GTECH Receives Notice of Intent to Award Five-Year Contract Providing Instant Ticket Dispensing Machines (ITDMs) for the Illinoi
11 March 2004 - 12:15AM
PR Newswire (US)
GTECH Receives Notice of Intent to Award Five-Year Contract
Providing Instant Ticket Dispensing Machines (ITDMs) for the
Illinois Lottery WEST GREENWICH, R.I., March 10
/PRNewswire-FirstCall/ -- GTECH Holdings Corporation today
announced that its wholly-owned subsidiary, GTECH Corporation, has
received a notice of intent to award a contract providing the
Illinois Lottery with Instant Ticket Dispensing Machines (ITDMs)
and ongoing maintenance and support services. The proposed
five-year contract follows a competitive procurement and includes a
three-year extension option. "We are pleased the Illinois Lottery
has chosen GTECH as its ITDM network provider. This also represents
our first win with the combined GTECH/Interlott brand and
technology," said GTECH President and CEO W. Bruce Turner. "By
providing connectivity to the ITDMs, we will make it possible for
the Illinois Lottery and its retailers to combine management
reporting of both online and instant-ticket-vending activity for
the first time. As a result, they will have a more comprehensive
and accurate picture of their total lottery business." Upon
successful completion of negotiations with the Illinois Department
of Revenue, GTECH will provide the Lottery with up to 2,000
Expandable Dispensing System (EDS-Q) ITDMs. The machines are
expected to be installed by the end of 2005. "The ITDMs in Illinois
will assist the Lottery in providing secure, automated distribution
of instant lottery tickets to players and generate revenue that
goes directly to public education in Illinois," continued Mr.
Turner. With annual sales of $1.59 billion, the Lottery generates
approximately $540 million annually for Illinois public education.
The Illinois Lottery has been a valued GTECH customer since 1989.
With respect to its contract resulting from negotiations with the
Illinois Department of Revenue, the Company expects to generate
revenues of approximately $20 million to $25 million over the
five-year contract term. Certain statements contained in this press
release are forward looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such statements include, without
limitation, statements relating to the prospects and financial
outlook for the Company, which reflect management assumptions
regarding: (i) the future prospects for and stability of the
lottery industry and other businesses in which the Company is
engaged or expects to be engaged, (ii) the future operating and
financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and
earnings per share), and (iii) the ability of the Company to retain
existing business and to obtain and retain new business. Such
forward looking statements reflect management's assessment based on
information currently available, but are not guarantees and are
subject to risks and uncertainties that could cause actual results
to differ materially from those contemplated in the forward looking
statements. These risks and uncertainties include, but are not
limited to, those set forth above, in the Company's subsequent
press releases and on reports by the Company on Forms 10-K, 10-Q
and 8-K, and other reports and filings with the Securities and
Exchange Commission, as well as risks and uncertainties respecting:
(i) the potential impact of extensive and evolving government
regulations upon the Company's business; (ii) the ability of the
Company to continue to retain and extend its existing contracts and
win new contracts; (iii) the possibility of slower than expected
growth or declines in sales of lottery goods and services by the
Company or the Company's customers; (iv) exposure to foreign
currency fluctuations; (v) risks and uncertainties inherent in
doing business in foreign jurisdictions; (vi) the relatively large
percentage of the Company's revenues attributable to a relatively
small number of the Company's customers; (vii) the possibility of
significant fluctuation of quarterly operating results; (viii) the
intensity of competition in the lottery industry; (ix) the
possibility of substantial penalties under and/or termination of
the Company's contracts; (x) the ability of the Company to respond
to technological change and to satisfy the future technological
demands of its customers; (xi) opposition to expansion of lottery
and gaming; (xii) the Company's ability to attract and retain key
employees; and (xiii) the possibility of adverse determinations in
pending legal proceedings. GTECH, a leading global information
technology company with $1 billion in revenues and 5,000 people in
44 countries, provides software, networks, and professional
services that power high-performance, transaction processing
solutions. The Company's core market is the lottery industry, with
a growing presence in financial services transaction processing.
For more information about the Company, please visit GTECH's
website at http://www.gtech.com/. Contact: Robert K. Vincent Public
Affairs GTECH Corporation 401-392-7452 DATASOURCE: GTECH Holdings
Corporation CONTACT: Robert K. Vincent, Public Affairs of GTECH
Corporation, +1-401-392-7452 Web site: http://www.gtech.com/
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