IGT's 1Q earnings jump 20 percent

Jan 22, 2010 8:02 PM

International Game Technology (IGT) said Thursday its first quarter profit rose 20 percent, helped some by one time accounting adjustments.

The Reno-based company, the world's largest maker of slot machines and casino management systems, said net income for the three months ended Dec. 31 was $73.3 million, or 25 cents per share, compared with $61.2 million, or 21 cents per share, a year earlier.

Revenue slipped to $515.7 million from $601.6 million a year ago.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their projections, expected earnings of 20 cents per share.

CEO Patti Hart said results for the first quarter, which is typically the slowest as far as sales, reflect “measured progress in numerous aspects of our business, despite continued challenges in the broader marketplace.”

IGT and the casino industry as a whole was hard hit by the recession and continues to struggle as tourists and gamblers cut back on discretionary spending.

The company said the number of domestic units shipped and accounted for in the quarter totaled 5,500, down from 9,500 in the same quarter of 2008. International units increased by 400 to 6,400.

But Hart said North American shipments included more replacement units than in the prior year, suggesting a stabilization in the casino industry.

The company also said its installed base of machines totaled 62,200 units, an increase of 800 from the preceding quarter and 1,300 from the same quarter last year.

Hart said the company's guidance for the fiscal year ranged from earnings of 77 cents to 87 cents per share.

IGT shares lost 11 cents to close at $20.20 Thursday before the earnings report was released. The shares gained 77 cents, or 3.8 percent, to $20.97 in after-hours trading.

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