SEGMENT AND GEOGRAPHICAL INFORMATION

9 Months Ended

Mar. 31, 2014

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: (a) EGMs, which include the sale of gaming devices and related equipment, parts and conversion kits, (b) Gaming Operations, which include the operation of wide-area progressives, video lottery and centrally determined systems and the rental of gaming devices and content, (c) casino-management systems, which include the sale and support of computerized monitoring systems and related recurring hardware and software maintenance revenue, and (d) table game products, which include 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 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 March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
	(in 000s)
Revenues:
EGMs	$	102,371	$	85,776	$	261,822	$	251,056
Gaming Operations	101,399		102,045		300,554		302,201
Systems	90,517		71,326		252,095		179,380
Table Products	44,112		—		58,410		—
Total revenues	$	338,399	$	259,147	$	872,881	$	732,637
Gross Margin(1):
EGMs	$	50,305	$	43,468	$	128,355	$	126,599
Gaming Operations	66,191		72,053		205,284		211,881
Systems	63,924		52,215		182,112		134,859
Table Products	31,135		—		39,880		—
Total gross margin	$	211,555	$	167,736	$	555,631	$	473,339

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

EGMs and Systems revenues and costs are included in Gaming equipment and systems revenues. Gaming Operations revenues and costs are included in Product lease, operation and royalty revenues.

Table Products revenue includes $16.4 million and $27.7 million included in Gaming equipment and systems revenues and Product lease, operation and royalty revenues, respectively, for the three months ended March 31, 2014. Table products gross margin includes $8.8 million and $22.3 million included in Gaming equipment and systems revenues and Product lease, operation and royalty revenues, respectively, for the three months ended March 31, 2014.

Table Products revenue includes $20.2 million and $38.2 million included in Gaming equipment and systems revenues and Product lease, operation and royalty revenues, respectively, for the nine months ended March 31, 2014. Table products gross margin includes $9.9 million and $30.0 million included in Gaming equipment and systems revenues and Product lease, operation and royalty revenues, respectively, for the nine months ended March 31, 2014.

The Company has operations based primarily in the United States as well as significant sales and distribution offices based in Australia, Macau 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 March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
	(in 000s)
Revenues:
United States and Canada	$	268,674	$	212,699	$	717,876	$	621,583
International	69,725		46,448		155,005		111,054
Total revenues	$	338,399	$	259,147	$	872,881	$	732,637