International Game Technology (IGT), the Nevada-based maker of video poker machines, slot machines, and online gaming products, is in the black despite a tough economy. For the second quarter of fiscal 2011, total revenues increased 1 percent to $492.3 million. Second quarter revenues from International Gaming Technology’s gaming operations totaled $277.6 million, down from $280.1 million in the same quarter last year, while second-quarter product sales revenues hit $214.7 million, up from $206.7 million a year ago.
Net income from continuing operations reached $70 million, or 23 cents per share, compared to $26 million, or 8 cents per share, in the same quarter last year. Operating expenses fell to $161 million from $208 million in the prior year quarter.
"Our second quarter results reflect the advances we are making towards moving IGT to a position of greater financial strength. We continue to demonstrate the leverage in our operating model with strong performance in profit margins," says IGT President and CEO Patti Hart.
"Although we remain in a challenging environment, the near and long-term outlooks for the company are improving and we look forward to reporting our progress in coming quarters."
Earlier this year, Moody's Investors Service hiked the company's rating outlook to stable from negative and affirmed its Baa2 senior unsecured ratings.
IGT continues to manage its finances well despite less-than-stellar revenue, the ratings agency said.
"Given our stable outlook for gaming demand, we expect that IGT's revenues will be flat in 2011 relative to 2010 while operating earnings will rise modestly," says Moody's Senior Credit Officer Peggy Holloway in a statement.
"Earnings improvement will be driven by significant cost reductions and growing operating margins."
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