The Company recorded strong gaming chip and plaque revenue of $1.7 million for the third quarter of 2012, representing approximately 85% of the total annual gaming chip and plaque sales for 2011. While order flow is expected to remain lumpy on a quarterly basis, the Company believes the future prospects are attractive. This pipeline includes announced orders for $1.9 million in revenue for the fourth quarter of 2012, including $600,000 to complete the Crown Perth order and $1.3 million to supply the new Solaire Resort & Casino in the Philippines. Further, the Company believes its expanded market presence and the growth plans for its existing customer relationships, offers strong potential for meaningful future orders for this division.
In addition, the Company is focused on enhancing profitability of these operations. Through continued investment in expanding production capacity and efficiency, acquired experience and enhanced efficiencies in new in-house processes and planned cost reduction initiatives, the Company expects to increase operating efficiencies and automation that will drive long-term earnings improvement for these operations.
Continuing Efforts to Ramp Up Dreamworld Pailin
In May 2012, the Company opened the mass market floor of its first casino development project, Dreamworld Pailin. Dreamworld Pailin is located at the Cambodia-Thailand border on a growing trade route connecting the two countries. It currently houses 26 popular table games such as baccarat and dice games and an attractive suite of 50 slot machines. Dreamworld Pailin will also include VIP facilities, which are not yet open.The Company has recently improved and expanded its senior operations team at Dreamworld Pailin and implemented a number of new marketing initiatives to ramp up operations of the mass market floor. In addition, the Company continues to actively pursue opportunities to partner with local gaming promoters for its VIP rooms and expects to open these facilities in the next several months. By utilizing gaming promoters, it expects to improve high net worth player traffic in the VIP rooms while minimizing the downside risk and volatility as the promoters typically share in wins and losses and assume the credit risk.