IGT sees growth in second quarter

25 April 2011

LAS VEGAS, Nevada -- International Game Technology on Thursday reported net income that surpassed Wall Street's expectations, as the company benefited from improved sales and international lease operations.

IGT reported net income of $70 million, or 23 cents per share, for its fiscal second quarter ended March 31, compared with net income of $26 million, or 8 cents a share, a year earlier.

Second-quarter revenues rose 1 percent to $492 million, of which 56 percent was generated from gaming operations and 44 percent from sales, compared with $487 million from the same quarter last year.

Analysts surveyed by Yahoo Finance had expected earnings of 20 cents a share on revenue of $480.3 million.

"Our second-quarter results reflect the advances we are making towards moving IGT to a position of greater financial strength," IGT President and CEO Patti Hart said. "We continue to demonstrate the leverage in our operating model with strong performance in profit margins."

Hart said although a challenging business environment remains, the near- and long-term outlooks for the company were improving.

In a conference call with analysts, she said she expected the company's moderate earnings growth to continue for the rest of the year and in 2012. Hart said the improved second-quarter figures were a "reflection of our improving profitability."

Consolidated gross profit for the quarter increased to $292 million, compared with $272 million in the prior year's second quarter. The 7 percent increase was attributed to improved product sales volume.

Second-quarter product sales revenues were $215 million, up 4 percent from $207 million a year earlier. Meanwhile, revenues from gaming operations totaled $278 million compared with $280 million a year earlier.

IGT, which is headquartered in Reno but maintains a large corporate presence in Las Vegas, is a global gaming company that designs, manufactures and markets electronic gaming equipment and systems products.

Shares of IGT gained 32 cents, or 2 percent, to close Thursday at $16.33 on modest trading of 4.03 million shares on the New York Stock Exchange.

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