Firm to sell sign subsidiary

Tuesday, Oct. 1, 2002 | 11:13 a.m.

Las Vegas slot manufacturer Mikohn Gaming Corp. is selling its exterior sign subsidiary, Mikohn Lighting and Sign, for an undisclosed price to C.E.I. Holding Inc.

C.E.I. is headed by Mikohn employee Mark Johnson. Current Mikohn employees will also join Johnson as co-owners of the business.

The sale is part of a strategic plan to cut costs and focus on products that produce recurring revenue, officials said.

"(W)e are on track to generate cash growth through business operations and divestitures and are on track to close the year at a minimum cash balance of $14 million," Mikohn Chief Financial Officer John Garner said.

Mikohn laid off about 100 employees and announced plans to consolidate its Las Vegas manufacturing operations in Utah after reporting a loss of $5.8 million in the second quarter, in part due to delays in game launches.

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