Alliance Gaming

(AGI) - Get Report

shares fell early Friday after the gaming company warned of a first-quarter loss because of restructuring cost and a slowdown at its Bally Gaming subsidiary.

The company expects a first-quarter loss from continuing operations of 9 cents to 14 cents a share.

In the first quarter, analysts expect Alliance to earn 11 cents a share, with estimates ranging from 27 to 7 cents a share, on $113.8 million in revenue.

The forecast does not include a 9 cent charge outlined earlier this week.

On Monday, Alliance said it would take a charge for a patent dispute. A federal court jury ruled that United Coin, a former unit of Alliance Gaming, had infringed two patents owned by International Game Technology and Action Gaming when it created its Multi-Play Poker games. As a result of the verdict, Alliance will pay a nearly $7.4 million settlement, which will impact its first quarter results, net of tax. Alliance said the verdict, which is subject to appeal, would not impact its Bally Gaming unit, which makes slot machines and video games.

Alliance said it is also reviewing annual guidance.

The company reports results Oct. 21.

Shares fell 52 cents, or 3.2%, to $15.06.