WMS Industries Inc. F4Q08 (Qtr End 06/30/08) Earnings Call Transcript

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2008-08-18 02:14:11.0

Tags: WMS Industries Inc.

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Our first question comes from the line of Joe Greff with JPMorgan. Please proceed.

Joe Greff – JPMorgan

Hey guys, good results.

Brian Gamache

Thanks Joe.

Orrin Edidin

Thanks Joe.

Joe Greff – JPMorgan

Question for you I was hoping that you can just give us a big picture of you in terms of the operating environment particularly on the participation side of things you are obviously – your guidance suggests that you are continuing to grow that, but within the different types of participation games what are your customers dealing in terms of what they are removing, what they are going with, and as they are trying to reduce expenses. And then a second easier question, Scott, maybe you can sort of talk about what are your fiscal ’09 outlook and guidance in terms of what you are forecasting in terms of additions to the gaming operations equipment CapEx and just CapEx overall.

Brian Gamache

Joe, I will take the first part if I may. Regarding participation business, we are not seeing what our competitors are seeing. The strongest indicator of our strength is the daily yield. The June win per day numbers were the highest in our history and continue to trend upward for July and the first week in August. So, that’s really the strongest determining factor if our games are going to hold up or not. We have a 2000 unit backlog, as Orrin mentioned, and the current products in the field Wizard of Oz, Bigger Bang Big Event, MONOPLOY Up, Up and Away, and Happy Days are the key drivers to the backlog.

And then going forward, when you look at the various products we have coming down, we have our Q1 debut of our Adaptive Gaming platform with STAR TREK and DIRTY HARRY 2 on our Sensory Immersion platform. Q2 we have our Transmissive Wizard of Oz, which has scored very well in our benchmark testing. Q2 we have the POWERBALL Powerseat [ph] which is Community Gaming non-WAP product. And then Q3 we have Reel 'em In Compete to Win, our Community Gaming WAP, which was very popular last year’s G2E. So, when you look at the four platforms, Adaptive, Community, Sensory Immersion, Transmissive, we are not just brining out game things anymore. We are really focusing on those platforms to drive unique enablement to the games and the success we are having is just incredible. And so I think our participation business albeit is somewhat challenged in this environment we are seeing that our win per day and our footprint continue to grow and it’s at the strength of the content.

 

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