Elixer Gaming Technologies, Inc. F3Q08 (Qtr End 9/30/08) Earnings Call Transcript

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2008-11-13 11:34:12.0

Tags: Revenue, Call Transcript, Earnings, Operational Accounting, Games, Finance, Personal Technology, Seeking Alpha, Revenue, Call Transcript, Earnings, Operational Accounting, Games, Finance, Personal Technology, Seeking Alpha, Elixir Gaming Technologies Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from [Steve Goodimo - Vergis Capital].

[Steve Goodimo - Vergis Capital]

If you achieve your guidance for next year of 2,500 machines installed, is it fair to say that the revenue would then double? Can you help us out in terms of what that could look like for next year? If you did basically $10 million of revenue for the year-to-date nine months, are we talking that the revenue would go up to about $20 million?

Tony Lam

With 2,500 machines operating in Q4 we’re looking at approximately getting up to the $3 million level in terms of our revenue.

[Steve Goodimo - Vergis Capital]

$3 million for the quarter you mean?

Tony Lam

Yes, for the quarter.

[Steve Goodimo - Vergis Capital]

But you’re at that level right now so is it because we’re losing revenue because machines are being taken away or is it just the win per machine now is declining so much?

Andy Tsui

The total revenue for the quarter is $3.6 million which includes our table game and a la mode business.

[Steve Goodimo - Vergis Capital]

I see what you’re saying.

Andy Tsui

The slot business is about $1.1 million for the quarter.

[Steve Goodimo - Vergis Capital]

Then on the table game products and the non-gaming products, could you talk about those revenue items? How do we project those forward? Is that just basically going to [inaudible] and I’m sorry. Andy, what did you mention about the table games? You did $400,000 this quarter. Would that look to be about the same going forward?

Andy Tsui

With the plan to close down our China manufacturing facility, I think the sales revenue for the table game business will definitely slowdown much more. The only item that we have is the chip orders for our Dolphin plant.

[Steve Goodimo - Vergis Capital]

What about the old V&X products? The Shuffle Master and the DeckChecker and things like that? Are you shutting those all down?

Yuk Man Chung

In terms of the manufacturing side, the answer is yes. However we do have certain arrangements with some of our distributors in terms of selling certain of these items.

[Steve Goodimo - Vergis Capital]

Just clarify again? You said the adjusted EBITDA for the second half of ’09 would be just positive or did you give a number with that?

Yuk Man Chung

 

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