Progressive Gaming International (MM) (NASDAQ:PGICD)
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From Jun 2019 to Jun 2024
Progressive Gaming International Corporation (NASDAQ: PGICD) (“the
Company”), a provider of diversified products
and services used in the gaming industry worldwide, announced today that
it has taken action to reduce annual aggregate selling, general and
administrative, research and development and operating expenses by
approximately $13 - $15 million, or approximately 25% - 29%.
Progressive Gaming International Corporation’s
President and Chief Executive Officer, Terrance W. Oliver, commented, “The
$13 - $15 million reduction in annual operating expenses positions the
Company to achieve improving EBITDA and cash flows at a time when
worldwide economic challenges have slowed the adoption rate for gaming
industry system placements. Accordingly, while we believe our cost
reductions and continued focus on sales addresses this near-term
uncertainty, we have, as disclosed last week, suspended our full year
guidance for revenue and systems installed base metrics and EBITDA.
“Progressive Gaming possesses deep domain
knowledge in important gaming industry technologies such as RFID systems
applications and distributed open software architecture for mission
critical regulated industries. Elements of our advanced systems
solutions are installed at nearly all major gaming companies; including
the most prominent gaming operators worldwide. Notwithstanding the cost
reduction announced today, we remain ready to meet all of the current
and future installation needs of our global customers who have committed
to Progressive Gaming’s products, systems and
solutions.
“We are focused on delivering consistent
EBITDA and cash flows based on our system technology expertise,
strategic partnership and leaner operating structure. In addition, the
Board of Directors continues to evaluate alternative measures to enhance
the Company’s financial performance and / or
increase shareholder value.”
The Company has streamlined certain sales, marketing and service
functions by leveraging distribution channels and through the planned
consolidation of regional offices. Additionally, the Company will not
participate in trade shows and instead will focus on direct customer
meetings and focus groups. The Company’s
executive management has agreed to a reduction of their salaries along
with foregoing other fringe benefits.
The Company has carefully considered its customer service commitments
and engineering commitments when developing its restructuring plan and
will remained focused on these key priorities.
About Progressive Gaming International Corporation®
Progressive Gaming is a trusted leader of enterprise gaming solutions
and supplier of integrated casino and jackpot management systems for the
gaming industry worldwide. This technology is widely used to enhance
casino operations and drive greater revenues for existing products.
Progressive Gaming is unique in the industry in offering casino
management and progressive systems in a modular yet integrated solution.
Products include multiple forms of regulated wagering solutions in
wired, wireless and mobile formats. There are Progressive Gaming
products in over 1,000 casinos throughout the world. For further
information, visit www.progressivegaming.net.
©2008 Progressive Gaming International
Corporation®. All rights reserved.
Safe Harbor Statements under The Private Securities Litigation Reform
Act of 1995: This release contains forward-looking statements, including
statements regarding Progressive Gaming’s
opportunities related to its recent expanded relationship with IGT and
independent applications, and its recent implementation of a reduction
of its annual operating expenses. Such statements are subject to certain
risks and uncertainties, and actual circumstances, events or results may
differ materially from those projected in such forward-looking
statements. Factors that could cause or contribute to differences
include, but are not limited to, the risk of the Company to meet its
covenants requirements contained in agreements with PEM and IGT, the
denial, suspension or revocation of privileged operating licenses by
governmental and regulatory authorities, competitive pressures and
general economic conditions as well as Progressive Gaming’s
debt service obligations. For a discussion of these and other factors
which may cause actual events or results to differ from those projected,
please refer to Progressive Gaming’s most
recent annual report on Form 10-K and quarterly reports on Form 10-Q, as
well as other subsequent filings with the Securities and Exchange
Commission. Progressive Gaming cautions readers not to place undue
reliance on any forward-looking statements. Progressive Gaming does not
undertake, and specifically disclaims any obligation, to update or
revise any forward-looking statements to reflect new circumstances or
anticipated or unanticipated events or circumstances.