Scientific Games Corp (NASDAQ:SGMS) 4Q Revenue Up By 63%
Scientific Games Corp (NASDAQ:SGMS) reported its 4Q and full year operational results on 12th March after business close. As a result the stock soared by close to 16.3 percent during trading on 13th March.
The firm announced that its revenue for the quarter had gone up by 63 percent to hit $401.9 million, which was well above the $388 million that analysts were estimating before the call. The increase in revenue many fold was on the back of the company completing the acquisition of WMS industries, which contributed a solid chunk to the firm’s annual numbers. The earnings per share for the quarter were 3 cents. Buoyed by additional revenue projected from its bought out firm WMS in addition to sustained revenue from its organic operations, the firm has provided a strong outlook for 2014.
Cost cutting operations bearing fruit
The firm had taken some hard decisions in 2013 which had led to restructuring of its operations. Those changes are expected to yield $60 million as savings for the firm. The restricting efforts included the consolidation of its various operations into a simpler org structure, which in turn lead to the streamlining of efforts and avoiding of duplication of process.
Brand New Org Structure
David L. Kennedy, who is the Vice Chairman of the Board and also holds the posts of President and Chief Executive Officer while highlighting the changes to the organization structure, has been quoted to have said that, “A new organizational structure has been established centred on three operating groups each with well defined goals, strategy and accountability. Our lottery operations consisting of Instant Products and Lottery Systems had been combined into one group led by Jim Kennedy, Group CEO.The interactive gaming is headed by Orrin Edidin, Group CEO, now as a unit of Scientific Games operates as Williams Interactive. And finally the Gaming Group is led by Bill Huntley, Group CEO.”