Anchor Gaming chief resigns

Monday, March 6, 2000 | 11:18 a.m.

Anchor Gaming Inc. of Las Vegas on Friday announced the surprise resignation of Michael Rumbolz, president and chief executive officer.

Analysts at Bear Stearns & Co. and Prudential Securities downgraded Anchor stock after the move, with Bear Stearns moving the security from attractive to neutral and Prudential from strong buy to hold.

Anchor stock fell $3.63 to $35.31 this morning.

T.J. Matthews, executive vice president of Anchor, was appointed president and chief executive. Rumbolz also resigned from Anchor's board.

In a company press release, Rumbolz said he was leaving to explore other opportunities.

"There comes a time in every executive's career when he re-examines his opportunities," Rumbolz said. "I am looking forward to exploring a wide range of entrepreneurial and technology situations together with more traditional bricks-and-mortar business enterprises. Now is a good time for me and Anchor to make this move."

There was no other elaboration on Rumbolz's departure. There has been concern, however, about Anchor's June acquisition of Powerhouse Technologies Inc. of Atlanta for $290 million.

Anchor Gaming last month sued three former Powerhouse executives, alleging they duped Anchor into paying more than Powerhouse's fair value.

Anchor's stock has been sliding since November, when it peaked at $62.19. On Friday, the stock closed at $38.94.

In the quarter ending Dec. 31, Anchor reported net income of $15.3 million, or $1.25 per diluted share, a decline of 7 percent from the year-ago period. Revenues over the same period more than doubled, to $130.7 million, the result of Anchor's acquisition of Powerhouse Technologies.