International Game Technology reports Q1 results

Consolidated revenues and gross profit for the quarter were $645.8 million and $366.5 million, respectively, compared to $642.3 million and $352.0 million in the prior year quarter. Consolidated gross margins for the first quarter came in at 57%, up from 55% in the prior year quarter. Net income in the first quarter totaled $113.7 million or $0.36 per diluted share, compared to $121.0 million and $0.35 per diluted share in the prior year quarter.

"During the first quarter, IGT made progress towards achieving our long-term objectives, including demonstrating at the Global Gaming Expo this past November our vision for the right slot floor today and in the future. Operationally we continued to generate margin improvements and moderate revenue growth despite reduced marketplace demand," said Chairman and CEO TJ Matthews.

Gaming Operations

First quarter revenues and gross profit from gaming operations improved to $332.3 million and $199.4 million, respectively, compared to $324.9 million and $186.7 million for the same period in the prior year. Gaming operations gross margins for the first quarter were 60% compared with the prior year quarter at 57%. Revenue and gross profit growth were primarily driven by an increase of 5,700 units in our installed base from the prior year quarter.

Year-over-year lease operations placements increased 2,300 units, mainly in Mexico, New York and Rhode Island. Casino operations placements increased 3,400 units year-over-year as a result of expansion in Oklahoma and Florida. Compared to the fourth quarter of fiscal 2007, casino operations units increased 100 units and lease operations units were down 500 due to temporary removals in Mexico.