Entertainment Gaming Asia, a gaming company focused on gaming markets in Asia, today reported operating results for the fourth quarter and fiscal year ended December 31, 2016, and reviewed recent corporate developments.
The company reported consolidated revenue from continuing operations of US$357,000 for the fourth quarter and $2m for the 2016 fiscal year. There were net losses from continuing operations of $2.4m for the fourth quarter and $5.3m for the 2016 fiscal year. There was a cash balance of $33.6m and zero debt as of December 31, 2016.
In the 2016 fiscal year, the company sold the principal assets related to the gaming products operations and all the gaming assets in Cambodia and exited both these businesses. As a result, all revenue and expenses associated with the gaming products operations and Cambodia gaming operations have been reclassified as discontinued operations for the periods presented.
Clarence Chung, chairman and CEO, said: “During 2016, we disposed of all of our gaming assets in Cambodia, certain gaming assets in the Philippines and the principal assets of the gaming products business. These sales have provided cash proceeds of $10.3m and the potential for earn-outs on certain gaming chip and plaque sales related to the now discontinued gaming products business. To date, we have received $8.1m of the sales proceeds and no earn-outs on gaming chip and plaque sales.
“Our reduced base of operations coupled with the expenses related to the social gaming operations, which remain in the testing phase, and corporate overhead, presently have a negative impact on our cash flow. We currently have approximately $32m in cash and are exploring avenues to apply these resources in ways to enhance value for our shareholders.”