Alliance Gaming, IGT offer earnings guidance

Tuesday, Oct. 10, 2000 | 12:07 p.m.

Nevada slot machine manufacturing giants International Game Technology and Alliance Gaming Corp. saw their stock prices move in different directions this morning after both issued statements indicating strong financial trends in the quarter ending Sept. 30.

IGT, based in Reno, said total revenue for its fiscal year 2000 ended Sept. 30 is expected to top $1 billion for the first time.

"FY 2000 will be a record year for IGT, and we believe it speaks to how well our products are being received by customers," IGT President Tom Baker said in a statement. "This record top-line performance has been driven by increased demand for our growing lineup of new game themes, strong gaming operations performance, and solid market share growth by our major international subsidiaries."

IGT product sales for the quarter ended Sept. 30 exceeded 16,000 units in North America, up more than 25 percent from the third quarter and up 83 percent compared to the 1999 fourth quarter, IGT said.

IGT cited strong demand for its video games including Texas Tea, Double Diamond 2000, Fortune Cookie and Little Green Men; as well as sales in the expanding California market, where shipments exceeded 3,400 units for the quarter.

For the quarter, IGT's video reel and video multigame sales exceeded 9,100 units. This compares to third quarter sales of 6,250 and 1999 fourth quarter sales of 3,300.

IGT also reported strong sales of cashless slot machines and said 2,700 units were installed in the quarter, representing 17 percent of sales. IGT calls the system ticket in/ticket out technology.

"The successful performance of these machines and systems is now gaining momentum, with new installations and tests beginning in just about every gaming market," said Bob McMonigle, executive vice president.

Properties using the system include the Suncoast, Fiesta and Reserve in the Las Vegas area, Casino Arizona in Arizona and Grand Casinos in Biloxi and Tunica, Miss.

IGT gaming operations -- featuring products like Wheel of Fortune and Addams Family slots -- grew to an installed base of more than 19,000 units, up from 17,600 in the third quarter and 15,100 in the year-ago quarter.

The stock of IGT -- which will announce results for the year ended Sept. 30 on Nov. 7 -- advanced $1 this morning to $35.44. That's on top of Monday's gain of $1.06.

Separately, Alliance Gaming Corp. of Las Vegas said it expects to report record first quarter earnings per share -- and cash flow earnings before interest, taxation, depreciation and amortization of $16 million to $18 million.

Alliance, maker of Bally slot machines, said it will report first quarter results Oct. 17. Its shares fell 19 cents this morning to $3.88.