VEGAS, Nev. – One trading day after Progressive
Gaming International Corp. warned Wall Street it might
be facing bankruptcy, the Las Vegas-based casino equipment
provider's stock tumble to a record low as nervous investors
worried about the company's future.
Gaming, which had been known as Mikohn Gaming until
2005, sought Monday to alleviate concerns throughout
the investment community as analysts debated the company's
really the rumor going around," Jefferies &
Co. gaming analyst Aimee Marcel Remey said of investment
community discussion that Progressive Gaming was going
bankrupt. "The company has been doing damage control
and I've been getting a lot of investor calls."
a statement sent Monday to the U.S. Securities and Exchange
Commission, Progressive Gaming said the bankruptcy comments
were taken out of context from its 2006 annual report,
which was filed late Friday. In the section under risk
management, Progressive disclosed it could have to file
for bankruptcy protection if it is forced to pay a $39
million jury verdict for violating federal antitrust
company is appealing the Feb. 8 judgment that was tried
in U.S. District Court in Mississippi. It doesn't expect
to have a decision on the appeal until some time in
Gaming shares closed Monday at $4.20 in heavy trading
on the Nasdaq National Market, down 73 cents or 14.8
percent. Initially, the company's shares were off more
than 26 percent, falling to $3.65 at the market's outset
and $3.55 by midmorning. By the end of day, more than
7.2 million shares of Progressive Gaming were traded,
seven-and-a-half times the average daily volume.
the end of February, shares of Progressive have fallen
more than 45 percent in value.
might have been a bit of an over reaction," Marcel
Remey said. "The news (about the lawsuit) was old
a statement, Progressive Gaming Chief Financial Officer
Heather Rollo said the company was confident in its
legal, financial and strategic positions.
mentioned in previous disclosures, we believe the company
is on track to strengthen its balance sheet and return
to profitability," Rollo said. "We remain
in good standing with our lenders, gaming regulatory
agencies and other key stakeholders."
on Monday, Interactive Systems Worldwide announced that
it and Progressive Gaming had settled a patent infringement
lawsuit filed by the New Jersey company over Progressive's
Rapid Bet Live sports wagering system.
Systems said the companies have signed a licensing agreement
that grants Progressive Gaming a worldwide, nonexclusive
license to "practice ISWI's existing patent portfolio
regarding sports wagering."
weren't disclosed. Interactive Systems will receive
an initial license payment, as well as a continuing
royalty based on product placement milestones and revenue
generated by Rapid Bet Live and other related products.
investors might have confused the two lawsuits,"
Marcel Remey said.