Earnings from U.S.-based gaming supplier International Game Technology (IGT) for the quarter ended June 30 beat estimates, even though revenue went down.
IGT on Tuesday reported fiscal third-quarter net income of US$72.1 million, or US$0.29 per share, compared to US$65.7 million, or US$0.25 per share, in the same period last year. Analysts were expecting earnings per share of US$0.28.
On a GAAP (generally accepted accounting principles) basis, net income for the first nine months of the fiscal year was down 15 percent to US$177.1 million.
Revenue decreased by 19 percent to US$468 million in the three months to June 30, “primarily due to declines in product sales and gaming operations”, the company said in a filing.
Non-GAAP income – operating income before amortisation of intangible assets and the change in fair value of contingent consideration liability – fell by 20 percent to US$69.3 million in the April-June period, IGT reported.
The company also provided earnings per share (EPS) guidance of US$1.00 to US$1.06 for the current fiscal year, down from a previous guidance of US$1.00 to US$1.10 per share in April. For the fiscal year, analysts are expecting earnings of US$1.03 per share, according to Thomson Reuters.
“July saw the culmination of our process to evaluate strategic alternatives for IGT and our shareholders,” Patti Hart, IGT chief executive, said in the statement.
“We successfully balanced this effort during the third quarter with our focus on continuous improvement in our business evidenced by expanded gross margins and expected EPS performance. Our effective cost management has improved efficiencies in a challenging industry environment and has positioned us for future market opportunities,” Ms Hart added.
IGT announced earlier this month that it is being bought by Italian GTech SpA for US$6.4 billion, comprised of US$4.7 billion in cash and stock, and the assumption of US$1.7 billion in net debt.
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Credit rating agency Fitch Ratings