SEGMENT AND GEOGRAPHICAL INFORMATION

6 Months Ended

Dec. 31, 2013

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

12. SEGMENT AND GEOGRAPHICAL INFORMATION

The Company operates in one industry segment: the design, manufacture, operation, and distribution of advanced technology-based gaming solutions. The Chief Executive Officer is the Chief Operating Decision Maker. Management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from its internal management system about revenues by Electronic Gaming Machines, 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; Systems, which includes the sale and support of computerized monitoring systems and related recurring hardware and software maintenance revenue; and Table Products, which include the sale of lifetime licenses and monthly royalties from proprietary table games as well as sale and lease of table utility products, including automatic card shufflers, deck checkers and roulette chip sorters. As a result of the SHFL acquisition, the Company is reassessing the format of the financial information that will be used to evaluate business performance and allocate resources. As of the date of the financial statements, the Company had not yet completed this assessment.

The following is a summary of revenues and gross margin:

	Three Months Ended December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
	(in 000s)
Revenues:
Electronic Gaming Machines	$	88,160	$	82,536	$	159,451	$	165,280
Gaming Operations	97,253		99,016		199,155		200,156
Systems	85,482		56,787		161,578		108,054
Table Products	14,298		—		14,298		—
Total revenues	$	285,193	$	238,339	$	534,482	$	473,490
Gross Margin(1):
Electronic Gaming Machines	$	42,029	$	43,958	$	78,050	$	83,131
Gaming Operations	67,810		69,681		139,093		139,828
Systems	61,328		43,160		118,188		82,644
Table Products	8,745		—		8,745		—
Total gross margin	$	179,912	$	156,799	$	344,076	$	305,603

(1) Gross Margin excludes amortization related to intangible assets, which are included in depreciation and amortization.

Electronic Gaming Machines and Systems revenues and costs are included in Gaming Equipment and Systems. Gaming Operations revenues and costs are included in Product Lease, Operation and Royalty. Table Products revenue includes $3.8 million and $10.5 million included in Gaming Equipment and Systems and Product Lease, Operation and Royalty, respectively, for both the three and six months ended December 31, 2013. Table products gross margin includes $1.1 million and $7.6 million included in Gaming Equipment and Systems and Product Lease, Operation and Royalty, respectively, for the three and six months ended December 31, 2013.

The Company has operations based primarily in the United States as well as significant sales and distribution offices based in Australia and Europe. The table below presents information as to the Company’s revenues by geographic region which is determined by country of destination:

	Three Months Ended December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
	(in 000s)
Revenues:
United States and Canada	$	230,190	$	207,677	$	449,202	$	408,884
International	55,003		30,662		85,280		64,606
Total revenues	$	285,193	$	238,339	$	534,482	$	473,490