10:00AM New York - Sega Sammy reported third quarter net income declined 15.4% to 15.7 billion yen from 49.3 billion yen a year ago as exports tumbled.[/R]

Quarterly Earnings Review

Sega Sammy reported third quarter net sales fell 15.4% from 404.2 billion yen a year ago to 342 billion yen on declining Pachislot shipments from 432,591 units a year ago to 335,025 units. Pachinko shipments climbed down to 134,000 units from 180,000 units.

In the quarter ended December 31st, net income edged down from 49.3 billion yen a year earlier to 15.7 billion yen.

Resultantly, net income per share also slipped in the quarter from 196 yen per share a year ago to 62.58 yen per share.

Furthermore, third quarter operating income fell to 1.5 billion yen from 75.1 billion yen a year ago.

Nine-Month Earnings Review

In the nine months ended December 31st, Sega Sammy’s net sales slumped 15.4% to 342 billion yen.

Net income declined 22.2% to 15 billion yen from 49.3 billion in the nine months a year ago. Net income also plunged to 62.58 yen per share from 196 yen per share.

For the period, operating income shed 25.7% to 1.5 billion yen from 75 billion in the comparative period a year earlier

Revenue

Pachislot

During the third quarter, sales in Pachinko Pachislot declined by 30.4% to 123.6 billion yen from 177 billion yen in the same period last year. Despite the increase of Pachislot titles from 10 titles last year to 19 titles, exports slid to 335,025 units from 432,591 units.

The company also slashed its projected shipments in the segment from 520,000 units in November to 408,000 units in the full-year to March.

Pachinko

Similarly, revenues in Pachinko were weighed down as export units in the segment declined from 118,863 a year ago to 88,582 units. Full-year shipments for the segment were revised down from the November projection of 180,000 units to 134,000 units.

Amusement Machines

Sales from amusement machines segment slid 0.3% to 52.1 billion yen as domestic sales at 41.4 billion yen remained stagnant from last year’s level. Exports at 10.6 billion yen were below last year’s revenues.

Amusement Facilities

Revenues in the amusement facilities segment plummeted 11.7% to 62.9 billion yen from 78.4 billion-yen during the same period last year, of which overseas earnings accounted for 7.1 billion yen.