S&P puts Progressive Gaming on negative watch

Standard & Poor's said it placed Progressive Gaming International Corp.'s B corporate credit rating on CreditWatch with negative implications following the company's announcement that it will request a 15-day extension to file its 2005 10-K report. Progressive Gaming said the filing delay is related to two non-recurring licensing transactions and that it expects to file its audited 2005 10-K by March 31.

While Progressive Gaming has described the transactions as non-recurring, S&P said the CreditWatch listing reflects uncertainties surrounding the potential financial impact of the pending audit and the delayed 10-K filing. In the September 2005 quarter, Progressive Gaming determined it would not be able to recognize $6 million in revenue and $4.5 million in EBITDA related to two software license transactions that had been included in the company's previous guidance for the quarter. Expected total EBITDA in 2005 is slightly under $20 million.

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