California Lottery Orders Additional Lottery Products from GTECH
biz.yahoo.com
Thursday September 1, 9:00 am ET
WEST GREENWICH, R.I., Sept. 1 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has received an order from the California Lottery for a variety of lottery products including additional Altura® terminals, Instant Ticket Vending Machines (ITVMs), and other self-service lottery solutions.
"GTECH is constantly looking for ways to enhance the performance of our lottery customers, while, at the same time, considering the various needs of retailers and players," said GTECH President and CEO W. Bruce Turner. "Working together with the California Lottery, we have come up with effective solutions that will not only aid in their retailer network optimization and expansion efforts, but continue to drive lottery sales.
"And, as we see the growing retail demand for self-service solutions, the addition of GamePoint will provide California's retailers with the ability to dispense both traditional instant tickets and online tickets, from a player- friendly, kiosk-style unit," continued Mr. Turner.
Under the contract change order, GTECH will provide the California Lottery with 550 Altura terminals, adding to the 18,500 Alturas already in operation. In addition, 700 Altura LVTs will be installed, providing a powerful, yet, compact platform for retailers requiring a smaller terminal. The Company will also supply 12,500 Express Point® Plus devices, bringing the total to 19,000. The Express Point Plus terminals facilitate convenient player- activated identification of online winning tickets.
The Lottery will also receive 1,000 20-bin Expandable Dispensing System Quad Burster(TM) (EDS-Q) ITVMs, which will be used primarily as replacement machines. Along with the ITVMs, GTECH will provide 150 GamePoint(TM) terminals, the Company's new lottery self-service solution, combining the best of the instant ticket vending machine with online self-service capability. Over the next 90 days, the Lottery has agreed to order 200 additional ITVMs or 100 additional GamePoints, or some mix of the two equipment types.
With respect to the contract change order with the California Lottery, GTECH expects to receive approximately $8 million in product sale revenue, and $35 million in service revenue over the life of the existing contract which runs through October 13, 2009.
GTECH has provided lottery products and services to the California Lottery since 1986. In its fiscal year which ended June 30, 2005, the Lottery experienced record online and instant-ticket sales of more than $3.3 billion. |
