WMS 1Q profit rises, revenue misses analyst views

WMS fiscal 1st-qtr profit climbs 26 percent but revenue falls short of analyst expectations

• On 5:32 pm EDT, Monday October 26, 2009

WAUKEGAN, Ill. (AP) -- WMS Industries Inc. said Monday that its fiscal first-quarter net income climbed 26 percent. The casino equipment maker's revenue and outlook fell short of analyst expectations, however, and its shares fell in after-hours trading.

WMS shares fell $2.40, or 5.1 percent, to $45.43 in after-hours trading, after falling $1.48, or 3 percent, to finish regular trading at $47.40.

For the quarter that ended Sept. 30, WMS earned $19.8 million, or 34 cents per share, compared with $15.7 million, or 27 cents per share, in the year-ago quarter. Excluding a one-time charge of 2 cents per share, the company earned 36 cents per share, which is what analysts polled by Thomson Reuters were expecting.

Revenue rose 9 percent to $165.3 million; analysts expected $168 million. Product sales revenue rose to $88.8 million from $87.2 million, while gaming operations revenue rose to $76.5 million from $64.2 million.

WMS predicted second-quarter revenue of $184 million to $190 million; it reported $178.4 million in the previous year's second quarter.

WMS added that it still expects $760 million to $780 million in revenue for the full fiscal 2010 year.

Analysts expect $195.6 million in second-quarter revenue and $775.8 million in full-year revenue.