CHICAGO -- Wells-Gardner Electronics Corp. released first quarter results on May 8. Net sales increased 46% to $18 million in the quarter that ended March 31. Sales to the gaming industry increased 55% primarily driven by the sale of video gaming terminals (or video lottery) in the state of Illinois. Net income for the quarter was $549,000, or 5¢ a share, compared with $202,000, or 2¢ per share, in last year's first quarter.
"Going forward, the total market in Illinois is estimated to be in the range of $450 million to $550 million over the next four years and represents a large opportunity for Wells-Gardner," said Anthony Spier, the company's chairman and chief executive. "Given our extensive industry experience, we are well positioned to capture and maintain market share in the 20+ percent range as the state of Illinois expands its program. As other states consider initiating VGT programs in the coming years, we expect to participate in several of these opportunities. We are off to a good start in 2013."
The manufacturer said its VGT backlog was $22 million as of March 31.
Wells-Gardner predicted full year 2013 net sales will increase in a range of 21% to 27%, between $62 million and $65 million, compared with $51.1 million in full year 2012 with a meaningful percentage increase in net earnings versus 2012.
Founded in 1925, Wells-Gardner Electronics Corp. is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including manufacturers of gaming machines and coin-op videogames, and other display integrators. The company's American Gaming & Electronics Inc. subsidiary is a parts distributor to more than 700 casinos in North America, and has offices in Nevada, New Jersey, Florida and Illinois. AGE is also a licensed distributor of video gaming terminals in Illinois.