International Game Technology 1Q profit climbs 20 pct as cost cuts offset 14 pct drop in sales

By AP
Thursday, January 21, 2010

International Game Technology 1Q profit climbs

RENO, Nev. — International Game Technology, a maker of electronic gambling machines, said Thursday that its fiscal first-quarter profit rose 20 percent as cost cutting measures more than offset a sales decline.

Quarterly revenue fell 14 percent in the weak economy to $515.7 million from $601.6 million, disappointing analysts who had expected sales of $531 million. But International Game trimmed its costs by 25 percent to $375.4 million from $501.5 million.

That helped the company — which sells casino-style slot machines and applications for casino management — report a better-than-expected profit. Shares rose 6 percent in after-hours trading.

The Reno, Nev., company earned $73.3 million, or 25 cents per share, in the quarter that ended Dec. 31. That’s up from the $61.2 million, or 21 cents per share, it earned a year earlier, which included restructuring costs and interest payments. It also easily beat the 20-cent-per-share estimate of analysts polled by Thomson Reuters.

IGT shares rose $1.27 to $21.47 in after-hours trading Thursday, having closed the regular session down 11 cents at $20.20.

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