WMS Industries serves the global gaming industry by designing, manufacturing and marketing video and reel gaming machines, video lottery terminals and in leased participation of gaming machines in legal gaming venues. This week the company reported record revenues of US$159 million for the second quarter fiscal 2008, ended 31 December 2007. Net income was up 31% to US$16 million for the period, and total revenues grew 18%.

New unit shipments rose to a second quarter record of 7,064 gaming machines, and the record results were driven by an exceptional 34% growth in gaming operations revenue and 47% increase in international unit sales revenue. Brian R. Gamache, President and Chief Executive Officer, commented. “Overall, the strong operating performance reflects continued success and industry leadership in developing unique, innovative products that appeal to players on a global basis.”

He continued, “WMS’ product development strength remains a key factor in building our North American market and ship share, and in helping us address the challenges associated with a slow domestic replacement cycle. In addition, the ongoing benefits from our lean sigma process improvement and strategic sourcing initiatives contributed to the margin improvement and our ability to generate increased quarterly cash flow from operating activities.”

WMS has updated its fiscal 2008 guidance to include new demand from California casinos that have existing capacity for near-term expansion and new racino facilities in Indiana. Based upon current indicated customer demand, WMS believes that its incremental unit volume for these properties will range from 1,000-to-1,500 units, with much of this new demand likely to occur in the March 2008 quarter. In addition, WMS updated its guidance for the average installed footprint of participation games for fiscal 2008 to a range of 8,800-to-9,000 units compared to the prior expectation of 8,400-to-8,600 units.

Gamache stated, “Our gaming operations growth continues to be impressive both from the expansion of our installed base and the rise in our average revenue per day. WMS’ new participation platforms, including Big Event games on our Community Gaming platform, our unique “Sensory Immersion” gaming platform and Transmissive Reels gaming machines, continue to perform at high earnings levels. Importantly, the success of these platforms provides a solid foundation for introductions of additional innovative, differentiated products in the future.”

In conclusion he said, “With excellent prospects for significant ongoing growth, we believe our reinvestment in WMS through share repurchases will create additional value for our stockholders. With significant opportunities for sales to new and expanding jurisdictions, the potential improvement in the domestic replacement cycle and the opportunities for new revenue streams made possible in a networked gaming environment – we clearly believe the best days for WMS are ahead of us.” (E-02.08.08)

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