Higher machine sales, increased operations lift IGT profits

International Gaming Technology reported Tuesday that fourth-quarter profits more than doubled from a year ago, boosted by higher machine sales in North America and increases in international gaming operations.

For the three months ended Sept. 30, IGT said net income reached $60 million, or 20 cents a share, compared with $23 million, or 8 cents a share, a year earlier.

Excluding one-time litigation and impairment charges, the company earned 24 cents a share, compared with 17 cents a share in the fourth quarter of 2010.

Revenue also increased 14 percent to $540 million, of which 48 percent was generated from product sales.

The company, which has corporate headquarters in Las Vegas and a manufacturing facility in Reno, reported revenue of $474 million in the fourth quarter of 2010.

The fourth-quarter number topped expectations, as analysts polled by Yahoo Finance were expecting earnings of 23 cents a share on revenue of $484.7 million.

For fiscal year 2011, IGT reported net income of
$292 million, or 97 cents a share, compared with $220 million, or 73 cents a share, in 2010.

"In fiscal 2011, we grew revenue, leveraged our gaming operations, improved margins, positioned the international business for growth and increased our interactive presence," IGT Chief Executive Officer Patti Hart said.

Hart said she expected the improved earnings to continue in fiscal 2012.

Revenue for fiscal year 2011 improved to $1.96 billion, up from $1.92 billion last year.

The company's fiscal year earnings also topped analyst expectations of 93 cents a share on revenue of $1.94 billion.

IGT shares closed Tuesday up 10 cents, or 0.57 percent, to $17.68 on heavy volume of 6.5 million shares traded on the New York Stock Exchange. In after-hours trading, IGT shares gave back 3 cents, or 0.17 percent, to $17.65.

The company reported fourth-quarter product sales were up 20 percent to
$257 million and year-end revenues were higher by 5 percent, to $884 million, compared with the same periods last year, mainly driven by machine sales.

IGT reported global sales reached 11,300 units in the fourth quarter, up
38 percent from the same period last year. For fiscal 2011, the company sold 37,500 units, an increase of 8 percent over the prior year.

During the fourth quarter, the company repurchased 1.6 million shares of common stock at an average price of $15.30 per share and total cost of
$25 million.

Since the program was announced in June, IGT has repurchased 3.2 million shares at an average price of $15.76 a share for a total cost of $50 million.

Over the last 52 weeks, IGT shares have traded between a low of $13.38 to a high of $19.95.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.