Gaming supplier IGT reports profit increase in quarter

By Amanda Finnegan

Published Thursday, Jan. 21, 2010 | 1:49 p.m.

Updated Thursday, Jan. 21, 2010 | 3:43 p.m.

International Game Technology saw its profit increase by 20 percent during the first quarter of 2010, the Reno-based gaming manufacturer reported today.

IGT reported net income of $73.3 million, or 25 cents per share, for the first quarter of 2010, compared to $61.2 million, or 21 cents per share, during the same period of 2009.

The company saw its revenue fall more than 14 percent from $601.6 million to $515.7 million during the year-over-year period. About 54 percent of first quarter revenue was generated from gaming operations while 46 percent was from product sales, the company said.

Revenue from product sales declined 17 percent during the quarter to $238.4 million, compared to $288.3 million a year ago.

Gaming operations revenue totaled $277.3 million during the first quarter of 2010, compared to $313.3 million in the same period last year.

"Our first quarter results reflect measured progress in numerous aspects of our business, despite continued challenges in the broader marketplace," IGT Chief Executive Patti Hart said in the report. "During the first quarter, historically the slowest of the year, we shipped more North American replacement units than the prior year quarter.”

Hart said during IGT’s earnings conference call that the company was pleased with the server-based systems installed at CityCenter’s Aria resort before and after the property’s opening.

IGT unveiled its “Sex and the City” slot machine at the Global Gaming Expo in November, which the company expected to be an immediate success. Hart said the game is out-performing IGT’s initial expectations.

The company also announced the addition of two new executives this week. Gideon Bierer, a former senior vice president at MTV, joined IGT as the company’s vice president of new media while Susan Macke, formerly of Hewlett-Packard, is the company’s new chief marketing officer.

IGT shares rose 77 cents to $20.97 in after-hours trading. The stock closed during the regular session at $20.20, down 11 cents.