Slot maker posts a loss

Wednesday, Oct. 29, 2003 | 9:29 a.m.

CHICAGO -- Slot machine maker WMS Industries Inc. swung to a loss in the first quarter on cost increases stemming from numerous growth initiatives, including product development and technological improvement programs.

WMS on Tuesday reported a loss of $1.9 million, or 6 cents a share, compared with earnings of $660,000, or 2 cents a share, a year ago.

Revenue increased 10 percent to $46.7 million from $42.4 million in the first quarter of fiscal 2003. Analysts surveyed by Thomson First Call, on average, expected the company to lose 2 cents a share on revenue of $46.4 million.

WMS anticipates second-quarter shipments and financial results to "improve modestly" from first-quarter levels.

A Thomson First Call consensus view projects earnings of 3 cents a share on revenue of $52.5 million. In the second quarter of 2002, the company posted a loss of 6 cents a share on revenue of $43.6 million.

The company said in 2004 it will primarily focus on regaining lost share in the video slot market before pursuing new market share in other segments of the casino floor.

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