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In preparation for BYI's F1Q 2013 earnings release on Thursday, we’ve put together the recent pertinent forward looking company commentary.

Bally Technologies Announces Illinois Contracts Totaling Sales and Lease of More Than 4,000 Video Gaming Terminals (9/25)

  • BYI announced constracts with various distributors in IL to provide 4,000 Bally Video Gaming Terminals (VGTs), expected to be deployed over the next 24 months.
  • Two of the largest terminal operators in the state have signed more than 50 percent ship share with Bally

YOUTUBE FROM 2Q CONFERENCE CALL (8/9)

  • "Our fiscal year 2013 holds excellent opportunities for Bally as we are initiating earnings guidance at $2.95 to $3.30 per fully diluted share. This guidance range contemplates revenue improvement in all three areas of our business: game sales, gaming operations and systems. We also expect gross margin improvement in gaming equipment and continued growth in our web footprint. As a result of these expectations, we anticipate an improvement in our operating margin in fiscal 2013."
  • "We still expect our game equipment margin will approach 48% to 49% within the next two to three quarters due to continued reductions in material costs on each of the Pro Series cabinets."
  • "We anticipate our effective income tax rate in fiscal 2013 will be between 38% and 39%. This rate does not assume reinstatement of the U.S. Research & Development Credit."
  • "We expect to have an installed base of around 1,000 VLT units in Italy by the end of FY 2013."
  • "We should also have our first systems installation in Australia successfully completed during the next few weeks."
  • "We expect to begin initial shipments both for sale and participation-based VLTs in Illinois beginning Q2 FY 2013 pending final approval of location."
  • "With respect to Michael Jackson and GREASE, I think we have said historically that we saw both of these games as having the potential to reach total placements of 750 each, and we still feel that way. The numbers are meeting or exceeding our expectations, and... cannibalization does appear low and low partly because Bally has a pretty small WAP footprint, and because these games are quite unique."
  • "We see normal trends from seasonality, but we haven't seen any impact yet from the consumer"
  • "Average win is meeting our expectations. Overall WAP footprint is up nicely year-over-year and in line with seasonal trends."
  • [Share repurchase] "We've been rather aggressive the last two quarters and going into the first quarter as we mentioned in the press release, but we've traditionally bought back in the $15 million to $20 million a quarter range."
  • "On Italy, we have fairly modest prospects because of our delays in getting approved. So, we have said that we expect to have 1000 machines by the end of this fiscal 2013. I think there is a chance to do much better in Italy over time, but we have to sort of earn our stripes after this delayed technical approval process."
  • "We are looking at further opportunities in New Zealand; we just went live over the last few months and of course, the South Africa installs are going on schedule."
  • "With respect to particularly Canadian VLTs, those come at a slightly lower ASP. They don't have quite as many bells, and whistles. We have guided to a higher margin, so the good news is on a margin dollar basis they are still accretive. Illinois, which is a VLT market, that will come at a little cost to ASPs."
  • "The third thing we are doing is transporting our games content of course, to the internet in legal jurisdictions, which should be again generating revenue for us early on in calendar 2013."