This Day On The Street
Continue to site
ADVERTISEMENT
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

Multimedia Games Secures Long-Term Contract Extensions For Unit Placements At Chickasaw Nation’s Two Largest Facilities

Multimedia Games, Inc., a subsidiary of Multimedia Games Holding Company, Inc. (Nasdaq: MGAM) (collectively, “Multimedia Games” or the “Company”), announced today that it has extended 1,709 unit placements, or 85% of 2,009 units currently installed on a revenue sharing basis at WinStar World Casino and Riverwind Casino operated by the Chickasaw Nation in Oklahoma, for an additional 3.5 years subsequent to the respective future end dates of the original unit placement agreements which occur in the second half of Fiscal 2013. The remaining 300 units will be removed over a two-year period beginning in the Company’s Fiscal 2014 third quarter (which begins April 2014).

Multimedia Games also extended 70 units, of a total of 115 units currently installed at the Chickasaw Nation’s Black Gold Casino, for an additional 3.5 years. In consideration of the long-term unit placement extensions, Multimedia Games will pay total unit placement fees of $13.2 million to the Chickasaw Nation in the current quarter. The Company also agreed to reduce its revenue share percentage on approximately 1,000 units at WinStar World Casino with two annual pricing adjustments on July 16, 2013 and August 1, 2014, bringing the revenue share percentage on these units in line with the Company’s other units deployed within the Nation’s gaming facilities.

In addition to the above noted unit placements, Multimedia Games has approximately 3,076 units currently installed pursuant to placement agreements at Chickasaw Nation facilities and approximately 300 additional units installed at these facilities. The following table details the current and expected future Chickasaw Nation facility unit placements (subject to existing performance clauses and requirements and other factors that may affect installed units) at fiscal year-end periods through Multimedia Games’ fiscal 2015:
                                       
     

Current
      at

9/30/2012
      at

9/30/2013
      at

9/30/2014
      at

9/30/2015
Total units (approximate)     5,200       5,100       4,900       4,700       4,600
% of total current units (approximate)     100%       98%       94%       90%       88%

Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, commented, “With approximately 90% of our current units at Chickasaw Nation facilities expected to remain installed through at least September 2015, we believe we have significantly strengthened the Company’s long-term strategic alliance with our largest customer. These extensions are consistent with our plans to continue to grow revenues and reinvest in our proprietary games and technology development. We appreciate this relationship and the confidence the Chickasaw Nation has in Multimedia Games as a long-term supplier of high-performing gaming products at their facilities.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs