IGT buys some of Progressive Gaming's assets

Jan 22, 2009 1:30 AM
Staff & Wire Reports |

International Game Technology, a designer and maker of computerized gaming machines, said Tuesday it purchased some of Progressive Gaming International Corp.'s operating assets for an undisclosed amount.

Progressive's global operations will be folded into IGT's offices throughout Europe, Asia, Australia, Latin America, Canada and the U.S.

Last month IGT promoted Patrick W. Cavanaugh to chief financial officer. The company had searched for a new CFO for more than a year before naming Cavanaugh to the post. In November IGT said about 500 workers, or roughly 8 percent of its global work force, would be terminated either through early retirement or job elimination in an effort to lower costs. The sector has struggled as consumers tighten discretionary spending due to the ongoing housing slowdown, rising food costs, eroding credit and unemployment concerns.

Shares of IGT fell 88 cents, or 7.4 percent, to $11.07 in morning trading. The stock has lost nearly three-fourths of its value in the past 52 weeks amid the economic downturn.

JPMorgan analyst Joseph Greff said in a client note that he expects IGT will have soft operating quarter due to "weaker product sales and soft yields in the gaming operations segment."

Greff predicts earnings of 24 cents per share, below the 26 cents-per-share average estimate of analysts polled by Thomson Reuters.

IGT reports its fiscal first-quarter results on Thursday.

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