Alliance Gaming posts quarterly loss

Tuesday, Nov. 10, 1998 | 11:36 a.m.

Alliance Gaming Corp. said today it posted a $2.7 million third-quarter loss, compared with a $79.9 million loss in the 1997 quarter.

The year-ago loss included $77.6 million of one-time financing charges, Alliance noted.

Revenue edged slightly higher, to $98.8 million from $98 million, according to the Las Vegas-based game maker and slot-route operator.

Alliance President Morris Goldstein said the company's Bally Gaming and Systems division sold 50 percent fewer machines than in the year-earlier quarter, resulting in a 19 percent decline in revenue and 70 percent drop in cash flow for that part of the business.

In the latest quarter, Bally Gaming shipped about 900 units to the Nevada and Atlantic City markets, 1,100 units to international markets and 100 units to riverboats, Indian casinos and other domestic markets.

Research and development costs for the division jumped 60 percent due to Bally Gaming and Systems unit's efforts to expand product offerings, he said.

The company's Rainbow hotel-casino in Vicksburg, Miss., and Rail City Casino in Sparks, Nev., posted a 15 percent increase in revenue and 28 percent jump in cash flow in the latest quarter, Goldstein said.

Slot-route revenues in Nevada and Louisiana rose 12 percent due to the installation of more units and slightly higher win per unit per day.

Overall, the company's consolidated cash flow slipped to $11.7 million in the latest quarter from $12.4 million in the 1997 period.

"We continue to increase our investment in research and development, especially at Bally Gaming and Systems, and anticipate receiving several key regulatory approvals for new, higher margin products in the ensuing months," Goldstein said.

"As previously announced, we received the final approval from the Nevada Gaming Control Board for our Thrillions wide-area progressive jackpot system late last week and are moving forward quickly to secure agreements to place the system in Nevada casinos," he said.