The increase was due to the continued growth of the company’s EGM segment driven by the introduction of new products and its continued expansion into the Class III marketplace, due the popularity of the company’s new premium cabinet, Orion Portrait.
EGM equipment sales increased 250% to US$41.6 m driven by an increase of 2,100 sold EGMs for a total of 2,565.
“Record revenue of US$57.7m in the fourth quarter punctuated a transformative year for AGS. With 27% growth on the top line, 10% recurring revenue growth, and 25% growth in Adjusted EBITDA in fiscal 2017, our results reflected AGS’s continued dedication to best-in-class execution against its growth initiatives to penetrate new jurisdictions and launch high-performing, in-demand products into the market,” said David Lopez, President and CEO of AGS.
“Entering the new fiscal year, we believe we are well positioned for meaningful growth as we benefit from continued momentum of our Orion Portrait and Icon cabinets, entry into new domestic and international jurisdictions, and promising new product launches like the Orion Slant, STAX table progressive system, and the Dex S card shuffler,” added Lopez.
R&D increased US$4.4m in 2017 driven by increased headcount costs and the development of the company’s new Orion Portrait and Orion Slant cabinets as well as our newly established game development studio in Sydney, Australia. Introduced to the market in Q1 of 2017, the Orion Portrait cabinet ended the year with over 1,900 total units in the field.
Source: GMB
