All information discussed on this call is as of today, July 24, 2012, and IGT does not intend and undertakes no obligation to update this information to reflect future events or circumstances.In addition, on today's call, we may discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the GAAP measures we consider most comparable can be found in today's earnings release, which is posted on the Investor Relations section of our website, igt.com, and included as an exhibit to the Form 8-K, which we furnished today to the SEC. With that in mind, I'll turn the call over to Patti. Patti S. Hart Thanks, Matt, and good afternoon, everyone. Our third quarter results are highlighted by strong revenue growth and our ability to leverage our leading game content across multiple platforms. While some areas of the business fell short of our internal expectations, other areas showed meaningful continued improvement. Breadth and diversity of our revenue is a testament to our business model, a model that has extensive global reach and yield healthy cash flows. We continue to share a strong consolidated revenue growth. Total revenues in the quarter grew 9% over last year's third quarter, aided by our interactive business and North American product sales. North American replacement units grew 44%, indicative of our strong portfolio of gains. In gaming operations, excluding our interactive businesses, revenues were flat and gross profits were down slightly from last year. We continue to see positive growth in our global fixed fee installed base with an increase of 10% this year. While these units weigh on a consolidated yield, they are great source of consistent earnings and cash flows. We do recognize that some of our participation games are not performing at the levels we had become accustomed to but we remain focused on the attractive long-term returns on capital that this business generates.
Our international business delivered mixed results. We experienced lower unit sales in the Europe and South America, but we increased shipments into Australia, Asia and Mexico. We remain confident that our international business will continue to be a strong contributor to both revenue and earnings moving forward.As we expected, the addition of DoubleDown to our interactive group is impacting our overall operating margin in the near term, and it is also providing accelerated revenue growth. We are making important investments to expand our interactive distribution into mobile platforms in new geographies. Over time, we expect to see overhead leverage and higher operating profit margins. We continue to pursue our vision of ubiquitous device-agnostic content distribution. Most recently, we launched our first IGT theme into the DoubleDown Casino with the release of the Da Vinci Diamonds. This game's exposure has grown from thousands of people a month having started as a machine on U.S. casino floors to millions of people everyday around the world. The repurposing of our game library has allowed for the rapid and cost-effective enhancement of the DoubleDown Casino. We are generally pleased with the progress we have made in achieving our fiscal 2012 financial goals. We have not lost sight of the need for continuous improvement in our business. We are about where we expected to be at this point in our fiscal year and we remain dedicated to the efficient deployment of capital to drive positive returns for our shareholders, as evidenced this past quarter by an increase in our share repurchase authorization to $1 billion and the acceleration of $400 million of share buyback activity. Read the rest of this transcript for free on seekingalpha.com