Market Briefs (Nov. 11-15)

Multimedia Games Reports Higher Net Income, EPS

Multimedia Games Inc. (MGAM) surpassed both its initial and revised projections for fiscal 2002.

On Jan. 31, the company projected diluted earnings per share of $1.33, which it later upped to $1.70. In the end, earnings per share totaled $1.74 per share for gross revenue of $291 million.

The Austin, Texas-based company is reporting yearly net income of $25.3 million, a 279 percent leap up from last year's net income of $6.7 million. Fourth-quarter diluted earnings per share were 47 cents, compared to fourth quarter 2001earnings per share of 24 cents. Fourth quarter net income was $6.8 million, compared to $3.4 million during the same time period last year. CEO Gordon Graves said the company's performance was especially impressive considering the challenging business environment.

"The quarterly and year-end earnings were better than expected," he said. "We continue to be very positive about the future, yet cautious in our guidance due to uncertainties in tribal expansion schedules and the regulatory environment. We see opportunities to continue improving our earnings per share and create new opportunities for MGAM in our ongoing effort to create shareholder value."

Poker.com Lowers Expectations

Poker.com (PKER) said this week that its third-quarter earnings will be lower than the Vancouver-based company expected. The group is now projecting a loss of $100,000 for the quarter, which it blames on problems with its casino software provider, Trimon Systems Inc.

The problems include a significant slowing of casino license sales and the fact that an allowance for doubtful accounts of $250,000 had to be accrued for. Poker.com said it has upgraded its software to remedy these problems.

"(The company is) disappointed with the third quarter results due to the unexpected difficulties with our casino software provider," the Poker.com stated in a press release. "The sale of casino licenses has long been a strong revenue generator for the company and licensing problems impact the company's revenues. Based on this and its impact on current licensees, an allowance for doubtful accounts in the amount of $250,000 has been accrued for."

Rank Numbers Looking Up

The Rank Group's (RANKY) interactive gaming business is taking in more than £1.5 million in online bets per week, the company said in a trading statement.

Rank Interactive Gaming offers fixed-odds betting as well as traditional gaming on Rank.com and HardRockCasino.com. The Rank Group holds an online casino license from the Isle of Man.

Reuters reported last week that the firm is depending on the strength of its gambling operations to offset losses in the company's Hard Rock Cafe restaurants. Overall, the company believes its trading outlook for the rest of 2002 is good, it said.

Financial analysts say the company is reaping the rewards from the United Kingdom's deregulation of its gambling industry.

"This is a positive statement," said Richard Carter, an analyst at Investec Securities. "Gaming is starting to benefit from deregulation; Deluxe has remained strong and it looks like Hard Rock might be stabilizing."

Deluxe is Rank's film processing unit.

Hilton Group Says Gaming on Track

The Hilton Group plc (HG), which owns gaming firm Ladbrokes, said profit is down 9 percent for the four-month period ending Oct. 31 compared from the same period last year.

The company said its betting and gaming business has continued to perform well and that its core U.K. cash betting business experienced a 15 percent rise in gross profits compared to the same four months last year. Internet gambling operations continue to grow in line with the company's expectations.

SureFire Conference Call Nov. 21

SureFire Commerce Inc. will hold a conference call to discuss its second-quarter results for fiscal 2003 on Nov. 21 at 10:30 EST.

To participate, dial 1-877-407-9210 or visit the company's Web site, www.surefirecommerce.com, to hear a live Webcast. The a recording of the call will be available for 90 days on the company's site.

Reports Aplenty

Online gaming company betinternet.com experienced a 330 percent rise in turnover from Internet betting to £38.67 million for the yearlong period ending May 31. The Internet betting margin was 6.2 percent, compared to 4.8 percent in 2001. Gross profits increased 140 percent to £2.87 million, and customer accounts are up 188 percent to 23,795.