International Game Technology Q3 2009 (Qtr End 06/30/09) Earnings Call Transcript

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2009-07-23 09:49:24.0

Tags: Asset, International Game Technology, Call Transcript, Quarter, Earnings, UBS AG, Asset Management, Operational Planning, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Robin Farley – UBS.

Robin Farley - UBS

I wonder if you could give us a little bit of color on where you think your market share, domestically, was this quarter in product sales.

And then also a little more color behind the sequential reduction in the domestic revenue sharing units.

Patrick W. Cavanaugh

Market share for the quarter, as you computed, we have not yet computed it, until everybody reports their results and given that we're the first one out of the gates, we don't yet have a computation on it.

But my guess is it's probably going to come in some place close to where it's been the last couple of quarters.

And regarding the reduction in game ops assets during the quarter, I think what you've seen is an ongoing trend over the last twelve months or so, maybe 18 months, of operators trying to figure out what's the right mix on their floor of those assets to maximize both their revenues but also minimize the costs that they spend.

And the agreements that we recently entered into, which we've been working through with most of our large customers to get those assets back on their floors, I think are evidence that those assets earns their way onto those casino floors.

So I think the sequential reduction in units is really just more of a timing issue. You know, we churn a lot of assets in and out of that install base on a monthly and quarterly basis.

Robin Farley - UBS

When you talked about the large operators you expect to announce agreements for I think it was 450 units, do you expect then the September quarter to end up being a sequential uptick or downtick on a net basis, with all the admin remove?

Patrick W. Cavanaugh

At this point, we're going to fluctuate up and down slightly. I think you are apt to see a relatively stable install base at around 61,000, 62,000 units, in that range.

Operator

Your next question comes from Joseph Greff - J.P. Morgan.

Joseph Greff - J.P. Morgan

I was hoping you could help us, from where you sit and as you understand things, how you're thinking about the timing of the opportunities in Ohio and Illinois.

And then along the idea of talking about opportunities, I was hoping you could give us an update on what's going on in Mexico and Italy, how you are thinking about what the potential size of those opportunities are and any timing on those markets.

 

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