Slot-maker Bally reports record third-quarter revenue of $259 million

Bally Technologies Inc., helped by record-setting revenues, on Wednesday reported an increase in profit for the third quarter.

The company also has raised its outlook for fiscal 2013.

The Las Vegas-based slot machine manufacturer reported net income of $38.4 million, or 93 cents per share, compared with $29.9 million, or 67 cents a share, in the same period last year.

Revenue was $259.1 million, up from $228.6 million in the fiscal third quarter of 2012.

Both earnings and revenues came in above analysts’ expectations. On average, analysts polled by Yahoo Finance expected the company to earn 85 cents a share on revenue of $246 million.

“This record quarter continues to mark a historic period of sustained operating improvement and success which is shaping up to meaningfully continue for the foreseeable future,” said Ramesh Srinivasan, Bally’s president and CEO. “Our recent premium and wide-area progressive product launches … have returned strong initial performances in many different locations.”

The company has found success with a wide range of new progressive games such as Pawn Stars and Cash Wizard.

Gross margins improved to 65 percent from 63 percent last year.

Bally sold 4,923 new gaming devices in the quarter, up from 4,147 last year. The average selling prices of a new unit declined 6 percent year-over-year to $16,051 from $17,073, primarily as a result of more lower priced units sold worldwide in the quarter.

Neil Davidson, CFO of Bally’s, said the third quarter marks the 22nd quarter in a row that the company has repurchased stock.

“During the third quarter, we purchased 641,000 shares of common stock for $31 million at $48.79 per share,” Davidson said. “The new $300 million share repurchase program and accelerated share buyback announced (Wednesday) continue to demonstrate the confidence and visibility we have into our long-term growth trajectory.”

Bally has purchased more than $1 billion of its common stock since November 2007.

Looking ahead, the company has raised its full-year earnings outlook to a range of $3.35 to $3.45 per share from a prior guidance of $3.20 to $3.40 per share.

Analysts currently expect the company to report full-year earnings of $3.33 per share on revenues of $971.6 million.

The company’s fiscal year ends June 30.

Bally reported third-quarter earnings Wednesday after the markets closed.

Shares of Bally gained 19 cents, or 0.39 percent, to close at $49.08 on the New York Stock Exchange. In after hours trading, Bally shares rose $3.17, or 6.46 percent, to $52.25.

Contact reporter Chris Sieroty at csieroty@review journal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.