(RTTNews) - Thursday after the bell, gaming company Bally Technologies, Inc. (BYI: News ) reported a slight increase in profit for the first quarter compared to the year-ago period helped by improved margins, despite a decline in revenue. The company has also increased its earnings guidance for the full year 2010.

Las Vegas, Nevada-based Bally's net income attributable to the company rose to $30.6 million from $30.3 million in the year-ago period. On a per share basis, net income attributable to the company increased to $0.53 from $0.52.

On an average, 12 analysts polled by Thomson Reuters expected earnings of $0.53 for the quarter. Analysts' estimates typically exclude one-time items.

Net income increased despite a decline in operating income to $50.91 million from $53.47 million mainly due to a decline in interest expenses to $3.28 million from $5.09 million in the year-earlier quarter. The year-over-year increase in net income was also helped by income from other sources of $128 thousand compared to a loss of $2.56 million in the prior-year quarter.

Bally's revenue declined to $196.5 million from $237.4 million in the prior-year period. Analysts expected the company to post first quarter revenue of $206.22 million.

Segment-wise, gaming equipment and systems revenue declined to $187.3 million from $227.4 million with the number of new gaming devices sold coming down to 3,936 from 6,598 in the year-ago quarter.
Revenue from casino operations was down to $9.2 million from $10.0 million. However, the company mentioned that sales of its new product Digital Tower Series games was doing well this quarter.
Bally reduced its selling, general and administrative expenses to $41.6 million from $46.9 million, while cutting research and development costs to $19.5 million from $19.9 million in the prior-year period. The company said that it has improved its operating margins to 26% from 23% in the year-ago period.

Bally said it will be launching additional content, including spinning-wheel games and DualVision two-player cabinet. It also said that customers would get twice as many titles in calendar 2010 versus 2009, many of which will be showcased at this year's Global Gaming Expo.

The company also raised its fiscal 2010 earnings guidance to $2.30 to $2.55 per share from earlier range of $2.25 to $2.50 per share. It expects 2010 systems revenues in the range of $220 million to $230 million. Analysts currently expect the company to post earnings of $2.42 per share for the full year.

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