Mikohn reports first-quarter loss

Wednesday, May 12, 2004 | 10:29 a.m.

Casino supplier Mikohn Gaming Corp. of Las Vegas improved its performance in the first quarter compared to the same period a year ago, but still posted a loss as slot machine sales and certain slot licensing contracts slowed.

The company Tuesday reported a loss of $2.4 million, or 11 cents per share, in the first quarter ended March 31, compared with a loss of $5 million, or 39 cents per share, a year earlier.

Revenue fell 14 percent to $21.1 million, primarily because of lower license fees from slot and table games and lower product sales.

Slot and table game revenue fell 15 percent to $9.5 million as the number of slot machines under daily licensing fee contracts fell. That was partially offset by an increase in machines with periodic license fees, the company said.

Revenue from product sales fell 15 percent to $9.1 million because the company stopped selling machines in Australia.

Cash flow -- earnings before interest, taxes and other expenses -- was up 18 percent to $2.6 million partly because of lowered costs in the product sales department.

President and Chief Executive Russ McMeekin said the company was pleased with its progress during the quarter and that the company reported sequential revenue growth for the first time since June 2003.

Company officials said they expected sequential revenue growth into the second quarter of the year. Revenue for the quarter would range from $22 million to $23 million and cash flow would range from $3 million to $4 million. The company will either break even or record of an overall loss of up to $2 million, they said. Officials also raised full-year estimates on revenue, cash flow and earnings. Mikohn has undergone a restructuring effort to focus on developing slot machine themes and to stem losses.