On a recent visit to Reno, we checked out the activity at the huge IGT plant. On our previous visit, the plant was humming along with huge inventory going out of the door every day. Therefore,we were astounded by the lack of workers-- the plant is akin to a deserted town. Huge empty areas within the plant and no workers were visible.
Things can't be good -- we are glad we departed the IGT scene several years ago.
At least the completely clueless IGT CTO is gone now. The big problem now is Patti says she will be mapping the direction of IGT engineering herself now.
"Out of the frying pan, into the fire..."
Which quarter you visit IGT is a big factor in how busy the IGT manufacturing floor is. At the end of the fiscal year, Patti pulls in orders from the following quarter to make the year end numbers look better. Next quarter the manufacturing floor should be pretty dead.
Odd, I work there. There are plenty of people working, full daily shifts of people cranking out machines and tons of engineers that I work with every day. Are you sure you didn't visit on a weekend or after 5:00PM or something? :)
You need to be more logical and consider the timing of your visit. You posted on Sept 30, so I am assuming your visit was sometime in Sept. IGT's year end is Sept 30, so as to be expected, IGT would push out all inventory at year end, not only to generate revenue but also to lower inventory on the balance sheet for better working captial metrics. If revenue recognition is based on destination point, than it could take weeks, if not longer, to get games to International customers in order to recognize revenue. And they shouldn't start pre-building for the next quarter as it would inflate inventory and the gaming show (happening now) could generate a varied order of game types changing the mix of their production.
I am not at all a fan of the CEO of the company, but I will defend the strong production leadership and their ability to meet demand and delivery of a quality product. Saying 'things can't be good' because you visited during a day of low production and inventory is a very narrow-minded approach to investing in a company.