IGT executives: We've touched bottom and recovery is stirring

Top executives of International Game Technology said last week they think the company has reached the bottom of the economic downturn, and they expect sales to begin a recovery.

But they said the company also continues to look for ways to cut costs and increase the speed at which IGT brings new gaming products into the market.

"There are no sacred cows. We are looking top to bottom at the company," said Patti Hart, who came on board as IGT's president and chief executive officer about four months ago.

Reno-based IGT earned $66.3 million in the quarter ended June 30. That's down from $108.3 million a year earlier. Revenues for the quarter totaled $287.9 million, down from $333.6 million in the same quarter a year earlier.

Even so, Hart told securities analysts she sees signs that the company's business is beginning to rebound:

* IGT shipped 2,300 machines during the quarter as replacements for older slots on casino floors. The number is up 28 percent from the previous quarter. Hart said casino operators, while worried about the economy, recognize that they need to keep fresh product on their floors.

* The play at the linked machines owned by IGT MegaJackpots games such as "Wheel of Fortune" appears to be stabilizing. Each of the 61,100 machines was generating an average of $52 a day in play in the last quarter.

* The outlook of the casino operators who install IGT machines is generally more optimistic than it was earlier this year.

Hart said she wants the company to focus on development of content, particularly for video slots, and she's cutting some executive positions in a bid to move products from conception to introduction more quickly.

Earlier this month, IGT announced the layoffs of 161 workers worldwide including 55 at its Reno headquarters. That comes on the heels of layoffs of 300 in Reno in November and 200, mostly in Reno, in January.

IGT is the largest private-sector employer in Washoe County.

While the earlier layoffs were focused on reducing costs as the gaming business cratered along with the economy, Hart said future reorganization will focus largely on improved efficiency.

NNBW staff