By: Dylan Sikes - AllPennyStocks.com News

Thursday, July 30, 2015

According to global auditing and consulting firm PricewaterhouseCoopers, the global gaming industry should continue to grow at least for the rest of the decade. In a report on the outlook for media and entertainment industry, PWC noted that the slowdown in traditional hardware will not offset growth in digital distribution and services. PWC expects global games revenue to grow at a CAGR of 5.7% between 2015 and 2019 to reach $93.18 billion by 2019. The growth, PWC notes, will come despite a slowdown in hardware sales. Further, the traditional gaming market is forecast to account for $65.91 billion of the total gaming market.

An interesting trend highlighted by PWC is that in some emerging markets social and casual gaming will account for the bulk of gaming revenues. The trend worldwide though will not change much as traditional gaming will continue to account for around three quarters of all gaming revenues, according to the consulting firm.

An area of growth in the gaming industry will be cloud gaming. PWC believes that the increase use of smartphones will benefit cloud gaming.

Overall, the outlook for the gaming industry is quite robust and this augurs well for DEQ Systems Corp. (TSX-Venture:DEQ), a Canada-based customer centric company that offers breed table game technology related products to the gaming industry.

This morning, DEQ reported its financial results for the second quarter of 2015. For the quarter ended May 31, 2015, the company reported an 11% increase in table systems revenue. Table systems revenue for the quarter came in at $1.467 million, up from $1.327 million reported for the same period last year. Proprietary table games revenue for the quarter was $641,000, compared to $561,000 reported in the second quarter of 2014. Total revenue rose 20% on a year-over-year basis to $2.304 million. The company’s gross profit for the quarter rose 11% on a year-over-year basis to $1.898 million.

DEQ reported second-quarter EBITDA of $2.22 million, compared to $1.65 million reported for the same period last year. The company had positive cash flow from operating activities of $675,000 in the first six months of 2015, up from $535,000 reported for the same period in 2014.

At the end of the second quarter, DEQ had $2.221 million in cash on its balance sheet, up from $1.654 million reported for the same period last year.

Commenting on the second quarter, DEQ Systems President and CEO Joe Bertolone said that the company made meaningful progress in executing its strategic plan in the second quarter and continued to build on its operating momentum and invest in its human resources wisely.

Copyright © 2015 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.