International Game Technology (IGT) yesterday reported its financial results for the third quarter ended 30 June 2009. Despite an almost 39% decline in net income and a 23% fall in revenue compared to the third quarter 2008, the IGT share price rose as investors looked to future expansion of slot machine markets in places such as Ohio and Illinois. Although sales revenues were down, the results were above the expectation of many analysts.

Gaming operations quarterly revenues and gross profit declined 14% and 11%, respectively, over the prior year quarter. Declines were the result of lower play levels, as well as growth in the mix of stand alone and lease operations games in our installed base. Gross margin was 62% in the quarter compared to 61% in the prior year quarter. The margin was positively impacted by reduced jackpot expense associated with interest rate changes during the third quarter and lower depreciation expense.

"Although we continue to face an environment of suppressed demand, we were pleased with continued stability in our gaming operations yields and an uptick in unit sales from the second quarter," said CEO Patti Hart commenting on the third quarter. "Despite challenges in the marketplace, IGT made progress on several key fronts during the quarter. We successfully completed our refinancing efforts, filled key roles with accomplished executives, and continued to receive positive feedback on our recently launched MLD and MultiPLAY products." (E-07.24.09)

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