SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Sep. 30, 2012

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

10.          SEGMENT AND GEOGRAPHICAL INFORMATION

The Company’s revenue consists of: 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,
	2012		2011
	(in 000s)
Revenues:
Gaming Equipment and Systems
Gaming Equipment	$	82,744	$	64,447
Gaming Operations	101,140		84,954
Systems	51,267		45,566
Total revenues	$	235,151	$	194,967
Gross Margin(1):
Gaming Equipment and Systems
Gaming Equipment	$	39,173	$	28,401
Gaming Operations	70,147		60,722
Systems	39,484		34,511
Total gross margin	$	148,804	$	123,634

(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. 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,
	2012			2011
	(in 000s)
Revenues:
United States and Canada	$	201,207		$	158,726
International	33,944			36,241
Total revenues	$	235,151		$	194,967
Operating income:
United States and Canada	$	53,873		$	35,740
International	(284		)	1,651
Total operating income	$	53,589		$	37,391