MGAM News!
TULSA, Okla.--(BUSINESS WIRE)--Feb. 14, 1997--Multimedia Games, Inc. (NASDAQ:MGAM) announced today a 46 percent increase in revenues for the first quarter of 1997 as compared to the same period in 1996.
The increase is primarily attributable to the company's high-speed bingo game -- MegaMania(TM). Although revenue was up, earnings were down for the first quarter. The company reported a net loss of ($190,000) or ($.07) cents per common share and revenues of $6,805,000 for the first quarter of fiscal year 1997, which ended December 31, 1996. These results compare to a net income of $68,000 or $.02 cents per common share and revenues of $4,658,000 for the same period in the preceding fiscal year.
Gordon Graves, chairman and chief executive officer of the company said, "Our first quarter ending December 31 is always slow. We were able to show positive earnings with lower first quarter revenue last year because we sold an intellectual properties package in Canada for a $500,000 profit. Even though overall revenue was forty six percent higher this quarter, we had higher expenses because we were setting up the infrastructure needed to support a 3,000 station MegaMania network.
"In addition, we had an anticipated delay in installing additional MegaMania units and unusually high legal expenses during the first quarter as a result of the U.S. Attorney investigation of the Class II status of MegaMania. That investigation seems to be completed and sales have increased dramatically. In January 1997, we installed 208 new player stations in eleven halls in six states. In the first eleven days of February, the average daily revenue of the MegaMania network was $56,000 as compared to $44,000 in January and $37,000 in December. The company is now operating profitably and profits are expected to increase in February and March."
These comments should be considered a "forward-looking statement" within the meaning of Federal and state securities laws as to the company's expectations for the months of February and March 1997. Such statement is subject to a number of uncertainties that could cause the actual results to differ materially from those expected, including but not limited to, those described under "Item 1. Description of Business -- Risk Factors" contained in the company's annual report on Form 10-KSB for the fiscal year ended September 30, 1996, which are incorporated herein by this reference.
Multimedia Games, Inc., through its wholly owned subsidiary, MegaBingo, Inc. has exclusive contracts with over 50 Indian nations to provide linked games that are integrated among multiple halls. Multimedia Games, Inc. is the nation's leading provider of linked high-stakes bingo games, electronic based interactive bingo games and associated data processing services and products to the Indian gaming
industry.
CONTACT: Multimedia Games, Inc.
Gordon Graves or Fred Roll, 800/726-2464
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or 800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
