Bally Technologies, Inc. F1Q09 (Qtr. End 09/30/08) Earnings Call Transcript

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2008-11-07 00:12:16.0

Tags: Goldman Sachs & Co., Call Transcript, Business, Earnings, Bally Technologies Inc., Games, Personal Technology, Seeking Alpha, Goldman Sachs & Co., Call Transcript, Business, Earnings, Bally Technologies Inc., Games, Personal Technology, Seeking Alpha

Question-and-Answer Session

[Operator Instructions]. Your first question comes from the line of Steve Kent with Goldman Sachs. Please proceed.

Steven Kent - Goldman Sachs

Hi Dick. Could you just talk a little bit about on your current guidance how much of the results were or what you're expecting is essentially in backlog? You said on the Systems business, you gave some color, but one of your competitor? WMS gave almost? gave a harder number as to what their backlog was? I just wanted to get a sense for that if could provide that?

Richard Haddrill - President and Chief Executive Officer

Sure Steve. Thanks for question. We don't disclose backlog. We do have, we believe adequate visibility into the future of our business and have been appropriately conservative. We only internally look at orders once they are placed. The backlog number I've seen from WMS I think over 12,000 units, which would be pretty significant number. So, we certainly wouldn't measure backlog in that fashion. But we don't disclose it, but feel pretty confident about our forecast range that we've given.

Steven Kent - Goldman Sachs

And Dick, just on the Systems business. You know you've mentioned a couple of times that you continue to sell, more to them, at what point? you have been able to find more and more things to sell to them, but at what point do you really need to get more new customers to sign on conversions essentially, in order to meet some of your target growth goals?

Richard Haddrill - President and Chief Executive Officer

Steve, we are doing a great job getting new business as well. But clearly, in the Systems business, our strategy has always been to continue to develop innovation that will drive return on investment for those customers. We see no end in sight. As we've all discussed, and you've written about it of course, there will be a conversion to Systems and games, and therefore we should see an increasing volume of products coming through our Systems business, that compliments game products, and really never ends. Many of the new products we've talked about, business intelligence for example, iVIEW DM, we haven't generated a dollar of revenue from those products yet, and there is plenty more in the pipeline. Even our tournaments game has generated very little revenue so far. Power Winner is just really catching stride now. So really a long list of products coming in Systems.

 

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