i think this explains it quit well cyberworks that it will be in Q3
The increase in our revenues and net income… was primarily due to an increase in casino currency sales, table accessories and furniture, partially offset by an increase in research and development expenses,” the Nasdaq-listed company said in a filing on Friday.
GPI said research and development expenses for the three months ended June 30 increased by US$0.7 million, or 198.9 percent compared to the same period in 2017, to US$1.0 million. “The increase is mainly due to payments made to BrainChip Holdings Ltd and Xuvi LLC for achieving certain milestones in our global licensing and development agreements,” the firm stated.
In late January, GPI announced global licensing and development agreements with BrainChip and Xuvi regarding joint development of products “to provide a table management solution that would combine visioning technology and immersive data analytics with our RFID technology”.
GPI’s initial commitment to BrainChip and Xuvi totalled US$1.3 million. “Due to positive customer response, we plan to commit a minimum of US$0.5 million in the second half of the year to develop product enhancements and speed up product development,” GPI said in its Friday filing.
The firm’s first quarter net sales in the geographical area of Asia Pacific were approximately US$6.8 million, compared to less than US$2.1 million in the prior-year period.
GPI said additionally that it had a backlog of signed orders through June 30, 2019 of US$21.5 million, including US$6.9 million for GPI Asia Ltd. Macau-based GPI Asia distributes GPI’s casino currencies, playing cards, and other table accessories in the Asia-Pacific region.
“We anticipate winning additional business, particularly in the Asia market due to the number of planned casino openings and expansions in the region,” GPI stated in its Friday filing. “However, there is always uncertainty surrounding the timing of casino openings and the number of tables to be allotted to each new casino, which will impact both the amount of revenue we recognise and the timing of revenue recognition.”
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