SEARCH NEWS:

 

Multimedia Games provides update

Installed Base / Product Mix Update:

The table below sets forth Multimedia's end-of-period, installed player terminal base by product line or market for the months ended May 31, 2007 and April 30, 2007.

                              Reel      Legacy     Total     Oklahoma
          Month               Time        &       Class II   Compact
          Ended              Bingo     Other(1)   & Other    Units(2)
-------------------------- ---------- ---------- ---------- ----------
5/31/2007                      4,545        519      5,064      3,909
4/30/2007                      4,766        353      5,119      3,815
--------------------------

                                        Mexico
                                      Electronic
                Month                   Bingo     Charity     Total
                Ended                   Units      Units      Units
------------------------------------- ---------- ---------- ----------
5/31/2007                                 2,178      2,569     13,720
4/30/2007                                 1,642      2,569     13,145
-------------------------------------

(1) Includes 166 traditional electronic bingo games installed in
 certain international markets.

(2) "Oklahoma Compact Units" represents installations of games
 pursuant to the approved gaming compact between Native American
 tribes, racetracks and the State of Oklahoma, including Multimedia's
 and other vendors' stand-alone games.

The Company had units installed at eight locations in Mexico as of May 31, 2007 and at seven locations as of April 30, 2007.

Oklahoma Market:

Consistent with its strategy to optimize net gaming revenue, the Company is in the process of transitioning its Oklahoma linked, standard sequence bingo games and server-based compact games installed base to one-touch, stand-alone offerings. The table below breaks out by product line Multimedia's end-of-period, Oklahoma installed player terminal base for the months ended May 31, 2007 and April 30, 2007.

                  Total                  Other      Total
                 Class II  Stand-Alone  Compact    Compact     Total
  Month Ended     Units       Units     Units(1)    Units      Units
--------------- ---------- ----------- ---------- ---------- ---------
     5/31/2007      2,115       3,309        600      3,909     6,024
     4/30/2007      2,327       3,027        788      3,815     6,142
---------------
(1) "Other Compact Units" represents server-based games.

As previously disclosed, the monthly sequential reduction in "Total Units", reflects the removal in May of approximately 103 Class II units from a southern Oklahoma facility related to an agreement whereby Multimedia is providing partial funding for the development of an expansion of this facility, in exchange for which the Company will increase its long-term placements in this facility upon completion of the expansion project. The number of Class II units removed from this facility in May does not reflect the temporary removal of approximately 40 units during the month to facilitate construction, because those units have subsequently been reinstalled. As previously reported, 457 Class II units had been removed in April as part of this agreement. No additional removals from this facility are planned.

Multimedia also reported that it has committed an additional $18.75 million to the facility expansion noted above. The new commitment increases Multimedia's total funding of the project from $37 million to approximately $56 million, or from 25% to 37.5% of the anticipated total project budget. In return, the Company will now receive an additional 10% of the anticipated floor placements at the expanded facility, resulting in an aggregate of 1,200 unit placements, or approximately 30%, of the total 4,000 unit expansion, which is scheduled to open early in calendar 2008. Multimedia will be repaid the entire amount of the funds advanced for the facility expansion directly by the tribal customer. Repayments will be paid from the facility's operating profits and are expected to commence when the expanded facility opens. The Company will fund the tribal advance from its new bank credit facility. The terms of this commitment are comparable to those of recent development agreements with this tribal customer.

New York Video Lottery Market:

In the New York Lottery market, Multimedia provides the central determinant system for video lottery terminals ("VLTs") at racetracks in the state, for which it receives 0.75% of the net gaming win for all units installed on the system. As of May 31, 2007, there were approximately 13,100 VLTs installed at racetracks in the state.

Bank Credit Facility:

The outstanding balance as of May 31, 2007 of the Company's new $150 million bank credit facility was approximately $38.1 million.

About the Company

Multimedia Games is a leading developer and supplier of comprehensive systems, content, electronic games and player terminals for the Native American gaming market, as well as for the casino, charity and international bingo, video lottery, and sweepstakes markets. The Company's ongoing development and marketing efforts focus on gaming systems and products for use by Native American tribes throughout the United States, the commercial casino market, video lottery systems and other products for domestic and international lotteries, and products for charity and international bingo and emerging markets, including sweepstakes, promotional, amusement with prize, and coupon gaming opportunities.

< Gaming News