Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from [Paul Stones – Paul D. Stones Partners]
[Paul Stones – Paul D. Stones Partners]
I noticed there was not mention of scientific gaming and your relationship with them. Could you give us an update on how that's proceeding?
Clarence Chung
Back in last December we entered into a strategic alliance with Global Draw to place several gaming machines at venues sourced by us in exchange for a shared portion of the net win per day of these devices. However, given the recent regulatory events in Cambodia, our more immediate target placement for the Global Draw network gaming machines will be in the Philippines at the bingo halls, the e-game venues, TV as well as the slot clubs.
I think we are aligning closely and we are also doing the show of the Silver Board machines in the coming Manila April gaming shows. So we are working on that and hopefully we can place several of those machines in the Philippines in the second half of the year and if successful, we'll ramp up placement relatively quickly and we believe that the placement of these games will deliver incremental net revenues to Elixir.
[Paul Stones – Paul D. Stones Partners]
With the revenues from the chip order coming in the second quarter is there any estimation of whether you will be cash flow positive in the second quarter?
Clarence Chung
The cash flow from the chip order from City of Dreams will be recorded in the second quarter, you're right, and if fact coupled with the apparent results from the cost monetization during the first quarter and then probably leading to the second quarter, we expect that we might be still marginally cash negative but in the second half of the year we are still targeted to turn EBITDA positive.
[Paul Stones – Paul D. Stones Partners]
Any estimate of how much positive cash you believe you'll have on hand at the end of the second quarter? I'm trying to get a sense of the margin of error that the company is operating with.
Andy Tsui
We don't disclose this information in such detail but again, the goal is to turn EBITDA positive in the second half. We are taking significant steps to reduce our overhead while building our revenue in the Philippines and Cambodia because with the additional cash profits from Shuffle Master we expect to have sufficient cash for working capital for the next 12 months.
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