Record revenues generate 9 percent increase in gross profit

Slot giant WMS Gaming posted an 8 percent increase in revenues in the 2010 financial year to a record $765.1 million, fueling a 9 percent increase in gross profit.

Operating income increased 23 percent to a record $167.9 million as the operating margin improved 260 basis points to 21.9 percent. Adjusted EBITDA rose 14 percent, or $33.9 million, to $283.4 million, resulting in an adjusted EBITDA margin of 37 percent, compared with 35.3 percent in fiscal 2009.

The company posted a 22 percent increase in profit to $112.9 million, or $1.88 per diluted share.

WMS initiated fiscal 2011 revenue guidance of $830 million to $850 million, representing expected year-over-year growth of 8 percent to 11 percent. Fiscal 2011 first quarter revenue guidance calls for revenue of $174 million to $179 million, a projected increase of 5 percent to 8 percent.

The company posted an 18 percent increase in profit for the fourth quarter to $33.6 million, or 56 cents per diluted share, on a 9 percent jump in revenue to $213.4 million.