Amidst the gloom of an economic slowdown and less than glowing company revenue reports on the first three months of 2008, it is good to come across one company with a more upbeat result to announce for the quarter to 31 March 2008. A record quarterly net income of US$18.8 million and a 27% growth in total revenue to a record US$173 million is good news indeed for WMS industries and its shareholders.

Worldwide new unit shipments rose to yet another quarterly record – 7,793 gaming machines. Gaming operations revenues increased 39% on an average installed base of 8,897 units, and operating income rose 46% to US$19 million. Research and development expenses of US$19.5 million, or 11.3% of total revenues, for the March 2008 quarter increased US$4.9 million, or 34%, over the March 2007 quarter.

Brian R. Gamache, President and Chief Executive Officer of WMS, said, "WMS' record fiscal 2008 third quarter operating results and fiscal 2008 year-to-date performance highlight the strength, breadth and industry attraction of our innovative product portfolio. Record quarterly new unit shipments and gaming operations revenues along with the success of the Company's operating effectiveness initiatives are delivering tangible benefits to our stockholders at this time, while furthering WMS' foundation for continued long-term growth."

He added, "WMS' record quarterly revenue was primarily driven by a 39% increase in gaming operations revenues and a 52% rise in International new unit shipments. This strong revenue growth coupled with our margin improvement drove a 46% increase in net income, despite the impact of a higher effective tax rate. WMS' product development, production and commercial sales teams continue to demonstrate industry leadership in creating and delivering appealing products for players and customers on a global basis.”

WMS has updated its fiscal 2008 guidance to reflect the ongoing global demand for its high-performing products, which is contributing to the Company's continued market share gains and the continuing popularity of newer products in the Company's gaming operations business. The revised guidance contemplates continued softness in North American replacement demand and the possible near-term impact resulting from a slowing economy.

The company intends to maintain higher spending on R&D activities and organizational expansion to support the accelerated development of advanced networked gaming applications and to support its portfolio of innovative products and services that will be available in a server-enabled, networked gaming environment.

"The popularity of our new games, such as THE WIZARD OF OZ and Big Event games, is driving the impressive growth in gaming operations revenues, as our new participation platforms, including our line-up of games on the Community Gaming platform, our unique "Sensory Immersion" gaming platform and Transmissive Reels gaming machines, continue to perform at levels exceeding casino slot floor averages," Mr. Gamache commented. "With the planned launch in the current quarter of two new games on these platforms, as well as a new local area progressive game, and the introduction of our fourth foundational technology platform, Adaptive Gaming featuring the STAR TREK game series in July 2008, we anticipate further year-over-year revenue growth in this business in the remainder of fiscal 2008 and into fiscal 2009." (E-05.08.08)

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