SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Sep. 30, 2013

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

10. SEGMENT AND GEOGRAPHICAL INFORMATION

The Company operates in one industry segment: the design, manufacture, operation, and distribution of advanced technology-based gaming solutions. Our Chief Executive Officer is our Chief Operating Decision Maker. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from its internal management system about revenues by 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,
	2013		2012
	(in 000s)
Revenues:
Gaming Equipment and Systems
Gaming Equipment	$	71,291	$	82,744
Gaming Operations	101,902		101,140
Systems	76,096		51,267
Total revenues	$	249,289	$	235,151
Gross Margin(1):
Gaming Equipment and Systems
Gaming Equipment	$	36,021	$	39,173
Gaming Operations	71,283		70,147
Systems	56,860		39,484
Total gross margin	$	164,164	$	148,804

(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,
	2013		2012
	(in 000s)
Revenues:
United States and Canada	$	219,012	$	201,207
International	30,277		33,944
Total revenues	$	249,289	$	235,151
Operating income:
United States and Canada	$	55,607	$	53,873
International	1,361		(284		)
Total operating income	$	56,968	$	53,589