International Game Technology announced yesterday operating results for the fourth quarter and fiscal year ended September 30, 2009. Net loss for the quarter was $21.3 million. Net income for the same quarter last year was $52.1 million. For the fiscal year, net income was $149.0 million. Net income for the prior fiscal year was $342.5 million.

Fourth quarter revenues and gross profit from gaming operations totalled $283.2 million (compared to $331.0 million for the same quarter 2008). For the year ended September 30, 2009, revenues and gross profit from gaming operations totalled $1.2 billion and $683.8 million, respectively, compared to $1.3 billion and $778.1 million in the prior year. Revenues and gross profit decreased primarily due to lower play levels and continued shifts in installed base mix to include more lower-yielding, stand-alone lease machines.

As of September 30, 2009, IGT's gaming operations installed base totalled 61,400 units, an increase of 300 units from the immediately preceding quarter and an increase of 900 units over the prior year. Installed base growth in international markets was partially offset by a reduction in domestic placements. As of September 30, 2009, approximately 85% of IGT’s installed base was comprised of variable fee games that earn a percentage of machine play levels rather than a fixed daily fee.

The company reported a decrease in product sales revenues and gross profits for both the fourth quarter and fiscal year. North America revenues decreased 31% for the quarter and 16% for the fiscal year, largely driven by fewer new openings and replacement sales. International revenues declined 11% for the quarter and 31% for the fiscal year as international markets continue to feel the effects of the economic slowdown, most notably in Continental Europe, Japan and South America, and unfavourable changes in currency exchange rates.

"Our fiscal 2009 results reflect a challenging operating environment which we believe stabilized during our fiscal third and fourth quarters," said CEO Patti Hart. "While we remain cautious on the timing and extent of the replacement cycle, we have been encouraged by modest upticks in spending by many of our casino operator customers over the past two quarters."

At the Las Vegas G2E gaming show later this month IGT will be introducing new product lines, including ‘Sex and the City’ themed slot machines, under the title: ‘Taking Gaming to the Next Level’. Eric Tom, IGT executive vice president of sales and marketing, said. "This year's IGT showing at G2E will absolutely prove that we're the industry leader, now and for the future.” (E-11.06.09)

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