IGT executive announces resignation

Sep 4, 2008 8:08 PM

by GT Staff | International Game Technology (IGT) announced Wednesday that Chief Operating Officer Steve Morro will resign, with President and Chief Executive Thomas J. Matthews taking on the additional duties starting Sept. 27.

Morro will remain with the world’s largest maker of slot machines and casino systems as a non-executive employee, according to a filing with the Securities and Exchange Commission.

Morro’s resignation comes as a surprise, Goldman Sachs analyst Steven Kent said in a client note, as he was favorably received by investors.

Morro’s departure will also deplete IGT’s management ranks even further, Kent explained, as the company has been looking for a new chief financial officer for more than a year. Chief Financial Officer Maureen Mullarkey officially submitted her resignation in June 2007 after previously announcing plans to retire. The company named Daniel Siciliano as interim principal financial officer at the time.

Morro was also named COO in June 2007. He had served as president of the gaming division since 2005, responsible for all areas of its North America operations including sales, product development, engineering and manufacturing.

While Morro’s resignation may have been unexpected, Kent said one bright spot could be if IGT decides to conduct an extensive review and implement an operational restructuring.

Shares of International Game Technology fell 42 cents to $21.58 in morning trading.