For the three-month period ending 31 March 2007 International Game Technology (IGT), a global company specialising in the design, development, manufacturing, distribution and sales of computerized gaming machines and systems products, has reported net income totalling US$128.2 million, compared to US$124.0 million in the same quarter of 2006. Over the last three months IGT has seen record gaming operations revenue, up 10% from the previous quarter, and record gaming operations installed base of 54,800 machines.

"IGT's gaming operations continue to thrive and expand, with an all-time high installed base of games driving another quarter of record financial results for the recurring revenue sector of our business," said Chairman and CEO TJ Matthews. "Although the current macro-trends for domestic machine sales remain challenging, the strength and consistency of our gaming operations business and the steadily growing contributions from our international operations enhance IGT's ability to generate strong operating cash flow and post record Adjusted EBITDA results.”

Second quarter worldwide product sales revenues and gross profits totalled $268.6 million and $145.5 million, respectively, compared to $333.2 million and $166.3 million in the prior year. Domestic machine sales declined from the prior year as a result of lower market replacement demand and the timing of expansion opportunities. International machine sales declined as a result of fewer shipments of low-payout machines, mostly due to the timing of sales in Japan. Non-machine revenues increased slightly to $89.8 million versus $88.5 million last year. Consolidated product sales gross margins were 54% compared to 50% in the prior year quarter, primarily due to the greater mix of higher margin non-machine sales and lower mix of international machine sales.

IGT also announced that its Board of Directors has increased the company's share repurchase authorization by 50.0 million shares, bringing the total current authorization to 53.1 million shares. TJ Matthews commented, “With the increase in our share repurchase authorization announced today, we reaffirm our confidence and optimism in the long-term future of our company and plan to continue our stock buyback program as part of our ongoing strategy to return significant capital to our shareholders." IGT is confident of the long-term future of the company and plans to continue its stock buyback program as part of an ongoing strategy to return significant capital to shareholders, anticipating that it will exhaust the share repurchase authorization within three years. (E-04.19.07)

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