UPDATE 1-Bally Technologies swings to second-quarter profit

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Feb 13 (Reuters) - Slot machine maker Bally Technologies Inc (BYI.N: Quote, Profile, Research) swung to a quarterly profit from a loss a year ago, helped by a 54 percent increase in sales of gaming equipment, and slightly raised its adjusted earnings outlook for 2008.

The company posted second-quarter net income of $24.4 million, or 42 cents a share, compared with a loss of $2.5 million, or 5 cents a share, a year ago.

Excluding stock-based compensation expense, it posted earnings of 45 cents a share, beating analysts' expectations.

Analysts on average expected earnings of 39 cents a share, before items, according to Reuters Estimates.

Revenue rose 53 percent to $230.7 million, above analysts' expectations of $203.4 million.

Gaming equipment revenue rose to about $108.4 million while gaming operations revenue rose 34 percent to about $54.2 million and systems revenue jumped 95 percent to about $56.3 million.

The company revised its earnings outlook for 2008 to $1.62 to $1.87 a share, from its prior view of $1.60 to $1.90 a share. It also slightly raised its adjusted earnings view to $1.75 to $2.05 a share from $1.70 to $2.00 a share

Bally expects 2008 revenue to exceed $875 million.