IGT reports Q1 results

RENO, Nevada – (PRESS RELEASE) -- International Game Technology (NYSE: IGT) announced today operating results for the first quarter ended December 31, 2006.

Net income in the first quarter totaled $121.0 million or $0.35 per diluted share versus $120.6 million or $0.34 per diluted share in the same quarter last year.

First quarter financial highlights:

* Consolidated revenues up 4% to $642.3 million

* Consolidated gross profits up 6% to $352.0 million

* Gaming operations revenues up 11% and gross profit up 13%

* Record gaming operations installed base of 53,100 machines

* Record Adjusted EBITDA of $259.9 million

* Cash flow from operations of $223.5 million, up 41%

"IGT posted solid first quarter results, highlighted by continued growth in our gaming operations sector and record Adjusted EBITDA," said Chairman and CEO TJ Matthews. "Our installed base of recurring revenue machines reached a record 53,100 games worldwide. We saw the first shipments into Pennsylvania, Florida racetracks and Arkansas this quarter and look forward to future development in these emerging markets. IGT continues to invest heavily in new markets and technology, and we remain focused on delivering the most complete line of industry-leading products and service to our global customers."

Gaming Operations

First quarter revenues and gross profit from gaming operations improved to $324.9 million and $186.7 million, respectively, compared to $291.7 million and $165.5 million for the same period in the prior year. Gaming operations gross margins were consistent with the prior year at 57%. Revenue and gross profit growth was primarily driven by the increase in our installed base, with 9,800 incremental units from the prior year and 3,500 incremental units from the immediately preceding quarter.

Year-over-year installed base growth was primarily the result of lease operations placements in Mexico, New York and Delaware, and casino operations placements in Oklahoma, California, Florida and Alabama. Sequential installed base growth occurred primarily in the lease operations markets of New York and Mexico, and the casino operations markets of Florida and Oklahoma.