Mikohn announces new slot strategies

Friday, May 11, 2001 | 11:11 a.m.

Mikohn Gaming Corp. will redeploy slot machines to better performing locations and introduce new games to shore up modest earnings reported Thursday.

Las Vegas-based Mikohn reported net income of $446,000, or 4 cents a share, on revenues of $26.1 million for the first quarter ended March 31. In the same quarter a year earlier, the company reported net income of $202,000, or 2 cents a share, on revenues of $22.3 million.

The company has received regulatory approvals for its new Ripley's Adventures in Trivia slot machine game in California, Connecticut, Iowa, Louisiana, Missouri, Minnesota and New Mexico. The company plans to submit it for regulatory approval in Nevada within weeks.

Mikohn also is expected to submit a new slot based on the popular board game "Clue" to regulators.

David Thompson, chairman and chief executive officer of Mikohn, said revenues from leased slots doubled to $5.7 million over the previous quarter despite the company dealing with software glitches in the platform used for its "Yahtzee" and "Battleship" games.

"Machine placements in the first quarter totaled approximately 450 games, which was on target with our expectations," Thompson said. "Most of these were for the new Battleship game. However, we also removed 300 games from underperforming locations. We are relocating these games to stronger locations with higher revenue potential. This relocation will take time, but should substantially improve the profitability per game of our installed base of video slots.

"As a result, on a net basis, our installed base grew by 150 games in the first quarter," he said. "Currently we have approximately 2,644 slot games on our route, with a backlog of 580 additional units under signed contract."

Mikohn also manufactures interior and exterior casino signs and electronics products and those sales were $16.3 million for the quarter, 3.8 percent higher than the same quarter a year earlier.