Gtech Holdings, a lottery systems operator and co-owner of Turfway Park, reported first quarter earnings that were 6-7 cents higher than analysts' expectations. The company today reported earnings of $29 million, or 49 cents per share, compared with earnings of $19.1 million, or 30 cents per share a year ago. Analysts polled by Thomson Financial/First Call had expected a profit of 43 cents per share, while the Multex online investment service's analyst consensus was 42 cents per share.Revenue for the first quarter dropped a slight 1.5% from $235 million a year ago to $231.4 million, but was still ahead of analysts' expectations of $223 million. Product sales slid to $7.7 million compared with $24.4 million for the first quarter of the last fiscal year. A year ago, Gtech sold new instant ticket system to Israel and an online lottery system West Australia. Service revenue rose 6.2% to $223.7 million. Gtech (NYSE:GTK) has adjusted upward its outlook for the coming year. The company projects earnings between $1.70 and $1.80, up from its previous targets of $1.65 to $1.70.The market reacted strongly to the positive quarter results. Heavy trading on Gtech drove up its stock price by 12%, an increase of about $3 per share, to $28.05 by mid-morning.