US slot machine manufacturer International Game Technology has recorded a six per cent drop in profits for the first quarter of fiscal 2008, as a slowdown in its domestic operations served to erode the company's bottom line.
IGT said revenue for the quarter ended December 31, 2007, totalled US$645.8m, up 0.5 per cent on the $642.3m in the comparable period last year.
Net income, however, dropped six per cent to $113.7m, due primarily to a 40 per cent drop in North America shipments and added operating expenses brought about by additional staffing initiatives and a greater investment in research and development.
Despite the loss, IGT’s year-over-year lease operations increased by 2,300 units, mainly in Mexico, New York and Rhode Island. The group’s casino clients, meanwhile, added 3,400 units year-over-year as a result of expansion in Oklahoma and Florida.
"During the first quarter, IGT made progress towards achieving our long-term objectives, including demonstrating at the Global Gaming Expo this past November our vision for the right slot floor today and in the future," said chairman and CEO TJ Matthews.
"Operationally we continued to generate margin improvements and moderate revenue growth despite reduced marketplace demand."
