Alliance Gaming results improve

Las Vegas-based Alliance Gaming Corp. reported fourth-quarter net income of $1.6 million, or 16 cents a share, compared with net of $600,000, or 6 cents a share, in the fiscal 1998 fourth period.

Net income in the year-ago period was impacted by $2.2 million, or 23 cents a share, of extraordinary charges, Alliance said. Fourth-quarter revenue rose to $129.8 million from $110.5 million.

For fiscal 1999, the company reported its net loss narrowed to $10.5 million from $77.4 million in the prior year. Revenue rose to $458.2 million from $417.4 million, Alliance said.

President Morry Goldstein attributed the recent gains to increased placement of participation games and to higher prices for slot machines sold by the company.

Participation games generate recurring revenues through a split of machine win between casinos and slot makers, providing higher returns to manufacturers over the life of a game than an outright sale.

Goldstein said Alliance's Bally Gaming & Systems unit has placed more than 1,000 participation games over the past six months. The total in play is expected to exceed 1,800 units by Sept. 30, he said.

Goldstein also said route operations posted higher results due to increases in the number of games installed and net win per day.

archive