Hi Jim
WMS
tscn.com
I follow and play
was in the other day for an -1/8 ... cause I went pluck pluck when it dt'ed ...
6 7/8 out at 6.75
mistake ...
it closed nice that day
re-entry anytime now.
just had earnings and the market reacted nicely to it
I will post my entry ... if/when it occurs :o)
a nice plus from this company is their timely emails ... you get the news before the street ... or at/about the same time.
This email came to me before YHOO had it.
BW1535 OCT 26,1998 13:17 PACIFIC 16:17 EASTERN
( BW)(WMS-INDUSTRIES)(WMS) WMS Industries Reports First Quarter
Results
Business Editors
CHICAGO--(BUSINESS WIRE)--Oct. 26, 1998--WMS Industries Inc.
(NYSE:WMS) announced today its results of operations for the fiscal
first quarter ended September 30, 1998.
Revenues for the fiscal 1999 first quarter were $26,799,000
compared with $20,035,000 in the prior year period. Loss from
continuing operations decreased to $1,644,000, $.06 per share, from
$2,989,000, $.12 per share, in the prior year period. Net income
(loss), which includes both continuing operations and discontinued
operations, was a net loss of $1,644,000, $.06 per share, for the
quarter ended September 30, 1998 compared to net income of $3,288,000,
$.13 per share for the prior year fiscal quarter. Loss from continuing
operations and net loss for the September 30, 1998 quarter were
increased by $500,000, $.02 per share, due to costs from the ongoing
strike at the Company's cabinet manufacturing facility, and were
decreased by $790,000, $.03 per share, from a net recovery relating to
purchased parts overcharges primarily from certain pinball games
suppliers in prior years.
The Company's gaming subsidiary, WMS Gaming Inc., which designs,
manufactures and markets casino gaming devices and video lottery
terminals reported a 129% increase in revenues to $18,844,000 in the
fiscal 1999 first quarter from $8,234,000 in the prior year quarter.
In the first quarter of fiscal 1999, the majority of revenues were
derived from the sale of video gaming devices and recently introduced
models of reel type slot machines while the majority of revenues in
the prior year quarter were from the sale of video lottery terminals.
WMS Gaming's segment gross profit increased 143% to $5,817,000 from
$2,390,000 in the September 30, 1997 quarter. WMS Gaming's segment
operating loss decreased to $665,000 from $4,219,000 in the fiscal
1998 first quarter.
In August 1998, the Company began testing in Nevada two models of
reel type MONOPOLY themed slot machines at several casinos. The test
was subsequently expanded to include two multi-line, multi-coin video
MONOPOLY gaming devices. The casinos' earnings from these test
machines are extremely encouraging. The MONOPOLY trademark is being
used under exclusive license from Hasbro, Inc. The four MONOPOLY
themed models were introduced at the World Gaming Congress in late
September. The Company has commenced signing participation lease
agreements with casinos nationwide and began installations of both
reel type and video models in Nevada during October. The Company
currently has an order backlog, which has been growing consistently
since its introduction, for over 800 MONOPOLY themed participation
gaming devices. License approval for the four MONOPOLY models in other
major jurisdictions is expected to be completed over the next three
months.
The Company's pinball game segment experienced a decrease in
revenues to $5,031,000 in the fiscal 1999 first quarter from
$11,801,000 in the prior year quarter due to decreased industry-wide
demand for the current generation of pinball games. In response to the
continued weak demand the Company has embarked upon a major redesign
of its pinball products in an effort to increase their attractiveness
and popularity with players and customers. WMS has been designing and
selling pinball games for over 50 years and has previously endured
substantial declines in demand for its pinball games. The Company has
historically been successful in reigniting demand for its products by
introducing new generations of pinball games. The Company's next
generation pinball family, Pinball 2000, is a dramatic step forward in
design compared with current pinball models and is scheduled for
introduction by the end of calendar 1998.
