IGT reports higher earnings

International Game Technology saw some modest improvement in the gaming industry in the first three months of this year.

The company earned $35.9 million on revenues of $497.7 million in the quarter ended March 31. This compares with earnings of $33.6 million and revenues of $475.7 million a year earlier.

Sales of slots and other equipment accounted for 43 percent of the quarterly revenues. The other 57 percent came from gaming operations such as the company's MegaJackpots systems of linked progressive games.

IGT shipped 4,900 slot machines from its Reno manufacturing facility to North American casinos. That's down by 600 from a year earlier.

Eric Tom, the company's executive vice president of North American sales and marketing, said sales are likely to remain slow for a while because few new casinos are planned for opening.

Replacement markets also are likely to remain slow as casino operators keep a close eye on their costs, said Patty Hart, IGT's president and chief executive officer.

"They see the value of our new products. They see the need to refresh their floors. The big obstacle is their capital budgets," Hart said.

But slot machine sales to international markets generated $66.7 million compared with $36.6 million in early 2009. Opening of a new casino in Singapore and improved sales in Europe were key parts of the export revenues.

Even as it boosted its revenues, IGT cut its operating costs by $2.5 million from a year earlier including a $22.7 million reduction in its selling and administrative cost.

Its costs for the quarter included $16.4 million the company spent on shutting down its Japanese operations and a $6.7 million write-down of the value of some patents.

The company said its revenues took a $5 million hit during the quarter as court and legislative battles cast doubt over the future of electronic bingo terminals in Alabama.