(Corrects typo in first paragraph)
Jan 23 Slot-machine maker International Game
Technology warned that its full-year profit would more
likely be towards the lower end of its previous forecast due to
continued weakness in the North American gaming market.
The company also posted weaker-than-expected first-quarter
results as its gaming revenue declined for the fifth straight
quarter, and its shares fell as much as 13 percent in trading
after the bell.
Blaming the trend in its gaming revenue, IGT said it
expected full-year profit would more likely be towards the lower
end of its previous forecast, with the potential of "further
To mitigate the risk, the company said that it was in the
process of implementing a number of measures, including cost
cuts. It did not give further details.
The company had forecast fiscal 2014 adjusted earnings of
$1.28-$1.38 per share in November. Analysts on average are
currently expecting a profit of $1.28 per share, according to
Thomson Reuters I/B/E/S.
Net income rose to $79.2 million, or 31 cents per share, in
the quarter ended Dec. 31, from $65.3 million, or 24 cents per
share, a year earlier.
On an adjusted basis, it earned 25 cents per share, missing
the analysts' average estimate of 30 cents per share.
Gaming revenues fell 8 percent. However a 4 percent rise in
product sales helped total revenue increase 2 percent to $541.2
million. Analysts were expecting revenue of $554.6 million.
IGT shares were down 9 percent at $16.10 in extended
trading. They had closed at $17.65 on the New York Stock
Exchange on Thursday.
(Reporting by Maria Ajit Thomas in Bangalore; Editing by Savio