Published: January 18, 2012
Multimedia Games Secures Long-Term Contract Extensions for Unit Placements at Chickasaw Nation's Two Largest Facilities
AUSTIN, Texas - (BUSINESS WIRE) - 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."
Juan Rico, Chief Gaming Officer for the Commerce Division of the
Chickasaw Nation, commented, "The positive organizational, strategic and
game development changes that have taken place at Multimedia Games over
the last several years have strengthened their product portfolio and our
long-term partnership. We look forward to our continued relationship
with Multimedia Games as a key supplier of products to the Commerce
Division of the Chickasaw Nation."
About Multimedia Games Holding Company, Inc.
Through its wholly owned subsidiaries, Multimedia Games Holding Company,
Inc. ("Multimedia Games" ) develops and distributes gaming technology.
The company is a creator and supplier of comprehensive systems, content
and electronic gaming units for Native American gaming markets, as well
as for commercial casinos and charity and international bingo markets.
Revenue is primarily derived from gaming units in operation domestically
and internationally installed on revenue-sharing arrangements.
Multimedia Games also supplies the central determinant system for the
video lottery terminals ("VLTs" ) installed at racetracks in the State of
New York. The company is focused on pursuing market expansion and new
product development for Class II, Class III and VLT markets. Additional
information may be found at www.multimediagames.com.
Cautionary Language
This press release contains forward-looking statements based on
Multimedia Games' current expectations and projections, which are
intended to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. The words
"believe", "will", "expect", "continue", "intend", "plan", "seek",
"estimate", project", "may", or the negative or other variations thereof
or comparable terminology as they relate to Multimedia Games and its
products, plans, and markets are intended to identify such
forward-looking statements. All forward-looking statements are based on
current expectations and projections of future events.
These forward-looking statements reflect the current views, models, and
assumptions of Multimedia Games, and are subject to various risks and
uncertainties that cannot be predicted or qualified and could cause
actual results in Multimedia Games' performance to differ materially
from those expressed or implied by such forward looking statements.
These risks and uncertainties include, but are not limited to, the
ability of Multimedia Games to maintain strategic alliances, unit
placements or installations, grow revenue, garner new market share,
secure new licenses in new jurisdictions, successfully develop or place
proprietary product, comply with regulations, or have its games approved
by relevant jurisdictions. Other important risks and uncertainties that
may affect the Company's business are detailed from time to time in the
"Certain Risks" and "Risk Factors" sections of Multimedia Games' Annual
Report on Form 10-K, its Quarterly Reports on Form 10-Q, and elsewhere
in Multimedia Games' filings with the Securities and Exchange
Commission. All forward-looking statements made herein are qualified by
these cautionary statements and there can be no assurance that the
actual results, events or developments referenced herein will occur or
be realized. Readers are cautioned that all forward-looking statements
speak only to the facts and circumstances present as of the date of this
press release. Multimedia Games expressly disclaims any obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

Multimedia Games Holding Company, Inc.
Adam Chibib,
512-334-7500
Chief Financial Officer
or
Jaffoni &
Collins Incorporated
Joseph N. Jaffoni or Richard Land
212-835-8500
mgam@jcir.com
Copyright © 2012, Business Wire, Inc., All rights reserved.
Copyright © 2012, NewsBlaze,
Daily News