Int'l Game Technology reports fiscal 4Q loss

By OSKAR GARCIA

posted: 20 DAYS 12 HOURS AGO

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LAS VEGAS -International Game Technology on Thursday posted a fiscal fourth-quarter loss, but said it thinks demand for its slot machines and casino management systems has stabilized.

The company posted a loss of $21.3 million, or 7 cents per share, compared with a profit of $52.1 million, or 18 cents per share, in the same quarter last year.

Revenue slipped to $514.6 million, from $632.2 million a year ago.

Analysts surveyed by Thomson Reuters, who usually exclude one-time items from their estimates, predicted earnings of 17 cents per share on revenue of $497.9 million.

For the full fiscal year, profit fell to $149 million, or 51 cents per share, from $342.5 million, or $1.10 per share, in fiscal 2008.

Sales fell to $2.11 billion from $2.53 billion a year earlier.

The Reno, Nev.-based company said it recognized 4,200 sales in North America during the quarter, including 3,800 replacement units.

CEO Patti Smith said that when she took over as chief executive in April, casinos seemed like they would allow slot machines to remain on casino floors for 40 years or more.

"Capital spending by our customer seemed that it would be perpetually anemic," Smith told investors during a conference call Thursday. "While we remain cautious about the overall market environment this quarter, there was continued incremental improvement in operator sentiment."

Internationally, IGT said it recognized 7,900 unit sales — all replacements.

"After a drastic downward adjustment to (capital expenditures) at our core casino customers in the early part of the year, this quarter saw our operators cautiously re-entering the market to meet the demand of their patrons who appear increasingly aware of aging slot floors," Smith said.

Shares of IGT lost 4 cents to close at $18.56 in the regular session and were up 24 cents, 1.29 percent, to $18.80 in aftermarket trading.

2009-11-05 19:02:57