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Last updated on May 25, 2013 at 17:29 EDT

WMS Industries and International Game Technology Under the Microscope: Casino Equipment Stocks Show Good Returns

February 12, 2013

LONDON, February 12, 2013 /PRNewswire/ –

Times are good for gaming equipment company stocks. Casino and gambling industry is
recovering from recession and is showing good development and the cascading effect is
clearly visible on the gaming equipment stocks. The industry is also showing signs of
consolidation as there are ample mergers and acquisitions taking place. Scientific Games
is looking to takeover WMS Industries Inc. (NYSE: WMS), however, the deal is yet to be
ratified. On the other hand, International Game Technology (NYSE: IGT) reported strong
quarterly results. StockCall has released full comprehensive research on WMS Industries
and International Game Technology, and these free technical analysis can be downloaded by
signing up at http://www.stockcall.com/technicalanalysis

WMS Industries – Acquisition in the Air

WMS Industries agreed to be acquired by Scientific Games for $1.5 billion. The deal
priced the company stock at $26 a share and the consideration is payable in cash. The
stock has substantial upside if the deal goes through. However, there are also chances of
the deal falling through, and in such a case, the stock may tumble down to its previous
pre-acquisition price level. WMS Industries reported its operating margin at 14 percent,
which is among the lowest margins prevailing in the industry. The company is also saddled
with patent issues. Free technical analysis on WMS Industries available by signing up at

http://www.StockCall.com/WMS021213.pdf

WMS Industries recently announced its earnings for the quarter ended on December 31st,
2012. For the period, the company earned revenue of $157.5 million, down from $162.2
million in revenue it had reported for the corresponding quarter of the last year. Its net
income also fell from $16.1 million to $4.3 million. On the positive side, its gaming
operations revenue jumped $8 million on Y-o-Y basis. Its cash flows from operating
activities also increased.

The main catalyst for the stock at the moment is its acquisition news by Scientific
Games. However, even if deal falls through, the company has alternatives planned out. In
December last year, it launched its new video poker platform and is likely to carry out
the expansion of this program. Its products are also garnering good demand and the future
looks good for the company despite some negative points.

International Game Technology Posts Healthy Q1 Results

International Game Technology increased its first quarter revenue to $530 million, up
19 percent. Its adjusted EPS also grew 65 percent to 28 cents per share. Talking about the
future plans of the business, CEO Patti Hart said, “Through the remainder of fiscal 2013,
we intend to build on this momentum by leveraging our core business, distributing our
best-in-class content more broadly, and returning capital to shareholders.” Register today
and access the free research on International Game Technology at

http://www.StockCall.com/IGT021213.pdf

The stock is also gaining interest from institutional investors such as Balyasny Asset
Management which augmented its holding of IGT.

International Game Technology grew 7 percent in the past 52 weeks and it also offers a
dividend yield of 1.69 percent. However, the company is also increasing shareholders’
value by buying back its stock. Late last year, it completed accelerated stock buyback
worth $400 million. During FY2012, the company bought $540 million worth of its stock. The
company also increased its quarterly dividend by 17 percent and with stronger results, the
dividend is expected to increase or remain stable during the near future. International
Game Technology passed a proposal to buy back up to $1 billion worth of its stock. Hence,
investors look to benefit from this stock.

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Source: PR Newswire