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Cuts to cost firm $16.1 million

Thursday, Sept. 12, 2002 | 11:08 a.m.

Mikohn Gaming Corp. of Las Vegas, which supplies slot machines and visual displays to casinos, said third-quarter earnings will be lowered by $16.1 million because of previously announced cuts.

The firing of 23 percent of Mikohn's work force and the departure of former managers will save $10 million a year, the Las Vegas-based company said. Third-quarter profit will be cut because of employee severance costs and lease obligations on plants the company will no longer use.

The company, which had a second quarter loss of $5.8 million, said the cuts will increase liquidity and boost profits. Mikohn shares, down 5 cents to $2.90 in Nasdaq Stock Market trading this morning, have fallen 63 percent this year. The company said in April it fired 99 workers in the past year.

The company agreed to sell a manufacturing business and is in talks to sell the exterior sign business. If both sales are completed Mikohn will receive $3 million in cash. The company also said it is consolidating the manufacture of interior signs into one factory.

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