nder the terms of the settlement agreement, Webb will receive us$ 20 million in cash within one day of execution of the settlement agreement and the reimbursement of Webb's legal fees within 30 business days of execution of the settlement agreement.
Russel McMeekin, President and CEO for the company, stated, “The conclusion of this case represents the final step in resolving the last significant legacy matter the Company has faced. We believe this removes any distraction from Progressive Gaming's significant success as it has emerged as a leading systems technology provider for the global gaming industry”.
”We concluded that a settlement now will eliminate the cost and management resources involved in an extended legal process, and allow the company and its personnel to move forward with an undivided focus on further expanding our slot management and table management systems installed based and to pursue high-margin revenue growth. With recent evidence of the company's operational strength and record installations highlighted in our third quarter results, the sale of our Table Games Division and substantial progress in strengthening our balance sheet, we believe we will be in a better position to end 2007 strongly and enter 2008 well positioned to benefit from our recurring revenue business model,” he added.
On October 26, the company reported that following a ruling by the United States District Court for the Southern District of Mississippi to not grant Progressive's post-trial motions in the Webb case, that it would move forward with the appeals to the appropriate federal appellate court and planned to post a us$ 20 million bond by November 8, 2007 in conjunction with the appeal of the case.
The company will fund the settlement payments from available cash on hand. In the three months ended last September 30, Progressive Gaming recorded a charge related to the Webb vs. Mikohn case of us$ 43.7 million. This charge included the total judgment and legal fees. As a result of the settlement, Progressive Gaming expects to revise its September 30, 2007 financial statements to reflect a reduction in the loss from discontinued operations by us$ 19 million which will reduce the company's loss per share after discontinued operations by us$ 0.50.