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Estimates have come down 10c through the quarter. We think that is about right.

 

 

We know slot demand was not strong during the quarter and we're pretty sure Konami and WMS had good quarters.  that probably means BYI's slot sales were weak.  Good thing that BYI is not overly reliant on box sales. 

 

We’re in-line with consensus estimates of $0.46 and $184MM of revenue.  Expectations are very low going into this call. The sentiment in the investor community is that BYI will have a bad quarter.  We don’t necessarily disagree but think that they can offset some of the weakness in machine sales with lower SG&A and other expenses to eke out an in-line quarter.

1Q2011 Detail:

  • Gaming equipment revenue of $54MM and gross margin of $27MM
    • We assume 3,300 slot sales (1,950 to North America and 1,350 Internationally)
    • ASP of $14.5k
    • $6.4MM of parts and other sales
  • Systems revenue of $51MM at a 72% margin
  • $78MM of gaming operations revenues at a 71% margin
    • 25 unit increase in WAP units and flat LAP units
    • 100 unit increase in premium daily fee games
    • All other units flat
  • Other stuff:
    • $50MM of SG&A
    • $21MM of R&D
    • $6MM of D&A
    • 35.8% tax rate
    • 56.6MM shares outstanding