Elixir Gaming Technologies Reports First Quarter
2008 Financial Results
LAS VEGAS & MACAU -- (BUSINESS WIRE) -- Elixir Gaming Technologies,
Inc. (AMEX:EGT):
Conference Call: Today, May 13 at 4:45 p.m.
ET
Dial-in numbers: (212) 231-6005 or (415) 247-8544
Webcast: www.elixirgaming.com
Replay
information provided below
Elixir Gaming Technologies, Inc. (AMEX:EGT)
("Elixir Gaming" or "the Company"), a leading technology and
solutions provider to the Pan-Asian gaming industry, today
reported operating results for the first quarter ended March
31, 2008 and reviewed recent corporate progress.
First Quarter 2008 and Recent Highlights:
• Thirteen venues with a total of 1,517
electronic gaming devices currently in operation, compared
with three venues with a total of 415 electronic gaming devices
at December 31, 2007
• Expanded executive team to support operating growth
through appointments of experienced gaming and technology
industry personnel in finance, legal and human resources and
added gaming venue technical support expertise
• Secured trade credit facility with Elixir International
for the purchase of gaming machines, with a note issued in
the amount of $15 million
• As of March 31, 2008, the Company had $46.7 million
in cash on hand
Gordon Yuen, Executive Chairman and CEO of Elixir Gaming,
commented, "Elixir Gaming is making significant progress in
establishing a leading market presence throughout Pan-Asian
gaming markets. Since the commencement of the Company's new
business model in September 2007, Elixir Gaming has placed
gaming machines in thirteen operating venues across three
Asian countries. Having secured a substantial base of contractual
commitments for the placement of gaming devices on a participation
basis, the Company has now invested in its infrastructure
to support our expectations for long-term growth. At this
time, our primary focus is on working closely with venue owners
or operators to improve net win per day per machine. We remain
confident that the initial results of the business plan effected
just eight months ago demonstrate that Elixir Gaming is on
track to deliver sustainable long-term value for our shareholders."
Joe Pisano, Executive Director & Executive
Vice President, added, "Our thirteen venues in operation reflect
the Company's success to date in building a significant footprint
in Asia. Currently, three venues are in operation in the Philippines,
nine venues are in operation in Cambodia and one venue is
in operation in Vietnam. Three venues in Cambodia are temporarily
closed for the implementation of further optimization strategies
and are expected to be operational later in the current quarter.
Our ability to provide comprehensive technical support and
slot machine configuration is integral to our strategy to
maximize net win per day at each venue. With the benefit of
initial, but comprehensive, slot management performance data,
during the first quarter we commenced a review and analysis
of the operations and market presence that we've now established.
In addition to our activities focused on
maximizing net win per day at each venue, Elixir Gaming continues
to expand, and recently opened its first venue in northern
Vietnam. Elixir Gaming, in conjunction with our strategic
partner, Elixir International, continues to identify additional
high-quality venues and future growth opportunities to ensure
we maintain our standing as a leading gaming technology and
solutions provider in Asia.”
David Reberger, Elixir Gaming's Chief Financial
Officer, further commented, "With a growing installed base
of participation games, Elixir Gaming continues to focus on
its capital structure to ensure that we cost effectively fund
our expansion, and last month we secured a trade credit facility
to fund gaming machine purchases. Loans obtained under the
facility will be repaid in equal monthly installments over
a two year period. Under this agreement, we issued a note
in the amount of $15 million to meet a current trade payable
to Elixir International for gaming machines previously acquired.
This agreement provides Elixir Gaming with a non-dilutive
potential source of capital to fund our growth.
In addition, during the first quarter Elixir
Gaming was granted summary judgment on all patent infringement
claims in the litigation case brought by Shuffle Master and
is currently in the process of seeking recovery of $3 million
in damages and legal fees in the case.
Finally, given our primary focus on placing
gaming devices on a recurring revenue participation basis
and building net win per day at each venue, we continue to
explore options for the divestiture of our non-core legacy
table gaming operations as another avenue toward maximizing
shareholder value.”
