Aristocrat confirms push for 20pc share of US `challenging'

The world's second largest poker machine manufacturer was forced by the Australian Stock Exchange to respond to a report in the Herald or risk having its shares suspended from trading.

Aristocrat confirmed Mr Newburg told analysts in Las Vegas for the annual Global Gaming Expo it would be ``challenging" to reach ``his personal goal" of 20 per cent market share in the December quarter.

Aristocrat had captured just over 12 per cent of the US market at the end of June.

Speaking to analysts at the opening of Aristocrat's new Vegas premises, Mr Newburg said 20 per cent market share ``remains" his goal.

``At no time did Mr Newburg state that he would miss his goals for 2002," Aristocrat said in its statement to the exchange.

Despite the difficulties Aristocrat is experiencing in the US, chief executive Des Randall confirmed the company ``remains confident" it will meet market forecasts of a $109 million profit for the full year.

Aristocrat shares plunged to $4.62 after the statement was released at lunchtime yesterday, before recovering to close at $4.77, down 15c.

Aristocrat has come under fire from investors for boosting expectations of the market share it can achieve in the US.

Aristocrat is relying on expanding into the lucrative US pokie market to drive its future growth, and analysts use market share estimates to gauge the success it is having.

Aristocrat shares have fallen more than $1 since the company reported its interim result in early August.

Despite booking a 32 per cent increase in profit to $41.6 million, Aristocrat disappointed investors when it revealed it had sold only 5000 poker machines in the half, rather than the 7000 they had expected after a briefing from Mr Newburg in May.

Much of the blame for the uncertainty about Aristocrat's US progress has been laid at the feet of Mr Newburg, whose bullish personal sales targets have been interpreted by analysts as official company goals.

Mr Randall will be more personally involved with the US operations after he moves to Las Vegas at the end of the year.