Mikohn quarterly earnings plummet

Tuesday, April 25, 2000 | 10:33 a.m.

Mikohn Gaming Corp. of Las Vegas today reported net income of $71,000, or 1 cent per share, for the quarter ending March 31 -- a huge decline over its year-ago performance.

In the 1999 quarter, Mikohn earned $911,000, or 9 cents per share. Revenues also fell 11.5 percent to $22.3 million.

Mikohn had warned earlier this month that its first-quarter results would fall below 1999 levels, though the company didn't specify how much of a fall it expected. As it did in that warning, Mikohn said today that earnings were pushed lower by lower sales of interior visual displays and progressive jackpot systems. It blamed this fall on a lack of new casino openings.

Revenues were also hurt because revenues from Mikohn's Australian subsidiary are no long consolidated into company earnings, following Mikohn's sale of a 50 percent interest in the subsidiary last year.

Mikohn said results would improve later this year, particularly after June.

"We believe the first quarter will be the lowest reported in the year 2000 with regard to revenues and net income," said David Thompson, chairman and chief executive. "We expect that we will build momentum throughout the year with each quarter of the year showing growth over the preceding period."

One key element of future growth, Thompson said, would be continued placement of Mikohn's "Yahtzee" slot machine. These machines helped increase recurring slot revenues by 81 percent during the quarter, and the company hopes to have 1,000 of the slots installed by June 30.

Revenues should also be helped by a growing wave of orders from California, the company said. In the past five days, Mikohn announced the closing of three separate deals to supply visual displays, electronics, oversized slot machines and leased games to California casinos. These orders will result in $2.1 million in new revenues, the company said.