Q1 Financial Review
Due to the timing of initial gaming machine
placements, the operating results for the three month period
ended March 31, 2008 are not representative of the business
model effected in September 2007 (whereby Elixir Gaming is
placing gaming machines based on a revenue share model in
Asia). Revenues from gaming machines on participation units
were approximately $0.52 million in Q1 2008 compared to revenues
of $0.3 million in Q4 2007 and $0.1 million in Q3 2007. Elixir
Gaming's 2008 first quarter total revenues of $2.9 million
represent a decrease of $0.5 million when compared to total
revenues of $3.4 million for the first quarter of 2007.
For the first quarter of 2008, Elixir Gaming
reported a net loss of $5.3 million, or ($0.05) per share,
on a weighted average share count of 114.9 million shares
compared to a net loss for the first quarter of 2007 of $3.4
million, or ($0.10) per share, on a weighted average share
count of 32.4 million shares. Selling, general and administrative
expenses (SG&A) for the 2008 first quarter period increased
$2.2 million to $5.2 million compared to the prior year period,
of which approximately $2.0 million was due to non-cash stock-based
compensation expense. The exercise prices of options contributing
to this additional charge ranged between $2.90 and $7.50 with
a weighted average exercise price of $4.96.
Elixir Gaming is hosting a conference call
and simultaneous webcast at 4:45 p.m. Eastern time today,
May 13, both of which are open to the general public. The
conference call number is 212/231-6005 or 415/247-8544. Questions
and answers will be reserved for call-in analysts and investors.
Interested parties may also access the live call on the Internet
at www.elixirgaming.com; please allow 15 minutes to register
and download and install any necessary software. Following
its completion, a replay of the call can be accessed for thirty
days on the Internet at www.elixirgaming.com.
About Elixir Gaming Technologies,
Inc.
Elixir Gaming Technologies Inc. (AMEX:EGT) is a member of
Elixir Group, an innovator of gaming technology solutions
and a wholly owned subsidiary of Melco International Development
Limited. Elixir Gaming, in collaboration with Elixir International
(which is also a member of Elixir Group), secures long-term
contracts to provide comprehensive turn-key solutions to 3,
4 and 5 star hotels, cruise ships and other well-located venues
throughout Asia that seek to offer casino gaming products.
Elixir International assists the venue and venue owner with
the licensing and regulatory process, physical casino design,
construction management, slot and game floor design layout,
purchases the gaming machines and systems from the industry's
leading gaming equipment suppliers and installs the gaming
machines and systems such that the casino is delivered in
a fully operational state. Elixir Gaming retains ownership
of the gaming machines and systems and receives recurring
daily fees of at least 20% of the net gaming win per machine
and provides on-site maintenance. The Company has established
a strategic presence in the Asia Pacific region with participation
contracts in the Philippines, Cambodia, Vietnam and other
Asian markets. For more information please visit www.elixirgaming.com.
Forward Looking Statements
This press release contains forward-looking statements concerning
Elixir Gaming, Elixir Group and Elixir International within
the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Those forward-looking statements include
statements regarding expectations for the business relationship
between Elixir Gaming, Elixir International, including the
recurring revenue that may develop from the relationship with
Elixir International, and the Elixir Gaming’s expectations
for future revenue. Such statements are subject to certain
risks and uncertainties, and actual circumstances, events
or results may differ materially from those projected in such
forward-looking statements. Factors that could cause or contribute
to differences include, but are not limited to, risks related
to Elixir International’s inability to place gaming
machines at significant levels, risks related to whether the
gaming machines placed generate the expected amount of net-win
and risks related to the ability of Elixir Gaming to collect
revenue and protect its assets and those other risks set forth
in Elixir Gaming’s annual report on Form 10-K for the
year ended December 31, 2007 filed with the SEC on March 31,
2008 and our Form 10-Q for the three months ended March 31,
2008 to be filed on May 14, 2008. Elixir Gaming cautions readers
not to place undue reliance on any forward-looking statements.
Elixir Gaming does not undertake, and specifically disclaims
any obligation to update or revise such statements to reflect
new circumstances or unanticipated events as they occur.
– financial tables follow –
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