After the April 6, 1998 spin-off of Midway Games Inc., the
Company continues to manufacture under a contract the coin-operated
video games designed and sold by Midway Games Inc. The September 30,
1998 quarter includes the new business segment, contract
manufacturing, which generated revenues of $2,924,000, gross profit of
$465,000 and segment operating income of $235,000. Previously the
Company recorded these operations as a cost allocation between a
parent and consolidated subsidiary.
This press release contains certain forward looking statements
concerning future business conditions and the outlook for the Company
based on currently available information that involve risks and
uncertainties. The Company's actual results could differ materially
from those anticipated in the forward looking statements as a result
of certain risks and uncertainties, including, without limitation, the
Company's loss from continuing operations, financial strength of the
gaming and pinball industries, the expansion of legalized gaming into
new markets, the development, introduction and success of new games
and new technologies and the ability to maintain the scheduling of
such introductions, the ability of the Company to qualify for and
maintain gaming licenses and approvals, the outcome of certain legal
proceedings to which the Company is a party and other risks more fully
described under " -- Factors Affecting Future Performance" in the
Company's Annual Report on Form 10-K.
WMS Industries Inc. is engaged in the design, manufacture and
sale of gaming devices and video lottery terminals, coin-operated
pinball and novelty games, and contract manufacturing.
-0-
*T
WMS INDUSTRIES INC.
Consolidated Summary of Operations
(Thousands, except per share amounts)
(Unaudited)
Three months ended
September 30,
1998 1997
Segment revenues:
Gaming $ 18,844 $ 8,234
Pinball, novelty and cabinets 5,031 11,801
Contract manufacturing 2,924 -
Total revenues $26,799 $20,035
Segment gross profit (loss):
Gaming $ 5,817 $ 2,390
Pinball, novelty and cabinets (68) 2,960
Contract manufacturing 465 -
Total gross profit $ 6,214 $ 5,350
Segment operating income (loss):
Gaming $ (665) $ (4,219)
Pinball, novelty and cabinets (2,565) (385)
Contract manufacturing 235 -
Unallocated corporate (578) (365)
Total operating (loss) $ (3,573) $ (4,969)
Net interest and other income $ 922 $ 148
(Loss) from continuing operations $ (1,644) $ (2,989)
Income from discontinued operations
- video games segment - 6,277
Net income (loss) $ (1,644) $ 3,288
Basic and diluted earnings per
share of common stock:
(Loss) from continuing operations $ (.06) $ (.12)
Income from discontinued operations - .25
Net income (loss) $ (.06) $ .13
Average shares used in per share
calculations 27,988 25,549
WMS Industries Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Sept 30, 1998 June 30, 1998
Assets
Cash and short-term investments $ 60,352 $ 62,943
Receivables, net 31,847 30,432
Income tax refund 9,179 10,114
Inventories 38,472 39,620
Deferred income taxes 18,215 18,155
Prepaids 660 769
Total current assets 158,725 162,033
Property, plant and equipment, net 34,551 32,607
Other assets 13,750 12,882
Total assets $207,026 $207,522
Liabilities and Stockholders' Equity
Accounts payable $ 9,537 $ 7,818
Patent litigation accrual 35,226 35,372
Accrued liabilities 6,085 6,777
Total current liabilities 50,848 49,967
Other liabilities and deferrals 2,264 2,264
Stockholders' equity:
Common stock 14,044 14,016
Additional paid-in capital 170,657 170,418
Retained earnings (deficit) (30,639) (28,995)
Treasury stock (148) (148)
Total stockholders' equity 153,914 155,291
Total liabilities and stockholders' equity $207,026 $207,522
*T
--30--de/ny*
CONTACT: WMS Industries Inc.
Harold H. Bach, Jr.
Chief Financial Officer
773/961-1111
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Kathleen M. Holmes
212/835-8500, wms@jcir.com
KEYWORD: ILLINOIS
INDUSTRY KEYWORD: ENTERTAINMENT COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS
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