IGT swings to loss in quarterly earnings

By Amanda Finnegan

Thursday, Nov. 5, 2009 | 2:07 p.m.

International Game Technology saw its profit swing to a loss during the fourth quarter of 2009, the Reno-based gaming supply company reported today.

IGT reported a net loss of $21.3 million, or 7 cents per share, for the fourth quarter of 2009, compared to a profit of $52.1 million, or 18 cents per share, during the same period of 2008.

The company saw its revenue fall 18.7 percent from $632.2 million during the fourth quarter of 2008 to $514.6 million in 2009. Revenue from IGT’s gaming operations declined 14.5 percent, partially due to lower play levels, the company said.

Product sales revenue declined 23.3 percent during the quarter to $231.4 million compared to $301.2 million a year ago.

IGT also included its fiscal year 2009 results in today’s report. Income dropped 56.5 percent from $342.5 million, or $1.10 per share, in 2008 to $149 million, or 51 cents per share, in 2009. Revenue fell to $2.114 billion in 2009 from $2.528 billion in 2008.

"Our fiscal 2009 results reflect a challenging operating environment which we believe stabilized during our fiscal third and fourth quarters," IGT Chief Executive Patti Hart said. "While we remain cautious on the timing and extent of the replacement cycle, we have been encouraged by modest upticks in spending by many of our casino operator customers over the past two quarters."

IGT reduced its workforce by roughly 10 percent during the last year in a cost-cutting initiative. The company currently employs 5,800 people.