group Plc, has placed an order to use Electronic GameCards for a trial in selected Mecca venues. Mecca Bingo is the United Kingdom’s second-largest bingo club operator, with 103 bingo clubs across England, Scotland and Wales, catering to over 1.1 million active members.
EGMI develops, produces and markets innovative games to the lottery, casino and promotional industry worldwide. The company’s lead product is the EGC GameCard, a unique credit card-sized pocket game combining proprietary technology of interactive capability with “instant win” excitement. The “Electronic GameCard” can be programmed to suit a variety of gaming and promotion applications.