Multimedia Games’ net income slips on M&A costs
Net income for Multimedia Games Holding Co Inc fell 38 percent year-on-year in the quarter ending September 30, to US$3.8 million, from US$10 million in the year-prior period.
Net income for the fiscal year to September 30 slipped 8.6 percent to US$31.9 million, from US$34.9 million in fiscal year 2013, the firm said in a statement on Wednesday.
Diluted earnings per share in the quarter to September 30 fell 62.5 percent to US$0.12 from US$0.32 in the third quarter 2013.
The company said that reflected non-recurring acquisition costs and expenses of approximately US$6.6 million, pre-tax, relating to the pending acquisition of Multimedia Games by Global Cash Access Holdings Inc (GCA), and to Multimedia Games’ recent acquisition of PokerTek Inc.
New York-listed GCA – which supplies cash processing technology and related services to the gaming industry – on November 4 said it anticipates closing the US$1.2 billion purchase of Texas-based Multimedia Games in late December 2014 or early 2015.
Nasdaq-listed PokerTek, from Nevada, designs, manufactures and markets electronic table games. PokerTek in April said that it would merge with Multimedia Games. The latter agreed to acquire PokerTek for a total consideration of US$13 million. The deal was approved in September by the Nevada Gaming Commission.
Multimedia Games makes and supplies systems, content and electronic gaming units for Native American and commercial casinos. The firm also supplies the central determinant system for the video lottery terminals installed at racetracks in the U.S. state of New York.
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