WMS Industries F1Q08 (Qtr End 9/30/07) Earnings Call Transcript

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2007-11-05 17:37:35.0

Tags: WMS Industries Inc.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). And the first question comes from the line of Joe Greff of Bear Stearns. Please proceed

Joe Greff - Bear Stearns

Hey guys, how are you?

Brian Gamache

Hi, Joe.

Joe Greff - Bear Stearns

Question for you. On looking back at this past quarter, and looking at the gross profit margin on product sales which was up a lot more than we forecasted, if you were to sort of allocate that 510 bips of improvement year-over-year, how much of that relates to product mix, and how much of that relates to things that you are doing on Lean Sigma from the strategic sourcing initiatives?

Scott Schweinfurth

I think it is probably a third due to the Prog next meeting more videos and mechanical real show. I think it’s a third due to the ASP and premium-priced to sell during the quarter, and a third is due to the Lean Sigma initiatives including our procurement initiatives.

Joe Greff - Bear Stearns

I got you. And then, Orrin, you mentioned about going to field trials in early calendar '08 for some of the server-based gaming, or the server-centric stuff. How many field trials do you think you are on before you actually add that kind of launch in the second half of fiscal '09?

Orrin Edidin

There will be two primary field trials. As we said, this is a phased submission with the first getting ready to begin in just right at the beginning of the 2008, and our second field trial to occur probably later in the summer, which will be more feature rich and enhanced. So we would probably expect two primary field trials for our first commercialized product roll out.

Joe Greff - Bear Stearns

Great. Thanks, guys.

Operator

And our next question comes from the line of Harry Curtis of JP Morgan. Please proceed.

Harry Curtis - JP Morgan

Hi, guys. I have got three really quick questions. The first is, that it looks like you had a very successful quarter on the conversion kits, and the first question is, do you think that that is sustainable?

Orrin Edidin

Yes, I do, Harry. I think there is always content continues to perform. As it is today, there will be a strong demand for the refreshing of the boxes our there. So, yes, I believe that’s sustainable.

Harry Curtis - JP Morgan

 

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