FortuNet Inc. Forecasted Zero Profit and Rose 16%

FortuNet Inc., said on Friday August 4, their company's gross profit for the quarter rose from 12 percent $2.97 million to 16 percent about $3.5 million. FortuNet Inc., is a maker of wireless gaming machines for casinos and other gambling establishments. The officials' doesn't expect to earn profit because of the high operating expenses.

Expenses of FortuNet reached $3.6 million, and because of the high expenses the company forecasted a zero percent profits or a break-even per share earnings.

Most of the company's expenses are related to public offering in January. Stock options to non-executive employees and stock grants to certain company executives and financial advisers are among the expenses. As well as cash bonuses to certain company executives that increased the expenses.

FortuNet's other expenses includes the increase in compensation to company executives and legal costs associated with lawsuits against two competitors.

The company doesn't expect to sell traditional casino gaming machines. But it did and the revenue increased unexpectedly.

FortuNet Inc. is a licensed Nevada gaming equipment operator, manufacturer and distributor. FortuNet pioneered electronic bingo and multi-gaming networks in the eighties.

The company makes wireless gaming machines for use in casinos and other establishments.

FortuNet is headquartered in Las Vegas, Nevada, where it manufactures products and provides services for Nevada casinos.