A strong replacement cycle and innovative new games helped slots manufacturer WMS achieve record results for the three months to March 31, 2010.
Total revenues increased nine per cent to a record of $197.5m during the quarter, while total product sales revenues also grew by nine per cent to a new high of $123.9m. Global new unit shipments increased three per cent to 6,618, reflecting a 23 per cent increase in US and Canadian replacement market new shipments.
Net income for the period rose to $33m and net cash provided by operating activities stood at $41.2m, up 37 per cent on the corresponding quarter in 2009.
“Casino operators continue to benefit from the high player appeal and earnings power of our expanding range of unique gaming products that, in turn, is driving consistent ship share improvements as WMS garners a growing percentage of the capital allocated by casinos to refresh their gaming floors,” said Brian R Gamache, chairman and chief executive officer. “Growing demand for our innovative products is evidenced by WMS’ 23 per cent increase in replacement unit shipments in the US and Canada compared with the year-ago period.
“Looking forward, we expect to realise further benefits from the extension of our distribution channels into new markets including Australia, Class II and Mexico; the highly positive customer response to the upcoming launch of our innovative new Bluebird xD gaming machine and the introduction of the Helios gaming cabinet aimed at niche markets in select international jurisdictions.
“In addition, the anticipated launch of our first portal game applications later this calendar year on our Wage-Net networked gaming system is expected to expand the range of products and gaming experiences available to our casino customers and their patrons, and establish the beginnings of new revenues for WMS. Our focus on innovation and new distribution channels supports further revenue growth to help offset the sluggish near-term replacement environment."
