International Game Technology F1Q09 (Qtr End 12/31/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-01-22 11:50:24.0

Tags: Environment, International Game Technology, Call Transcript, Earnings, Games, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from William Lerner - Deutsche Bank Securities.

William Lerner - Deutsche Bank Securities

Can you talk for a second about North American units? That was of course better than I suspect most anticipated. Where did it come from? Was it just market share in general? Was it shared a couple of openings? Was it recognition of recent openings? And then also on MLD, where is that actually rolled out? I mean, where are you waiting approvals for that as well?

Thomas J. Matthews

On the North America we had a good quarter just generally speaking. I mean we had some seasonality and some pay level impacts on game operations but in total had a fine quarter when compared to the prior year and compared to the previous sequential quarter. And so felt good about the number of units that were shipped and it really is reflective of the two shares that we remarked on in the past which is in the new and expansion unit environment, our share remains very much intact. And so we get large percentages of shares.

This last quarter, for instance, saw the opening and shipment to Alliante where we had in excess of 70% share and there were a number of other openings in Native American properties really across the country.

Unfortunately for us it does look like a lot of the new and expansion activity was bunched into that December quarter and it will be at a slower pace for the remainder of the fiscal year. There still are some big openings, of course. In Pennsylvania, for example. And we still expect reasonably good share in those environments and so we’ll anticipate that new expansion units to the extent we don’t control those, we will still achieve large shipment when they’re made available to us.

In the replacement market, there’s two things that drive that. And the replacement market firstly demand is created by advancing technology. And as you know we’ve been working on advancing technology on a number of fronts with the boxes first, AVP and MLD and with a system effort that would really allow for a more intensive replacement activity across an entire casino floor.

And then share is dictated by the quality of games. And so in these mature environments where floors are largely dictated by this historical activity, there is some share effort that happens on the margin and you see that reflected in ship share where some of our competitors in their ability to introduce good game content have the need to ship boxes to facilitate that. Whereas you see our ability to grow the non-box revenues, a reflection of the fact that a lot of our game content has resulted in conversion of existing boxes.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here