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.