If a company has to experience a dip in revenue, then it helps considerably if it can make more profit from the services for which it does write invoices.
This was precisely the story for Bally Technologies Inc., for the company’s fourth quarter in the financial year ended 30th June 2009.
Picking up on the theme of the recessionary squeeze facing slot makers worldwide, Bally’s revenue from slot equipment and systems fell 17 percent during the quarter.
“Improved gross margins and control of expenses allowed us to drive our fourth quarter operating margin to 25 percent during the quarter from 23 percent in the same period last year,” the company said in a statement.
Bally, which makes slot machines and casino management systems, said it expects to earn USD2.25 a share to USD2.50 a share in 2010.
The company said new products and an expected improvement in customer spending beginning in calendar 2010 would offset the sluggish North American gaming machine replacement market and an overall weakness in the economy.
For the fiscal fourth quarter, Bally Technologies earned USD33.2 million, or 58 cents a share, compared with USD31.3 million, or 54 cents a share in the equivalent quarter a year ago. That was on falling revenue amounting to USD205.1 million compared to USD247.4 million last year.
