Operating results for the first quarter of fiscal 2008, ended 31 December, have been announced by International Game Technology. Gross profit for the quarter was US$366.5 million, up from US$352 million for the same quarter the previous year. Chairman and CEO TJ Matthews commented that IGT had made progress toward achieving its long term objectives and had demonstrated at G2E in November its “vision for the right slot floor today and in the future.”

Mr Matthews stated that operationally IGT continued to generate margin improvements and moderate revenue growth despite reduced marketplace demand. An increase in revenue and gross profit was primarily driven by an increase of 5,700 units in installed base from the prior year quarter. Lease operation placements year-over-year were up by 2,300 units, mainly in Mexico, New York and Rhode Island.

Casino operations placements, which increased by 3,400 units, were the result of gaming expansion in Oklahoma and Florida. Worldwide shipments were down to 20,200 shipments compared to 26,800 units in first quarter fiscal 2007. Despite the 25% reduction, gross profits grew due to favourable product and geographic mix. Lower shipments to Japan and the UK were partly off-set by increased shipments to all other international markets.

Greater investment in research and development plus additional staffing initiatives have meant an increase in operating expenses for the company. There is also a reduction in replacement demand in North America. Operating cash flow decreased primarily due to additional prepayments to secure long-term licensing rights and timing of payments in working capital.

Next week IGT will be at ICE 2008 in London, presenting ‘The Right Vision – Right Now and for the Future’ at booth xxx. The company’s products embrace the future of gaming as it moves towards ‘open’ networks based on protocols for flexibility and interoperable products. A display of the IGT Mariposa software will showcase the power of predictive modelling, business intelligence, and data visualisation for operators today, as well as in a future, server-based world. (E-01.17.08)

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