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In preparation for WMS's FQ4 earnings release Monday, we’ve put together the recent pertinent forward looking company commentary

1Q CONFERENCE CALL YOUTUBE

GENERAL

  • “We believe that WMS has turned the corner on our efforts to restore growth in our gaming operations business. Looking out over the next few quarters, we expect our normalized flow of innovative new products for our product sales and participation operations scheduled to launch during the next 12 to 24 months.”
  • “I am excited by the prospects to reenergize our customer slot floors with the innovation and potential that will come with the launch of our first games, our next-generation CPU-NXT3 operating system…We are on track to commercialize this new operating system on the Sensory Immersion 2.0 platform, with initial approvals and the launch of the Aladdin & Magic Quest game in the latter part of the June quarter.”
  • “Another driver of revenue by the end of calendar 2012 will come from the expected launch of My Poker video poker platform.”
  • “We anticipate the placements of VLTs in Illinois and Italy, which we expect to begin in fiscal 2013, may result in a greater amount of operating leases, which will require gaming operations capital.”
  • “We also will have several exciting opportunities in fiscal 2013 provided by VLT markets. In addition to Alberta, where the lottery authorities expect to replace and ultimately upgrade the entire installed base of 7,000 VLTs, we also expect favorable opportunities from replacement VLT initiatives planned by other Western Canada Provincial Authorities.”
  • “Looking to fiscal 2013, we expect capital expenditures for property plant and equipment to decline as we'll complete two significant projects over the next few months.”
  • “In the June 2012 quarter, we expect to continue to demonstrate ongoing progress with a quarterly sequential improvement in revenues and operating margin over the March 2012 quarter.  Our rate of revenue improvement is less than what we expected earlier in the year. As a result, we expect total revenues in the June 2012 quarter to be modestly below year-ago June quarterly revenues, while our operating margin is expected to improve on a year-over-year basis, adjusting out the net impact of restructuring, impairment and other charges in the prior year.”
  • “We now have our wage net system connecting 1,280 gaming machines at 64 casinos worldwide generating a continued strong play performance.
  • “June quarter… it's likely that CapEx in gaming operations is going to be at or a little above what it was in Q3 as we now get to the point of – as we're incrementing the installed base:”
  • “Typically we see our Q4 ramping up to be our seasonally busiest quarter of the year. It goes Q4, Q3, Q2, Q1. And so I think April was a little bit softer than we would like in our gaming operations business. But our order book is building dramatically, so that offsets that.”

GAME SALES

  • “Ongoing benefits from our cost containment and continuous improvement initiatives more than offset the roughly $1,100 decrease in average selling prices that primarily reflected a greater mix of lower priced VLT sales, the impact from higher discounts given on larger volume orders, fewer premium for sale units, and the continued impact of a competitive marketplace.”
  • “Our floor share for new casino openings this year is expected to be in the high teens”
  • “We expect over time to recapture ship share and reestablish our fair share of the market.”
  • “I would expect us to get back to more the mid-20%s here in fiscal 2013 based on the performance of our content and we're very excited”
  • “I would think that from a modeling standpoint, you'd probably want to use the last three quarters or so as a more typical ASP price going forward. I think given the competitive pressures, you're not going see us have great pricing leverage in the next two to three quarters, but I think it will be a more normalized run rate going forward, call it the $16,000 range.”
  • "We've had great success in getting game conversions out on the floor and by having those game conversions out and the high performance of those games, that's always a good metric and indicator for future game sales”
  • “I think that going forward, you're going to continue to see us be competitive with pricing. I wouldn't use the word aggressive but we're going to be competitive.”
  • “We have several premium for sale products coming out in fiscal 2013 that we hope will drive ASP. “
  • Q: “You shipped 759 of the 957 previously shipped games last quarter that you didn't recognize revenue on. Do you expect to recognize the balance of that in 4Q?
    • A: “Related to Maryland, we shipped the preponderance of the games for that opening in the March quarter and relative to the units that we still have yet to recognize revenue on, our belief is we will be able to recognize revenue on those in the fourth quarter.”

GAMING OPERATIONS

  • “With current open orders for now over 2,100 units and five new participation games expected to receive their regulatory approvals this quarter. and with our improving product performance, we expect further growth in the installed participation base and revenue per day in the June quarter and beyond.”
  • “We're confident that the unusually high number of refreshes in the last several quarters will moderate over the next several quarters and slowly return to more historical rates, which would lead to more incremental placements to increase the installed base.”
  • “This is the most prolific stable of products we've ever launched in any one quarter, this is fQ4. And I think, heading into Q1 of fiscal 2013, we're going to be back in business here and that's going to – we're going to have some tailwind for once.”
  • “We've had great success in some of our more fixed lease products in the last year. And so it's really a mix of business issue there as well.”