Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from the line of Paul Sante - Paul de Sante Partners.
Paul Sante - Paul de Sante Partners
What estimate do you have for cash at your end prior to the exercise of any options?
Andy Tsui
We normally don’t disclose that detailed information in the call, but we expect that the cash was to accumulate as we are recouping our commitment from Naga.
Paul Sante - Paul de Sante Partners
The question goes to the issue of whether you’ll have sufficient cash to exercise the option if you choose to do so?
Andy Tsui
We’ll basically go with our project with the existing cash, so in such case, our CapEx is only limited to the level that is appropriate for our cash flow.
Clarence Chung
Having said that, I think as of September 30th, we had approximately $4.6 million cash on hand and this is a rough calculation, and in fact, we are confident that we have sufficient cash internally generated for exercising of those options.
Paul Sante - Paul de Sante Partners
So, at this point, there are no plans for any financings?
Clarence Chung
In fact, we do not have major need that we would turn to look out for external financing at this moment, but as I mentioned, obviously we are going expand on a management basis for the year 2010 onwards, and indeed I think if we encounter certain good opportunities which exceed our current resources, we made turn to find various options for the financing, but having said that, I think we are currently based on our internally generated funding in projecting our expansion.
Paul Sante - Paul de Sante Partners
The machines you’ve discussed that there is going to be a revaluation and an analysis of the machines you have in inventory, and I wasn’t sure whether that indicated that just in comparison to what other new machines available are, it would be appropriate to lower the valuation on the machines in inventory or whether you were saying that some of the machines in inventory are not going to be usable in future venues, which is correct?
Clarence Chung
This is an ongoing process whereby, as I mentioned, we are on the one hand trying to optimize the machine revenue generating capabilities and it is an ongoing process; the customers help us and indeed different markets have different needs and different favors to the various machines, and in this respect, the company is commencing an analysis of the various machines on the floor as well as in the warehouse just to make sure that we have the optimal machine mix to be able to be deployed on the floors.
- To read the full transcript on Seeking Alpha, click here »
