Agilysys Tapped for CityCenter Project in Vegas, Reports Numbers
June 15, 2010 Alex Woodie
Agilysys last week announced that it is one of the vendors providing enterprise software for the massive new CityCenter complex in Las Vegas. The company also recently reported somewhat promising financial results for its fiscal fourth quarter.
CityCenter is a massive new development project located on 76 acres along the Las Vegas Strip. The controversial $11 billion project includes six new casino hotels, condominiums, restaurants, a huge parking garage, and a fire station. While construction is not yet complete, several properties officially welcomed their first guests late last year.
And like many of the other large Vegas properties, the CityCenter will rely on IBM Power Systems hardware and i/OS applications to keep operations running smoothly and the guests happy.
Agilysys reports that three CityCenter properties–the ARIA Resort & Casino, Vdara Hotel & Spa, and the Crystals retail district–will be using the Stratton Warren System, an i/OS inventory and procurement solution. The three properties also selected the company’s InfoGenesis point of sale (POS) system.
“CityCenter is one of the world’s largest and most unique destinations, and it requires software solutions that are powerful and reliable,” stated Tina Stehle, senior vice president and general manager of Agilysys Hospitality Solutions Group. “Our systems for inventory and procurement and point of sale have a proven track record at other MGM MIRAGE properties, and they have streamlined operations at CityCenter.”
Agilysys also announced its financial results for the fourth quarter ended March 31. Revenue for the quarter came in at $135.8 million, a decrease of 13 percent compared to revenue of $155 million during last year’s fourth quarter. The company experienced a loss of $500,000, or 2 cents per diluted share, a considerable improvement from the $114 million loss the company reported last year.
“Despite the difficult market conditions and lower sales reported throughout the fiscal year, we made significant progress in resetting cost structure and making select, but important investments in the company,” said Martin Ellis, president and CEO, during a conference call.
The company’s hospitality and retail segments performed as expected, while Agilysys’ Technology Solutions segment fell down as the result of weaker-than-anticipated demand, Ellis says, “particularly as it related to proprietary service.”
The announcement of the financial results sent the company’s share price on a roller coaster ride last week. Its stock, which is traded on the NASDAQ, plummeted by about 20 percent following the announcement. Later in the week, it gained about 25 percent and more than made up for the loss. The stock is still at least 33 percent below its 52 week highs reached in March and April, before guidance issued for its fourth quarter announcement caused the stock to plunge.