Tuesday, Aug. 26, 2003 | 11:47 a.m.
Shareholder lawsuit dismissed
A shareholder suit that sought class action status against slot machine leasing company PDS Gaming Corp. has been voluntarily dismissed by the shareholder, the company said Monday. The complaint, filed in Clark County District Court, was dismissed in response to the company's motion to dismiss, PDS Gaming said.
The lawsuit alleged that the members of the company's board of directors violated their fiduciary duties in approving a letter of intent from a management group to acquire shares of common stock.
The suit was dismissed because no deal had yet transpired, the shareholder's New York attorney Curt Marshall said. The suit was dismissed without prejudice, meaning that it could be refiled should the previously announced deal take place, he said.
There was no settlement with the shareholder as a result of the dismissal.
It marked the third such complaint filed by shareholders since the company announced its intent to merge with the management group in February.
The prior two suits also were voluntarily dismissed in response to the company's motion to dismiss, PDS Gaming said.
A special committee of the company's board -- consisting of its independent directors and the potential buyers -- continues to negotiate toward a purchase agreement, the company said.
The Las Vegas company also owns Rocky's Casino & Sports Bar in Reno.
The company this month reported a profit of 5 cents per share compared to a loss of 14 cents per share in the prior year's quarter due to increased financing activity.
Firm expanding to Vegas
A California company that makes ticket printers for slot machines said it expects to open a distribution center in Las Vegas to meet growing demand for its printer products.
FutureLogic Inc. said it has ended its contract with Seiko Instruments for the exclusive distribution of thermal printers for gaming devices. The company instead will market its printers directly to casino customers.
The thermal printers were developed with Seiko in 2000 and were created specifically for "cashless" slot machines. Cashless slots can dispense paper tickets instead of coins and have been embraced by major casinos because they are believed to save labor costs as well as increase gambling revenue by speeding up the betting process, experts say.
Under the Seiko contract, FutureLogic designed and manufactured the printer and responded to service calls. The company will maintain a manufacturing and distribution center in Tempe, Ariz., that will ship goods to Las Vegas, the company said. The Las Vegas distribution center is expected to open by the end of the year.
The Glendale, Calif., company claims the largest market share in the thermal printer industry, or about 95 percent. The company's printers are used in major slot machines made by manufacturers including International Game Technology, Bally Gaming and Systems and Aristocrat Technologies Inc.
A competitor, Connecticut-based TransAct Technologies Inc., also recently opened a sales office in Las Vegas to handle growing business volume.
'Cashless' machines OK'd
Aristocrat Technologies Inc. has received regulatory approval in Nevada to offer "cashless" systems in its slot machines. Cashless systems allow slots to dispense paper tickets instead of coins -- reducing casino labor costs and speeding up play.
Without the approval of ticket machines, Aristocrat has been unable to significantly grow its market share in Nevada, the company said.
"We are now able to compete on an even playing field and offer Nevada casino operators another choice in the market," Aristocrat Technologies Inc. President Gavin Isaacs said.
Aristocrat already has offered ticket machines in 25 markets, including New Jersey and Detroit.
The company also has received Nevada approval to offer upgraded versions of its slot games, including 3-D animation.
The Las Vegas company, the U.S. subsidiary of Aristocrat Leisure Ltd. of Australia, has restructured the unit and replaced top management following disappointing financial results.
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