High Demand for RFID Gaming Chips in Macau Triggers Accelerated Expansion Plans for Gaming Partners International
June 19 2006 - 10:00AM
PR Newswire (US)
LAS VEGAS, June 19 /PRNewswire-FirstCall/ -- Gaming Partners
International Corporation (NASDAQ:GPIC) (brand names: Bourgogne et
Grasset, Paulson, and Bud Jones) today announced that its French
subsidiary, GPI SAS, has made both larger and sooner than expected
expansion plans to accommodate the high demand for its gaming chips
from Macau casinos, including particularly RFID chips in Low
Frequency (Philips 125 KHz) and also now in High Frequency
(Magellan/PGIC 13.56 MHz). GPIC recently announced that it entered
into a real estate purchase contract for an existing, two-story
building in Beaune, France located near GPI SAS's existing
facility. The purchase is scheduled to close by the end of June
2006, subject to standard closing conditions. The purchase price is
650,000 euros (approximately US $827,840 as of June 1, 2006). The
building will serve in particular as the administrative and sales
headquarters and non-gaming chip production facility for GPIC's
operations outside of the United States, resulting in additional
space for gaming chip production at GPIC's existing facility in
Beaune, France. In parallel, GPI SAS is getting ready to receive
several additional and sophisticated pieces of equipment in order
to properly serve the needs of the Macau casinos that are
purchasing RFID and non-RFID gaming chips from GPI SAS. The new
space will allow GPIC to increase its gaming chip production
capacity without any significant interference with ongoing
production and business operations. Sales of RFID gaming chips and
readers are definitely on the rise on a worldwide basis, and are
expected to keep growing in the coming years. GPI SAS has ramped up
its production facilities and number of employees in order to meet
the increased demands from the Macau casinos, both in the volume of
orders and in the delivery time requirements. GPI SAS has increased
its number of employees by nearly 40% just since December 31, 2005.
"Based on our strong backlog at year end, we had already started to
expand our production capacities in France, the US and Mexico. In
France, the increase in production capacity and space has to be
achieved faster than originally planned due to the soaring demand
for our well-known and widely accepted gaming chips, jetons and
plaques both without RFID and with RFID. The Macau casinos prefer
the quality, experience and proven track record that only we can
provide," commented, Gerard P. Charlier, President and CEO.
Charlier continued, "GPI SAS, specializing in gaming chips for more
than 80 years, began selling RFID chips 10 years ago. Over the
years, nearly 100 casinos worldwide have purchased RFID jetons,
plaques and chips from GPI SAS. The level of utilization of these
RFID gaming chips ranges from the simple authentication of chips on
an individual or stack basis to the more sophisticated automatic
chip authentication and accounting with RFID readers, and finally
to the much more sophisticated players tracking and table
management systems offered by Progressive Gaming International Corp
(PGIC). As previously announced, several well-known large Macau
casinos have recently decided to invest in our RFID chips, either
in Low Frequency or in High Frequency." For Low Frequency RFID
chips, jetons and plaques only, GPIC's total sales amounted to
approximately $1 million in 2003 and 2004 each and $4.5 million in
2005. In the first quarter of 2006, GPIC's sales of Low Frequency
RFID chips, jetons and plaques amounted to $ 5.4 million. Based on
actual April and May sales and on the current backlog of signed
orders to be delivered before the end of the year, we expect 2006
GPIC sales of RFID chips, jetons and plaques in Low Frequency and
High Frequency to exceed $16 million, more than three times greater
than RFID chip sales in 2005. About the Company GPIC manufactures
and supplies (under brand names: Bourgogne et Grasset, Paulson, and
Bud Jones) gaming chips, jetons and plaques, layouts, playing
cards, dice, gaming furniture, table accessories, RFID readers and
other products that are used with casino table games such as
blackjack, poker, baccarat, craps and roulette. GPIC is
headquartered in Las Vegas, Nev., with offices in Beaune, France;
San Luis, Mexico; Atlantic City, N.J.; and Gulfport, Miss. GPIC
sells its casino products directly to licensed casinos throughout
the world. For additional information about GPIC, visit our web
site at http://www.gpigaming.com/. This press release may contain
certain forward-looking statements that are subject to risks and
uncertainties. GPIC's expectations regarding operating results and
operating efficiencies, including the growth of new product
markets, may not be met. Factors that could cause actual results to
vary materially from these forward-looking statements include:
reduction in growth rate of new and existing casinos and markets,
particularly in Asia, failure of the industry to accept RFID
technology generally, or 125 KHz or 13.56 MHz RFID technologies,
with respect to gaming chips and readers, potential patent
infringement issues, development of competing technologies by our
competitors, timing and volume of customer demand for our casino
products, customer cancellation of orders included in our backlog,
timing of new casino openings and expansions, domestic or
international terrorists incidents, and unexpected taxes, charges,
costs or difficulties in consolidating the operations of the
locations. Additional information concerning factors and risks that
could affect these statements and GPIC's financial condition and
results of operations are included in GPIC's Form 10-Q for the
quarter ended March 31, 2006 and Form 10-K for the year ended
December 31, 2005. DATASOURCE: Gaming Partners International
Corporation CONTACT: Gerard Charlier, Chief Executive Officer of
Gaming Partners International Corporation, +1-702-384-2425; or
Jerry Freisleben of Foley/Freisleben LLC, +1-213-955-0020, for
Gaming Partners International Corporation Web site:
http://www.gpigaming.com/
Copyright
Gaming Partners International Corp. (NASDAQ:GPIC)
Historical Stock Chart
From May 2024 to Jun 2024
Gaming Partners International Corp. (NASDAQ:GPIC)
Historical Stock Chart
From Jun 2023 to Jun 2024