Scientific Games is a leading developer of technology-based products and services and associated content for worldwide gaming, lottery and interactive markets.
Company: Scientific Games Corp. (NASDAQ: SGMS)
Revenue: $720.0 million, compared to $671.6 million in the third quarter last year.
Operating Income: $33.5 million, compared to a loss of $988.2 million in the third quarter last year which included a $935 million goodwill impairment charge and $103.6 million of impairment charges for certain intangible assets.
Net Loss: $98.9 million compared to a loss of $1,078.2 for the same period last year.
Loss per share: $1.13, compared to a loss per share of $12.52 one year earlier.
What it means: In a conference call for investors following the release of third-quarter results, CEO and President Kevin Sheehan said efficiency and paying down debt were important goals.
Sheehan, who started at Scientific Games in August after heading up Norwegian Cruise Line, said the $75 million of cost savings mentioned in a press release about third-quarter results, was not a stretch.
“If you take a look at the landscape of the business today, and you say, ‘What was done well?’ and, ‘What may have been done a little less than perfect?’ you can see that matrixing of the organization. If you look across all of the businesses, there’s quite a bit of overlap in being able to provide skill sets across the organization that we’re doing in duplicate places,” Sheehan said.
“And it’s not that we expect to deliver $75 million. We are delivering it. It’s happening today, this morning.”
The answer was in line with In a statement the company made accompanying the release of the financials in which Sheehan said the company’s focus will be on simplicity, being more nimble to increase cash flow and paying down debt.
Sheehan did address innovation, stating that “a significant amount of our head count works on innovation, something like like 40 percent of our head count.”
But he also said that his company needs to be “thoughtful and teeing up opportunities today as these things develop.”
“We need to be on cutting edge, not on bleeding edge,” Sheehan said. “We don’t want to be doing a thousand different things. We need to be focused on the four or five things that can make a difference.”