UPDATE 2-Slot machine maker IGT Q1 revenue falls 10 percent

* Adj EPS 21 cts vs Street view 20 cts

* Shares fall 4 percent after hours (Adds company comment, earnings details; updates share price)

LOS ANGELES, Jan 20 (Reuters) - Quarterly profit at slot machine maker International Game Technology (IGT.N) rose as a $7 million tax gain and lower interest costs offset a 10 percent drop in revenue driven by continued weak demand from its casino customers.

The company, based in Reno, Nevada, said revenue in its fiscal first quarter, ended Dec. 31, fell to $465 million from $515 million a year earlier. The total was also short of the average Wall Street forecast of $489.6 million.

"While consistent top-line growth remains challenging, our internal cost cutting and operational improvement strategies are solidly taking hold," chief executive officer Patti Hart said in a statement.

Excluding one-time items, the company earned 21 cents a share for the quarter, which was slightly ahead of the average analyst estimate of 20 cents, according to Thomson Reuters I/B/E/S.

Net profit for the quarter was nearly flat from a year earlier at $73.7 million, or 25 cents a share.

First quarter revenue from gaming operations fell 5.8 percent to $261 million, while product sales fell 14 percent to $204 million.

Expenses decreased to $173 million from $181 million, due mostly to lower interest expense.

IGT shares, which closed at $18.32 on the New York Stock Exchange, were down more than 4 percent at $17.56 in after hours trading. (Reporting by Deena Beasley; editing by Andre Grenon)