This summary is based on the second quarter fiscal 2008 earnings call conducted by International Gaming Technology. (IGT: chart) on July 17, 2008.

Management:

- Vice President, Corporate Finance & Investor Relations: Patrick Cavanaugh
- Chairman of the Board, President & Chief Executive Officer: Thomas J. Matthews
- Chief Accounting Officer & Treasurer: Daniel R. Siciliano

Key Investors Issues

- Net income totaled $180 million or 35 cents per diluted share, up 32% from $136 million or 41 cents a share in 2007.
- Total revenues dropped 4.2% to $677 million from $707 million in the prior year.
- IGT repurchased 8.1 million shares for an aggregate cost of $266 million or $32.96 per share.

Year to Date Highlights:

- Net income was $290.5 million or 92 cents a share, down 24.7% from $385.6 million or $1.14 a share in 2007.
- IGT deployed back to shareholders a total of $606 million through share buy backs and dividends.
- Capital expenditures totaled $222 million compared to $260 million in the prior year.

Third Quarter Highlights

Net income totaled $180 million or 35 cents per diluted share, up 32% from $136 million or 41 cents a share in 2007 driven by strong domestic new unit demand and a contribution from the Latin American subsidiary and strong non-machine sales.

- Total operating expenses were $201 million compared to $180 million in the prior year quarter.
- SG&A inclusive of bad debt totaled $123 million an increase of $17 million over last year.
- The firm realized higher staffing related costs associated with sales and administration headcount, bad debt provision totaled a net expense this year of $4 million compared to a net credit last year of $2 million in the prior year.

R&D expense totaled $58 million up from $51 million in the prior year as IGT continues to invest more heavily in product innovations and server based gaming initiatives.

- Other income and expense net increased $5 million over the prior year primarily due to higher interest expense related to the additional borrowings on the line of credit.
- Cash equivalents and short term investments inclusive of restricted amounts totaled $382 million, compared to $401 million in 2007.
- Total revenues dropped 4.2% to $677 million from $707 million in 2007 on weak US gaming results.
- Debt stood at $2 billion compared to $1.5 billion at the end of fiscal 2007 and the undrawn capacity on the $2.5 billion line of credit totaled $1.4 billion.
- The increase in debt is directly related to the company’s stock repurchase authorization. - IGT repurchased 8.1 million shares for an aggregate cost of $266 million or $32.96 per share and additionally from June 30, through to 23 July 2008, the firm repurchased 6.5 million shares at an aggregate cost of $158 million or $24.18 per share.
- The firm has 12.9 million shares remaining under the stock repurchase authorization.

Working capital totaled $779 million compared to $596 million at the end of fiscal 2007.

- Average day sales outstanding were 85 days and inventory turns was 2.9 times, with inventories having increased $49 million since the end of 2007.
- The firm released several new models on the Advanced Video Platform (AVP(R)).
- It also completed the strategic acquisition of Million-2-1., as well as closing the acquisition of substantially all of the assets of Cyberview Technology, Inc.

Segment Highlights:

- Gaming operations business generated revenues of $334 million down 2% year-over-year and gross margins were 61% versus 62% in the prior year.
- The install base ended at 59,200 units up 1,000 units year-over-year and 500 units sequentially.
- The firm’s average of $62 in revenue per unit per day declined from $66 in 2007 due to lower play levels resulting from the current operating environment and the growing mix of lower yield in stand-alone and lease operations units.
- Major markets across the country reported significant year-over-year declines in gaming revenue and those affects flowed through to the revenues from gaming operations machines.

The mix of games within the install base is shifted toward more stand-alone and leased base models which generally carry fixed or lower daily fees.

- In the casino operations sector of the install base, the firm ended the quarter at 39,700 units up 100 units from last year but consistent with the sequential quarter.
- In the lease operations sector the install base totaled 19,500 units at quarter end up 900 units year-over-year with growth mostly attributable to installations in the install base in the UK.
- Taking into account lower interest rates and current market expectations for rates game ops gross margins are projected to trend between 58% and 61% with fluctuations based on the timing of jackpots, interest rates and the mix of games in the install base.

Product sales revenue totaled $344 million compared to $365 million in the prior year as worldwide shipments were 20,200 machines down from 36,900 in 2007.