Bally Technologies Profit Down On Charges - Update

(RTTNews) - Gaming company Bally Technologies Inc. (BYI), Wednesday reported a plunge in profit even as revenues grew 29 percent, as the company was hurt by one-time charges related to acquisition. Earnings for the quarter fell short of analysts estimates, but revenues trumped expectations.

Early this month, smaller rival Scientific Games agreed to acquire Bally Technologies for about $3.3 billion, excluding debt. Bally makes lottery-game and slot machines for casinos.

Las Vegas, Nevada-based Bally Technologies' fourth-quarter profit dropped to $12.2 million or $0.31 per share from $37.3 million or $0.95 per share last year.

Excluding total adjustments of $34.6 million, earnings for the quarter increased to $46.8 million or $1.20 per share. On average, 13 analysts polled by Thomson Reuters expected earnings of $1.22 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter grew 29 percent to $342.2 million from $264.4 million last year. Analysts had a consensus revenue estimate of $340.84 million for the quarter.

Electronic gaming machines revenue increased 35 percent to $119.9 million, while gaming operations revenue climbed to $104.8 million from $102.8 million last year. Systems revenue were up 4 percent, while table products generated revenues of $41.8 million.

Gross margins for the quarter dropped to 61 percent from 65 percent last year.

BYI closed Tuesday's trading at $78.00, up $0.18 or 0.23%, on the NYSE.