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Our notes from BYI's pre-G2E Sunday presentation.


Management Commentary

  • Alpha 2 platform and first alpha 2 games
    • Uspin technology
    • iView network/sale pipeline
  • BYI preliminarily selected by the British Columbia Lottery Commission and Ontario Lottery Gaming Corporation as the systems provider - 20,000 games (3,500-4,500 per game); still going through the procurement process. If they are contracted, installations would begin summer 2011 at the earliest and would take a few years to deploy.
  • Systems:
    • In the last few years, systems hasn't grown much : 206, 212, 218, 220-235mm in FY2011. Although, the economy has been challenged as well.
    • Average of 2.4 new customer sites added per month. Have about 615 clients now.  This is equivelent to 1,700 slot machine additions per month. Customer slots - 418k connected worldwide through BYI systems.
    • Top peforming casinos use BYI:
      • LA: 13 of the top 17
      • IN: 8 of the top 12
      • NY: 6 of 8
      • PA: 6 of 9
  • For FY2008-2010, BYI has had 149 major new installs ,201 upgrades, and 245 add-ons
  • Core products:
    • Multi-property (few companies have this function)
    • Universal card (few companies have this function)
    • Offline ticketing (will continue to print even if system goes down)
    • Live floor view
    • Smart card
    • 2 way downloadable credits
    • Game reservation (allows customers to lock games for 30 minutes so no one else can play them)
    • High limit jackpot
  • Table View:
    • Have over 80 sites and almost 4,000 tables connected. Sold more table views last year than all the years combined (won all of PA); added 2,500 tables.
    • Only system where casino doesn't need to replace chips or tables - Optical chip recognition and automated bet tracking - not RFID
  • Revenue generating products:
    • iVIEW DM only floor-wide solution
    • Supports all protocols (which their competitors' windows can't do)
  • On 1,200 devices at Pechanga - with iView.  Wheel allows them to market to customers at the point of play.  Virtual racing app: carded play, rated play and card requested all increased.
  • The virtual racing--will come out in a series of games
  • Drink ordering tool allows them to advertise certain alcohol and make money that way
  • Also can send customer rewards right to the game instead of mailing stuff to their house
  • Also allows them to market perishable inventory (food/hotel rooms/show tickets)
  • New casinos: 70k slots--3500 per game--is 245MM opportunity
  • WMS's bonusing only works on their own devices.  WMS's bonusing isn't integrated into the casinos' systems. Today, WMS's systems are approved as gaming devices, not systems.

 

Q&A

  • 70% of their systems revenue has been generated from their existing customer base. Canada is obviously new.  It's been 70% for the last 3 years. When an existing customer has a new opening, they count that in the 70%.
  • The $3,500-4,500 price in Canada doesn't include maintenance revenue.  Maintenance starts 90 days after go live.
  • 3 of the top Konami salespeople joined them over the last few months.
  • Canada RFP for units:  doesn't think that winning the system will help with slots. Alberta was awarded to IGT and Speilo 50/50.
  • IL - still see it as a large market but it can slip into the Dec '11 quarter.  Think that they have a good product there. Time frame of IL roll out - best guess is 6 quarters.
  • Acqueduct timing: plan to open April/May 2011 at 50%.  Numbers should be better than Yonkers.
  • Part of what they did to improve their video product was open up lots of studios - former ALL guys, WMS guys and Atronic deal no deal guys. Alpha 2 is also a better platform. Have 50% more studios.
  • Australia - expect it to be breakeven, maybe a penny this year, but after that, they expect it to contribute 5 cents per year. But they also expect to be able to export the successes they have there back to the USA.
  • Thinks that WMS's lawsuit is about Cash Spin.  BYI just filed a response to WMS's suit.
  • IGT anti-trust and bonusing still left - not expecting any news on that for 6 more months.
  • Feel like iView DM pipeline is pretty exciting.
  • Can put it on a competitor's system but are staying away from that now. Applications will be initially licensed but can switch it to recurring revenue.
  • Out of the 420k slots connected - 100k can't do bc of economics and then half don't have high speed internet; so about 150k slot opportunity for iView DM. Marketing department limitations for customers are also a barrier.
  • Cool new games:
    • Love Meter
    • Cash Wizard
    • Golden Pharoah - has a horizontal wheel
    • Alpha 2: 4 screens, speaker system, emotive lighting, hot zones, iDeck.
    • 260 games at show