Quarterly earnings decline for LV casino supplier

Tuesday, March 7, 2000 | 10:34 a.m.

Mikohn Gaming Corp. of Las Vegas reported a decline in earnings for the quarter ending Dec. 31, 1999, but company officials remained optimistic about the long-term prospects of the company.

The company recorded net income of $392,000, or 4 cents per share. That's down from net income of $628,000, or 6 cents per share, in the year-ago period. Revenues also declined 19 percent, to $25.4 million.

The quarterly results included payment of $2.75 million in settlement fees to Shuffle Master Inc. and $1.35 million in write-offs associated with a discontinued slot machine line. Mikohn also saw a one-time gain of $4.3 million associated with the sale of its 50 percent interest in an Australian subsidiary.

For the year, Mikohn recorded net income of $3.7 million, or 35 cents per share, up sharply from a net loss of $8 million, or 76 cents per share.

Separately, Mikohn announced it has signed contracts to install more than 1,000 of its "Yahtzee"-themed slot machines, and has placed 400 machines so far. The game was introduced in September 1999.

David Thompson, Mikohn's chairman, said that each 1,000 games placed on a revenue participation basis would increase Mikohn's annual earnings per share by 50 cents. He said production levels at Mikohn have been doubled to keep up with the game's demand.

Live chat: Tuesday, noon PST; Chat with Krista Creelman; Problem Gambling Center executive director Krista Creelman will answer questions about gambling addiction from Las Vegas Sun readers from noon to 1 p.m. Tuesday, Nov. ... Submit question