IGT reports profit increase in quarter

By Amanda Finnegan

Thursday, April 22, 2010 | 2:51 p.m.

International Game Technology reported a 7 percent increase in profits during its second quarter of 2010, the Reno-based gaming manufacturer reported today.

Net income for the quarter was $35.9 million, or 12 cents per share, compared to $33.6 million, or 11 cents per share during the second quarter of 2009. The company said the quarter included a restructuring charge of $16.4 million and an inventory obsolescence charge of $1.9 million, primarly related to the closing of operations in Japan.

"Our second quarter results demonstrate real sequential progress at IGT," IGT Chief Executive Patti Hart said in the report. "An improvement in replacement units shipped, an increase in gaming operations yields and a decline in SG&A (selling, general and administrative expenses) all reflect IGT's continued efforts to navigate our business through an operating environment which remains challenging."

IGT saw its revenue increase by about 5 percent, from $475.7 million in the second quarter of 2009 to $497.7 million in the second quarter of 2010. About 57 percent of revenue was generated from gaming operations and 43 percent from product sales, the company said.

Revenue from gaming operations fell to $284.6 million in the second quarter, compared to $294.5 million in the comparable period of 2009. About $5 million of the decrease was due to property closures and the reduction of bingo terminals in Alabama, IGT said in the report.

As of March 31, IGT’s number of gaming operations installed totaled 58,000 units, a decrease of 3,400 units from the first quarter of 2010 and a decrease of 2,500 in the year-over-year period.

Product sales revenue increased by 18 percent, while units shipped worldwide decreased by 7 percent. North American product sales revenue decreased by 3 percent, largely because of fewer new openings, the company said.