Progressive Gaming International Corporation Q2 2008 Earnings Conference Call

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2008-08-12 05:39:14.0

Tags: Progressive Gaming International Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Todd Eilers - Roth Capital.

Todd Eilers - Roth Capital Partners LLC

Could you maybe give a little bit more of a break down in terms of your revenue for this quarter, maybe provide how much of that came from the slot management side, how much from the table management side and then free to those, how much related to installation activities and how much was recurring revenue?

Heather A. Rollo

It was a strong slot systems quarter. About 75% of the revenues were related to slot systems management with the remainder table management. As with, I think, most quarters, about half of our revenues come from new installations while the other half comes from some expansion or recurring revenues. And as we’ve previously said before, recurring revenues are right around the range of 20-25% of overall revenues.

Todd Eilers - Roth Capital Partners LLC

Do those numbers also include the recurring hardware piece on the slot side, or what does that fit in there?

Heather A. Rollo

Yes, they would also include that as well.

Todd Eilers - Roth Capital Partners LLC

The recurring revenue, the 20%?

Heather A. Rollo

20-25%. Yes.

Todd Eilers - Roth Capital Partners LLC

And the $1.6 million contract that was pushed out was that on the slot or the table side?

Russel H. McMeekin

Slots, it was delivered. It just didn’t get signed out until over the third of defilement.

Todd Eilers - Roth Capital Partners LLC

And then looking forward for your fiscal ?08 guidance, $80-90 million, could you maybe give us a sense of how this should look, the mix between Q3 and Q4? Just maybe a little bit more color on how that rolls out.

Russel H. McMeekin

Table Management’s net revenue’s becoming a larger percentage of EBITDA than it is a percentage of overall revenue. That mix will continue from what we can see right now through Q3 and Q4 because we are starting to see Table ID rolling out in Europe. We have some pretty large installations planned for Macau around this Chip Tray. And then the Canadians, the Europeans, and then CJS in Nevada, our own backyard, on the Slot Management front are where we’re seeing the Slot Management category grow. And we’ll begin to see a little bit from a revenue point of view but again at a very high margin contributor to EBITDA from our sports systems in the second half.

 

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