Progressive Gaming Announces Interim CEO, Expense Reductions
Las Vegas gaming technology provider Progressive Gaming International appointed Terrance W. Oliver as the company's interim president and CEO. Oliver replaces Russel H. McMeekin, who recently stepped down to pursue other opportunities.
The personnel change accompanied Progressive’s announcement that it would fall short of its previously projected 2008 financial guidance for revenues, slot and table management systems installed base, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and gross margins. As a result, Progressive also said it has taken action to reduce expenses, including annual aggregate selling, general and administrative, research and development and operating expenses, by $13 to $15 million, or approximately 25 to 29 percent.
As part of the expense reduction, the company said it 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 $13 to $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,” Oliver said.
Oliver has been a director of the company since 1988, and served as chairman of the board of directors from 1988 to 1993. He currently serves on the board of managers of Peninsula Gaming Partners LLC, which operates the Diamond Jo Casino in Iowa and the Evangeline Downs Racino in Louisiana. No statement was announced regarding a permanent CEO at this time.