Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Michael Friedman with Noble Financial.
Michael Friedman – Noble Financial
I was hoping you might be able to give us a little bit more meat around the guidance of turning EBITDA positive in the second half of 2009. How many machines should we expect? What kind of win per machine? Give us a little bit of an idea on SG&A. What about the depreciation, etc.? Can you walk us through a little bit of your thinking to get to that point in the second half of 2009?
Tony Lam
Well, currently our target is to hit 2500 machines by the end of 2009. We expect that conservatively speaking. The net win would be in the $70 to $80 range. In terms of the total revenue, we believe that to cover the run rate, we have to generate over $4 million per quarter, and in terms of depreciation, would you like to comment on that?
Andy Tsui
This is Andy. I think that depreciation would be around close to $4 to $4.5 million after we have all the machines in place.
Michael Friedman – Noble Financial
And that’s on an annual basis, the $4.5 million?
Andy Tsui
This is for the 6-month period, so it’s about $3 million per quarter, close to $3 million per quarter.
Michael Friedman – Noble Financial
Okay, and you talked about renegotiation in Cambodia as far as the percentage. Can you give us an idea as to what kind of percentage you’re getting there now, versus what you got before?
Tony Lam
In two of them where we now have full treasury, the percentage increased from 25% to 30%, and in a couple of others, where we have treasury rights as well, the percentage point increased from 25% to 45%.
Michael Friedman – Noble Financial
And you expect that you’re going to have treasury function in most of them, so that will get you up to mostly 45%, is that right?
Tony Lam
Well, with the treasury function, we will definitely have those in terms of all the high-performing venues which probably have larger amount of machines. We have a couple of smaller venues where we have full audit rights because it is not important for us to focus all our efforts there. We are focusing our efforts where the revenue is coming from.
Michael Friedman – Noble Financial
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