Multimedia Games Q4 Earnings Soar, Top View; Guides 2014 Earnings Below Street

(RTTNews) - Multimedia Games Holding Company, Inc. (MGAM), a maker of gaming technology for the Native American and commercial casino markets, Thursday reported a rise in earnings for the fourth quarter chiefly on account of growth in revenue. Earnings also beat Street view. Further, the company forecasted earnings for fiscal 2014 to be below analysts' estimates.

Patrick Ramsey, CEO, said, "We generated record financial and operating results in fiscal 2013 based on the growing acceptance of our expanding portfolio of for-sale and participation games as well as our further success in increasing the markets we can address."

Earnings of the gaming company climbed to $10 million, or $0.32 per share, from $8.3 million, or $0.28 per share, a year ago. Six analysts polled by Thomson Reuters estimated the company's earnings to be $0.27 for the quarter. Analysts' estimates typically exclude one-time items.

For the three months to September, earnings before interest, taxes, depreciation and amortization rose to $25.3 million from $17.4 million in the corresponding period last year.

Multimedia Games registered fourth quarter revenue of $50.4 million, up from $41.4 million a year ago. The biggest slice of the cake was revenue from gaming operations which rose 17.9 percent to $34.9 million. Analysts had estimated revenue for the quarter to be $50.13 million. The company also reported higher unit sales of 807 units compared with 538 units sold a year ago.

Looking ahead, Ramsey stated, "We are just getting started in Nevada, Illinois and New Jersey and expect to generate revenues from Pennsylvania in early fiscal 2014."

For the fiscal year 2014, Multimedia Games forecasts revenue of $217 million to $233 million, which is approximately 15-18 percent growth in revenue year-over-year. The forecast reflects 38-49 percent rise in unit sales as well as an increase in installed base compared to the fiscal 2013. Street view for 2014 revenue is $221.64 million.

The company also issued guidance for earnings for fiscal 2014 to be in the range of $1.23-$1.27 per share and EBITDA to be in the range of $110 million to $114.5 million. Street view for earnings is $1.31.

Wednesday, the stock closed at $32.88 on the Nasdaq.