THE ASSOCIATED PRESS
CHICAGO -- WMS Industries Inc. reported sharp increases in gaming industry profits, but posted a net quarterly loss due to its decision to halt pinball and cabinet making operations.
The Chicago-based company said it posted a $4.7 million net loss for the fiscal 2000 first quarter, ended Sept. 30, due to a $13.2 million one-time charge related to discontinuing its non-gaming operations. WMS lost $1.6 million in the fiscal 1999 first quarter.
The company said net income from continuing operations -- primarily its WMS Gaming Inc. subsidiary, which makes slot machines such as Monopoly -- was $8.9 million, or 29 cents a share, compared with a $100,000 loss in the year-earlier period.
The total included income of $200,000 from a contract to make video games designed and sold by Midway Games Inc.
WMS Gaming's revenue soared 155 percent, to $48 million from $18.8 million in the fiscal 1999 quarter, while overall company revenue rose to $51.2 million from $21.8 million.
The company said it sold 4,083 video and reel-type gaming devices in the latest quarter, up from 2,333 in the year-ago period, and that revenue from participation games rose to $15.7 million from $2 million.
WMS said it decided to stop making pinball machines and cabinets due to "a prolonged period of weak demand and ongoing losses." The company lost more than $7 million from such operations in each of the past two years.
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