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The forward-looking statements made on this call and webcast, the archived version of the webcast, and in any transcripts of this call are made only as of this date, August 6, 2012.On the call today are Brian Gamache, Chairman and Chief Executive Officer; Orrin Edidin, President; and Scott Schweinfurth, CFO. Now, let me turn the call over to Brian. Brian Gamache Thanks, Bill, good afternoon, everyone. WMS’ fiscal fourth quarter results demonstrate ongoing operating progress, as well as success with our product plan and organizational goals we’ve set in place a year ago. Although the operating environment remained challenging throughout fiscal ‘12, in each quarter we generated improvements in our operating financial metrics. While we have more work to do, our success throughout the year was very strong indicator. We have the right strategies in place to drive gains in product sales ship share and our installed participation base. For the June 2012 quarter, WMS generated a total of $196 million, a quarterly sequential increase of $20 million or 11% from the March quarter. This increase was led by new unit shipments to the U.S. and Canada. We reached a three-year quarterly high of 4,672 new gaming machines aided by just over 3,900 replacement units, the second highest quarterly number of replacement units we have ever shipped to these customers. We believe this solid demand reflects the improved performance of our newest products. Second, our ongoing preliminary [ph] strategic sourcing and lean sigma initiatives coupled with higher gross margin on other product sales revenues contribute to the significant improvements in product sales margin more than offsetting lower ASPs on a year-over-year basis. Gross margin on product sales rose by nearly a 1,000 basis points year-over-year and on more significantly, increased 280 basis points over the March 2012 quarter to reach 55%, a new all-time high for WMS. For sometime this has been our goal and its achievement marks another milestone and we believe there is still potential for additional margin improvement long-term.
Next to participation, our excellence in innovation and product advancement is clearly evident. Our newest games are driving unit growth in our install base and we have a healthy backlog which bodes well for all the games in our installed footprints in the current quarter. The first two games powered by our CPU-NXT 3 operating system, the Aladdin & the Magic Quest and Super Team themes were launched on schedule late in the June quarter along with three other new participation games.These new participation games couple with the ongoing rollout of CLUE, Epic MONOPOLY and the Lord of the Rings 3 reel-mechanical [ph] games, drove a 172 unit quarterly sequentially increase in installed participation base at June 30. Our open sales orders remained strong a 1,879 units and we’re looking forward to introducing some really exciting new participation games and cabinets at the G2E Trade Show in October. These coming products combined with the continued rollout of our latest approved games into additional markets are expected to keep demand for new WMS participation games at very healthy levels. The progress in the June quarter and throughout the full-year reflects our commitment to and focus on restoring our growth. During fiscal ‘12, we achieved a number of accomplishments that solidified the foundation of what we believe will be a new chapter of long-term growth to WMS. I’ll briefly comment on a few. We restored the normal flow of new product development in jurisdictional approvals which has allowed us over the last two quarters to reestablish customer demand and rebuild momentum in our product sales and participation businesses. Successfully launched our new Bluebird2e cabinet with emotive lighting, adapted our proven Bluebird2 cabinet with the CPU-NXT2 operating platform for class two markets and launched the first participation games running on our next generation CPU-NXT3 platform. We secured a key partnership with Station Casinos’ to launch our new My Poker video poker machines in the Las Vegas locals market in the December ‘12 quarter. We’re selected to participate in VLT Replacement program in Alberta, Canada with first shipments beginning in the current year. Read the rest of this transcript for free on seekingalpha.com