Alliance Gaming announces $7.5 million quarterly loss

Kevin Rademacher

Tuesday, Feb. 1, 2005 | 10:45 a.m.

Las Vegas-based Alliance Gaming Corp. this morning said it had a net loss of $7.5 million, or 15 cents a share, in its fiscal year second quarter.

The results are down from the $18.7 million, or 37 cents per share, in net income the company reported in the same 2003 quarter.

The slot machine maker's current results include a write down of $11.7 million, or 14 cents a share, for inventory and other assets related to discontinued products and used gaming devices as well as a bank charge for amending its senior loan agreement, the company said in a statement.

Revenue for the quarter was $113.7 million, up from $108.6 million in the year-age quarter.

The company, in a statement released this morning, said it "expects to return to profitability in both the third and fourth quarters of fiscal year 2005." That prediction, however, was "exclusive of unusual charges."

Revenue at the company's Bally Gaming and Systems unit reached $100.9 million, up from the $96.3 million reported a year ago.

Revenue from game sales decreased 7 percent from the year-ago quarter, the company said. It was the result of a 28.4 percent drop in new unit sales, but it was offset by an 18 percent increase in the average new-unit selling price which reached $10,682.

"The increase in the average selling price reflects the sale of higher-priced Class II and centrally determined games," the company said.