Multimedia Games, Inc. F3Q09 (Qtr End 06/30/09) Earnings Call Transcript

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2009-08-05 11:24:18.0

Tags: Call Transcript, Earnings, Winstar, Multimedia Games Inc., Games, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Todd Eilers - Roth Capital Partners.

Todd Eilers - Roth Capital Partners

I wanted to talk a little bit about the WinStar remodel. You touched on that a little bit in your remarks and I believed you mentioned there were 1,000 of your units located in the sections that are going to be remodeled and you had about 450 units out currently in the quarter. Of those 1,000, are these your Class II units in that facility?

And can you maybe give us a sense of the performance of the Class II games versus the compact games that you've got in that facility?

Patrick J. Ramsey

It's a mix, the 1,000 units, there's a mix of I would say probably 30% to 40% are Class II and the remainder are Class III. And the current section that's down is more heavily weighted towards Class II. I don't think I'll get into the details win per units by sections but the current section that's down is our best performing section. This is some of our strongest product on the WinStar floor.

Anthony M. Sanfilippo

As Pat said in his comments, WinStar is a large facility and as you know, WinStar earlier this year opened its full facility, so while that section, which is the older section, is being remodeled, there are plenty of other games to play. And as Pat stated, we've done a couple of things. We've taken some of the better performing games and relocated them, and we're using this opportunity to upgrade the platforms we have for our games.

It's still too early for us to tell the revenue impact in sort of the foreseeable future for us. We're working closely with the management there to look at what we might be able to do to promotionally help the situation there. But long term, I'm very bullish on WinStar. It is the largest casino that is within driving distance of Dallas/Ft Worth. It is one of the largest casinos in the United States. We have a material footprint there. We have a seven-year agreement with placement there.

We like what they're doing. I'm glad that they're actually going through this remodel. You've got to do it at some point and it's never easy to do a remodel but when they're finished we're going to have a completely new facility.

And the Chickasaw Nation has multiple casinos in Oklahoma and they are a terrific operator. They're an operator that's focused on continuing to drive value for their customers there at WinStar.

 

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