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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

  • BETTER: BYI reported a strong quarter beating expectations on game sale units and margins, systems margins, and overall gaming operations.  BYI also raised their guidance for FY13

2013 GUIDANCE

  • BETTER:  EPS guidance was raised from $3.05-3.35 from $2.95-3.30

GAMING EQUIPMENT MARGINS

  • SAME: BYI reiterated that they expect game equipment margins will reach 48-49% by the end of FY2013.
  • PREVIOUSLY:  "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."

MICHAEL JACKSON & GREASE

  • BETTER:  Michael Jackson and GREASE units both passed the 750 threshold.
  • PREVIOUSLY:  "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."

INCOME TAX RATE

  • BETTER:  New FY 2013 income tax rate guidance is 37-38.5% excluding any reinstatement of the US R&D credit.
  • PREVIOUSLY:  "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."

ITALY INSTALLED BASE

  • LITTLE WORSE:  Italy continues to be a challenge and they are making some tweaks.  300 games are currently outstanding.  Still optimistic that they can reach 1,000 by the end of FY 2013.
  • PREVIOUSLY:  "We expect to have an installed base of around 1,000 VLT units in Italy by the end of FY 2013.  

OTHER INTERNATIONAL OPPORTUNITIES

  • SAME:  While international game sales were disappointing this quarter, BYI remained bullish on growth prospects in the medium to long-term.  BYI continues to be invested in market expansion infrastructure and initiatives, including South Africa, Canada, Australia and the global video lottery market. 
  • PREVIOUSLY:  "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."