Record revenues highlighted the first fiscal quarter of 2010 that ended on Sept. 30 for gaming machine manufacturer WMS Industries (WMS).
During the reporting period, the company said revenues climbed to $165.3 million, compared to $151.4 million reported in the first quarter of last year.
Net income for the period reached $19.8 million or $0.34 per share. A year earlier, net income was $15.7 million or $0.27 per share.
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The earnings included a $0.02 charge related to the early conversion of a convertible note.
Brian Gamache, company CEO, said he anticipated that the quarterly revenue progression will reflect historical seasonal trends, with quarterly revenue increasing sequentially throughout the fiscal year.
"WMS’ consistent quarter-over-quarter growth in revenues, operating margin and net income continues to distinguish the company in this tough economic environment. Our products remain in high demand as evidenced by the strength of our mechanical and video reel new unit shipments, the ongoing demand for game conversion kits and our solid base of gaming operations placements and their reported high play levels," Gamache said.
The company said it expects second quarter revenues to be between $184 million and $190 million.
To investors, what seemed to matter most was not that third quarter business was slow, it was the optimism shown by Peter Carlino, CEO of Penn National Gaming Inc. (PENN), as he outlined the projects on the company’s agenda.
Following the conference call last week, the company’s shares rose some 5 percent.
For the quarter that ended on Sept. 30, the company had net income of $21.4 million or $0.20 per share compared to $147.5 million or $1.69 per share. The year ago results included $195.5 million in settlement payments for a failed buyout plan.
Analysts had expected third quarter income to equal $0.35 per share.
Revenues during the period edged up to $620.4 million from last year’s $617.9 million.
Among the projects being contemplated are a slots facility in Cecil County, Maryland; a joint venture casino in Kansas City, Kansas; a casino in Ohio, should voters approve next month; a slots facility at Aqueduct racetrack in New York if it is chosen by the state’s political leaders, and the possibility of acquiring the bankrupt Fontainebleau partially-completed casino in Las Vegas.
Cost cuts helped Scientific Games Corp. (SGMS) show a better than expected profit during the fiscal quarter that ended on Sept. 30.
The company, that expanded from its original business of providing totalizator equipment to racetracks by adding the printing and manufacturing of lottery tickets, said earnings for the period fell to $15.1 million or $0.16 per share compared to last year’s $22.2 million or $0.23 per share.
However, the earnings would have been $0.24 per share if certain one-time charges had been excluded.
Also, the company announced that Chief Executive Joseph Write would retire at the end of the year and be succeeded by Michael Chambrello.