LAS VEGAS, Oct. 13, 2000 (PRIMEZONE) -- Mikohn Gaming Corp. (Nasdaq:MIKN) --
-- Total Installations Exceed 2,000 Games with More Than 900
Additional Units Under Contract
-- Of These, YAHTZEE(r) Slot Games Have Climbed Past 1,500
Installations
-- Marketing Underway on New BATTLESHIP(r) All Aboard(tm) Game
Mikohn Gaming Corp. (Nasdaq:MIKN) today announced that its installed base of slot games on lease or participation has grown to more than 2,000 units, with another 900 games under contract in backlog. The expansion continues to be driven by the success of Mikohn's slot games based on the YAHTZEE(r) game from Hasbro, Inc. (NYSE:HAS). Mikohn stated that more than 1,500 YAHTZEE(r) games are currently installed in casinos with appropriately 500 units included in the backlog.
"The company is making significant progress in building its base of recurring revenue units on lease or participation," said David J. Thompson, chairman and chief executive officer. "Our healthy order backlog reflects continuing customer demand for our YAHTZEE(r) games. Regulatory approvals for our popular YAHTZEE(r) Video(tm) game are still pending in a number of important jurisdictions including Mississippi."
Thompson emphasized that more than sixty percent of the company's current YAHTZEE(r) slot installations are concentrated in Nevada where the game was first approved. He noted that Nevada is historically a lower revenue slot market due to competitive conditions and said "that the company expects further improvement in profitability as more units are installed in markets which have a higher slot win per machine than does Nevada."
He continued: "We are excited about prospects for our new BATTLESHIP(r) All Aboard(tm) game, which in initial marketing is being very favorably received by customers. We have begun taking orders for the game, and installations will begin in the fourth quarter."
Both the YAHTZEE(r) and BATTLESHIP(r) casino games have been developed under worldwide agreements with Hasbro.
Commenting on operating results, Thompson added: "Third quarter revenues were higher than in the corresponding quarter of 1999. However, the growing profitability resulting from our games was offset somewhat in the quarter by start-up costs related to the introduction of new LED technology used in two major exterior signage projects. As a result, it is anticipated that third quarter earnings will be slightly lower than in the same period a year ago.
"We are making great progress in transforming the company to a recurring revenue business model to reduce earnings volatility and improve profitability. In line with this objective, we will continue expanding our portfolio of exciting, innovative casino games and expect recurring revenues this year to rise to approximately 35 percent of total revenues, up from eight percent three years ago."
In addition to the YAHTZEE(r) and BATTLESHIP(r) games, Mikohn's other slot units on participation include games linked to the company's MoneyTime(r) slot merchandising system, as well as the Mini-Bertha(tm) and Flip-It(r) games. The company also has an installed base of approximately 1,100 table games, primarily the Caribbean Stud(r) Poker game, on lease.
Mikohn is a diversified supplier to the casino gaming industry worldwide, specializing in the development of innovative products with recurring revenue potential. Mikohn develops, manufactures and markets an expanding array of slot games, table games and advanced player tracking and accounting systems for slot machines and table games. The company is also a leader in exciting visual displays and progressive jackpot technology for casinos worldwide. There is a Mikohn product in virtually every casino in the world. For further information, visit the company's website: www.mikohn.com.
YAHTZEE(r), BATTLESHIP(r)
Safe Harbor Statements under The Private Securities Litigation Reform Act of 1995: Except for historical information, statements in this release regarding the business outlook for Mikohn Gaming Corporation (the Company) are forward looking and are subject to certain risks and uncertainties including the overall industry environment, customer acceptance of the Company's new products, delay in the introduction of new products, the further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of privileged operating licenses by governmental authorities, competitive pressures and general economic conditions as well as the Company's, debt service obligations and other factors indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.