Previous Statements by WMS
» WMS Industries' CEO Discusses F1Q2012 Results - Earnings Call Transcript
» WMS Industries' CEO Discusses Q4 2011 Results - Earnings Call Transcript
» WMS Industries Inc. F2Q10 (Qtr. End 12/31/09) Earnings Call Transcript
» WMS Industries Inc. F3Q09 (Qtr End 03/31/09) Earnings Call Transcript
This afternoon, Brian Gamache, Chairman and Chief Executive Officer, will provide an overview with the second quarter results and the recent key milestones the company has achieved; followed by Scott Schweinfurth, our CFO, with further insight on our financial results. Orrin Edidin, WMS' President, joined us today from the ICE trade show in London and will discuss our progress on product and operational initiatives. We’ll conclude with final comments from Brian and then open the call up for questions.Now, let me turn the call over to Brian. Brian Gamache Thanks, Bill, and good afternoon, everyone. WMS' fiscal second quarter results demonstrate ongoing progress and our improvement initiatives, as we are successfully achieving the milestones we set out for this transitional period. Consistent with our expectations, we believe the inflection point in terms of our operating and financial performance is now behind us. For the December 2011 quarter, WMS achieved total revenue of $162 million, a 4% or $7 million quarterly sequential improvement. On an operating profit of 13%, our diluted earnings per share were $0.29, inclusive of a $0.02 per diluted share benefit from litigation settlement. Since announcing our revised plans in August, we've maintained steady improvement. First and most importantly, our organizational realignment and revised product plan are rebuilding an improved flow in the development and commercialization of innovative new products, contributing to more than 55 new for-sale game themes in the first half of fiscal '12. Second, these recently launched games and corporate innovative new gaming features and a greater diversity of Mac models, resulting in improved earnings performance that we believe led to an increase in our product sales ship share in the U.S. and Canada on a quarterly sequential basis. Third, we've created more efficient cost structure based on our restructuring initiatives and reduction for us, leading to $16 million in expense reductions and R&D, and SG&A for the first six months of fiscal '12 compare with a year ago.
And fourth, we delivered a quarterly sequential improvement in the December 2011 quarter, both total revenues and operating margin. Additionally, cash flow from operations in the December quarter increased to $53 million or about double that level a year ago, which is up 48% or $21 million for the first six months of fiscal '12 compared to the year ago period.And we accomplished these initial milestones, we expect to build additional product momentum that will generate further quarterly sequential growth in the second half of our fiscal '12. I believe it is also rather noteworthy that in the December 2011 quarter, we produced and shipped the 50,000 Bluebird2 gaming machine. Since its commercial launch in September 2008, during the worst economic period in our lifetime, the premium featured and premium priced product has prospered throughout the challenges of a bad economic environment and customers could strain capital budgets, because of the high value proposition that WMS innovates for our customers. Today's press release highlights several other recent accomplishments that demonstrate the continued player appeal of our product vision and the ongoing customer demand for our innovative content and products. So in this stage we'll continue to grow in fiscal '13. First, we signed a sales agreement with a major multi-site customer to 1,500 new units to be shipped through the calendar of 2012 to replace and upgrade a portion of the slot floors. Second, we continue to gain traction our growing network gaming business, as we've successfully expanded our unique WAGE-NET networking gaming solutions to approximately 900 gaming machines at more than 50 casinos around the world. And third, our distinctive first in the gaming industry Player's Life Web Services recently surpassed 800,000 unique user log-ins. Looking forward, with WMS' product vision, strategic direction and core underlying strength intact, including our talented accretive workforce, our continued investments, and innovation, and the creation of intellectual property, and our intents focused on driving operational improvements, I'm encouraged that our progress and achievements of fiscal '12 will lead to an even stronger year in '13 for WMS. Read the rest of this transcript for free on seekingalpha.com