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 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

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • 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