WMS Reports Fiscal 2013 First Quarter Revenue Of $159 Million And EPS Of $0.17 Per Diluted Share
Fiscal Year 2013 Outlook
The Company continues to expect annual revenue growth to reflect: 1) modest growth in product sales ship share in the U.S. and Canada and in the installed participation base reflecting the favorable customer response to the Company’s latest innovative new gaming content, platforms and cabinets; 2) higher VLT demand from Canadian and Illinois VLT operators that will offset lower domestic new casino and expansion unit demand, albeit at lower average selling prices as VLT’s typically are lower in price than gaming machines sold to new casino openings and expansions; 3) ongoing revenue growth from interactive products and services; and 4) an increased contribution from the ongoing commercialization of the Company’s networked gaming system and portal game applications.
Revenues are expected to grow modestly from the September 2012 quarter to the December 2012 quarter and slightly exceed those reported in the December 2011 quarter. However, lower-margin VLTs are expected to exceed 25% of new units sold resulting in product sales margin declining to a range of 48%-to-49% and operating income is expected to be slightly lower than the September 2012 quarter, reflecting an incremental increase in costs to support interactive products and services. WMS anticipates revenue growth will accelerate in the second half of fiscal 2013 with the launch of new cabinets, new games with more diversified math models, an increase in the revenue per day from its gaming operations business, and increased revenues from interactive products and services.
WMS expects spending on R&D initiatives will increase on a quarterly sequential basis and that on an annual basis these expenses are anticipated to approximate 15%-to-16% of total fiscal 2013 revenues. WMS also expects selling and administrative expenses will increase on a quarterly sequential basis, reflecting the marketing and administrative needs to support growth in the Company’s interactive products and services initiatives. In total, the increase in development, marketing, depreciation and amortization and administrative costs to grow the Company’s interactive products and services is expected to total approximately $30-to-$35 million in fiscal 2013.
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