Slot route operator, slot maker posts a profit

Monday, April 26, 1999 | 12:43 p.m.

Alliance Gaming Corp. of Las Vegas reported sharply higher earnings on strong revenue and cash flow growth in the company's third fiscal quarter ending March 31.

The gaming machine maker and slot route operator reported net income of $761,000, or 8 cents per share, in the quarter, compared to a loss of $1.1 million, or 12 cents per share in the year-ago quarter.

Revenues increased from $102.2 million in last year's quarter to $125.7 million this year. Earnings before interest, taxes depreciation and amortization increased from $14.5 million in last year's quarter to $15.4 million this year.

"Our consolidated results show a marked improvement over the past few quarters," Morry Goldstein, Alliance's president and chief executive, said in a statement.

Revenues at Alliance's Bally Gaming and Systems business unit increased 78 percent in the quarter, from $21.5 million to $38.4 million. The company attributed the revenue growth to increases in the number of units shipped, the average price per unit and the installed base of recurring revenue units.

Revenues from route operations increased 24 percent from the March 1998 quarter, to $46 million from $37.1 million. During the same period, revenues from casino operations increased 8 percent, from $15.3 million to $16.4 million.

However, revenues from wall machines and amusement games fell, from $28.3 million in the year-ago quarter, to $24.8 million, due to decreases in unit shipments and revenues from existing machines.