Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question coming from the line of Joe Greff, J.P. Morgan
Joe Greff – J.P. Morgan
Hi, guys, how are you?
Brian Gamache
Hi, Joe.
Scott Schweinfurth
Hi, Joe.
Joe Greff – J.P. Morgan
First question for you. I think there might be some confusion. I’m getting some emails here, but you are reaffirming full year revenue guidance though the composition of that has changed?
Brian Gamache
Right.
Joe Greff – J.P. Morgan
Product sales are a little bit below where you guys had talked about earlier and that –?
Brian Gamache
We said that the guidance we gave, Joe, would be either at or low end of the guidance or slightly below.
Joe Greff – J.P. Morgan
Okay.
Brian Gamache
But that will be offset by the gaming operations accelerating revenues.
Joe Greff – J.P. Morgan
And that’s –?
Brian Gamache
Obviously, as you know that’s a higher margin business. So, the flow through in that additional revenue should be accretive.
Joe Greff – J.P. Morgan
Right. And that’s on the win per unit per day and not on units, on the game up –
Brian Gamache
No, it’s not. Exactly.
Joe Greff – J.P. Morgan
Okay. And based on what you see so far in January and what you are expecting in terms of mixed change, do you think that the levels that you did last quarter can carry through the next couple of quarters on a win per – unit per day?
Brian Gamache
The answer is, we are very optimistic based on the January result we’ve seen thus far. In addition, we have got some very exciting new products coming out this second half of the year POWERBALL Power Seat, Reel and then compete to win, Big Event, Poker, Time Machine. We have two Wizard of Oz transmissive products. So, we have a fully array of products to be launched in the second half and we are already at the upper end of our guidance on the footprint. So, we think that will board well for both the footprint and yield particularly in the fourth quarter.
Joe Greff – J.P. Morgan
Okay. Great excellent. And you also reaffirmed your EBIT margin guidance?
Brian Gamache
Yes.
Joe Greff – J.P. Morgan
So, do you think by the end of June you at a sustainable 20% EBIT margin level?
Brian Gamache
That’s an operating margin, Joe that we reaffirmed.
- To read the full transcript on Seeking Alpha, click here »
