I found a section of the year-end report that might help understand revenues from MegaMania.
"In August 1995, the Company introduced MegaMania, an interactive
high-speed bingo game developed by the Company that is played on electronic player stations interconnected among participating Indian bingo halls. As of September 30, 1996, there were approximately 800 MegaMania player stations in operation at 20 Indian bingo halls located in 3 states. For the year ended September 30, 1996, revenues derived from MegaMania were $6,074,000 (26.5%) of the Company's total revenues for the period."
Dividing total revenue ($6,074,000) by the number of machines (800) yields income per machine of $7,592.50. If we divide that by 365 days, we get $20.80 per machine per night. Bear in mind that this is an AVERAGE over the entire year, and they kept adding machines throughout the year. So, I don't think the $50.00 figure is out of line. I'm not sure what the overhead is, but we should be able to get a better handle on that when these new machines are in, and we get to see the numbers.
The latest word I had from the CFO is that their 1st quarter (ended December 31, 1996) would be about break even, with between 7 and 8 million in revenue. (Their fiscal year ended September 30, 1996.) If we look only at revenue, they should be a $30 million dollar company in 1997, even WITHOUT the 1,000 new machines! Compare that with Ancor. I think that a realistic revenue target might be as high as $40 million. With 6 million shares outstanding (including the private placement), this stock is trading at LESS than 1 times revenue.
Another positive in 1997 should be the imminent release of research commissioned by Walsh, Manning Securities. Depending on what this research shows, we may get some big buyers at that point. |
