Slot company WMS reports 11 percent increase in income

LAS VEGAS, Nevada -- Slot machine manufacturer WMS Industries Tuesday reported a nearly 11 percent increase in net income for the second quarter.

The Illinois-based game maker said its net income for the period that ended Dec. 31 was $26.5 million, or 44 cents per share, up from $23.7 million or 41 cents per share for the same quarter in 2009.

WMS said its total revenues grew 6 percent in the quarter to $188.9 million.

"The consistent improvements from our continuous improvement initiatives support our focus on developing and funding future growth initiatives, including research and development spending for the creation of next-generation products," WMS Chairman and Chief Executive Officer Brian Gamache said in a statement.

Gamache said the company expects to benefit as casinos replace older slot machines as new markets in Australia and Mexico open.

Before the company announced earnings, Roth Capital Markets gaming analyst Todd Eilers said WMS has been slicing into its competitors' business.

"We also view WMS as one of the best suppliers to own in the space considering its expanding market share and international expansion opportunities," Eilers said.

Shares of WMS closed up 4 cents or 0.10 percent on the New York Stock Exchange Tuesday to finish the day at $41.10.