IGT posts third quarter loss

LAS VEGAS, Nevada -- Slot machine giant International Game Technology said Tuesday its net income declined slightly in the company's third quarter.

For the period that ended June 30, IGT said its net income was $92 million, or 30 cents per share, compared with net income of $96 million, or 32 cents per share, in the same quarter last year.

The company, which has corporate headquarters in Las Vegas and a manufacturing presence in Reno, saw revenues for the quarter grow 3 percent to $489 million, with gaming equipment sales accounting for 45 percent of IGT's total revenues.

The company said 55 percent of its revenues came from slot machines where IGT shares in revenues with casinos.

IGT CEO Patti Hart said in a statement the company was expanding its presence into new and existing markets outside the United States.

"Our third-quarter results further demonstrate the positive momentum generated by our new games, platforms and internal process improvements," Hart said.

Revenue increased 7 percent in slot machine sales, to 8,900 games in the quarter. The increase came mainly from sales of replacement machines to U.S. casinos, as well as improved sales in Latin America.

Roth Capital Partners gaming analyst Todd Eilers said IGT was competing against a tough quarter. A year ago, the company benefited from slot machine sales to the newly opened The Cosmopolitan of Las Vegas and Michigan's Gun Lake Casino, which is operated by Station Casinos.

Any sales, he said, were driven by promotions because there was a "lack of expansionary" slot machines sales between April and June.

"The June quarter did not have any favorable openings," Eilers said.