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Multimedia Games posts smaller 1Q loss; sales fall

by AP February 9, 2010 3:31 EST Related Symbols:

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AUSTIN, Texas (AP) – Multimedia Games Inc. reported a narrower fiscal first-quarter loss Tuesday, but its sales fell in the period, and investors sent its shares lower.

Multimedia Games, which makes electronic lottery and bingo machines, recorded a loss of $4.1 million, or 15 cents per share, in the three months ended Dec. 31. That compares with a loss of $5.9 million, or 22 cents per share, in the same period a year earlier.

Revenue slid to $26.3 million from $28.6 million. The company said the decline was caused by lower discretionary spending brought on by the recession and other factors.

The company said its operating costs fell to $30.6 million from $37 million.

Shares lost 62 cents, or 13.1 percent, to $4.11 in afternoon trading. The stock has ranged from $1.55 to $6.47 over the past year.

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