Lottery-systems maker

Gtech Holdings

(GTK)

said Thursday that its profits fell 17% for the first quarter ended May 27, hurt by lower revenue from Brazil and one-time Lottomatica charge.

The company earned $45.7 million, or 35 cents a share, compared with $54.8 million, or 43 cents a share, a year earlier. Adjusted for Lottomatica transaction related costs, earnings were 40 cents a share. Analysts polled by Thomson First Call were expecting earnings of 42 cents a share.

First-quarter revenue fell 3.2% from a year ago to $315.9 million as against analysts' expectation of $325.5 million.

"We are pleased with the performance of the business, despite the difficult quarter-over-quarter comparisons created by nonrecurring events in both periods," the West Greenwich, R.I.-based company said. "The fundamentals of our business remain strong, and we are well positioned to capture new opportunities in each of the markets we serve."

Revenue from services decreased marginally to $290.18 million. Excluding the higher revenues from Brazil this year, it increased 4% to $11.4 million, driven by the continued strength of the U.S. lottery market. Product sales decreased 26.7% to $25.7 million.

Shares of Gtech were down 3 cents at $34.64 in recent trading.

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