Scientific Games CEO Steps Down Amid Fall in Revenues27th October 2009 8:38 am GMT
As the company continues to be impacted by tough trading conditions, with revenues and net income both falling during the third quarter of 2009, Scientific Games has announced that its President and Chief Operating Officer, Mike Chambrello, will be appointed the company's new Chief Executive Officer following the decision by incumbent CEO Joe Wright to retire at the end of this year.
Mr Wright took over as CEO of the company in January 2009 after A. Lorne Weil relinquished his duties as CEO and took over as Chairman. Mr Wright has been a member of the Scientific Games Board of Directors since 2004 and will continue to serve as a director of the company.
"Joe Wright has done an impressive job in leading the company through a difficult economic environment and we believe that he has set the stage for future growth," said A. Lorne Weil, Chairman of the Board.
"It's time to pass the torch to Mike Chambrello, who has been running the day-to-day operations for many years and has been instrumental in our international growth efforts, particularly in China and Italy. Mike has a deep knowledge of Scientific Games and the industry and we believe that he will continue to provide the company with outstanding leadership in his new role."
Ahead of his new appointment, Mr Chambrello has joined the company's Board of Directors, effective immediately, along with David L. Kennedy, who will serve as the newly appointed Vice Chairman.
In addition Scientific Games has announced the creation of a new Office of the Chairman, which will provide strategic guidance and oversight to the company. The four-person Office of the Chairman, which will report to the Board, will be comprised of A. Lorne Weil, who will continue to serve as Chairman of the Board, Mr Chambrello, Mr Kennedy and Jeffrey S. Lipkin, the company's Chief Financial Officer.
"I look forward to continuing to work with the Board and the management team in my new capacity as we continue to strengthen the company's core franchise, expand our global product and service offerings and enhance shareholder value," said Chambrello. "I expect to work closely with the other members of the Office of the Chairman to capitalize on growth opportunities around the world."
In its results for the third quarter of 2009, Scientific Games reported revenues falling 22% to $291.9 million and net income down 32% to $15.1 million. For the nine month period, revenues dropped 19% to $694.9 million with net income falling 84% to $10.3 million.
Shares in Scientific Games Corporation (Co. Profile) (NASDAQ:SGMS) will commence trading at $17.70 per share today in New York.