IGT cuts guidance, announces layoffs; shares -7.2% AH

|By:, SA News Editor

IGT now expects FY14 (ends Sep. '14) EPS of $1-$1.10, below prior guidance of $1.28-$1.38 and a $1.20 consensus. FQ2 guidance is for EPS of $0.17-$0.19, below a $0.29 consensus. (PR)

The gaming machine maker says it saw "a sharp decline in North American gross gaming revenues," and "further degradation in the international currency, compliance, and importation environment."

IGT also says it's cutting 7% of its 5K-employee workforce. The cuts are expected to yield cost savings of $50M/year. Nonetheless, the company will continue spending $200M/year on R&D.

CC at 8:30AM ET tomorrow.