WMS Industries has reported revenue of $195.9m and net income of $22.1m, or $0.40 per diluted share, for the quarter ended June 30, 2012, compared to revenue of $203.2m and net income of $10.3m, or $0.18 per diluted share, in the June 2011 quarter.
The June 2012 quarter results reflect the third consecutive quarter of sequential revenue growth as revenues rose $19.9m, or 11 per cent, from the March 2012 quarter. Earnings per share in the June 2012 quarter were impacted by $0.02 per diluted share for charges related to legal settlements and include a $0.01 per diluted share benefit for a reduction in bad debt expense related to customer receivables in Mexico.
In addition, the June 2012 quarter earnings also reflect acquisition-related expenses. The June 2011 quarter results included $0.26 per diluted share of net charges for impairment and restructuring costs, asset write-downs and other charges.
“Quarterly sequential improvements in new unit shipments, and in particular new replacement units in the US and Canada, along with higher game conversion revenues and growth in our installed participation base, demonstrate the ongoing progress WMS is achieving in the commercialisation of new innovative game content and products,” said Brian R Gamache, chairman and CEO.
“We have returned to a normalised rate of new product introductions and our newest for-sale and participation products are providing customers with the strong performance historically associated with WMS products. As we continue to introduce creative and differentiated new products, we expect to grow our product sales ship share, as well as our installed participation base.
“At the same time, we have enhanced our focus and accelerated spending in a measured manner to build a comprehensive suite of interactive products and services that provide our customers with solutions that enable them to benefit from interactive gaming opportunities. While this spending impacts near-term financial results, we believe it favourably positions WMS to participate in the tremendous high-margin growth potential of these opportunities that will create longer-term shareholder value.”
