In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance.
OVERALL: SLIGHTLY BETTER - Adding back the write-off, BYI reported $0.69 cents vs. the Street at $0.67. Gaming ops were the bright spot in the quarter with game sales and systems more or less in-line.
Here is the report card evaluating actual results against management's previous assertions.
- SLIGHTLY BETTER: Increased the low end of FY 2012 guidance by 12 cents to $2.37-2.45.
- PRODUCT MARGIN
- SLIGHTLY BETTER: BYI's margins increased 3% YoY and QoQ - which we would categorize as a little better than slight sequential improvement. On the flip side, next quarter's margin will slip slightly QoQ. The goal achieving of 48-49% in the next few quarters remained unchanged.
- SAME: Progress in Australia remained sluggish, but their QoQ shipments did increase.
- SLIGHTLY WORSE: While BYI finally has the finish line of approvals within their sight line, the delay in approval will cost them some VLT placements as their concessionaire partners grow tired of waiting.
- "GREASE" & "MICHAEL JACKSON" DEPLOYMENTS
- SLIGHTLY BETTER: "GREASE" reached an install base of 127 units (currently 170 units in the field), with better than expected initial performance. Though early, cannibalization impact was relatively low. Also, "Michael Jackson" deployment is ahead of schedule. BYI continues to believe that 700-800 games in the field for each title remains achievable.
- SYSTEMS OUTLOOK
- SAME: Systems outlook remains rosy with a solid backlog.
- CANADA SYSTEM GO-LIVES
- SAME: Moving along exactly as planned. Will recognize go-live revenues in FQ4 2012. BYI is already recognizing some service revenues