This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Multimedia Games CEO Discusses F3Q2011 Results - Earnings Call Transcript

Stocks in this article: MGAM

Today's call and webcast may include non-GAAP financial measures within the meaning of Regulation G. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found in the company's current report on Form 8-K as filed with the SEC today, and can be found on our website in the Investor Relations section. Financial and operating metrics provided during today's call maybe approximate. Please refer to the company's financial statements as provided in the press release for definitive numbers. Thank you.

And with that, I will turn it over to Patrick Ramsey, our President and CEO.

Patrick Ramsey

Thank you, Uri and good morning, everyone. Thank you for joining us on this call. With me here in Austin are Uri Clinton, General Counsel; Adam Chibib, Chief Financial Officer and Joaquin Aviles, Vice President Technology; Mick Roemer, our Senior Vice President of Sales has joined us telephonically from the State of Washington.

This morning we reported strong financial results our third fiscal quarter with 15% revenue growth representing our highest quarterly year-over-year improvement this year. Our momentum continues as we grew sequentially from $1.4 million in operating income in the second quarter to $2.6 million in this third quarter. Similarly, diluted earnings per share rose sequentially from $0.04 to $0.10.

In addition, our cash position improved significantly and now stands at $49.2 million, driven primarily in the quarter by the receipt of approximately $18 million for the United States Treasury Department, which added to the consistent cash flow we have been generating from operation. For the first time in seven years our cash levels exceed our debt levels.

The top line growth reflects year-over-year improvement in both our gaming operations revenue and our revenue from unit sales, which is clearly the result of so much hard work from our team members and our laser focus on developing new proprietary products and technologies that are increasingly resonating with our customers and their players. I will go through some of our key markets in more details after Adam’s financial overview, but it is important to note that our top line growth continues to be driven by our own products being placed in markets that are core to our long-term strategy and profitability. This growth has been strong enough to counter balance some of the declines we are seeing in markets such as Mexico and Alabama. We are pleased with our third quarter results because there is reflect continued success in what we believe is a critical transition year for our company.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,072.21 +42.00 0.23%
S&P 500 2,090.15 +8.27 0.40%
NASDAQ 4,802.5210 +29.0490 0.61%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs