Knobias Clip Report (11-01-2007)

Submitted By Knobias ClipReport

EGT: International Gaming Provider Gaining Revenue Traction

Thursday’s session saw a late trick delivered to the market following last night’s Halloween activities. The Dow lost over 300 points on the back of heavy losses from Citigroup, General Motors, American International Group, Credit Suisse Group, Exxon Mobil, and a host of others.

The reality may be setting in that the Fed is finished cutting the rates while the attention now turns to the non farm payroll numbers which were set to be released on Friday.

Earnings were still in full swing as Thursday saw a bevy of companies report their quarterly numbers.

One company that hasn’t reported its numbers yet but did pop up on a few radar screens was Elixir Gaming Technologies (EGT). The Company is a member of Elixir Group, an innovator of gaming technology solutions and a wholly owned subsidiary of the Melco Group.

Elixir Gaming is focused on placing gaming machines on a revenue share model in Asia. It has established a strategic presence in the Asia Pacific region with its participation contracts in the Philippines, Cambodia, Vietnam and other Asian markets.

They deliver cutting-edge and market-competitive technology. Its products include table devices, such as the automated card verification machine, computer-based card shuffling system, and high-frequency RFID-gaming chips and plaques. The products are distributed by Elixir Group in Asia and Suzo Happ in the Americas and Europe.

In addition, Elixir Gaming has the capability to quickly and efficiently respond to the stringent and specific technical requirements of customers, in collaboration with Elixir Group's ICT, manufacturing and research and development teams. These services optimize the security, productivity and profitability within the gaming establishments.

The Company most recently announced that the Elixir Group Limited has delivered agreements for the placement of an additional 700 slot machines on a participation basis. Reflecting these agreements, Elixir Gaming now has total commitments for 3,994 electronic gaming machines to be placed on a long-term participation basis, including 2,164 placements in the Philippines, 930 in Cambodia, 400 in Vietnam and 500 aboard cruise ships. Of the nearly 4,000 placement commitments, approximately 320 electronic gaming machines are currently in operation and the Company expects to have a total of approximately 1,500 in operation by December 31, 2007.

The Company has gaming machine placements are at the following venues: 200 at the Cotabato City VIP Club in Cotabato City, Philippines; 100 at the Angkor Paradise Hotel in Siem Reap, Cambodia; 100 at Diamond Hotel in Phnom Penh, Cambodia; and, 300 aboard the MV Jupiter cruise ship operating out of Vietnam. Elixir Gaming will have 100% of the gaming machine floor at each of the four venues and receive no less than 20% of the net gaming win from the machines.

With the international growth in casinos, the Company has seen a strong demand for their products and with 20% of the net revenue, their recurring revenue growth is certainly something to follow. Investors would be wise to watch.




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