SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Sep. 30, 2011

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

9. SEGMENT AND GEOGRAPHICAL INFORMATION

The Company’s revenue consists of three sources: Gaming Equipment, which includes the sale of gaming devices and related equipment, parts and conversion kits; Gaming Operations, which includes the operation of wide-area progressive, video lottery and centrally determined systems and the rental of gaming devices and content; and Systems, which includes the sale and support of computerized monitoring systems and related recurring hardware and software maintenance revenue.

The following is a summary of revenues and gross margin:

	Three Months Ended September 30,
	2011		2010
	(in 000s)
Revenues:
Gaming Equipment and Systems
Gaming Equipment	$	64,447	$	51,038
Gaming Operations	84,954		79,220
Systems	45,566		40,550
Total revenues	$	194,967	$	170,808
Gross Margin(1):
Gaming Equipment and Systems
Gaming Equipment	$	28,401	$	24,926
Gaming Operations	60,722		56,998
Systems	34,511		29,705
Total gross margin	$	123,634	$	111,629

(1)Gross Margin from Gaming Equipment and Systems excludes amortization related to certain intangibles including core technology and license rights, which are included in depreciation and amortization.

The Company has operations based primarily in the United States as well as significant sales and distribution offices based in Europe, and other foreign locations, including South America and India. The table below presents information as to the Company’s revenues and operating income by geographic region which is determined by country of destination:

	Three Months Ended September 30,
	2011		2010
	(in 000s)
Revenues:
United States and Canada	$	158,726	$	145,712
International	36,241		25,096
Total revenues	$	194,967	$	170,808
Operating income:
United States and Canada	$	35,740	$	31,625
International	1,651		2,379
Total operating income	$	37,391	$	34,004