Pursuant to the authorization, Multimedia Games may purchase shares from time to time in the open market, through block purchases or in privately negotiated transactions in accordance with Company policies and applicable securities laws. The actual number of shares to be purchased, if any, will depend upon market conditions. Any shares purchased will be held in the Company’s treasury for possible future use. As of September 30, 2012, Multimedia Games had approximately 28.2 million shares issued and outstanding. During the quarter ended September 30, 2012, the Company did not repurchase any of its shares.
Adam Chibib, Chief Financial Officer, commented, “We exited fiscal 2012 with growing business momentum and a healthy balance sheet, including $40.5 million in net cash, which represents an impressive $30.7 million improvement over the past year and a $63.3 million improvement from the end of fiscal 2010. Going forward, we plan on leveraging our strong product portfolio, expanding addressable market position and fiscal discipline to generate strong profitability and free cash flow. Further, with expectations for continued free cash flow generation, the Board believes returning value to stockholders through share repurchases is an excellent complement to our ongoing growth momentum.”
Fiscal 2013 Guidance
The Company forecasts fiscal 2013 revenues of $165.5-$170.2 million, representing approximately 6%-9% year over year total revenue growth. The revenue growth reflects an expected 10%-15% year-over-year increase in unit sales as well as a modest increase in the domestic installed base, partially offset by continued declines in Mexico. The current unit sales and installed base growth forecast for fiscal 2013 includes an expectation for a measured level of initial unit deployments on a revenue share basis and unit sales into Nevada beginning in the second half of the fiscal year.In addition, Multimedia Games expects that total operating expenses – including SG&A, research and development costs and depreciation and amortization – will increase modestly from fiscal 2012 levels as the Company continues to add additional headcount in research and development and sales and services. Operating margins are expected to improve from 15% in fiscal 2012 to 16%-17% in fiscal 2013 and operating income is expected to increase approximately 11%-21% year over year to $26.7-$29.2 million.
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