Shuffle Master Back on Track

The move to a lease model may be saving the day at Shuffle Master (Nasdaq: SHFL). After years of turmoil and the stock being crushed from highs near $40 per share in 2006, it appears revenue and earnings have steadied because of a move away from sales and toward leasing. Revenue was up 14% from last year and lease revenue accounted for 47% of the total. This growth was in contrast to falling revenues at Bally Technologies (NYSE: BYI) and International Game Technology (NYSE: IGT), which were both hurt by longer replacement cycles in the United States. Those who have watched Shuffle Master for a while will also be pleased to see a 25% reduction in net debt, which once nearly strangled the company after a series of ill-timed acquisitions.... Read more